Abbey Bank Plc reported a pre-tax profit of N3.23 billion for the nine months ended September 30, 2026, representing an increase of 112.63% from N1.52 billion in the corresponding period of 2025.<\/p>\n
In the third quarter, pre-tax profit surged by 126.34% to N1.72 billion from N760.64 million in Q2 2026 and rose by 157.02% from N669.84 million in Q3 2025, beating the bank\u2019s forecast of N969.53 million by 77.58%.<\/p>\n
The earnings beat was supported by stronger-than-expected interest income, while Q3 profit after tax of N1.68 billion exceeded the forecast of N727.14 million by 130.42%.<\/p>\n
For the nine-month period, gross earnings increased by 120.31% to N30.15 billion, while profit after tax rose by 55.89% to N2.26 billion.<\/p>\n
The nine-month pre-tax profit also surpassed the N3.13 billion recorded for the entire 2025 financial year, as Abbey Bank advances its transition from a primary mortgage bank to a regional commercial bank.<\/p>\n
The performance comes as Abbey Bank transitions from a primary mortgage bank to a regional commercial bank, following final approval from the Central Bank of Nigeria on June 5, 2026.<\/p>\n
The following figures cover the nine months ended September 2026, with year-on-year comparisons, except for balance sheet figures, which are compared with December 2025.<\/p>\n
\n\n
- Gross earnings: N30.15 billion (Up 120.31% YoY from N13.69 billion).<\/li>\n
- Interest income: N28.83 billion (Up 120.28% YoY from N13.09 billion).<\/li>\n
- Interest expense: N22.28 billion (Up 122.98% YoY from N9.99 billion).<\/li>\n
- Net interest income: N6.56 billion (Up 111.60% YoY from N3.10 billion).<\/li>\n
- Fees and commission income: N544.28 million (Up 30.00% YoY from N418.67 million).<\/li>\n
- Total operating income: N7.88 billion (Up 113.10% YoY from N3.70 billion).<\/li>\n
- Operating expenses: N4.65 billion (Up 113.43% YoY from N2.18 billion).<\/li>\n
- Earnings per share: 8.22 kobo (Down 56.89% YoY from 19.06 kobo).<\/li>\n
- Total assets: N375.73 billion (Up 126.58% from N165.83 billion in December 2025).<\/li>\n
- Customer deposits: N263.81 billion (Up 231.29% from N79.63 billion).<\/li>\n
- Loans and advances: N11.08 billion (Up 13.96% from N9.72 billion).<\/li>\n
- Shareholders\u2019 equity: N73.76 billion (Up 583.75% from N10.79 billion).<\/li>\n<\/ul>\n<\/blockquote>\n
Driving the numbers<\/strong><\/h4>\n
Abbey Bank\u2019s nine-month earnings growth was largely driven by higher interest income, particularly from short-term funds and investment securities.<\/p>\n
\n
- Interest income increased by 120.28% to N28.83 billion, accounting for approximately 95.62% of gross earnings during the period.<\/li>\n<\/ul>\n
According to the notes to the financial statements, interest income from short-term funds reached N24.53 billion, compared with N9.51 billion in the corresponding period of 2025. This represents 85.08% of total interest income.<\/p>\n
\n
- Interest income from investment securities at amortised cost increased to N2.61 billion from N1.90 billion, while interest income from loans and advances declined slightly to N1.69 billion from N1.71 billion.<\/li>\n<\/ul>\n
The figures show that Abbey Bank\u2019s earnings were predominantly generated from short-term placements and investment securities. However, the growth in interest income was accompanied by a significant increase in funding costs.<\/p>\n
\n
- Interest expenses rose by 122.98% to N22.28 billion from N9.99 billion, largely reflecting the higher cost of customer deposits.<\/li>\n
- Interest expenses on customer deposits reached N21.84 billion, compared with N8.10 billion in the corresponding period of 2025, accounting for approximately 98.07% of total interest expenses.<\/li>\n<\/ul>\n
Despite these costs, net interest income increased by 111.60% to N6.56 billion from N3.10 billion.<\/p>\n
Non-interest income also contributed to earnings growth. Fees and commission income increased by 30.00% to N544.28 million, while other operating income rose to N774.90 million from N178.54 million.<\/p>\n
\n
- The bank recorded N231.76 million in net gains on financial assets measured at fair value through profit or loss during the period.<\/li>\n<\/ul>\n
On the operating cost side, expenses increased by 113.43% to N4.65 billion from N2.18 billion, reflecting higher personnel, depreciation, and other operating expenses.<\/p>\n
\n
- Personnel expenses rose to N1.32 billion from N671.82 million, while other operating expenses increased to N2.96 billion from N1.33 billion.<\/li>\n<\/ul>\n
Nevertheless, the bank maintained a cost-to-income ratio of 58.97%, compared with 58.88% in the corresponding period of 2025.<\/p>\n
\n
- The third-quarter figures indicate sustained earnings momentum, with interest income reaching N14.26 billion, compared with N5.28 billion in the corresponding quarter of 2025.<\/li>\n<\/ul>\n
Quarterly net interest income increased to N3.60 billion from N1.16 billion, while profit after tax rose by 161.03% to N1.68 billion from N641.87 million.<\/p>\n
Balance Sheet<\/strong><\/h4>\n
On the balance sheet, Abbey Bank\u2019s total assets expanded by 126.58% to N375.73 billion as of September 2026, from N165.83 billion in December 2025, primarily driven by increases in balances with other financial institutions and investments.<\/p>\n
\n
- Amounts due from banks and other financial institutions increased by 392.00% to N214.99 billion from N43.70 billion, while financial investments held at amortised cost rose by 27.79% to N136.19 billion from N106.57 billion.<\/li>\n
- Loans and advances to customers increased by 13.96% to N11.08 billion from N9.72 billion.<\/li>\n<\/ul>\n
The expansion in assets was supported by a substantial increase in customer deposits, which rose by 231.29% to N263.81 billion from N79.63 billion.<\/p>\n
Shareholders\u2019 equity also increased to N73.76 billion from N10.79 billion, reflecting additional capital of N61.93 billion issued and fully paid during the period.<\/p>\n
\n
- Overall, Abbey Bank\u2019s results reflect stronger interest earnings, significant deposit mobilisation and increased capitalisation as it prepares to commence regional commercial banking operations.<\/li>\n<\/ul>\n
The bank disclosed that it received final regulatory approval for its conversion on June 5, 2026, and expected to commence commercial banking operations in the fourth quarter of 2026.<\/p>\n
Market reaction<\/strong><\/h4>\n
Abbey Bank closed at N5.75 per share on Tuesday, November 3, 2026, representing a decline of 8.73% from its previous closing price of N6.30 on November 2.<\/p>\n
The stock has declined by 10.2% year-to-date from its opening price of N6.40 at the beginning of 2026.<\/p>\n
Source: <\/p>\n
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