By Chidimma Oparaochaekwe
Abbey Mortgage Bank Plc says it is adopting a digital-first strategy, expanding its physical presence and extending financing beyond mortgages as it transitions to regional commercial banking, with a focus on businesses across Nigeria’s housing and real estate value chain.
The Managing Director and Chief Executive Officer, Mr Mobolaji Adewumi, disclosed this at a media chat with the bank’s management at Protea Hotel, Kuramo Waters, Victoria Island, Lagos, on Wednesday.
Adewumi said the transition would enable the bank to move beyond the limitations of its former mortgage banking licence, diversify its funding sources and serve a broader range of customers, including property developers, building material suppliers, importers and other businesses connected to the real estate sector.
He explained that the decision followed an assessment of opportunities across the housing value chain, where businesses require financing to support construction, property development, building material supplies and related activities.
“Our objective is to create mortgages, but we realised that we could not effectively achieve this without participating across the value chain,” Adewumi said.
According to him, the bank’s former mortgage banking licence restricted its ability to provide certain categories of financing, prompting the decision to pursue a broader licence that would support its expansion into commercial banking.
He said the bank was adopting a digital-first approach to improve service delivery and reach more customers, while retaining physical branches to complement its digital channels. As part of the expansion, Abbey plans to establish eight locations.
Adewumi added that the bank had recruited professionals in treasury, trade finance, corporate banking, retail banking, electronic banking and risk management to strengthen its capacity for commercial banking operations.
He noted that the transition would also help the bank address one of the major challenges facing mortgage lending: the high cost of funds. According to him, access to retail deposits would broaden the bank’s funding options and support its ability to provide financing to customers and businesses across the housing value chain.
Providing background to the transition, Adewumi said the current management assumed office in 2020 and inherited substantial legacy debts, including loans dating back to 2007 and 2008.
He explained that the management pursued debt recovery through negotiations with borrowers, settlements and the recovery of assets pledged as collateral. It also introduced stricter lending procedures to prevent a recurrence of the challenges associated with the bank’s previous loan portfolio.
“When we assumed office, the bank’s non-performing loan ratio was about 80 per cent. We had to take a step back and assess what needed to be done to reposition the institution,” he said.
According to Adewumi, the measures helped the bank return to profitability within three years of the management changes and reduce its non-performing loan ratio from about 80 per cent to zero.
He disclosed that discussions with the Central Bank of Nigeria on the transition began in 2023, while approval in principle was received in October 2024. The bank subsequently raised ₦64 billion, exceeding its initial target of ₦40 billion, with the funds cleared by the CBN. It received its new licence in June 2026, paving the way for its transition to regional commercial banking.
On how the bank intends to compete with established commercial banks, the Executive Director, Business Development, Mr Dipo Adeoye, said Abbey would need to establish a clear competitive position in a market dominated by larger financial institutions.
He explained that the bank would build on its experience in mortgage financing while extending its services to a wider range of customers and businesses. Its strategy includes strengthening digital banking, expanding its physical presence and providing financing to businesses connected to the housing and real estate sectors.
Adeoye’s contribution reflects the bank’s intention to leverage its experience in mortgage financing while exploring additional business opportunities under its commercial banking licence.
The Executive Director, Finance, Risk and Operations, Mr John Okonkwo, said the bank would maintain strong risk-management practices as it expanded into commercial banking.
“At the moment, our non-performing loan (NPL) ratio is zero,” Okonkwo said.
He explained that the bank’s improved risk-management framework had helped it address previous loan challenges and would remain central to its operations under the new banking structure.
Okonkwo also disclosed that the bank had introduced an investor relations framework through which minority shareholders could raise concerns and obtain relevant information. He added that the board had three independent non-executive directors.
On women’s access to finance, the Group Head, Private & General Commerce, Abbey Bank Plc, Toyin Abel, said the bank launched a product known as Wire in 2024 to provide women operating in the real estate sector with access to affordable funding and business guidance.
“In 2024, we launched a product called Wire, designed to provide women in the real estate sector with access to affordable funding and guidance on how to structure their businesses,” Abel said.
She explained that the initiative was intended to help women access finance and develop sustainable businesses. She added that the bank planned to introduce more women-focused loan products through partnerships with development finance institutions.
“In the next one or two years, we hope to introduce more women-focused loan products that will strengthen Abbey’s position as a bank committed to empowering women,” she said.
Looking ahead, Abbey Bank said it would focus on expanding its customer base, strengthening digital banking, establishing new locations and increasing financing opportunities across the housing value chain as it builds its position in Nigeria’s commercial banking sector.
