Abbey Bank Plc has secured approval from the Central Bank of Nigeria (CBN) to transition from a mortgage bank into a regional commercial bank, ending its three-decade focus on mortgage finance. The Lagos-based lender, formerly Abbey Mortgage Bank Plc, plans to launch commercial banking operations in the fourth quarter of 2026, targeting retail, SME, and corporate customers.
Strategic Shift After 30 Years in Mortgage Banking
Abbey Bank's Managing Director and Chief Executive Officer, Mobolaji Adewumi, described 2026 as a defining moment for the institution. He said the CBN's approval reflected the confidence placed in the bank by regulators, shareholders, customers, and employees. The lender will draw on its mortgage and real estate finance experience to address a wider set of financial needs, according to Leadership reports.
"Our ambition is to make banking more accessible and responsive to individuals, families and businesses," Adewumi said. He added that the bank is committed to a smooth transition while preserving the service standards its existing customers expect.
Preparations for Commercial Banking Launch
As part of preparations, Abbey Bank is upgrading its digital infrastructure, improving operational processes, and moving customers onto an enhanced core banking platform designed to support its planned retail, SME, and corporate services. The bank is also refreshing its brand identity ahead of the commercial banking debut, though it has not yet disclosed details on branch expansion or specific new products.
The CBN's approval allows Abbey Bank to broaden its services beyond real estate finance, positioning it to compete across a wider segment of Nigeria's banking sector.
Financial Performance and Future Outlook
The transition comes after strong financial performance. Abbey Bank posted a pre-tax profit of N3.12 billion in 2025, up from N1.22 billion in 2024, a year-on-year increase of roughly 155.7%. The bank said its transformation would be guided by financial resilience, sustainable growth, and capital strengthening.
Earlier, Legit.ng reported that the Nigeria Deposit Insurance Corporation (NDIC) commenced the liquidation of 46 microfinance banks whose operating licences were revoked by the CBN. The NDIC said it had been appointed official liquidator in line with Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Sections 55(1) and (2) of the NDIC Act 2023. Under Section 12(2) of BOFIA, the NDIC automatically assumes the role of liquidator once the CBN revokes a bank's operating licence.
