Article summary
- The mortgage bank also projected to rake in N814.531 million in interest income.
- The company targets for a profit before tax stood at N204.33 million and N142.95 million for profit after tax during the stipulated period.
- In FY 2022, the company had gross earnings of N5.84 billion, a 58.7% growth from N3.68 billion in 2021. Operating income grew by 46.01%, from N2.18 billion in 2021 to N3.18 billion.
Abbey Mortgage Bank Plc has set its sights on achieving N1.443 billion in gross earnings during the third quarter of 2023, according to the company’s earnings forecast obtained from the Nigerian Exchange Limited (NGX).
The mortgage bank has also projected N814.531 million in interest income, while its profit before tax is estimated at N204.33 million and profit after tax at N142.95 million for the specified period. The forecasted taxation stands at N61.38 million.
Other projections
The mortgage bank also projected to rake in N814.531 million in interest income. Its projection for a profit before tax stood at N204.33 million and N142.95 million for profit after tax during the stipulated period. Forecasted taxation stood at N61.38 million.
Abbey Mortgage Bank recently said that it developed retail and wholesale products to increase market penetration and drive optimal balance sheets.
The Managing Director of the Bank, Mr. Bolaji Adewunmi, stated this at the company’s 31st Annual General Meeting (AGM) held in Lagos.
Significant traction
Adewunmi noted that the bank’s wholesale business segment made significant traction, particularly with the financial institutions with the launch of Abbey Secured Structured Note.
- “The Note allowed us to raise over N2.67 billion collateralized liabilities, which we have fully settled. While this contributed to our earnings ratio, more importantly, it served as a platform to differentiate our bank from the market.
- Our retail-focused campaign also grew with circa N1.7 billion new deposits raised, as we navigate a changing interest rate environment.
- While we know that our approach to risk management could result in a lag between deposit growth and risk asset creation, we believe it is important that our balance sheet remains efficient.
- We have continued to enhance our treasury function to take advantage of market opportunities, and we will continue to review our product pricing and offers to be cost-effective,” he said.
FY’2022 financial performance
Adewunmi stated that the company’s financial performance has sustained its strategic vision as it achieved several new records in multiple parameters.
- “In FY 2022, the company had gross earnings of N5.84 billion, a 58.7% growth from N3.68 billion in 2021. Operating income grew by 46.01%, from N2.18 billion in 2021 to N3.18 billion.
- This culminated in a pre-tax profit of N827 million, a 25.14% raise from the N2021 position of N661 million.
- We grew customer deposits by 29.8%, increasing from N21.3 billion in 2021 to N27.6 billion. The growth in deposits is in tandem with our rising perception and status across the industry and reinforces customers’ confidence in the bank.
- Total Assets grew by 15.6% closing at N39.9 billion from N34.5 billion in 2021. While our loans and advances declined by 16.25% from N6.1 billion in 2021 to N5.1 billion. However, investments grew by 13.1% from N1.8 billion in 2021 to N4.2 billion.
- The decline in our loan book is the near-term impact of our delinquent asset clean-up exercise and our long-term approach toward risk management.
- As a result of our earnings performance, shareholders’ funds grew by 11% from N6.9 billion in 2021 to N7.6 billion,” he said.
