Rating Release
Agusto & Co. hereby affirms the “Bbb-” long term and “A3” short term ratings of Abbey Mortgage Bank Plc, with a stable outlook.
The rating expires on 30 June 2026
Agusto & Co. hereby affirms the “Bbb-“ long term and “A3” short term ratings of Abbey Mortgage Bank Plc (“Abbey Mortgage Bank”, “AMB”, or “the Mortgage Bank”). The ratings reflect Abbey Mortgage Bank’s adequate capitalisation, low leverage, improved asset quality as reflected in the decline in the non-performing loan (NPL) ratio, underpinned by recoveries on legacy exposures and an experienced management team. However, the ratings are constrained by AMB’s significant exposures to unrated counterparties, continued reliance on expensive wholesale funding with a skewed mix towards a few high net worth individuals (HNIs) and institutional investors, and subdued profitability metrics due to low net interest spread. We have also considered the impact of the challenging macro environment and high yields in the financial market on the Mortgage Bank’s operations and performance, particularly as it transitions to a regional commercial bank.
Abbey Mortgage Bank is licensed by the Central Bank of Nigeria (CBN) as a national primary mortgage bank (PMB) and is also a registered partner of the Federal Mortgage Bank of Nigeria (FMBN) in the administration of the National Housing Fund. The Mortgage Bank provides residential and commercial mortgage loans, real estate development and construction financing and ancillary services such as deposits and real estate advisory to individuals and institutions.
