Abbey Bank Plc has received an affirmation of its short-term credit rating of “Bbb-” and “A3”, by Agusto & Co., reflecting the Bank’s improved capitalization, strong liquidity profile.
The affirmation of the A3 rating underscores the Bank’s capacity to meet its short-term financial obligations, supported by its robust liquidity position and strengthened balance sheet.
Agusto & Co. also assigned a Stable Outlook to the Bank’s ratings, reflecting expectations that its strengthened financial position, expanding franchise and increasing earnings diversification will support its credit profile.
The rating affirmation comes as Abbey Bank advances its transformation from a national mortgage bank to a regional commercial bank, following approval from the Central Bank of Nigeria (CBN) in June 2026.
The Bank is preparing to commence commercial banking operations in November 2026, with a strategic focus on expanding its financial services offerings across the South-West, South-South and North-West regions, as well as the Federal Capital Territory, Abuja. This transition is expected to strengthen the Bank’s capacity to serve a broader customer base, deepen market penetration and diversify its revenue streams.
A key highlight of the rating assessment is Abbey Bank’s strong liquidity position. As at December 31, 2025, the Bank’s total assets stood at N166 billion, with liquid assets of N148 billion, representing 89% of total assets. Its liquid assets-to-deposits ratio stood at 185.3%, significantly above the regulatory minimum of 20% and industry peers.
The Bank also maintained an undrawn US$20 million reverse repo line as at June 30, 2026, providing an additional liquidity buffer. Furthermore, its asset quality improved, with the NPL ratio declining from 7.7% in 2024 to 7.2% at year-end 2025 and further to 4.1% as at June 30, 2026, supported by continued recoveries and prudent loan origination.
Abbey Bank’s capital position also strengthened following its successful N64.5 billion equity raise, with regulatory approval received in August 2026.
The proceeds will significantly enhance the Bank’s capital base and support its transition to commercial banking. The rating further recognized the Bank’s improved profitability, with profit before tax rising to N3.1 billion in 2025, compared with N2.1 billion in 2024. As the Bank expands into construction lending, fixed-income trading, foreign currency transactions and trade finance, it will build a more diversified earnings base and strengthen its long-term growth prospects.
Commenting on the rating affirmation, the Managing Director/Chief Executive Officer of Abbey Bank Plc, Mr. Mobolaji Adewumi, said: “The affirmation of our ratings by Agusto & Co., particularly our A3 short-term rating, is a strong endorsement of Abbey Bank’s financial resilience, liquidity strength and strategic direction. It reflects the progress we have made in strengthening our balance sheet and preparing for our transition to commercial banking. As we embark on this new phase, our focus remains on building a stronger, more diversified and customer-centric bank, while maintaining prudent risk management and sound financial discipline. We are confident that our transformation will create greater value for our customers, shareholders and other stakeholders.
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