Abbey Mortgage Bank is set to raise additional N100 billion capital in a move to meet the April 2026 banking recapitalisation deadline set by the Central Bank of Nigeria(CBN) for banks in the country.
This will also allow the bank to play big post-recapitalisation and take an active role in the banking sector.
This is as the bank has also received Approval-In-Principle (AIP) to operate as a regional bank in the country. This means, the bank has to maintain a minimum capital of N50 billion strictly in paid-up share capital and share premium.
Addressing shareholders at its 2024 annual general meeting (AGM) in Victoria Island, Lagos, on Wednesday, its chairman, Chief Samuel Oni, disclosed that options available for compliance include; raising additional equity, entering mergers or acquisitions or voluntarily adjusting license classification to match current capital level.
In response, the chairman, represented by the Brig. Gen. John Obasa(rtd) said, Abbey is set to embark on a series of capital raising initiatives in 2025, well ahead of the regulatory deadline, reaffirming the bank’s commitment to achieve full compliance and unlocking new opportunities for growth.
He equally announced a dividend payout of 6kobo per ordinary share of 50 kobo each. “Despite the prevailing uncertainties in the business environment, the dividend underscores the company’s unwavering commitment to value creation for shareholders, even during challenging times,” he said.
He assured the shareholders at the AGM that was held virtually that, the bank remains resolute in its goal of delivering consistent returns and barring unforeseen circumstances, the board will continue to uphold the tradition of providing attractive returns to shareholders.
On his part, the managing director/CEO of the bank, Mobolaji Adewumi, noted that, the regulatory approval-in-principle the bank got requires certain actions, noting that, ‘we are diligently completing the remaining regulatory requirements and are confident of securing CBN’s final commercial banking license in 2025.’
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