Abbey Mortgage Bank Plc has released its unaudited third-quarter results for the period ended September 30, 2025, reporting a pre-tax profit of N670 million, representing a 63.24% year-on-year (YoY) growth and exceeding its Q3 2025 forecast by over 58%.
The Q3 performance contributed to the bank’s nine-month pre-tax profit of N1.52 billion, up 57% YoY, surpassing its full-year 2024 profit by more than 18%.
Post-tax profit also grew by 63% YoY to N642 million, compared to N393 million in the same period last year.
Gross earnings for the quarter rose 65% to N5.59 billion, bringing total gross earnings for the nine months to N13.69 billion, up 62% YoY.
Other key highlights (Q3 2025 vs Q3 2024):
- Interest Income: N5.28 billion +61.62% YoY
- Interest Expense; N4.127 billion +74.72% YoY
- Net interest income; N1.157 billion +27.55% YoY
- Fees and commission income: N233 million +187.51% YoY.
- Total Operating Income: N1.467 billion +43.21% YoY
- Total Operating expenses: N797 million +29.83% YoY
- Earnings per share N0.25 +63.16% YoY
- Total Assets N111.346 billion +32.16%.
- Customers’ deposits: N79.766 billion +47.99%.
Further insight
Abbey Mortgage Bank Plc sustained growth in Q3 2025, driven by strong interest and fee-based income.
- Interest income surged by 61.62% YoY to N5.28 billion, contributing 74.46% to gross earnings.
- The growth in the interest income can be attributed to the income generated from cash and short-term funds, which increased by 96% in Q3 to N4.191 billion, contributing 79.3% to the interest income
- However, interest expenses also climbed sharply by 74.72% to N4.13 billion, indicating rising funding costs as deposits grew by over 47% in six months
Despite this pressure, net interest income rose 27.55% to N1.16 billion. The bank also saw a remarkable increase in fee and commission income, up 187.5% to N233 million, highlighting diversification beyond core lending.
Total operating income climbed 43.21% YoY to N1.47 billion, while operating expenses rose moderately by 29.83%.
- Consequently, earnings per share advanced 63.16% to N0.25, reflecting stronger profitability.
Balance sheet
On the balance sheet side, total assets expanded by 32.16% to N111.35 billion, supported by a significant growth in customers’ deposits (+47.99% to N79.77 billion), reinforcing investor and depositor confidence in the institution.
Investor perspective
Abbey Mortgage Bank’s ability to beat its Q3 2025 profit forecast by over 58%, alongside strong earnings growth and balance sheet expansion, highlights improving and strong operations.
The bank’s 127% year-to-date share price gain suggests growing investor confidence in its outlook and profitability prospects.
However, the surge in funding costs highlights the need for continued efficiency in managing deposits and sustaining margins amid a competitive interest rate environment.