Shareholders of Abbey Mortgage Bank Plc have approved the company’s board of directors’ request to raise additional capital up to N15 billion for business expansion.
The shareholders at the company’s 30th Annual General Meeting held in Lagos authorised the directors to raise the additional capital locally or internationally whether through Right Issue, Public Offer, Private Placement, Special Placing in such numbers as shall be determined by the directors.
This can also be determined through the issuance of bonds or notes or other instruments, debt, loan, in any currency, in such tranches, series or proportion, at such coupon or interest, rates or otherwise, within such maturity periods and on such other terms and conditions as the directors may deem fit or determined.
Addressing shareholders at the AGM, the Chairman of the company, Mazi Emmanuel Kanu said the management of Abbey Mortgage Bank with the support of the board made some strategic decisions toward addressing legacy delinquent assets.
Kanu said, “I am extremely proud of the progress we made in the last twelve months and the outcome that continues to validate our strategic direction.
“We ramped up recovery efforts which led to a net write-back off N180 million against a net credit loss of N3.8 billion in 2020.
Shareholders Approve N15 Billion Capital Raise For Abbey Mortgage Bank
“At the fore of our mid-term objective is a conversation with a regional bank and we will begin that process in the coming months. In addition, we will consolidate the ongoing digital transformation of the bank, with a full deployment of our corporate and mobile banking application, while we continue to develop products that allow for retail acquisition and retention, as well as increased wholesale segment transactional capabilities”.
According to the audited financial statement, the bank returned to profitability from the previous year’s loss with a profit after tax of N622.198 million for the full year as against a loss of N4.301 billion reported in 2020.
Profit before tax stood at N661.063 million as against a loss of N4.297 billion in 2020.
The profit was driven largely by net interest income of N1.630 billion reported during the period under review as against N860.060 million posted in 2021, accounting for an increase of 89.52%.
Other operating income grew by 99.72% to N239.170 million as against N120.266 million.
The bank continued to maintain a very strong balance sheet with a total asset of N34.460 billion, an increase of 86.06% from N18.520 billion recorded in 2020.