CBN Approves as Firm Transition to Commercial Bank
- Abbey Bank Plc received CBN approval to transition from mortgage banking to regional commercial banking after over 30 years in the sector
- The bank plans to begin commercial banking operations in Q4 2026, targeting retail, SME and corporate customers
- Abbey Bank's pre-tax profit jumped to N3.12 billion in 2025, up from N1.22 billion the previous year
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Legit.ng journalist Dave Ibemere has experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Abbey Bank Plc has received approval from the Central Bank of Nigeria (CBN) to convert from a mortgage bank into a regional commercial bank, marking a significant shift in the institution's direction after more than three decades in mortgage finance.
The Lagos-based lender, formerly known as Abbey Mortgage Bank Plc, said it expects to begin commercial banking operations in the fourth quarter of 2026.
Source: Facebook
The expansion will allow it to serve a broader range of customers, including individuals, small and medium-sized enterprises (SMEs) and corporate organisations, beyond its traditional focus on mortgage financing and real estate-related services.
Abbey Bank prepares for commercial banking launch
Managing Director and Chief Executive Officer Mobolaji Adewumi described 2026 as a defining moment for the institution.
He said the CBN's approval reflected the confidence placed in the bank by regulators, shareholders, customers and employees, and that the lender would draw on its mortgage and real estate finance experience to address a wider set of financial needs, Leadership reports.
Adewumi said:
"Our ambition is to make banking more accessible and responsive to individuals, families and businesses."
He added that the bank was committed to a smooth transition while preserving the service standards its existing customers expect.
As part of preparations for the launch, Abbey Bank said it is upgrading its digital infrastructure, improving operational processes and moving customers onto an enhanced core banking platform designed to support its planned retail, SME and corporate services.
The bank also said it is refreshing its brand identity ahead of the commercial banking debut, though it has not yet disclosed details on branch expansion or specific new products.
Source: Getty Images
Abbey Bank's Profit Rises Sharply in 2025
The transition comes on the back of a strong financial performance. Abbey Bank posted a pre-tax profit of N3.12 billion in 2025, up from N1.22 billion in 2024, representing a year-on-year increase of roughly 155.7%.
The bank said its transformation would be guided by financial resilience, sustainable growth and capital strengthening as it moves to compete across a wider segment of Nigeria's banking sector.
NDIC updates customers as CBN shuts down 46 Nigerian banks
Earlier, Legit.ng reported that the Nigeria Deposit Insurance Corporation (NDIC) has commenced the liquidation of 46 microfinance banks whose operating licences were revoked by the CBN, marking the next phase in the resolution of the failed financial institutions.
In a statement issued on Wednesday, the NDIC said it had been appointed the official liquidator of the affected banks in line with Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Sections 55(1) and (2) of the NDIC Act 2023.
The corporation explained that under Section 12(2) of BOFIA, it automatically assumes the role of liquidator once the CBN revokes a bank's operating licence
Source: Legit.ng
