Abbey Bank’s 9M pre-tax profit hits N3.23 billion, beats Q3 forecast by 77.58%
Abbey Bank Plc reported a pre-tax profit of N3.23 billion for the nine months ended September 30, 2026, representing an increase of 112.63% from N1.52 billion in the corresponding period of 2025.
In the third quarter, pre-tax profit surged by 126.34% to N1.72 billion from N760.64 million in Q2 2026 and rose by 157.02% from N669.84 million in Q3 2025, beating the bank’s forecast of N969.53 million by 77.58%.
The earnings beat was supported by stronger-than-expected interest income, while Q3 profit after tax of N1.68 billion exceeded the forecast of N727.14 million by 130.42%.
For the nine-month period, gross earnings increased by 120.31% to N30.15 billion, while profit after tax rose by 55.89% to N2.26 billion.
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The nine-month pre-tax profit also surpassed the N3.13 billion recorded for the entire 2025 financial year, as Abbey Bank advances its transition from a primary mortgage bank to a regional commercial bank.
The performance comes as Abbey Bank transitions from a primary mortgage bank to a regional commercial bank, following final approval from the Central Bank of Nigeria on June 5, 2026.
Key Highlights
The following figures cover the nine months ended September 2026, with year-on-year comparisons, except for balance sheet figures, which are compared with December 2025.
- Gross earnings: N30.15 billion (Up 120.31% YoY from N13.69 billion).
- Interest income: N28.83 billion (Up 120.28% YoY from N13.09 billion).
- Interest expense: N22.28 billion (Up 122.98% YoY from N9.99 billion).
- Net interest income: N6.56 billion (Up 111.60% YoY from N3.10 billion).
- Fees and commission income: N544.28 million (Up 30.00% YoY from N418.67 million).
- Total operating income: N7.88 billion (Up 113.10% YoY from N3.70 billion).
- Operating expenses: N4.65 billion (Up 113.43% YoY from N2.18 billion).
- Earnings per share: 8.22 kobo (Down 56.89% YoY from 19.06 kobo).
- Total assets: N375.73 billion (Up 126.58% from N165.83 billion in December 2025).
- Customer deposits: N263.81 billion (Up 231.29% from N79.63 billion).
- Loans and advances: N11.08 billion (Up 13.96% from N9.72 billion).
- Shareholders’ equity: N73.76 billion (Up 583.75% from N10.79 billion).
Driving the numbers
Abbey Bank’s nine-month earnings growth was largely driven by higher interest income, particularly from short-term funds and investment securities.
- Interest income increased by 120.28% to N28.83 billion, accounting for approximately 95.62% of gross earnings during the period.
According to the notes to the financial statements, interest income from short-term funds reached N24.53 billion, compared with N9.51 billion in the corresponding period of 2025. This represents 85.08% of total interest income.
- Interest income from investment securities at amortised cost increased to N2.61 billion from N1.90 billion, while interest income from loans and advances declined slightly to N1.69 billion from N1.71 billion.
The figures show that Abbey Bank’s earnings were predominantly generated from short-term placements and investment securities. However, the growth in interest income was accompanied by a significant increase in funding costs.
- Interest expenses rose by 122.98% to N22.28 billion from N9.99 billion, largely reflecting the higher cost of customer deposits.
- Interest expenses on customer deposits reached N21.84 billion, compared with N8.10 billion in the corresponding period of 2025, accounting for approximately 98.07% of total interest expenses.
Despite these costs, net interest income increased by 111.60% to N6.56 billion from N3.10 billion.
Non-interest income also contributed to earnings growth. Fees and commission income increased by 30.00% to N544.28 million, while other operating income rose to N774.90 million from N178.54 million.
- The bank recorded N231.76 million in net gains on financial assets measured at fair value through profit or loss during the period.
On the operating cost side, expenses increased by 113.43% to N4.65 billion from N2.18 billion, reflecting higher personnel, depreciation, and other operating expenses.
- Personnel expenses rose to N1.32 billion from N671.82 million, while other operating expenses increased to N2.96 billion from N1.33 billion.
Nevertheless, the bank maintained a cost-to-income ratio of 58.97%, compared with 58.88% in the corresponding period of 2025.
- The third-quarter figures indicate sustained earnings momentum, with interest income reaching N14.26 billion, compared with N5.28 billion in the corresponding quarter of 2025.
Quarterly net interest income increased to N3.60 billion from N1.16 billion, while profit after tax rose by 161.03% to N1.68 billion from N641.87 million.
Balance Sheet
On the balance sheet, Abbey Bank’s total assets expanded by 126.58% to N375.73 billion as of September 2026, from N165.83 billion in December 2025, primarily driven by increases in balances with other financial institutions and investments.
- Amounts due from banks and other financial institutions increased by 392.00% to N214.99 billion from N43.70 billion, while financial investments held at amortised cost rose by 27.79% to N136.19 billion from N106.57 billion.
- Loans and advances to customers increased by 13.96% to N11.08 billion from N9.72 billion.
The expansion in assets was supported by a substantial increase in customer deposits, which rose by 231.29% to N263.81 billion from N79.63 billion.
Shareholders’ equity also increased to N73.76 billion from N10.79 billion, reflecting additional capital of N61.93 billion issued and fully paid during the period.
- Overall, Abbey Bank’s results reflect stronger interest earnings, significant deposit mobilisation and increased capitalisation as it prepares to commence regional commercial banking operations.
The bank disclosed that it received final regulatory approval for its conversion on June 5, 2026, and expected to commence commercial banking operations in the fourth quarter of 2026.
Market reaction
Abbey Bank closed at N5.75 per share on Tuesday, November 3, 2026, representing a decline of 8.73% from its previous closing price of N6.30 on November 2.
The stock has declined by 10.2% year-to-date from its opening price of N6.40 at the beginning of 2026.
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