Abbey Bank Plc has received an affirmation of its short-term credit rating of “A3” by Agusto & Co., a leading credit rating agency. This rating reflects the Bank’s improved capitalization and strong liquidity profile. The A3 rating underscores the Bank’s capacity to meet its short-term financial obligations, supported by its robust liquidity position and strengthened balance sheet.
The affirmation of the A3 rating comes as Abbey Bank advances its transformation from a national mortgage bank to a regional commercial bank, following approval from the Central Bank of Nigeria (CBN) in June 2026. The Bank is preparing to commence commercial banking operations in November 2026, with a strategic focus on expanding its financial services offerings across the South-West, South-South and North-West regions, as well as the Federal Capital Territory, Abuja.
Agusto & Co. also assigned a Stable Outlook to the Bank’s ratings, reflecting expectations that its strengthened financial position, expanding franchise and increasing earnings diversification will support its credit profile. This outlook indicates that the agency expects the Bank’s credit profile to remain stable in the near term.
A key highlight of the rating assessment is Abbey Bank’s strong liquidity position. As at December 31, 2025, the Bank’s total assets stood at N166 billion, with liquid assets of N148 billion, representing 89 per cent of total assets. Its liquid assets-to-deposits ratio stood at 185.3 per cent, significantly above the regulatory minimum of 20% and industry peers.
The Bank also maintained an undrawn US$20 million reverse repo line as at June 30, 2026, providing an additional liquidity buffer. Furthermore, its asset quality improved, with the NPL ratio declining from 7.7 per cent in 2024 to 7.2 per cent at year-end 2025 and further to 4.1 per cent as at June 30, 2026, supported by continued recoveries and prudent loan origination.
Abbey Bank’s capital position also strengthened following its successful N64.5 billion equity raise, with regulatory approval received in August 2026. The proceeds will significantly enhance the Bank’s capital base and support its transition to commercial banking. The rating further recognized the Bank’s improved profitability, with profit before tax rising to N3.1 billion in 2025, compared with N2.1 billion in 2024.
Commenting on the rating affirmation, the Managing Director/Chief Executive Officer of Abbey Bank Plc, Mr. Mobolaji Adewumi, said that the affirmation is a strong endorsement of Abbey Bank’s financial resilience, liquidity strength and strategic direction. The Bank is confident that its transformation will create greater value for its customers, shareholders and other stakeholders.
Key points
- Abbey Bank retains A3 short-term credit rating
- The Bank’s strong liquidity position and improved capitalization support its credit profile
- Abbey Bank is set to commence commercial banking operations in November 2026
