Abbey Mortgage Bank Soars 47% on CBN Licence Approval
Abbey Mortgage Bank Plc soared by more than 47% in 5 days as investors increased bets on the Nigerian lender following the announcement of Central Bank (CBN) regional licence approval last week.
The mortgage lender’s significant weekly price surge was primarily driven by the authority approval for its change of identity within the financial services sector.
Trading data from the Nigerian Exchange (NGX) showed that Abbey Mortgage Bank, which opened the month of June at N6.35 per share, closed at N9.35 on Friday.
It was an all-week rally for Abbey Mortgage Bank as optimism over its earnings outlook boosted investor sentiment and sharply increased market activity.
Reflecting the optimism about the mortgage lender’s future earnings stream, more than 164 million shares valued at N1.534 billion were transacted on Friday.
This market action lifted Abbey Mortgage Bank’s share price by 10% to N9.35. Still, the bank’s share is trading at a significant 43% discount to its highest valuation over the last 52 weeks.
Trading data showed that Abbey had peaked at N16.35 during the good times before the selling rallies. The market value of Abbey Mortgage Bank Plc.’s 10.153 billion outstanding shares increased by 47% in 5 days to N94.938 billion, according to data from the Nigerian bourse.
Last week, the Board of Abbey Mortgage Bank Plc announced that the CBN approved the lender’s conversion from a primary mortgage bank to a regional commercial bank.
The bank disclosed this in a regulatory filing submitted to the Nigerian Exchange Limited, other regulatory authorities, and the investing public on Wednesday.
According to a statement signed by the Company Secretary, Geoff Amaghereonu, the financial institution has also undergone a corporate name change as part of its transition strategy.
Pursuant to the resolution of the shareholders passed at the Extraordinary General Meeting of the bank held on Friday, January 24, 2025, the name of the bank has officially been changed from Abbey Mortgage Bank Plc to Abbey Bank Plc.
The management said the transition marked a significant milestone in the bank’s expansion plans within the Nigerian financial services sector. Dangote Sugar’s N486bn Rights Issue: A High-Stakes Reset for a Once-Dominant Consumer Giant
