VFD Group set to resubmit application to upgrade Abbey Mortgage Bank to commercial bank

VFD Group Plc has stated that it will resubmit its application this year requesting that Abbey Mortgage Bank’s license be converted to commercial banking.

According to Nonso Okpala, GMD/CEO VFD Group while addressing shareholders in Lagos said: “We withdrew our application for a commercial banking license last year. However, we remain committed to this strategic goal and will resubmit our request application this year, requesting that Abbey Mortgage Bank’s license be converted to a commercial banking license. We hope to complete this in a timely manner, but we are aware that it may take longer than a year”.

Financial performance

According to the audited financial statement, the Abbey Mortgage 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.
  • The bank’s resilient performance is testament to the effectiveness of its strategy and capacity to generate sustainable revenue.

Strategic focus

On business consolidation, Okpala said to make use of the group’s resources, the organisation is reviewing the structure of some of its businesses to identify those with similar lines of business for possible mergers. This will strengthen the new entity’s position and performance.

We have received board approval for the merger of Dynasty Real Estate and Herel as well as VFD Bridge and Atiat Leasing. These mergers will be completed by the end of the first quarter of 2022.

He noted that in February 2022, VFD became the largest equity stakeholder in the Nigerian Exchange Group (NGX) after acquiring up to 5% of NGX Group’s issued share capital. We believe we can play a critical role in providing strategic guidance, having already acquired over 6% of NASD Plc.

He said, “We will provide strategic support for the future development of both Exchanges as they transform into the preferred touchpoints for traditional and alternative capital formation in Africa.”

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