Abbey Bank Gets CBN Approval for Regional Commercial Banking, Targets Q4 2026 Launch

Abbey Bank Plc has received approval from the Central Bank of Nigeria to convert from a mortgage bank into a regional commercial bank. The Lagos-based lender, formerly known as Abbey Mortgage Bank Plc, plans to begin commercial banking operations in the fourth quarter of 2026.

The move ends more than three decades in mortgage finance and opens the bank to retail, small and medium-sized enterprise and corporate customers, beyond its traditional focus on mortgage financing and real estate-related services.

CEO Calls 2026 a Defining Moment

Managing Director and Chief Executive Officer Mobolaji Adewumi described 2026 as a defining moment for the institution. He said the CBN approval reflected the confidence placed in the bank by regulators, shareholders, customers and employees.

Adewumi said the lender would draw on its mortgage and real estate finance experience to address a wider set of financial needs. He said: "Our ambition is to make banking more accessible and responsive to individuals, families and businesses."

He added that the bank is committed to a smooth transition while preserving the service standards its existing customers expect.

Digital Upgrade and Brand Refresh Ahead of Launch

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. The platform is 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. It has not yet disclosed details on branch expansion or specific new products.

The transition comes after a strong financial performance. Abbey Bank posted a pre-tax profit of N3.12 billion in 2025, up from N1.22 billion in 2024. That represents 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.

Industry Context

Separately, the Nigeria Deposit Insurance Corporation has commenced the liquidation of 46 microfinance banks whose operating licences were revoked by the CBN. 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 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.