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

VFD Group Plc said it will resubmit its application this year asking for Abbey Mortgage Bank’s license to be converted to a commercial bank.

According to Nonso Okpala, GMD/CEO of VFD Group, addressing shareholders in Lagos, said: “We withdrew our commercial banking license application last year. However, we remain committed to this strategic objective and will resubmit our application this year, requesting that the Abbey Mortgage Bank license be converted to a commercial banking license. We hope to complete this in due course, but we are aware that it may take more than a year”.

Financial performance

According to the audited financial statements, Abbey Mortgage Bank returned to profitability from the previous year’s loss with an after-tax profit of N622.198 million for the full year, compared to a loss of N4.301 billion recorded in 2020.

  • Profit before tax stood at N661.063 million compared to a loss of N4.297 billion in 2020.
  • The profit was driven largely by net interest income of N1.630 billion recorded during the period under review compared to N860.060 million recorded in 2021, an increase of 89.52%.
  • Other operating income increased by 99.72% to N239.170 million from N120.266 million.
  • The bank continued to maintain a very strong balance sheet with total assets of N34.460 billion, an increase of 86.06% from the N18.520 billion recorded in 2020.
  • The bank’s resilient performance testifies to the effectiveness of its strategy and its ability to generate sustainable income.

Strategic direction

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

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 finalized by the end of the first quarter of 2022.

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

He said, “We will provide strategic support for the future development of the two stock exchanges as they transform into preferred points of contact for traditional and alternative capital formation in Africa.”