Abbey Mortgage Bank Plc projects N60.13M profit in Q1 2021

Abbey Mortgage Bank Plc, a member of VFD Group has projected a Profit after Tax (PAT) of N60.13million in its 2021 Q1.

According to the earnings forecast issued by the bank, the mortgage institution projected a 134.7 percent Q-o-Q rise from a loss of N173.49 million recorded in its most audited financial statement for Q3, 2020.

However, key highlights of its earnings forecast for Q1 2021 when compared with Q3 2020 figures include;

Pre-tax profit increased to N88.4 million, +151.5% Q-o-Q.

Interest income increased to approximately N515.9 million, +55.45% Q-o-Q.

Net operating income increased to N421.94 million, +79.9% Q-o-Q.

Interest expense increased to N208.06 million, +63.95% Q-o-Q.

Operating expenses declined to N333.52 million, -17.9% Q-o-Q.

Credit loss expense increased to N19.83 million, +100% Q-o-Q

Gross earnings of N649.83 million

Taxation of N28.3 million

Other income of N133.84 million.

Despite recording not too impressive results in its last financial statements, the firm is, however, optimistic going for Q1 2021 as reflected in its forecast.

This optimism might be premised on the news of a positive general economy by Q1 2021, which will trickle down to various sub-sectors of the economy.

Recall that Abbey Mortgage Bank plc entered into a strategic partnership with VFD Group Plc to enable it play major roles in the financial service industry and ultimately boost shareholders’ return on investment.

While addressing stockbrokers during the bank’s ‘Bell Ringing Ceremony’ at the Nigerian Stock Exchange (NSE), in Lagos, February 25, 2020, the Managing Director of Abbey Mortgage Bank plc,  Mrs. Rose Ada Okwechime, assured that the mortgage lender will leverage VFD’s innovative and aggressive drive to enhance shareholders’ value and boost profitability, going forward.

She said: “I am pleased to inform you that the strategic partnership, which Abbey Mortgage Bank Plc nurtured has resulted in VFD Group Plc, acquiring 35 percent stake in Abbey Mortgage Bank Plc.

“The new investments will enable the two groups to form a strategy that would propel us to play major roles in the financial services industry.”

She added: “Abbey’s stable, longstanding business ethics and customer-centric culture will blend and grow with VFD’s innovative and aggressive drive to create superior value.”

According to her, the synergy would transform the firm into becoming a major player in the market, contribute to economic growth, and deliver good returns to shareholders.

On his part, Group Managing Director and Chief Executive Officer of VFD Group, Nonso Okpala, while announcing the deal in Lagos,  had said: “This investment presents an opportunity for quick wins across board. Beyond the new client base and geographic reach this investment presents us, it is strategic towards driving the value chain and up-selling of our real estate business.

“While we continue to seek out viable investment in diverse sectors, this investment further enhances our ability to ring-fence financial service offerings and make VFD Group and its subsidiaries a ‘one-stop-shop’ for varying customer needs.

“I will like to express my gratitude and that of the executive team for the support received along this journey and I look forward to a year that brings more of such landmark.”

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