Abbey Mortgage Bank Plc recorded a 23 per cent increase in profit after tax to N1.07bn in its audited financial statements for the year ended December 31, 2024, compared to N871.3m in the previous year.

According to its financial statement on the Nigeria Exchange Limited on Thursday, the growth in profit was driven by a rise in interest income, which surged by 66 per cent to N11.95bn from N7.2bn in 2023. However, the bank’s interest expenses also increased significantly by 85 per cent to N8.56bn from N4.63bn, reflecting the impact of higher funding costs.

Despite the rise in expenses, net interest income stood at N3.4bn, up from N2.57bn in the prior year. The bank also recorded N207.7m in fees and commission income and N272.1m in other income, bringing total operating income to N3.88bn, an improvement from N3.19bn in 2023.

Operating expenses rose to N2.56bn from N2.34bn, driven by higher personnel costs and depreciation charges. Taxation for the year increased to N160.8m from N80.1m, impacting the overall bottom line.

The bank’s total assets expanded significantly by 46 per cent to N84.25bn from N57.54bn in the previous year, driven by an increase in customer deposits, which grew to N53.9bn from N40.05bn. Loans and advances to customers, however, declined to N12.07bn from N14.14bn, reflecting a cautious lending approach.

Abbey Mortgage Bank’s equity base rose to N9.23bn from N8.57bn, supported by a rise in retained earnings and statutory reserves.

The bank’s earnings per share improved to 11 kobo from nine kobo, indicating stronger returns for shareholders.

Last year, The PUNCH reported that Abbey Mortgage Bank grew profit after tax by 51 per cent to N508m in the first half of the year, up from N336m in the same period last year.