WorldStage– Abbey Bank Plc, a commercial bank listed on the Nigerian Exchange has reported a strong half-year performance, with profit after tax rising 61.7% to ₦1.31 billion for the six months ended 30 June 2026, compared with ₦810 million in the corresponding period of 2025.
According to the unaudited financial statements approved by the Board on 16 July 2026 and filed with the Nigerian Exchange, gross earnings surged 90.9% to ₦15.45 billion, from ₦8.09 billion in H1 2025.
The results signed by High Chief Samuel Oni (Chairman), Mobolaji Adewumi (Managing Director/CEO), and Oluwatomi Olurinola (Financial Controller) showed that net interest income grew 52.2% to ₦2.96 billion (H1 2025: ₦1.94 billion), while profit before tax increased 77.7% to ₦1.51 billion.
Basic earnings per share rose to 25.80 kobo from 15.95 kobo.
Balance Sheet Expansion
The bank’s total assets expanded significantly by 46.9% to ₦243.52 billion as at 30 June 2026, from ₦165.83 billion at the end of 2025.
Key drivers included: Deposits from customers, which nearly doubled to ₦145.64 billion (up 82.9% from ₦79.63 billion).
Loans and advances to customers, which edged up 3.9% to ₦10.10 billion.
Strong growth in financial investments (securities at amortised cost).
Shareholders’ funds stood at ₦10.88 billion, a modest 0.9% increase from ₦10.79 billion at year-end 2025.
Management Comment
Abbey Bank’s cost-to-income ratio stood at approximately 60.6% in H1 2026 — a mild deterioration from 59.5% in the prior year, driven by rapid expansion costs, but still consistent with a bank in growth mode and supporting healthy profitability.
Analysis of Abbey Bank Plc’s result showed that total operating income at ₦3.83 billion in H1 2026 (up strongly from ₦2.23 billion).
Total operating expenses rose to ₦2.32 billion (from ₦1.33 billion).
Credit loss expense is excluded from the CIR calculation (it is treated as a provision rather than a core operating cost).
CIR edged up from 59.5% in H1 2025 to 60.6% in H1 2026. This indicates a modest decline in efficiency — operating expenses grew slightly faster than operating income in percentage terms during the period.
Strong absolute growth masked the ratio pressure
Operating income grew +71.8% year-on-year.
Operating expenses grew +74.9%.
The bank expanded rapidly (gross earnings +91%, deposits nearly doubled), which typically brings higher personnel, technology, and operational costs in the short term.
Context within Nigerian banking A CIR of ~60–65% is relatively common for mid-sized and mortgage/commercial banks in Nigeria that are still scaling.
Leading large banks often target or achieve CIR below 50–55%.
Abbey’s ratio remains acceptable for a growth-oriented institution, especially given the sharp rise in profitability (PBT +78%, PAT +62%).
Key cost drivers (H1 2026) Other operating expenses: ₦1.55 billion (largest component)
Personnel expenses: ₦625 million
Depreciation & amortisation: relatively modest
Outlook
The bank is investing in growth (deposit mobilisation, possible branch/digital expansion, and balance-sheet scaling).
If revenue momentum continues while cost growth moderates in H2, the CIR should improve.
Management has previously emphasised cost discipline, which helped deliver strong profit growth even with the slight uptick in the ratio.
