Strong risk management, improved technology and adequate capital will underpin Abbey Bank Plc’s expansion into commercial banking in November 2026, as the former mortgage bank prepares to extend its services to individuals, small and medium-sized enterprises (SMEs) and corporate customers.

The transition will enable the bank to expand beyond mortgage financing and real estate development into business lending, trade finance and other financial services for individuals and companies.

Managing Director and Chief Executive Officer of Abbey Bank, Mobolaji Adewumi, said the bank was upgrading its technology infrastructure and strengthening its operational capacity ahead of the commencement of full commercial banking operations.

He said discussions on the transition began in 2023, with a formal application submitted in 2024. Regulatory approval was granted in October 2024, while the commercial banking licence was issued in June 2026 after the bank completed its capital-raising process.

Adewumi described the transition as a major milestone in the bank’s history, saying it reflected the institution’s growth and the confidence of its regulators, shareholders, customers and employees.

He said the bank would build on its more than three decades of experience in mortgage financing and real estate development to serve a wider range of customers and businesses.

Abbey Bank recorded an improvement in its financial performance in 2025, with profit after tax rising to N3.12 billion from N1.22 billion in 2024, according to the figures provided by the bank.

As part of its preparations, the bank is upgrading its banking application, corporate banking platform and mobile banking services.

It is also preparing to migrate customers to an enhanced core banking platform and considering the integration of artificial intelligence into its digital services.

Adewumi said the bank’s priority was to ensure a smooth transition while maintaining service quality and strengthening its capacity to meet the financial needs of individuals and businesses.

The bank plans to compete in the commercial banking market through improved customer service, faster decision-making and a better understanding of customers’ businesses. It also intends to retain its focus on construction finance, infrastructure and other activities linked to housing delivery.

Executive Director in charge of Finance, Risk and Operations, John Okonkwo, said effective risk management would be critical to the bank’s success as it expands its operations.

He identified risk identification, assessment, control, monitoring and reporting as five fundamental principles that banks must adopt to protect their businesses and support sustainable growth.

Okonkwo said businesses must take a deliberate and structured approach to risk management rather than rely on informal practices.