Nigeria: Nigerian Exchange approves Abbey Mortgage Bank’s 3 years free float compliance extension

Abbey Mortgage Bank Plc said the Nigerian Exchange Limited (NGX) has approved its request for a free float compliance extension till October 4th, 2025. 

The company disclosed this in a statement that was released earlier today. 

Companies listed on NGX are required to maintain a minimum free float for the set standards under which they are listed, to ensure that there is an orderly and liquid market for their securities 

What the company is saying 

The statement by the company explained that the request was to enable the bank to comply with NGX’s free float requirement of 20% issued and fully paid share capital or N20 billion free-float market capitalization for companies listed on its main board. 

Rule 3.1.4 of the NGX’s Rules of governing free float requirements states that:

• “The Exchange may suspend trading in the company’s securities if the company does not achieve the required free float within the stipulated timeframe 
• “The bank is positioned to achieve and meet the free float requirements within the three-year timeframe ending 4th October 2025 given by NGX, failing which NGX RegCO may suspend trading in securities.”

The bank’s key performance indices  

• According to available earnings report, the bank returned to profitability from the previous year’s loss with a profit after tax of N622.198 million for full-year 2021 as against a loss of N4.301 billion reported in 2020. 
• Profit before tax stood at N661.063 million as against a loss of N4.297 billion in 2020. 
• The profit was driven largely by net interest income of N1.630 billion reported during the period under review as against N860.060 million posted in 2021, accounting for an increase of 89.52%. 
• Also boosted the earnings were other operating income grew by 99.72% to N239.170 million as against N120.266 million.  
• The bank continued to maintain a very strong balance sheet with a total asset of N34.460 billion, an increase of 86.06% from N18.520 billion recorded in 2020. 
• The bank’s resilient performance is a testament to the effectiveness of its strategy and capacity to generate sustainable revenue. 

What you should know 

• The Bank, which was incorporated in Nigeria as a private limited liability company on 26 August 1991, obtained its license to operate as a Mortgage Bank on 20 January 1992, commenced business on 11 March 1992, and later converted to a public limited liability company in September 2007. 
• On 21 October 2008, the Bank became officially listed on the NGX formally Nigerian Stock Exchange. Following the approval of the Central Bank of Nigeria, the Bank changed its name from Abbey Building Society Plc to Abbey Mortgage Bank Plc on 16 January 2014.