ABBEY MORTGAGE BANK PLC Head Office: 23, Karimu Kotun Street, Victoria Island, Lagos.
Tel: +234-1-9035700; +234 -1-9057325
eMail: enquiries@abbeymortgagebank.com Website: www.abbeymortgagebank.com TIN: 01334740-0001
ABBEY MORTGAGE BANK PLC
LAGOS, NIGERIA
UNAUDITED IFRS FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER, 2023
CONDENSED REPORTS
ABBEY MORTGAGE BANK PLC | |
REPORT FOR THE PERIOD ENDED 30 SEPTEMBER, 2023 | |
CONTENTS | Page |
Introduction | 1 |
Result at a Glance | 2 |
Statement of Profit or Loss and Other Comprehensive Income | 3 |
Statement of Financial Position | 4 |
Statement of Changes in Equity | 5 |
Statement of Cash Flows | 6 |
Notes to the Financial Statements | 7 |
Statement of Value Added | 36 |
Five-Year Financial Summary | 37 |
ABBEY MORTGAGE BANK PLC
Introduction
Abbey Mortgage Bank's Financial Statements complies with the applicable legal requirements of the Nigerian Securities and Exchange Commission regarding interim financial statements for the period ended 30 September 2023. These financial statements contain extract of the unaudited financial statements prepared in accordance with 'Internarional Financial Reporting Standards' and its interpretation issued by the International Accounting Standards and adopted by the Financial Reporting Council of Nigeria. For better understanding, certain disclosures and some prior period figures have been presented in line with the reporting periods' figures. Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
1
ABBEY MORTGAGE BANK PLC
RESULT AT A GLANCE
GROSS EARNINGS | PROFIT BEFORE TAX | PROFIT AFTER TAX |
N5,471.77 million | N776.12 million | N648.06 million |
MAJOR INCOME STATEMENT ITEMS | 2023 | 2022 | INCREASED/ |
September | September | (DECREASED) | |
N'000 | N'000 | % | |
Gross Earnings | 5,471,767 | 3,996,730 | 36.91 |
Net Operating Income | 2,229,906 | 1,998,239 | 11.59 |
Profit Before Tax | 776,117 | 771,492 | 2.60 |
Profit After Tax | 648,058 | 646,252 | 2.28 |
EarningsPer Share: | |||
-Basic(Kobo) | 8.51 | 8.45 | 1.71 |
MAJOR STATEMENT OF FINANCIAL POSITION ITEMS | 2023 | 2022 | INCREASED/ |
September | December | (DECREASED) | |
N'000 | N'000 | % | |
Loans and advances to customers | 10,966,673 | 5,159,962 | 112.53 |
Deposits from customers | 38,318,439 | 27,627,752 | 38.70 |
Total Assets | 54,391,892 | 39,858,233 | 36.46 |
Total Equity | 8,346,472 | 7,698,414 | 8.42 |
2
ABBEY MORTGAGE BANK PLC
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 SEPTEMBER, 2023
UNAUDITED | UNAUDITED | UNAUDITED | UNAUDITED | |
9 Months | 3 Months | 9 Months | 3 Months | |
Sep-23 | Sep-23 | Sep-22 | Sep-22 | |
Notes | ₦'000 | ₦'000 | ₦'000 | ₦'000 |
Interest income | 3 |
Interest expense | 4 |
Net interest income | |
Fees and commision income | 5 |
(Loss)/profit on disposal of non-current assets held for sale | |
Other operating income | 6 |
Total operating income | |
Credit loss expense | 7 |
Net operating income | |
Personnel expenses | 8 |
Depreciation | 9 |
Amortisation | 21 |
Other operating expenses | 10 |
Total operating expenses | |
Profit or (Loss) before income tax expense | |
Income tax expense | 11 |
Profit or (Loss) for the period
Other comprehensive Income
Total comprehensive Income for the year net of tax
5,154,450 | 2,111,754 | 3,513,475 | 1,319,473 |
(3,241,861) | (1,349,967) | (2,000,491) | (772,089) |
1,912,589 | 761,787 | 1,512,984 | 547,384 |
204,115 | 135,071 | 355,173 | 148,592 |
- | - | 2,000 | - |
113,202 | 62,005 | 128,082 | 65,666 |
2,229,906 | 958,863 | 1,998,239 | 761,642 |
- | - | - | - |
2,229,906 | 958,863 | 1,998,239 | 761,642 |
(523,220) | (188,265) | (415,055) | (148,213) |
(114,018) | (39,924) | (74,167) | (7,705) |
(6,960) | (2,249) | (3,489) | (1,173) |
(809,591) | (332,322) | (734,036) | (275,703) |
(1,453,789) | (562,760) | (1,226,747) | (432,794) |
776,117 | 396,103 | 771,492 | 328,848 |
(128,059) | (79,221) | (125,240) | (47,669) |
648,058 | 316,882 | 646,252 | 281,179 |
- | - | - | - |
648,058 | 316,882 | 646,252 | 281,179 |
Earnings per share attributable to ordinary equity holders | 12 | 8.51 | 12.48 | 8.45 | 11.08 |
(Kobo) - Basic and Diluted | |||||
The accompanying notes form part of these financial statements.
3
ABBEY MORTGAGE BANK PLC | |||
STATEMENT OF FINANCIAL POSITION | |||
AS AT 30 SEPTEMBER, 2023 | |||
UNAUDITED | AUDITED | ||
Sep-23 | Dec-22 | ||
Notes | ₦'000 | ₦'000 | |
Assets | |||
Cash on hand | 13 | 35,263 | 26,501 |
Cash balances with central bank | 14 | 704,644 | 629,891 |
Due from banks and other financial institutions | 15 | 33,395,890 | 27,813,952 |
Loans and advances | 16 | 10,966,673 | 5,159,962 |
Financial investments - equity instrument at FVTPL | 17 | 497,111 | 497,111 |
Financial Investments- securities at amortised cost | 18 | 6,202,184 | 3,731,668 |
Other assets | 19 | 1,134,007 | 554,320 |
Property and equipment | 20 | 1,332,626 | 1,324,111 |
Intangible assets | 21 | 68,243 | 65,466 |
54,336,641 | 39,802,982 | ||
Non-current assets held for sale | 22 | 55,251 | 55,251 |
Total Assets | 54,391,892 | 39,858,233 | |
Liabilities and equity | |||
Deposits from customers | 23 | 38,318,439 | 27,627,752 |
Due to other banks | 24 | 3,766,693 | 3,738,255 |
Current income tax payable | 11.2 | 131,827 | 63,988 |
Other liabilities | 25 | 332,338 | 414,670 |
Borrowings | 26 | 3,200,000 | - |
Due to National Housing Fund | 28 | 296,123 | 315,153 |
46,045,420 | 32,159,818 | ||
Equity | |||
Share capital | 29 | 5,076,923 | 5,076,923 |
Share premium | 30 | 5,117,138 | 5,117,138 |
Accumulated losses | 31 | (2,892,575) | (3,540,633) |
Statutory reserve | 32 | 298,440 | 298,440 |
Regulatory risk reserve | 746,546 | 746,546 | |
Total Equity | 8,346,472 | 7,698,414 | |
Total liabilities and equity | 54,391,892 | 39,858,233 | |
The financial statements were approved by the Board of Directors on October 27,2023 and signed on its behalf by:
Mazi Emmanuel Kanu O.Ivi
Chairman
FRC/2014/ICAN/00000008160----------------------------------------------------
Mobolaji Adewumi
Managing Director/CEO
FRC/2021/006/00000022431----------------------------------------------------
Oluwatomi Olurinola
Financial Controller
FRC/2021/001/00000025175----------------------------------------------------
The accompanying notes form part of these financial statements.
4
ABBEY MORTGAGE BANK PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 SEPTEMBER, 2023
Share | Share | Statutory | Regulatory | Accumulated | Total | |
capital | Premium | Reserve | risk reserve | Losses | Equity | |
₦'000 | ₦'000 | ₦'000 | ₦'000 | ₦'000 | ₦'000 | |
Balance as at 1 January 2022 | 5,076,923 | 5,117,138 | 298,440 | 1,356,485 | (4,916,732) | 6,932,254 |
Additional capital issued and fully paid | - | - | - | |||
Profit for the year | - | - | - | - | 766,159 | 766,159 |
Other comprehensive income for the year | - | - | - | - | - | - |
Transfer to statutory reserve | - | - | - | - | - | - |
Transfer to regulatory risk reserve | - | - | - | (609,939) | 609,939 | - |
Balance as at 31 December 2022 | 5,076,923 | 5,117,138 | 298,440 | 746,546 | (3,540,633) | 7,698,414 |
Additional capital issued and fully paid | - | - | - | |||
Profit for the Period | - | - | - | - | 648,058 | 648,058 |
Other comprehensive income for the year | - | - | - | - | - | - |
Transfer to statutory reserve | - | - | - | - | - | - |
Transfer to regulatory risk reserve | - | - | - | - | - | - |
Balance as at 30 September 2023 | 5,076,923 | 5,117,138 | 298,440 | 746,546 | (2,892,575) | 8,346,472 |
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ABBEY MORTGAGE BANK PLC
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 SEPTEMBER, 2023
Cash flows from operating activities:
Profit/(loss) before income tax
Adjustment for non-cash items
Cash flows from operating activities before changes in working capital
Change in operating assets
Change in operating liabilities
Income tax paid
Net cash flows used in operating activities
UNAUDITED | AUDITED | |
9 Months | 12 Months | |
Sep-23 | Dec-22 | |
Notes | ₦'000 | ₦'000 |
776,117 | 827,268 | |
33.4 | 96,029 | (117,928) |
872,146 | 709,340 | |
33.2 | (8,931,663) | (1,675,384) |
33.3 | 10,589,327 | 6,456,565 |
11.2 | (60,220) | (46,448) |
2,469,591 | 5,444,074 |
Cash flows from investing activities: | |||
Purchase of intangible assets | 21 | (9,737) | (58,523) |
Proceeds on disposal of non-current asset held for sale | - | 106,158 | |
Refund to customer for returning non-current asset formerly sold | - | - | |
Repossession non-current asset formerly sold | - | - | |
Proceeds on disposal of property and equipment | 7,160 | 143,294 | |
Purchase of property and equipment | 20 | (128,253) | (407,763) |
Dividend received | 23,500 | 23,000 | |
Net cash flows generated from investing activities | (107,330) | (193,834) | |
Cash flows from financing activities: | |||
Deposit for share | - | - | |
Proceeds from increase in share capital | - | - | |
Proceeds of Long-term borrowings | 3,400,000 | - | |
Repayments of Long-term borrowings | (200,000) | - | |
Net cash flows used in financing activities | 3,200,000 | - | |
Net increase/( decrease) in cash and cash equivalents | 5,562,261 | 5,250,240 | |
Net foreign exchange difference | - | - | |
Cash and cash equivalents at beginning of year | 24,163,505 | 18,913,265 | |
Cash and cash equivalents at end of the period | 33 | 29,725,767 | 24,163,505 |
The accompanying notes form part of these financial statements.
6
ABBEY MORTGAGE BANK PLC
NOTES TO THE FINANCIAL STATEMENTS - Continued
For the Period Ended 30 September, 2023
1 General information
These financial statements are the financial statements of Abbey Mortgage Bank Plc. (the "Bank"), a public limited liability Bank incorporated and domiciled in Nigeria on 26 August 1991. The Bank obtained its licence to operate as a mortgage bank on 20 January 1992 and commenced business on 11 March 1992. It was later converted to a public limited liability Bank in September 2007. On 21 October 2008, the Bank became officially listed on the Nigerian Exchange Group.
The principal activities of the Bank are the provision of mortgage services, financial advisory, and real estate construction finance.
For the earlier years of its operations, the Bank specialized in funding small and medium size businesses. In the last few years, the Bank has started to implement a mortgage financing strategy in line with its strategic vision to become "the number one mortgage service provider in Africa". The Bank currently has 130 (2022: 126) staff in eight (8) branches and the Head Office.
2.1 Basis of preparation
-
Statement of Compliance
These financial statements of the Bank are general purpose financial statements which have been prepared in accordance with International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board (IASB). Additional information required by the provisions of the Companies and Allied Matters Act 2020, the Banks and Other Financial Institutions Act 2020, the Financial Reporting Council of Nigeria ("FRCN") Act No. 6, 2011 and relevant Central Bank of Nigeria circulars, is included where appropriate. - Basis of Measurement
The financial statements have been prepared on the historical cost basis except for equity instruments which are carried at fair value. - Use of Estimates and Judgments
The preparation of the financial statements in conformity with IFRSs requires management to make judgments, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.
2.2 Changes in accounting policies and disclosures
The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the preparation of the Bank's annual financial statements for the year ended 31 December 2022. The Bank has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.
2.3 Standards recently issued and effective
The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Bank's financial statements are disclosed below. The Bank intends to adopt these standards and interpretations, if applicable, when they become effective.
- IFRS 17 Insurance Contracts
In May 2017, the IASB issued IFRS 17 Insurance Contracts (IFRS 17), a comprehensive new accounting standard for insurance contracts covering recognition and measurement, presentation and disclosure. Once effective, IFRS 17 will replace IFRS 4 Insurance Contracts (IFRS 4) that was issued in 2005. IFRS 17 applies to all types of insurance contracts (i.e., life, non-life, direct insurance and re-insurance), regardless of the type of entities that issue them, as well as to certain guarantees and financial instruments with discretionary participation features.
A few scope exceptions will apply. The overall objective of IFRS 17 is to provide an accounting model for insurance contracts that is more useful and consistent for insurers. In contrast to the requirements in IFRS 4, which are largely based on grandfathering previous local accounting policies, IFRS 17 provides a comprehensive model for insurance contracts, covering all relevant accounting aspects. The core of IFRS 17 is the general model, supplemented by:
- A specific adaptation for contracts with direct participation features (the variable fee approach) *A simplified approach (the premium allocation approach) mainly for short-duration contracts
IFRS 17 is effective for reporting periods beginning on or after 1 January 2023, with comparative figures required. Early application is permitted, provided the entity also applies IFRS 9 and IFRS 15 on or before the date it first applies IFRS 17.
7
ABBEY MORTGAGE BANK PLC
NOTES TO THE FINANCIAL STATEMENTS - Continued
For the Period Ended 30 September, 2023
Amendments to IFRS 17
In June 2020, the IASB issued amendments to IFRS 17. These amendments follow from the Exposure Draft (ED) on proposed Amendments to IFRS 17 Insurance Contracts.
As a result of its re-deliberations, the IASB has made changes to the following main areas of IFRS 17
Deferral of the effective date of IFRS 17 and IFRS 9 for qualifying insurance entities by two years to annual reporting periods beginning on or after 1 January 2023)
- Scope of the standard
- Expected recovery of insurance acquisition cash flows from insurance contract renewals
- CSM relating to investment activities
- Applicability of the risk mitigation option for contracts with direct participation features
- Reinsurance contracts held - expected recovery of losses on underlying onerous contracts
- Simplified presentation of insurance contracts in the statement of financial position
- Additional transition reliefs
IFRS 17 will not be applicable to the Bank, as it does not issue insurance contract.
-
Interest rate Benchmark Reform-Phase 2- Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16
On 27 August 2020, the IASB published Interest Rate Benchmark Reform - Phase 2, Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16. With publication of the phase two amendments, the IASB has completed its work in response to IBOR reform.
The amendments provide temporary reliefs which address the financial reporting effects when an interbank offered rate (IBOR) is replaced with an alternative nearly risk-free interest rate (RFR)
The amendments include a practical expedient to require contractual changes, or changes to cash flows that are directly required by the reform, to be treated as changes to a floating interest rate, equivalent to a movement in a market rate of interest. It also permit changes required by IBOR reform to be made to hedge designations and hedge documentation without the hedging relationship being discontinued. The ammendments also provide temporary relief to entities from having to meet the separately identifiable requirement when an RFR instrument is designated as a hedge of a risk component.
The amendment is effective for annual periods beginning on or after 1 January 2021. While application is retrospective, the entity is not required to restate prior periods.
The amendment will have no significant impact on the Bank. - Reference to the Conceptual Framework- Amendment to IFRS 3
In May 2020, the IASB issued Amendments to IFRS 3 Business Combinations - Reference to the Conceptual Framework. The amendments are intended to replace a reference to a previous version of the IASB's Conceptual Framework (the 1989 Framework) with a reference to the current version issued in March 2018 (the Conceptual Framework) without significantly changing its requirements.
The amendments add an exception to the recognition principle of IFRS 3 to avoid the issue of potential 'day 2' gains or losses arising for liabilities and contingent liabilities that would be within the scope of IAS 37 Provisions, Contingent Liabilities and Contingent Assets or IFRIC 21 Levies, if incurred separately. The exception requires entities to apply the criteria in IAS 37 or IFRIC 21, respectively, instead of the Conceptual Framework, to determine whether a present obligation exists at the acquisition date. At the same time, the amendments add a new paragraph to IFRS 3 to clarify that contingent assets do not qualify for recognition at the acquisition date.
The amendment is effective for annual periods beginning on or after 1 January 2022 and must be applied prospectively. The amendment is not expected to have significant impact on the Bank.
2.3 Standards recently issued and effective
-
Property, plants and machinery - Proceeds before intended use-Amendment to IAS 16
The amendment prohibits entities from deducting from the cost of an item of property, plant and equipment (PP&E), any proceeds of the sale of items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognises the proceeds from selling such items, and the costs of producing those items, in profit or loss.
The amendment is effective for annual periods beginning on or after 1 January 2022 and must be applied reprospectively only to items of PP&E made available for use on or after the beginning of the earliest period presented when the entity first applies the amendment.
The amendment is not expected to have significant impact on the Bank. - Onerous Contracts- Cost of fulfilling a contract- Amendments to IAS 37
In May 2020, the IASB issued amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets to specify which costs an entity needs to include when assessing whether a contract is onerous or loss-making.
8
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Abbey Mortgage Bank plc published this content on 29 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 October 2023 11:10:46 UTC.