ABBEY MORTGAGE BANK : QUARTER 1 - FINANCIAL STATEMENT FOR 2024

ABBEY MORTGAGE BANK PLC Head Office: 23, Karimu Kotun Street, Victoria Island, Lagos.

Tel: [phone]

eMail: [e-mail] Website: www.abbeymortgagebank.com TIN: 01334740-0001

ABBEY MORTGAGE BANK PLC

LAGOS, NIGERIA

UNAUDITED IFRS FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MARCH, 2024

CONDENSED REPORTS

ABBEY MORTGAGE BANK PLC
REPORT FOR THE PERIOD ENDED 31 MARCH, 2024
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	35
Five-Year Financial Summary	36

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 31 March 2024. 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.

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ABBEY MORTGAGE BANK PLC

RESULT AT A GLANCE - 31 MARCH, 2024

GROSS EARNINGS	PROFIT BEFORE TAX	PROFIT AFTER TAX
N2,239.48 million	N270.06 million	N244.95 million

MAJOR INCOME STATEMENT ITEMS	2024	2023	INCREASED/
	March	March	(DECREASED)
	N'000	N'000	%
Gross Earnings	2,239,481	1,337,693	67.41
Net Operating Income	841,333	535,163	57.21
Profit Before Tax	270,061	121,382	122.49
Profit After Tax	244,945	114,694	113.57
EarningsPer Share:
-Basic(Kobo)	9.65	4.52	113.57
MAJOR STATEMENT OF FINANCIAL POSITION ITEMS	2024	2023	INCREASED/
	March	December	(DECREASED)
	N'000	N'000	%
Loans and advances to customers	10,250,329	14,138,284	(27.50)
Deposits from customers	44,907,181	40,049,607	12.13
Total Assets	68,178,706	57,542,242	18.48
Total Equity	8,814,642	8,569,697	2.86

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ABBEY MORTGAGE BANK PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 31 MARCH, 2024

		UNAUDITED	UNAUDITED
		3 Months	3 Months
		Mar-24	Mar-23
	Notes	₦'000	₦'000
Interest income	3	2,085,596	1,297,348
Interest expense	4	(1,398,148)	(802,530)
Net interest income		687,448	494,818
Fees and commision income	5	111,890	16,079
Other operating income	6	41,995	24,266
Total operating income		841,333	535,163
Credit loss expense	7	-	-
Net operating income		841,333	535,163
Personnel expenses	8	(210,167)	(158,271)
Depreciation	9	(43,794)	(36,283)
Amortisation	21	(5,679)	(2,369)
Other operating expenses	10	(311,632)	(216,858)
Total operating expenses		(571,272)	(413,781)
Profit or (Loss) before income tax expense		270,061	121,382
Income tax expense	11	(25,116)	(6,688)
Profit or (Loss) for the period		244,945	114,694
Other comprehensive Income		-	-
Total comprehensive Income for the year net of tax		244,945	114,694
Earnings per share attributable to ordinary equity holders (Kobo) -
12	9.65	4.52
Basic and Diluted

The accompanying notes form part of these financial statements.

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ABBEY MORTGAGE BANK PLC
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH, 2024
		UNAUDITED	AUDITED
		Mar-24	Dec-23
	Notes	₦'000	₦'000
Assets
Cash on hand	13	33,450	37,987
Cash balances with central bank	14	766,369	766,369
Due from banks and other financial institutions	15	19,815,129	12,730,016
Loans and advances	16	10,250,329	14,138,284
Financial investments - equity instrument at FVTPL	17	550,527	550,527
Financial Investments- securities at amortised cost	18	34,023,648	26,775,781
Other assets	19	927,168	1,072,504
Property and equipment	20	1,502,641	1,351,533
Intangible assets	21	264,194	73,990
		68,133,455	57,496,991
Non-current assets held for sale	22	45,251	45,251
Total Assets		68,178,706	57,542,242
Liabilities and equity
Deposits from customers	23	44,907,181	40,049,607
Due to other banks	24	5,079,587	10,033
Current income tax payable	11.2	108,959	83,843
Other liabilities	25	796,354	540,870
Borrowings	26	4,185,767	3,998,567
Deposit for Shares	27	4,000,000	4,000,000
Due to National Housing Fund	28	286,216	289,624
		59,364,064	48,972,544
Equity
Share capital	29	5,076,923	5,076,923
Share premium	30	1,576,504	1,576,504
Retained Earnings	31	868,470	623,525
Statutory reserve	32	472,697	472,697
Regulatory risk reserve		820,048	820,048
Total Equity		8,814,642	8,569,697
Total liabilities and equity		68,178,706	57,542,242

The financial statements were approved by the Board of Directors on April 23,2024 and signed on its behalf by:

HIGH CHIEF SAMUEL ONI Chairman

FRC/2024/PRO/DIR/003/868224----------------------------------------------------

MOBOLAJI ADEWUMI

Managing Director/CEO

FRC/2021/PRO/DIR/003/00000022431----------------------------------------------------

OLUWATOMI OLURINOLA Financial Controller

FRC/2021/PRO/ICAN/001/00000025175----------------------------------------------------

The accompanying notes form part of these financial statements.

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ABBEY MORTGAGE BANK PLC

STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 31 MARCH, 2024

	Share	Share	Statutory	Regulatory	Retained	Total
	capital	Premium	Reserve	risk reserve	Earnings	Equity
	₦'000	₦'000	₦'000	₦'000	₦'000	₦'000
Balance as at 1 January 2023	5,076,923	5,117,137	298,440	746,546	(3,540,633)	7,698,413
Additional capital issued and fully paid	-	(3,540,633)			3,540,633	-
Profit for the year	-	-	-	-	871,284	871,284
Other comprehensive income for the year	-	-	-	-	-	-
Transfer to statutory reserve	-	-	174,257	-	(174,257)	-
Transfer to regulatory risk reserve	-	-	-	73,502	(73,502)	-
Balance as at 31 December 2023	5,076,923	1,576,504	472,697	820,048	623,523	8,569,695
Additional capital issued and fully paid	-	-				-
Profit for the Period	-	-	-	-	244,945	244,945
Other comprehensive income for the year	-	-	-	-	-	-
Transfer to statutory reserve	-	-	-	-	-	-
Transfer to regulatory risk reserve	-	-	-	-	-	-
Balance as at 31 March 2024	5,076,923	1,576,504	472,697	820,048	868,468	8,814,640

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ABBEY MORTGAGE BANK PLC
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 MARCH, 2024
		UNAUDITED	AUDITED
		3 Months	12 Months
		Mar-24	Dec-23
	Notes	₦'000	₦'000
Cash flows from operating activities:
Profit/(loss) before income tax		270,061	951,342
Adjustment for non-cash items	33.5	111,352	2,254
Cash flows from operating activities before changes in		381,413	953,596
working capital
Change in operating assets	33.2	(3,512,820)	(34,082,276)
Change in operating liabilities	33.3	5,047,380	12,358,423
Income tax paid	11.2	(0)	(60,204)
Interest received		2,038,431	7,063,276
Interest paid		(1,335,876)	(4,464,994)
Net cash flows used in operating activities		2,237,118	(19,185,775)
Cash flows from investing activities:
Purchase of intangible assets	21	(195,883)	(17,984)
Proceeds on disposal of non-current asset held for sale		-	10,000
Refund to customer for returning non-current asset formerly sold		-	-
Repossession non-current asset formerly sold		-	-
Proceeds on disposal of property and equipment		493	7,875
Purchase of property and equipment	20	(194,903)	(188,658)
Dividend received		-	27,739
Net cash flows generated from investing activities		(390,293)	(161,028)
Cash flows from financing activities:
Deposit for share		-	4,000,000
Proceeds of Long-term borrowings		700,000	4,400,000
Repayments of Long-term borrowings		(535,803)	(426,525)
Net cash flows used in financing activities		164,197	7,973,475
Net increase/( decrease) in cash and cash equivalents		2,011,022	(11,373,330)
Net foreign exchange difference		-	-
Cash and cash equivalents at beginning of year		12,790,175	24,163,505
Cash and cash equivalents at end of period	33	14,801,197	12,790,175

The accompanying notes form part of these financial statements.

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ABBEY MORTGAGE BANK PLC

NOTES TO THE FINANCIAL STATEMENTS - Continued

For the Period Ended 31 March, 2024

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 142 (2023: 138) staff in eight (8) branches and the Head Office.

2.1 Basis of preparation

1. 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.
2. Basis of Measurement
   The financial statements have been prepared on the historical cost basis except for equity instruments which are carried at fair value.
3. 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 2023. The Bank has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

2.2.1 Standards, amendments and interpretations effective during the reporting period

1. IFRS 17, Insurance Contracts
   IFRS 17 was issued by the IASB in 2017 and replaces IFRS 4 for annual reporting period beginning on or after 1 January 2023.
   IFRS 17 introduces an internationally consistent approach to the accounting for insurance contracts. Prior to IFRS 17, significant diversity has existed worldwide relating to the accounting for and disclosure of insurance contracts, with IFRS 4 permitting many previous accounting approaches to be followed.
   Since IFRS 17 applies to all insurance contracts issued by an entity (with limited scope exclusions), its adoption may have an effect on non-insurers. The Company carried out an assessment of its contracts and operations and concluded that the adoption of IFRS 17 has had no effect on the financial statements of the bank.

1. Definition of Accounting Estimates (Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors)
   The amendments to IAS 8, which added the definition of accounting estimates, clarify that the effects of a change in an input or measurement technique are changes in accounting estimates, unless resulting from the correction of prior period errors. These amendments clarify how entities make the distinction between changes in accounting estimate, changes in accounting policy and prior period errors.
   These amendments had no effect on the financial statements of the bank.

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ABBEY MORTGAGE BANK PLC

NOTES TO THE FINANCIAL STATEMENTS - Continued

For the Period Ended 31 March, 2024

1. Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12 Income Taxes)
   In May 2021, the IASB issued amendments to IAS 12, which clarify whether the initial recognition exemption applies to certain transactions that result in both an asset and a liability being recognised simultaneously (e.g. a lease in the scope of IFRS 16). The amendments introduce an additional criterion for the initial recognition exemption, whereby the exemption does not apply to the initial recognition of an asset or liability which at the time of the transaction, gives rise to equal taxable and deductible temporary differences.
   These amendments had no effect on the financial statements of the bank.
2. Disclosure of Accounting Policies (Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgements)
   The amendments aim to make accounting policy disclosures more informative by replacing the requirement to disclose 'significant accounting policies' with 'material accounting policy information'. The amendments also provide guidance under what circumstance, the accounting policy information is likely to be considered material and therefore requiring disclosure.
   These amendments have no effect on the measurement or presentation of any items in the financial statements of the bank, but affects the disclosure of accounting policies.

1. International Tax Reform - Pillar Two Model Rules (Amendment to IAS 12 Income Taxes)
   In December 2021, the Organisation for Economic Co-operation and Development (OECD) released a draft legislative framework for a global minimum tax that is expected to be used by individual jurisdictions. The goal of the framework is to reduce the shifting of profit from one jurisdiction to another in order to reduce global tax obligations in corporate structures. In March 2022, the OECD released detailed technical guidance on Pillar Two of the rules.
   Stakeholders raised concerns with the IASB about the potential implications on income tax accounting, especially accounting for deferred taxes, arising from the
   Pillar Two model rules. The IASB issued the final Amendments (the Amendments) International Tax Reform - Pillar Two
   Model Rules, in response to stakeholder concerns on 23 May 2023.
   The Amendments introduce a mandatory exception to entities from the recognition and disclosure of information about deferred tax assets and liabilities related to Pillar Two model rules. The exception is effective immediately and retrospectively. The Amendments also provide for additional disclosure requirements with respect to an entity's exposure to Pillar Two income taxes.
   Management has determined that the bank is not within the scope of OECD's Pillar Two Model Rules and the exception to the recognition and disclosure of information about deferred tax assets and liabilities related to Pillar Two income taxes is not applicable to the bank.

2.3 Standards issued but not yet effective

There are a number of standards, amendments to standards, and interpretations which have been issued by the IASB that are effective in future accounting periods that the Group has decided not to adopt early.

The following amendments are effective for the period beginning 1 January 2024:

• Liability in a Sale and Leaseback (Amendments to IFRS 16 Leases);
• Classification of Liabilities as Current or Non-Current (Amendments to IAS 1 Presentation of Financial Statements);
• Non-currentLiabilities with Covenants (Amendments to IAS 1 Presentation of Financial Statements); and
• Supplier Finance Arrangements (Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures)
• Lack of Exchangeability (Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates)

The bank is currently assessing the impact of these new accounting standards and amendments. Management does not expect any other standards issued by the IASB, but are yet to be effective, to have a material impact on the bank.

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