AG Mortgage Bank Rides 42% Earnings Growth As Board Bets On Capacity Expansion, Sustainable Housing Finance

AG Mortgage Bank Plc witnessed a significant 42% increase in its earnings in 2025, reaching ₦4.93 billion, following a deliberate strategy of expanding its funding capacity, growing its balance sheet, and focusing on sustainable housing finance in Nigeria. This financial improvement was presented during the bank's 2026 Annual General Meeting (AGM), held via Zoom on September 25, where shareholders were informed of the impressive growth figures.

The bank's gross earnings rose by 42% to ₦4.93 billion, up from ₦3.47 billion the previous year, with profit before tax increasing by 89% to ₦1.38 billion. Profit after tax climbed 130% to ₦1.06 billion, leading to an earnings per share increase from ₦4.59 kobo to ₦10.55 kobo. Despite challenging operating conditions, including persistent inflation, elevated interest rates, and exchange-rate volatility that affected housing affordability and access to long-term mortgage finance, AG Mortgage Bank achieved meaningful growth.

The bank's board and management attributed the growth to its strategic expansion of the balance sheet. Total assets grew by 48% to ₦33.04 billion, while loans and advances increased by 44% to ₦22.71 billion. Customer deposits also grew by 14% to ₦9.48 billion, and shareholders' funds strengthened by 17% to ₦7.16 billion. The Managing Director and Chief Executive Officer, Mr. Ngozi Anyogu, highlighted the importance of the loan book growth, which reflected the bank's growing capacity to deploy funding into mortgage lending while maintaining credit discipline and portfolio quality.

Both the Chairman and Managing Director/CEO emphasized the bank's efforts to broaden its funding base to support long-term mortgage lending. The bank secured a ₦7.83 billion Mortgage Refinance and Investment Enhancement Facility (MRIEF) and continued access to Federal Mortgage Bank of Nigeria (FMBN) funding for qualifying National Housing Fund lending.

These funding relationships extended beyond liquidity and enhanced the bank's ability to participate in programs aimed at widening access to housing finance and expanding the pool of potential homebuyers.

The bank's product development strategy focused on affordable and liveable housing while creating shared value for customers, staff, shareholders, and communities. AG Mortgage Bank is positioning itself for a more technology-driven and customer-centric future under its Project Momentum 2030 agenda. The board stressed that growth would not compromise prudence, with credit quality, liquidity, enterprise risk, and regulatory compliance being strengthened.

The management also incorporated forward-looking assessments of macroeconomic conditions into its credit risk approach, in line with IFRS 9 requirements.

Regarding dividends, the board recommended a final dividend of ₦50 million, or ₦0.50 per share, reflecting the bank's improved performance while preserving capacity for future growth. AG Mortgage Bank, which marked its 21st year of operations this year, plans to focus on scale, efficiency, customer reach, and sustainable value creation through technology, partnerships, and deepening its core mortgage business.