AG Mortgage Bank Plc has reported a strong improvement in its 2025 financial performance, with profit after tax rising 130% to ₦1.06 billion and total assets growing 48% to ₦33.04 billion. The results, presented to shareholders at the bank’s 2026 Annual General Meeting, also show meaningful expansion in loans and advances, pointing to increased lending capacity in Nigeria’s housing finance sector.
Key Performance Highlights
| Metric | 2025 Figure | Change vs 2024 |
|---|---|---|
| Profit After Tax | ₦1.06 billion | +130% |
| Profit Before Tax | ₦1.38 billion | +89% |
| Gross Earnings | ₦4.93 billion | +42% |
| Total Assets | ₦33.04 billion | +48% |
| Loans and Advances | ₦22.71 billion | +44% |
| Customer Deposits | ₦9.48 billion | +14% |
| Shareholders’ Funds | ₦7.16 billion | +17% |
Cash and cash equivalents also rose sharply (reported at around 195% growth in some accounts), reflecting stronger liquidity alongside the expansion of the loan book.
What Drove the Performance
Management attributed the improved results to higher business volumes, stronger income generation and continued attention to earnings quality, despite elevated funding costs, inflation and reduced household purchasing power.
The bank also highlighted efforts to broaden its funding base, including access to facilities such as the Mortgage Refinance and Investment Enhancement Facility and continued participation in Federal Mortgage Bank of Nigeria (FMBN) / National Housing Fund-related lending for qualifying borrowers.
Significance for the Mortgage and Housing Finance Sector
1. Balance-sheet capacity
Growth in total assets and loans and advances indicates that at least some primary mortgage banks are expanding their ability to originate and hold housing-related loans.
2. Profitability recovery
A 130% rise in profit after tax suggests improved operating leverage and income generation, which can support future lending if sustained.
3. Funding remains a constraint
Customer deposits grew more modestly than the loan book. This underscores a structural challenge in Nigerian mortgage banking: the need for longer-term, appropriately priced funding to match the tenor of mortgage assets.
4. Sector signal
While one institution’s results do not define the entire market, strong performance from a dedicated mortgage bank is a positive data point for the housing finance ecosystem, especially at a time when access to affordable, long-term mortgages remains limited for many households.
Outlook and Considerations
AG Mortgage Bank has indicated that its next phase of growth will focus on scale, efficiency, customer reach and sustainable value creation, with plans to deepen its core mortgage business and leverage technology and partnerships.
For the broader market, the results reinforce that specialised mortgage institutions can grow when they successfully expand funding sources and manage risk. However, system-wide progress on mortgage penetration will still depend on lower funding costs, improved affordability, deeper capital markets participation and supportive policy frameworks.
Final Thoughts
AG Mortgage Bank’s 130% profit surge and 48% asset growth to ₦33.04 billion represent a solid performance in a challenging operating environment. The expansion of its loan book is particularly relevant for a sector that needs greater capacity to support homeownership.
Sustained improvement across more primary mortgage banks, combined with better access to long-term funding, would be an important step toward deepening Nigeria’s housing finance market in 2026 and beyond.
What do you see as the biggest constraint to faster growth in Nigeria’s mortgage sector right now? Share your thoughts in the comments.
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