Abbey 2023 Annual Report - Final Web

101 www.abbeymortgagebank.com The following table shows the risk concentration by industry for the components of the statement of financial position. 3.3.5.1 Industry Analysis NOTES TO THE FINANCIAL STATEMENT - Cont’d 31 December 2023 Financial services Government Others Total Financial Assets In ₦’thousands Cash balances with central bank - 766,369 - 766,369 Balances with FMBN 250 - - 250 Balances with other banks 8,682,345 8,682,345 Fixed placement with banks 4,079,876 4,079,876 Loans and advances Construction Loans (CCL) - - 2,496,190 2,496,190 Loan and Advances (MSCHL) - - 5,028,131 5,028,131 Mortgage FMBN bonds (FMBN) - - 4,788 4,788 Mortgage Home Loans (MHL) - - 6,599,465 6,599,465 NHF Loans - - 269,119 269,119 School Loans - - 562 562 Staff Mortgage Loans - - 138,583 138,583 Staff Personal Loans - - 45,810 45,810 Staff Share Loan - - - - Total loans and advances - - 14,582,648 14,582,648 Securities at amortised cost 14,474,735 12,313,021 - 26,787,756 Other financial assets - - 100,000 100,000 Total gross carrying amount 27,237,206 13,079,390 14,682,648 54,999,244 Expected credit loss (44,429) (11,975) (446,743) (503,148) Total Financial Assets 27,192,777 13,067,415 14,235,905 54,496,096 3.3.5 Analysis Of Risk Concentration The Bank’s concentration of risk are managed by client/counterparty, industry sector region (See Note 3.3.5.1) and geographic sector (Note 3.3.5.2).

102 NOTES TO THE FINANCIAL STATEMENT - Cont’d Annual Report & Account 2023 31 December 2022 Financial services Government Others Total Financial Assets In ₦’thousands Cash balances with central bank - 630,000 - 630,000 Balances with FMBN 250 - - 250 Balances with other banks 4,647,346 4,647,346 Fixed placement with banks 23,227,913 23,227,913 Loans and advances Construction Loans (CCL) - - 987,269 987,269 Loan and Advances (MSCHL) - - 128,032 128,032 Mortgage FMBN bonds (FMBN) - - 4,268 4,268 Mortgage Home Loans (MHL) - - 3,749,434 3,749,434 NHF Loans - - 296,242 296,242 School Loans - - 2,249 2,249 Staff Mortgage Loans - - 92,438 92,438 Staff Personal Loans - - - - Staff Share Loan - - 387,396 387,396 Total loans and advances - - 5,647,328 5,647,328 Securities at amortised cost 1,039,999 2,739,914 - 3,779,913 Other financial assets - - 83,210 83,210 Total gross carrying amount 28,915,508 3,369,914 5,730,538 38,015,960 Expected credit loss (109,802) (109) (489,745) (599,656) Total Financial Assets 28,805,706 3,369,805 5,240,793 37,416,304 2023 ₦’000 2022 ₦’000 Cash with central bank – Head office 766,369 630,000 Due from banks – Head office 4,079,876 23,227,913 Expected credit loss - (109,911) Net cash with central and due for banks 4,846,245 23,748,002 3.3.5 Geographic Analysis For this table, the Bank has allocated exposures to regions based on the state of domicile of its counterparties:

103 www.abbeymortgagebank.com NOTES TO THE FINANCIAL STATEMENT - Cont’d Liquidity risk is the risk that the Bank is unable to meet its obligations when they fall due as a result of customer deposits being withdrawn, cash requirements from contractual commitments, or other cash outflows, such as debt maturities or margin calls for derivatives. Such outflows would deplete available cash resources for client lending, trading activities and investments. In extreme circumstances, lack of liquidity could result in reductions in the statement of financial position and sales of assets, or potentially an inability to fulfil lending commitments. The risk that the Bank will be unable to do so is inherent in all Bank operations and can be affected by a range of institution-specific and market-wide events including, but not limited to, credit events, merger and acquisition activity, systemic shocks and natural disasters. Management of liquidity risk The Bank liquidity management process, as carried out within the Bank and monitored by a separate team in the Bank known as the asset and liability management committee (ALCO), its functions include: Monitoring and reporting take the form of cash flow measurement and projections for the next day, week and month respectively, as these are key periods for liquidity management. The starting point for those projections is an analysis of the contractual maturity of the financial liabilities and the expected collection date of the financial assets. Bank Treasury also monitors unmatched mediumterm assets, the level and type of undrawn lending commitments, the usage of overdraft facilities and the impact of contingent liabilities such as standby letters of credit and guarantees. 3.4.1 Liquidity Risk 2023 ₦’000 2022 ₦’000 Loans and advances: Head Office 12,126,036 4,695,972 Apapa 28,196 10,919 Iba 104,286 40,386 Okota 232,997 90,231 Asaba 213,561 82,704 Abuja 1 7,023 2,720 Abuja 2 843,358 326,602 Victoria Island 360,642 139,664 Baze 666,549 258,130 Total loans and advances 14,582,648 5,647,328 Expected credit loss (444,365) (487,367) Net loans and advances 14,138,283 5,159,961 Securities at amortised cost 12,313,021 2,739,914 Other financial assets 100,000 83,210 Expected credit losses (14,354) (144,735) 12,398,667 2,678,389 Total Financial Assets 31,383,195 31,586,352 3.4 Liquidity Risk Day-to-day funding, managed by monitoring future cash flows to ensure that requirements can be met. This includes replenishment of funds as they mature or borrowed by customers. Maintaining a portfolio of highly marketable assets that can easily be liquidated as protection against any unforeseen interruption to cash flow; Monitoring the liquidity ratios of the statement of financial position against internal and regulatory requirements; and Managing the concentration and profile of debt maturities.

104 NOTES TO THE FINANCIAL STATEMENT - Cont’d Annual Report & Account 2023 3.4.2 Maturity Analysis 3.4.2a Maturity analysis The table below analyses financial assets and liabilities of the Bank into relevant maturity based on the remaining period at reporting date to the contractual maturity date. The table includes both principal and interest earned as at year end. Other financial liabilities include account payable and lease liability. As at 31 December 2023 Up to 3 months ₦’000 3-6 months ₦’000 7 to 12 months ₦’000 After 12 Months ₦’000 Total ₦’000 Cash on hand 37,987 - - - 37,987 Due from banks 4,053,383 3,678,194 4,998,190 250 12,730,016 Loans and advances 987,460 4,233,715 4,641,111 4,720,362 14,582,648 Financial investments - securities at FVTPL - 550,527 550,527 Securities at amortised cost 789,819 - 8,953,999 17,043,938 26,787,756 Other assets 100,000 - - - 100,000 Cash balances with central bank - - - 766,369 766,369 Total financial assets 5,968,649 7,911,909 18,593,300 23,081,446 55,555,304 Due to other financial institutions 10,033 - - - 10,033 Due to customers 22,710,101 7,893,230 9,343,529 102,746 40,049,606 Other financial liabilities 464,155 - - - 464,155 Due to the National Housing Fund - - - 289,624 289,624 Total financial liabilities 23,184,289 7,893,230 9,343,529 392,370 40,813,418 Net financial assets (liabilities) (17,215,640) 18,679 9,249,771 22,689,076 14,741,886 As at 31 December 2022 Up to 3 months ₦’000 3-6 months ₦’000 7 to 12 months ₦’000 After 12 Months ₦’000 Total ₦’000 Cash on hand 26,501 - - - 26,501 Due from banks 14,368,892 3,698,194 9,808,173 250 27,875,509 Loans and advances 1,473,641 227,979 968,273 2,977,435 5,647,328 Financial investments - securities at FVTPL - 497,111 497,111 Securities at amortised cost 49,962 - 1,053,728 2,676,223 3,779,913 Other assets 83,210 - - - 83,210 Cash balances with central bank - - - 630,000 630,000 Total financial assets 16,002,206 3,926,173 11,830,174 6,781,019 38,539,572 Due to other financial institutions 3,738,255 - - - 3,738,255 Due to customers 13,598,252 6,593,230 7,343,529 92,746 27,627,757 Other financial liabilities 375,423 - - - 375,423 Due to the National Housing Fund - - - 315,153 315,153 Total financial liabilities 17,711,930 6,593,230 7,343,529 407,899 32,056,588 Net financial assets (liabilities) (1,709,724) (2,667,057) 4,486,645 6,373,120 6,482,984

105 www.abbeymortgagebank.com NOTES TO THE FINANCIAL STATEMENT - Cont’d As at 31 December 2023 Current ₦’000 Non-Current ₦’000 Total ₦’000 Assets Cash on hand 37,987 - 37,987 Cash balances with central bank - 766,369 766,369 Due from banks 12,729,766 250 12,730,016 Loans and advances 9,862,286 4,275,998 14,138,284 Equity investments at FVTPL - 550,527 550,527 Securities at amortised cost 9,743,818 17,031,963 26,775,781 Other assets 1,072,504 - 1,072,504 Property and equipment - 1,351,533 1,351,533 Intangible assets - 73,990 73,990 Non-current assets held for sale 45,251 - 45,251 Total assets 33,491,612 24,050,630 57,542,242 Liabilities Due to other financial institutions 10,033 10,033 Due to customers 40,049,606 - 40,049,606 Current income tax payable 83,843 83,843 Other liabilities 540,871 - 540,871 Due to the National Housing Fund - 289,624 289,624 Total liabilities 40,684,353 289,624 40,973,977 As at 31 December 2022 Current ₦’000 Non-Current ₦’000 Total ₦’000 Assets Cash on hand 26,501 - 26,501 Cash balances with central bank - 629,891 629,891 Due from banks 27,813,702 250 27,813,952 Loans and advances 2,669,445 2,977,396 5,646,841 Equity investments at FVTPL - 497,111 497,111 Securities at amortised cost 1,098,824 2,632,843 3,731,667 Other assets 554,320 - 554,320 Property and equipment - 1,324,111 1,324,111 Intangible assets - 65,466 65,466 Non-current assets held for sale 55,251 - 55,251 Total assets 32,218,043 8,127,068 40,345,111 Liabilities Due to other financial institutions 3,738,255 3,738,255 Due to customers 27,535,005 92,747 27,627,752 Current income tax payable 63,988 63,988 Other liabilities 414,670 - 414,670 Due to the National Housing Fund - 315,153 315,153 Total liabilities 31,751,918 407,900 32,159,818 3.4.2b Maturity analysis of assets and liabilities The table below analyses the assets and liabilities of the Bank according to when they are expected to be recovered or settled.

106 NOTES TO THE FINANCIAL STATEMENT - Cont’d Annual Report & Account 2023 3.5 Market Risk Market risk is the exposure to an adverse change in the market value of our trading and investment positions caused by a change in prices and rates. Such positions result from market making, proprietary trading, underwriting and investing activities. The market risk factors are foreign exchange rates, commodity price, interest rates, and equity prices. Each market risk category the Bank is exposed to daily is described below: 3.5.1 Management Of Market Risk The Bank has put in place a clearly defined market risk management framework that provides the Board of Directors and Management with guidance on market risk management processes. The Bank has also prescribed tolerable market related losses, vis-a-vis the quantum of available capital and level of other risk exposures. The Bank’s market risk policy and strategy are anchored on the following: i. Product diversification which involves trading, application and investment in a wide range and class of products such as corporate securities and government securities ii. Risk taking within well-defined limits with the sole purpose of creating and enhancing shareholder value and competitive advantage iii. Effective utilisation of risk capital iv. Continuous re-evaluation of risk appetite and communication of same through market risk limits Foreign exchange risks arise from exposures to changes in spot and forward rates and volatilities of the exchange rates. Interest rate risks result from exposures to changes in the level and shape of the yield curve, the volatility of interest rates and credit spreads. Equity price risks result from exposures to the changes in prices and volatilities of individual equities. v. Independent market risk management function that reports directly to Management vi. Robust market risk management infrastructure reinforced by a strong automated system for controlling, monitoring and reporting market risk vii. Deployment of a variety of tools to monitor and restrict market risk exposures such as position limits, sensitivity analysis, ratio analysis and management action triggers viii. Setting the internal Open Position Limit (OPL) lower than the CBN prescribed limit (currently 5% of shareholders’ funds). The Bank has put in place an approval process for exceeding the internal OPL limit. However, any trading above the CBN regulated OPL limit must be approved by the Central Bank; and ix. Enforcement of market risk operating limits and other risk management guidelines that will ensure consistent compliance with OPL limit. 3.5.2 Market Risk Measurement Techniques (a) Value at risk (VAR) The Bank applies a ‘value at risk’ (VAR) methodology to its trading portfolios (including assets and liabilities designated at fair value) and at a Bank level to estimate the market risk of positions held and the maximum losses expected, based upon a number of assumptions for various changes in market conditions. The Board sets limits on the value of risk that may be accepted by the Bank, which are monitored on a daily basis by Bank Treasury. Interest rate risk in the non-trading book is measured through the use of interest rate repricing gap analysis. VAR, in general, is a quantitative measure of market risk which applies recent historic market conditions to estimate the potential future loss in market value that will not be exceeded in a set time period at a set statistical confidence level. VAR is calculated for expected movements over a minimum of one business day and to a confidence level of 99% and a 10-day holding period. The confidence level suggests that potential daily losses, in excess of the VAR measure, are likely to be experienced three times per year in every 250 days.

107 www.abbeymortgagebank.com NOTES TO THE FINANCIAL STATEMENT - Cont’d The Bank uses parametric method as its VAR methodology with an observation period of two years obtained from published data from preapproved sources. VAR is calculated on the Bank’s positions at close of business. (b) Stress tests Stress tests provide an indication of the potential size of losses that could arise in extreme conditions. In recognition of the volatile market environment and the frequency of regulations that have had a significant effect on market rates and prices, the Bank augments other risk measures with stress testing to evaluate the potential impact of possible extreme movements in financial variables on portfolio values that are rare but plausible. Stress scenarios are regularly updated to reflect As at 31 December 2023 NAIRA ₦’000 US DOLLARS ₦’000 EURO ₦’000 TOTAL ₦’000 Financial assets: Cash and balances with central banks / due from banks 6,671,604 6,862,074 694.40 13,534,372 Loans and advances 14,138,284 - - 14,138,284 Other financial assets 100,000 - - 100,000 Financial investments - available for sale - - - Financial investments - securities at FVTPL 550,527 - - 550,527 Financial Investments- securities at amortised cost 26,775,781 - - 26,775,781 48,236,196 6,862,074 694.40 55,098,964 Financial liabilities: Due to other financial institutions 10,033 - - 10,033 Due to customers 33,187,532 6,862,074 - 40,049,606 Other financial liabilities 464,155 - - 464,155 Due to the National Housing fund 289,624 - - 289,624 Subtotal 33,951,344 6,862,074 40,813,418 Net open currency position 14,284,852 - 694.40 14,285,546 changes in risk profile and economic events. The ALCO has responsibility for reviewing stress exposures and, where necessary, enforcing reductions in overall market risk exposure. The stress testing methodology assumes that scope for management action would be limited during a stress event, reflecting the decrease in market liquidity that often occurs. Regular stress test scenarios are applied to interest rates, exchange rates, and equity prices. Non-trading book: Other sensitivity analyses The Bank is yet to adopt the use of VAR for its equity exposure as a result of low market liquidity. The Bank does not trade in commodity and therefore is not exposed to commodity risk except in transactions where commodities have been used as collateral for credit transactions. The latter is covered under credit risk management.

108 www.abbeymortgagebank.com Foreign exchange sensitivity analysis The Foreign exchange sensitivity analysis of the Bank is presented below For each foreign currency net exposure ,it is reasonable to assume a 5% appreciation/depreciation against the functional currency. If all other variables are held constant, the tables below present the impacts on profit or loss before tax if these currency movements had occurred. As at 31 December 2022 NAIRA ₦’000 US DOLLARS ₦’000 EURO ₦’000 TOTAL ₦’000 Financial assets: Cash and balances with central banks / due from banks 23,995,652 4,474,395 297 28,470,344 Loans and advances 5,159,962 - - 5,159,962 Other financial assets 80,831 - - 80,831 Financial investments - securities at FVTPL 497,111 - - 497,111 Financial Investments- securities at amortised cost 3,731,668 - - 3,731,668 33,465,223 4,474,395 297 37,939,916 Financial liabilities: Due to other financial institutions 3,738,255 3,738,255 Due to customers 27,627,752 4,474,395 - 32,102,147 Other financial liabilities 375,423 - - 375,423 Due to the National Housing fund 315,153 - - 315,153 32,056,583 4,474,395 - 36,530,978 Net open currency position 1,408,640 - 297 1,408,938 The Bank’s exposure to foreign currency risk is low. Movement in exchange rate between the US Dollar and the Euro affects reported earnings through revaluation gain or loss and the statement of financial position size through increase or decrease in the revalued amounts of assets and liabilities denominated in Euro. 3.5.3 Foreign Exchange Risk The Bank takes on exposure to the effects of fluctuations in the prevailing foreign currency exchange rates on its financial position and cash flows. The Board sets limits on the level of exposure by currency and in aggregate for both overnight and intra-day positions, which are monitored daily. The table below summarises the Bank exposure to foreign currency exchange rate risk at 31 December 2023 and 31 December 2022. Included in the table are the Bank financial instruments at carrying amounts, categorised by currency. NOTES TO THE FINANCIAL STATEMENT - Cont’d

109 NOTES TO THE FINANCIAL STATEMENT - Cont’d Annual Report & Account 2023 The Bank is exposed to the US Dollar and Euro currencies. US DOLLLAR ₦’000 EURO ₦’000 As at 31 December 2023 Net foreign currency exposures - 694 US DOLLLAR ₦’000 EURO ₦’000 As at 31 December 2022 Net foreign currency exposures - 297 The following table details the sensitivity to a 5% increase and decrease in Naira against the US Dollar and Euro. Management believe that a 5% movement in either direction is reasonably possible at the reporting date. The sensitivity analyses below include outstanding US Dollar and Euro denominated assets and liabilities. A positive number indicates an increase in profit where Naira strengthens by 5% against the US Dollar and Euro. For a 5% weakening of Naira against the US Dollar and Euro, there would be an equal and opposite impact on profit, and the balance below would be negative. Foreign exchange sensitivity analysis (31 December 2023) Naira strengthens by 5% against the US Dollar Profit/ (loss) ₦0 Naira weakens by 5% against the US Dollar Profit/(loss) ₦0 Naira strengthens by 5% against the Euro Profit/(loss) ₦34,720 Naira weakens by 5% against the Euro Profit/(loss) ₦(34,720) Foreign exchange sensitivity analysis (31 December 2022) Naira strengthens by 5% against the US Dollar Profit/ (loss) ₦ 0 Naira weakens by 5% against the US Dollar Profit/(loss) ₦ 0 Naira strengthens by 5% against the Euro Profit/(loss) ₦14,853 Naira weakens by 5% against the Euro Profit/(loss) ₦(14,853) 3.5.4 Equity And Commodity Price Risk The Bank is exposed to equity price risk by holding investments quoted on the Nigerian Exchange Group (NGX) and other non-quoted investments. Equity securities quoted on the NGX is exposed to movement based on the general movement of the all share index and movement in prices of specific securities held by the Bank. The Bank holds 5,000,000 quoted shares in Universal Insurance Plc with a market value of N1 million and 55,555,555 quoted shares in Nigeria Mortgage Refinance Bank with carrying value of N307.4million as at year end. The Bank does not hedge against this risk, hence, these are the exposures to the risk The Bank does not deal in commodities and is therefore not exposed to any commodity price risk. The following table details the sensitivity to a 5% increase and decrease in equity prices. Management believe that a 5% movement in either direction is reasonably possible at the reporting date.

110 www.abbeymortgagebank.com NOTES TO THE FINANCIAL STATEMENT - Cont’d 3.5.5 Interest Rate Risk Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair values of financial instruments. The Bank manages this risk by ensuring significant portion of its loans are contracted on fixed interest rate. Equity price sensitivity analysis Impact on total comprehensive income 2023 ₦’000 2022 ₦’000 5% increase with all other variables held constant 27,526 24,856 5% decrease with all other variables held constant (27,526) (24,856) This hierarchy requires the use of observable market data when available. The Bank considers relevant and observable market prices in its valuations where possible. As at 31 December 2023 LEVEL 1 ₦’000 LEVEL 2 ₦’000 LEVEL 3 ₦’000 TOTAL ₦’000 Assets measured at fair value Financial investments - securities at FVTPL 360,822 - 180,182 541,004 Assets for which fair value is disclosed Loans and Advances - - 14,582,648 14,582,648 Financial Investments- securities at amortised cost - 26,787,756 - 26,787,756 360,822 26,787,756 14,762,830 41,911,408 Liabilities for which fair value is disclosed Due to other financial institutions 10,033 10,033 Due to customers 33,187,532 33,187,532 Other financial liabilities 464,155 464,155 Due to the National Housing fund - - 289,624 289,624 - - 33,951,344 33,951,344 3.6 Fair Value Of Financial Assets And Liabilities a. Financial instruments measured at fair value IFRS 13 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources; unobservable inputs reflect the Bank market assumptions. These two types of inputs have created the following fair value hierarchy. Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices) Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs)

111 NOTES TO THE FINANCIAL STATEMENT - Cont’d Annual Report & Account 2023 As at 31 December 2022 LEVEL 1 ₦’000 LEVEL 2 ₦’000 LEVEL 3 ₦’000 TOTAL ₦’000 Assets measured at fair value Financial investments - securities at FVTPL 292,111 - 205,000 497,111 Assets for which fair value is disclosed Loans and Advances - - 3,752,819 3,752,819 Financial Investments- securities at amortised cost - 3,779,913 - 3,779,913 292,111 3,779,913 3,957,819 8,029,843 Liabilities for which fair value is disclosed Due to other financial institutions 3,738,255 3,738,255 Due to customers 27,627,752 27,627,752 Other financial liabilities 375,423 375,423 Due to the National Housing fund - - 58,214 58,214 - - 31,799,644 31,799,644 Quoted equity instrument Level 1: Equity securities relates to securities quoted on the Nigerian Exchange Group and NASD.. Level 3: equity instruments were purchased close to the year end. Cost of purchase is taken as fair value. The fair value of the loans and advances and Due to NHF have been determined using the discounted cash flow method (DCF”) using the Central Bank of Nigeria prime lending rate at the year end, the significant observable input The fair values of cash balances with Central Bank, Due from Banks and other liabilities estimates their carrying amounts due to their short nature. There have been no transfer between the levels. b. Class Comparison Set out below is a comparison by class of the carrying amounts and fair values of the Bank’s financial instruments that are carried in the financial statements. Carrying value Fair value As at 31 December 2022 2023 ₦’000 2022 ₦’000 2023 ₦’000 2022 ₦’000 Loans and Advances 14,582,648 5,647,329 14,582,648 3,752,819 Financial investments - securities at FVTPL 550,527 497,111 550,527 497,111 Financial Investments- securities at amortised cost 26,787,756 3,779,913 26,787,756 3,779,913 41,920,931 9,924,353 41,920,931 8,029,843 Due to other financial institutions 10,033 3,738,255 10,033 3,738,255 Due to customers 33,187,532 27,627,752 33,187,532 27,627,752 Other financial liabilities 464,155 375,423 464,155 375,423 Due to the National Housing fund 289,624 315,153 289,624 58,214 33,951,344 32,056,583 33,951,344 31,799,644

112 www.abbeymortgagebank.com NOTES TO THE FINANCIAL STATEMENT - Cont’d c. Fair valuation methods and assumptions i. Equity securities The fair value of quoted equity securities are determined by reference to quoted prices (unadjusted) in active markets for the instrument. As at the reporting date, the Bank does not have any plan to dispose the investments and plans to hold the investment for the foreseeable future. ii. Loans and advances Loans and advances are carried at amortised cost gross of expected credit loss. The estimated fair value of loans and advances represents the discounted amount of estimated future cash flows expected to be received. Expected cash flows are discounted at average of prime lending rate and maximum lending rate to determine fair value. iii. Financial Investments -securities at amortised cost Fair value of financial investments at amortised cost approximates the carrying amount due to their short term nature. iv. Due to customers, other liabilities and Due to NHF The estimated fair value of deposits with no stated maturity, which includes non-interest bearing deposits, is the amount repayable on demand. The estimated fair values of due to NHF are determined using average of prime lending rate and maximum lending rate appropriate for the remaining term to maturity. 3.7 Capital Management The Bank objectives when managing capital, which is a broader concept than the ‘equity’ on the face of the statement of financial position, are: Capital adequacy and the use of Regulatory Capital are monitored daily by the Bank’s management, employing techniques based on the CBN guideline. The required information is filed with the CBN on a quarterly basis. The Bank maintains a ratio of Total Regulatory Capital to its risk-weighted assets (the ‘Basel ratio’) above a minimum level required by the regulatory authority which takes into account the risk profile of the Bank. The regulatory capital requirements are strictly observed when managing economic capital. The Bank’s regulatory capital, comprising of the following two tiers, is managed by Risk Management, Treasury and Strategy. To comply with the capital requirements set by the regulators of the banking markets where the Bank operates; To safeguard the Bank’s ability to continue as a going concern so that it can continue to provide returns for shareholders and benefits for other stakeholders; and Tier 1 capital: share capital, retained earnings and reserves created by appropriations, statutory reserve, non-controlling interests arising on consolidation from interests in permanent shareholders’ equity. Tier 2 capital: qualifying subordinated loan capital and unrealised gains arising on the fair valuation of equity instruments held as available for sale. To maintain a strong capital base to support the development of its business.

113 NOTES TO THE FINANCIAL STATEMENT - Cont’d Annual Report & Account 2023 The table below summarises the composition of regulatory capital and the ratios of the Bank for the year ended 31 December 2023. During the year, the Bank complied with all of the externally imposed capital requirements to which it is subject. In accordance with CBN circular BSD/DIR/GEN/LAB/07/021, regulatory reserve is no longer included in Tier 1 capital computation. Tier 1 Capital 2023 ₦’000 2022 ₦’000 Share capital 5,076,923 5,076,923 Share premium 1,576,504 5,117,138 Retained earnings/(Accumulated Losses) 623,525 (3,540,633) Statutory reserve 472,697 298,440 Intangible Assets (73,990) (65,466) Total regulatory capital 7,675,659 6,886,402 Risk-weighted assets On statement of financial position 12,692,305 12,700,829 Off statement of financial position - - 12,692,305 12,700,829 Risk-weighted Capital Adequacy Ratio (CAR) 60% 54% Minimum Capital Adequacy Ratio (CAR) 10% 10%

114 www.abbeymortgagebank.com NOTES TO THE FINANCIAL STATEMENT - Cont’d 4.0 Segment Reporting Information regarding the results of each reportable segment is included below. Performance is measured based on segment profit (or loss) before income taxes, as included in the internal management reports that are reviewed by the Bank’s CEO. The CEO is considered the chief operating decision maker in the Bank. Segment profit is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within this industry. Intersegment pricing is determined on an arm’s length basis. 4.1 Services From Which Reportable Segments Derive Their Revenues Information reported to the chief operating decision maker (the CEO) for the purposes of resource allocation and assessment of segment performance focuses on types of goods or services delivered or provided. The Bank’s reportable segments under IFRS 8 are based on geography and are splited between the north and the south of the Country 4.2 Geographical Segment Revenues And Results The following is an analysis of the Bank’s revenue and results from continuing operations by reportable segment. As at 31 December 2023 North ₦’000 South ₦’000 Total ₦’000 Interest income using effective interest rate 166,409 7,036,662 7,203,071 Interest income using effective interest rate (43,779) (4,585,317) (4,629,097) Net interest income 122,630 2,451,345 2,573,974 Fees and commision income 802 394,280 395,082 Other operating income 12,861 204,737 217,599 Total operating income 136,293 3,050,362 3,186,655 Credit loss expense - 108,484 108,484 Net operating income 136,293 3,158,846 3,295,139 Personnel expenses (41,935) (732,688) (774,625) Depreciation (12,339) (143,306) (155,645) Amortisation - (9,459) (9,459) Other operating expenses (31,987) (1,372,080) (1,404,067) Total operating expenses (86,261) (2,257,533) (2,343,796) Segment profit/(loss) 50,032 901,313 951,343 Taxation - (80,059) (80,059) Profit for the year 50,032 821,254 871,284

115 NOTES TO THE FINANCIAL STATEMENT - Cont’d Annual Report & Account 2023 As at 31 December 2023 North ₦’000 South ₦’000 Total ₦’000 Assets Cash on hand 6,202 31,785 37,987 Cash balances with central bank - 766,369 766,369 Due from banks - 12,730,016 12,730,016 Loans and advances 406,921 13,731,363 14,138,284 Financial investments - securities at FVTPL - 550,527 550,527 Financial Investments- securities at amortised cost - 26,775,781 26,775,781 Other assets 4,551 1,067,953 1,072,504 Property and equipment 223,009 1,128,524 1,351,533 Intangible assets - 73,990 73,990 Non-current assets held for sale - 45,251 45,251 Total Assets 640,683 56,901,559 57,542,242 Liabilities Due to other financial institutions - (10,033) (10,033) Deposits from customers (1,288,770) (38,760,836) (40,049,606) Other liabilities (2,976) (537,895) (540,871) Current income tax payable - (83,843) (83,843) Borrowings - (3,998,567) (3,998,567) Deposit for shares - (4,000,000) (4,000,000) Due to National Housing Fund - (289,624) (289,624) (1,291,746) (47,680,799) (48,972,545) NOTES TO THE FINANCIAL STATEMENT - Cont’d

116 Assets North ₦’000 South ₦’000 Total ₦’000 As at 31 December 2022 Cash on hand 1,904 24,597 26,501 Cash balances with central bank - 629,891 629,891 Due from banks - 27,813,952 27,813,952 Loans and advances 487,197 4,672,765 5,159,962 Financial investments - equity instrument at FVTPL - 497,111 497,111 Financial Investments- securities at amortised cost - 3,731,668 3,731,668 Other assets 286,938 267,381 554,319 Property and equipment 159,790 1,164,321 1,324,111 Intangible assets - 65,466 65,466 Non-current assets held for sale - 55,251 55,251 935,829 38,922,403 39,858,232 Liabilities Deposits from customers 329,077 27,298,675 27,627,752 Due to other financial institutions - 3,738,255 3,738,255 Other liabilities 8,337 406,333 414,670 Current income tax payable - 63,988 63,988 Due to National Housing Fund 285,153 30,000 315,153 622,567 31,537,251 32,159,818 Year ended 31 December, 2022 North ₦’000 South ₦’000 Total ₦’000 Interest income using effective interest rate 76,123 4,759,384 4,835,507 Interest expense using effective interest rate (29,263) (2,776,150) (2,805,413) Net interest income 46,860 1,983,234 2,030,094 Fees and commision income 6,564 716,712 723,276 Other operating income 13,511 271,237 284,748 Total operating income 66,935 2,971,183 3,038,118 Net Impairment Write back on financial Asset - 143,971 143,971 Net operating income 66,935 3,115,154 3,182,089 Personnel expenses (20,277) (619,085) (639,362) Depreciation (5,070) (103,080) (108,150) Amortisation - (5,063) (5,063) Other operating expenses (17,048) (1,585,200) (1,602,248) Total operating expenses (42,395) (2,312,428) (2,354,823) Segment Profit 24,540 802,726 827,266 Income tax expense (61,109) (61,109) Profit for the year 24,540 741,617 766,157 NOTES TO THE FINANCIAL STATEMENT - Cont’d

117 www.abbeymortgagebank.com For the purposes of monitoring segment performance and allocating resources between segments: All assets are allocated to reportable segments. All liabilities are allocated to reportable segments other than current tax liabilities. Liabilities for which reportable segments are jointly liable are allocated in proportion to segment assets. The Bank’s operations are geographically divided into two segments (North and South) based on its operations within the nothern and southern Nigeria. The bank does not have operations outside the country. NOTES TO THE FINANCIAL STATEMENT - Cont’d 5 Interest income using effective interest rate 2023 ₦’000 2022 ₦’000 Loans and advances 1,767,144 742,573 Cash and short term funds 4,780,029 3,578,977 Investment securities at amortized cost 655,898 513,957 Balance as at 31 December 7,203,071 4,835,507 8 Other Operating Income 2023 ₦’000 2022 ₦’000 Rental income 1,192 1,683 Dividend income 27,739 23,000 Other income 132,968 215,169 Profit on disposal of non-current asset held for sale - 4,973 Net gains on financial assets at fair value through profit or loss 53,416 - Profit/(Loss) on disposal of property, plant and equipment 2,284 39,923 Balance as at 31 December 217,599 284,748 6 Interest expense using effective interest rate 2023 ₦’000 2022 ₦’000 Due to customers 3,937,143 2,603,191 Borrowings 691,954 202,222 Balance as at 31 December 4,629,097 2,805,413 7 Fees and commission income 2023 ₦’000 2022 ₦’000 Mortgage fees 395,082 723,276 Balance as at 31 December 395,082 723,276 Out of the total interest expense of N691m, N243m relates to interest expense on borrowings from Nigeria Mortgage Refinance Company Plc (NMRC) and Development Bank of Nigeria (DBN), the reisdual balance relates to interest expense on overdraft facility. Fees and commission were earned from services provided overtime. The portion of the fee income earned over time in the course of the year amounted to N395,081,858 (2022: N723,276,011.93). Other income includes miscellaneous income N54.6m, account maintenance fees N30.28m, recoveries N28.9m, NIP fees N4.3m, SMS income N2.9m etc.

118 NOTES TO THE FINANCIAL STATEMENT - Cont’d Annual Report & Account 2023 10 Personnel Expenses 2023 ₦’000 2022 ₦’000 Wages, salaries and other staff costs 695,188 572,921 Retirement contribution plan 36,063 31,929 Medical expenses 43,374 34,512 Balance as at 31 December 774,625 639,362 Number Number Executive Director 2 2 Management 6 5 Non-management 130 119 Balance as at 31 December 138 126 Stage 1 Stage 2 Stage 3 Total Balances with Central Bank of Nigeria (109) - - (109) Due from banks (29,102) - - (29,102) Other assets - - - - Loans and advances (43,002) (43,002) Financial assests at amortised cost (36,271) - - (36,271) Other assets - Total impairment write back (108,484) - - (108,484) Stage 1 Stage 2 Stage 3 Total Balances with Central Bank of Nigeria - - - - Due from banks (36,386) - - (36,386) Other assets - - - - Loans and advances (133,342) (133,342) Financial assests at amortised cost 25,757 - - 25,757 Total impairment write back (143,971) - - (143,971) The table below shows the ECL charges on financial instruments for the year ended 31 December 2023: The table below shows the ECL charges on financial instruments for the year ended 31 December 2022 Empoyees The average number of persons employed by the Bank during the year was as follows: 9 Net Impairment writeback on Financial Assets Notes 2023 ₦’000 2022 ₦’000 Impairment writeback - balances due from CBN (109) 0 Impairment writeback - balances due from banks 17.1 (29,102) (36,386) Impairment writeback - loans and advances 18.1 (43,002) (133,342) Impairment writeback - securities at amortised cost 20.1 (36,271) 25,757 Balance as at 31 December (108,484) (143,971)

119 www.abbeymortgagebank.com NOTES TO THE FINANCIAL STATEMENT - Cont’d Employees other than non-executive directors whose duties were wholly or mainly discharged in Nigeria, received emoluments (excluding pension contributions and certain benefits) in the following ranges: In accordance with the provision of the Pension Act 2004, the Company commenced a contributory pension schame in January 2005. The contribution by employees and the Company are 8% and 10% respectively of the employees’ basic salary ,housing and transport allowances Other expenses is made up of other operating expenses such as miscellenous expenses N97.5m, corporate/ secretarial expenses N 65.3m, travel expenses N53.1m, training expenses N16.5m etc. Number Number Below N1,000,000 3 9 N1,000,001 - N2,000,000 21 1 N2,000,001 - N3,000,000 5 27 N3,000,001 - N4,000,000 35 43 N4,000,001 - N5,000,000 19 5 Above N5,000,000 53 39 Balance as at 31 December 136 124 11 Depreciation 2023 ₦’000 2022 ₦’000 Depreciation of property, plant and equipment (Note 22) 155,645 108,150 Balance as at 31 December 155,645 108,150 12 Other operating expenses 2023 ₦’000 2022 ₦’000 Directors remuneration 112,806 111,908 Subscriptions, publications, stationeries and communications 248,997 202,118 Property and equipment repairs and maintenance 116,314 91,627 Insurance expenses 48,091 32,977 Electricity and gas 62,322 41,792 Deposit insurance commission 119,650 95,571 Auditors remuneration 28,000 17,200 Professional fees 174,692 127,587 Security costs 49,170 54,368 Advertising expense 13,220 32,618 Bank charges 7,720 11,781 Bad debt written off 59,756 359,982 Fine 1,400 - Donation 1,550 1,090 Lease charges - short term 10,414 5,500 Other directors related expenses 55,000 73,830 Other expenses 294,965 342,298 Balance as at 31 December 1,404,067 1,602,246

120 NOTES TO THE FINANCIAL STATEMENT - Cont’d Annual Report & Account 2023 *Unrecognised tax losses have been disclosed in the reconciliation along with prior year. 13.1 Current income tax for the year 2023 ₦’000 2022 ₦’000 Income tax 38,939 29,103 Education tax 29,181 20,995 Information technology levy 9,513 8,378 Capital gains tax - 497 NASENI Levy 2,378 2,094 Nigerian police fund levy 48 42 Total current income tax expense 80,059 61,109 13.3 Current income tax payable 2023 ₦’000 2022 ₦’000 At beginning of the year 63,988 49,327 Income tax expense 80,059 61,109 Payments during the year (60,204) (46,448) At end of the year 83,843 63,988 13 Income Tax Expense 13.2 Reconciliation Of Effective Tax Rate The effective income tax rate for 2023 is 8% (2022: 7%). The Bank is assessed on minimum tax for 2023 in compliance with the provision of the Finance Act 2020. Where in any year of assessment the ascertainment of total assessable profits from all sources of a Bank results in a loss or where a Bank’s ascertained total profits results in no tax payable or tax payable which is less than the minimum tax there shall be levied and paid by the Bank, the minimum tax as prescribed in the subsection (2) of this sections. In compliance with Finance Act 2020, the minimum tax to be levied and paid is computed as 0.5% of gross turnover of the company less franked investment income. RECONCILIATION OF EFFECTIVE TAX RATE 2023 ₦’000 2022 ₦’000 Profit before taxation % 951,343 % 827,268 Income tax using the domestic corporate tax rate 30% 285,403 30% 248,180 Income not subject to tax (17%) (162,349) (8%) (65,583) Non-deductible expenses 22% 204,951 5% 41,865 Education tax 3% 29,181 3% 20,995 Capital gains tax 0% - 0% 497 Unrecognised tax losses* (34%) (328,006) (28%) (224,461) National agency for science and engineering Infrastructure Levy 0% 2,378 0% 2,094 Nigerian police fund levy 0% 48 0% 42 Information technology levy 1% 9,513 1% 8,378 Effect of minimum tax floor 4% 38,939 4% 29,103 At end of the year 8% 80,058 7% 61,109

121 www.abbeymortgagebank.com NOTES TO THE FINANCIAL STATEMENT - Cont’d 14 Profit Per Share Attributable To Ordinary Equity Holders (Kobo) - Basic And Diluted Basic profit per share has been calculated based on profit after tax attributable to the shareholders during the year and the weighted average number of issued share capital of 10,194,061 at year end (2023: 10,194,061) Cash reserves with Central Bank of Nigeria(CBN) are restricted balances and are not available for use in the Bank’s day to day operations. The Bank is expected to maintain an amount of 2% of its adjusted deposit liabilities with the CBN as cash reserve at all times. Diluted There was no diluting instruments as at the reporting date. Hence, diluted loss per share is the same as basic loss per share. 2023 2022 Profit after income tax attributable to the shareholders (₦'000) 871,284 766,159 Issued share capital (Unit '000) 10,153,846 10,153,846 Add: Additional share issued during the year - - Weighted average number of shares ('000) 10,153,846 10,153,846 (In Kobo) 9 8 15 Cash on Hand 2023 ₦’000 2022 ₦’000 Cash 37,987 26,501 Balance as at 31 December 37,987 26,501 16 Cash balances with central bank 2023 ₦’000 2022 ₦’000 Deposits with CBN 766,369 630,000 Allowances for impairment on Deposits with CBN - (109) Balance as at 31 December 766,369 629,891 17 Due from other banks 2023 ₦’000 2022 ₦’000 Balances with FMBN 250 250 Balances with other banks 8,682,345 4,647,346 Fixed placement with banks 4,079,876 23,227,913 12,762,471 27,875,509 Allowances for impairment on Balances due from other banks (32,455) (61,557) Balance as at 31 December 2023 12,730,016 27,813,952 The balance with FMBN is a mandatory specified deposit required for the National Housing Fund on-lending loan. Balance with other banks earns interest at floating rates based on daily bank deposit rates. Fixed placements with banks are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Bank, and earn interest at the respective fixed placement rates.

122 NOTES TO THE FINANCIAL STATEMENT - Cont’d Annual Report & Account 2023 17.1 Impairment Allowance On Due From Banks The table below shows the credit quality and the maximum exposure to credit risk based on the Bank’s internal credit rating system and year-end stage classification. The amounts presented are gross of impairment allowances. An analysis of changes in the gross carrying amount and the corresponding ECL allowance is, as follows: Rate range analysis: Fixed placements with banks and other financial institution 6.0%-25.0% 6.0%-25.0% 2023 Internal rating grade Stage 1 Stage 2 Stage 3 Total ₦’000 ₦’000 ₦’000 ₦’000 Performing Standard grade 12,730,016 - - 12,730,016 Sub-standard grade - - - - Non- performing - - - - Individually impaired - - - Total 12,730,016 - - 12,730,016 2022 Internal rating grade Stage 1 Stage 2 Stage 3 Total ₦’000 ₦’000 ₦’000 ₦’000 Performing Standard grade 27,813,952 - - 27,813,952 Sub-standard grade - - - - Non- performing - - - - Individually impaired - - - Total 27,813,952 - - 27,813,952 Stage 1 Stage 2 Stage 3 Total ₦’000 ₦’000 ₦’000 ₦’000 Gross carrying amount as at 1 January 2023 27,875,509 - - 27,875,509 Net Movement 19,148,037 - - 19,148,037 At 31 December 2023 47,023,546 - - 47,023,546 The Bank has restricted cash balances with the Central Bank of Nigeria and the FMBN. This balance is made up of CBN and FMBN cash reserve requirement. The cash reserve ratio represents a mandatory cash deposit which should be held with the Central Bank of Nigeria as a regulatory requirement. Restricted deposits with Central Bank and Federal Mortgage Bank are not available for use in the Bank’s day-to-day operations. Fixed placement with banks are short-term placements ranging from one day to three months, depending on the immediate cash requirements of the Bank. Impairment allowance on balances due from other banks as of 31 December 2023 is N32.46 million (31 December 2022: N61.56 million).

123 www.abbeymortgagebank.com Stage 1 Stage 2 Stage 3 Total ₦’000 ₦’000 ₦’000 ₦’000 Gross carrying amount as at 1 January 2022 24,476,323 - - 24,476,323 Net Movement 3,399,186 - - 3,399,186 At 31 December 2022 27,875,509 - - 27,875,509 Stage 1 Stage 2 Stage 3 Total ₦’000 ₦’000 ₦’000 ₦’000 ECL allowance as at 1 January 2023 61,557 - - 61,557 Write Back (29,102) - - 29,102 At 31 December 2023 32,455 - - 32,455 Stage 1 Stage 2 Stage 3 Total ₦’000 ₦’000 ₦’000 ₦’000 ECL allowance as at 1 January 2022 97,943 - - 97,943 Write Back (36,386) - - (36,386) At 31 December 2022 61,557 - - 61,557 This is an approved overdraft facility obtained from First Bank of Nigeria. 18.1 Impairment Allowances On Loans And Advances 18.1.1 Mortgages The table below shows the credit quality and the maximum exposure to credit risk based on the Bank’s internal credit rating system and year-end stage classification. The amounts presented are gross of impairment allowances. NOTES TO THE FINANCIAL STATEMENT - Cont’d 17.2 Due to Other Banks 2023 ₦’000 2022 ₦’000 Overdrawn balances with banks 10,033 3,738,255 Balance as at 31 December 2023 10,033 3,738,255 18 Loans and Advances 2023 ₦’000 2022 ₦’000 Mortgages 12,589,387 4,831,390 Advances 1,719,314 515,429 National Housing Fund 273,947 300,510 14,582,648 5,647,329 Less ECL allowance (444,364) (487,367) Balance as at 31 December 2023 14,138,284 5,159,962

124 An analysis of changes in the gross carrying amount and the corresponding ECL allowance in relation to mortgage loan is, as follows: NOTES TO THE FINANCIAL STATEMENT - Cont’d Annual Report & Account 2023 2023 Internal rating grade Stage 1 Stage 2 Stage 3 Total ₦’000 ₦’000 ₦’000 ₦’000 Performing Standard grade 10,646,372 - - 10,646,372 Sub-standard grade - 55,121 - 55,121 Non- performing - Individually impaired - - 1,887,894 1,887,894 Total 10,646,372 55,121 1,887,894 12,589,387 2022 Internal rating grade Stage 1 Stage 2 Stage 3 Total ₦’000 ₦’000 ₦’000 ₦’000 Performing Standard grade 3,191,710 - - 3,191,710 Sub-standard grade - 561,733 - 561,733 Non- performing Individually impaired - - 1,077,946 1,077,946 Total 3,191,710 561,733 1,077,946 4,831,389 Stage 1 Stage 2 Stage 3 Total ₦’000 ₦’000 ₦’000 ₦’000 Gross carrying amount as at 1 January 2023 3,191,710 561,733 1,077,946 4,831,391 New assets originated or purchased/(Derecognised or repaid) 7,454,662 (506,612) 809,947 7,757,996 At 31 December 2023 10,646,372 55,121 1,887,894 12,589,387 Stage 1 Stage 2 Stage 3 Total ₦’000 ₦’000 ₦’000 ₦’000 Gross carrying amount as at 1 January 2022 4,476,406 6,078 1,607,325 6,089,809 New assets originated or purchased/(Derecognised or repaid) (1,284,696) 555,655 (529,378) (1,258,419) At 31 December 2022 3,191,710 561,733 1,077,947 4,831,390 Stage 1 Stage 2 Stage 3 Total ₦’000 ₦’000 ₦’000 ₦’000 ECL allowance as at 1 January 2023 20,406 598 431,629 452,633 Net Impairment (Write Back)/Charge (7,923) (394) (11,246) (19,563) At 31 December 2023 12,483 204 420,383 433,070

125 www.abbeymortgagebank.com * Provision no longer required relates to the reversal of impairment allowance on impaired facilities in prior year, which were fully paid down/recovered in current year An analysis of changes in the gross carrying amount and the corresponding ECL allowance in relation to Advance loan is, as follows: Stage 1 Stage 2 Stage 3 Total ₦’000 ₦’000 ₦’000 ₦’000 ECL allowance as at 1 January 2022 21,180 (20,241) 558,555 559,494 Net Impairment (Write Back)/Charge (774) 20,838 (126,926) (106,862) At 31 December 2022 20,406 597 431,629 452,632 Stage 1 Stage 2 Stage 3 Total ₦’000 ₦’000 ₦’000 ₦’000 Gross carrying amount as at 1 January 2023 493,412 - 22,017 515,429 New assets originated or purchased/(derecognised or repaid) 1,225,902 - (22,017) 1,203,885 At 31 December 2023 1,719,314 - - 1,719,314 NOTES TO THE FINANCIAL STATEMENT - Cont’d 18.1.2 Advances The table below shows the credit quality and the maximum exposure to credit risk based on the Bank’s internal credit rating system and year-end stage classification. The amounts presented are gross of impairment allowances. 2023 Internal rating grade Stage 1 Stage 2 Stage 3 Total ₦’000 ₦’000 ₦’000 ₦’000 Performing Standard grade - - - - Sub-standard grade 1,719,314 - 1,719,314 Non- performing - - - - Individually impaired - - Total 1,719,314 - - 1,719,314 2022 Internal rating grade Stage 1 Stage 2 Stage 3 Total ₦’000 ₦’000 ₦’000 ₦’000 Performing Standard grade 493,412 - - 493,412 Sub-standard grade - - - - Non- performing - - - - Individually impaired - - 22,017 22,017 Total 493,412 - 22,017 515,429

126 Stage 1 Stage 2 Stage 3 Total ₦’000 ₦’000 ₦’000 ₦’000 ECL allowance as at 1 January 2022 34,317 - 18,310 52,627 Net Impairment writeback (30,269) - (4,687) (34,956) At 31 December 2022 4,048 - 13,623 17,671 NOTES TO THE FINANCIAL STATEMENT - Cont’d Annual Report & Account 2023 2023 Internal rating grade Stage 1 Stage 2 Stage 3 Total ₦’000 ₦’000 ₦’000 ₦’000 Performing Standard grade 187,917 - - 187,917 Sub-standard grade - - - - Non- performing - - - - Individually impaired - - 86,030 86,030 Total 187,917 - 86,030 273,947 2022 Internal rating grade Stage 1 Stage 2 Stage 3 Total ₦’000 ₦’000 ₦’000 ₦’000 Performing Standard grade 199,906 - - 199,906 Sub-standard grade - 14,664 - 14,664 Non- performing - - - - Individually impaired - - 85,940 85,940 Total 199,906 14,664 85,940 300,510 Stage 1 Stage 2 Stage 3 Total ₦’000 ₦’000 ₦’000 ₦’000 Gross carrying amount as at 1 January 2022 453,743 - 21,849 475,592 New assets originated or purchased/(derecognised or repaid) 39,669 - 168 39,837 At 31 December 2022 493,412 - 22,017 515,429 Stage 1 Stage 2 Stage 3 Total ₦’000 ₦’000 ₦’000 ₦’000 ECL allowance as at 1 January 2023 4,048 - 13,623 17,671 Net Impairment write back (4,048) - (13,623) (17,671) At 31 December 2023 - - - - 18.1.3 National Housing Fund The table below shows the credit quality and the maximum exposure to credit risk based on the Bank’s internal credit rating system and year-end stage classification. The amounts presented are gross of impairment allowances.

127 www.abbeymortgagebank.com Stage 1 Stage 2 Stage 3 Total ₦’000 ₦’000 ₦’000 ₦’000 Gross carrying amount as at 1 January 2023 199,906 14,664 85,940 300,510 New assets originated or purchased/(Derecognised or repaid) (11,989) (14,664) 90 (26,563) At 31 December 2023 187,917 - 86,030 273,947 Stage 1 Stage 2 Stage 3 Total ₦’000 ₦’000 ₦’000 ₦’000 Gross carrying amount as at 1 January 2022 129,949 5,776 80,557 216,282 New assets originated or purchased/(Derecognised or repaid) 69,957 8,888 5,383 84,228 At 31 December 2022 199,906 14,664 85,940 300,510 Stage 1 Stage 2 Stage 3 Total ₦’000 ₦’000 ₦’000 ₦’000 ECL allowance as at 1 January 2023 1,731 - 15,332 17,063 Net Impairment (writeback)/charge (1,331) - (4,441) (5,772) At 31 December 2023 400 - 10,891 11,291 Stage 1 Stage 2 Stage 3 Total ₦’000 ₦’000 ₦’000 ₦’000 ECL allowance as at 1 January 2022 8,632 - (44) 8,588 Net Impairment charge/(writeback) (6,901) - 15,376 8,475 At 31 December 2022 1,731 - 15,332 17,063 NOTES TO THE FINANCIAL STATEMENT - Cont’d An analysis of changes in the gross carrying amount and the corresponding ECL allowances in relation to National Housing Fund is, as follows: Quoted equity investment represents shares in Universal Insurance Plc, the Nigeria Mortgage Refinancing Company Plc (NMRC) and the Mortgage Warehouse of Company Ltd. These shares are quoted on the Nigerian Exchange Group and the NASD, the mutual funds investment represents investments in Norrenberger Money Market Funds, while the unquoted equity investment relates to investment in Dot and Herel Limited 19 Financial Investments - Securities At FVTPL 2023 ₦’000 2022 ₦’000 Quoted equity investments 307,406 292,111 Mutual Funds 62,939 50,000 Unquoted Equity Investment 180,182 155,000 Balance as at 31 December 550,527 497,111 Movement in Financial investments - securities at FVTPL 2023 ₦’000 2022 ₦’000 Balance as at 1 January 497,111 497,111 Fair value gain on financial investments at FVTPL 53,416 - Balance as at 31 December 550,527 497,111

128 NOTES TO THE FINANCIAL STATEMENT - Cont’d Annual Report & Account 2023 The securities measured at amortised cost as disclosed here consist of investment in fixed income securities which are intended to be held till maturity. 20 Financial Investments- securities at amortised cost 2023 ₦’000 2022 ₦’000 Securities at amortised cost- Treasury bills 142,824 49,962 Securities at amortised cost- Bonds 12,170,197 3,729,951 Fixed Deposit placements 14,474,735 - 26,787,756 3,779,913 Expected credit loss (11,975) (48,245) Balance as at 31 December 2023 26,775,781 3,731,668 Of the balance as at year end, N 4,022,839,505.5 are pledged. Assets pledged as collateral are part of securities borrowing under terms that are usual and customary for such activities. Assets pledged as collateral are recognized based on market prices in an active market. 20.1 Impairment Allowance On Securities At Amortised Cost The table below shows the credit quality and the maximum exposure to credit risk based on the Bank’s internal credit rating system and year-end stage classification. The amounts presented are gross of impairment allowances. 2023 Internal rating grade Stage 1 Stage 2 Stage 3 Total ₦’000 ₦’000 ₦’000 ₦’000 Performing - - - - Standard grade 12,313,021 - - 12,313,021 Sub-standard grade - - - - Non- performing - - - - Individually impaired - - - - Total 12,313,021 - - 12,313,021 2022 Internal rating grade Stage 1 Stage 2 Stage 3 Total ₦’000 ₦’000 ₦’000 ₦’000 Performing - - - - Standard grade 3,779,913 - - 3,779,913 Sub-standard grade - - - - Non- performing - - - - Individually impaired - - - - Total 3,779,913 - - 3,779,913

129 www.abbeymortgagebank.com NOTES TO THE FINANCIAL STATEMENT - Cont’d Stage 1 Stage 2 Stage 3 Total ₦’000 ₦’000 ₦’000 ₦’000 Gross carrying amount as at 1 January 2023 3,779,913 - - 3,779,913 New assets originated or purchased 8,440,246 - - 8,440,246 At 31 December 2023 12,220,159 - - 12,220,159 An analysis of changes in the gross carrying amount and the corresponding ECL allowance is, as follows: Other assets are due within 3 months of the year end; hence, their carrying value approximate to their fair value. An analysis of changes in the gross carrying amount and the corresponding ECL allowance is, as follows: Stage 1 Stage 2 Stage 3 Total ₦’000 ₦’000 ₦’000 ₦’000 Gross carrying amount as at 1 January 2022 1,357,370 - - 1,357,370 New assets originated or purchased 2,422,543 - - 2,422,543 At 31 December 2022 3,779,913 - - 3,779,913 Stage 1 Stage 2 Stage 3 Total ₦’000 ₦’000 ₦’000 ₦’000 ECL allowance as at 1 January 2022 22,488 - - 22,488 Impairment charge 25,757 - - 25,757 At 31 December 2022 48,245 - - 48,245 Stage 1 Stage 2 Stage 3 Total ₦’000 ₦’000 ₦’000 ₦’000 ECL allowance as at 1 January 2023 48,245 - - 48,245 Impairment charge (36,271) - - (36,271) At 31 December 2023 11,974 - - 11,974 21 Other assets 2023 ₦’000 2022 ₦’000 Financial assets: Account receivable 100,000 - Balance with other financial institutions - - Non financial assets: Other assets 390,721 135,079 Prepayments 55,005 60,467 Witholding tax receivable 515,468 352,031 Stationery and stocks 13,688 9,122 1,074,882 556,699 Allowance for impairment of other assets - (note 21.1) (2,378) (2,379) Balance as at 31 December 1,072,504 554,320

130 NOTES TO THE FINANCIAL STATEMENT - Cont’d Annual Report & Account 2023 There were no restrictions on title, no asset pledge as security for liabilities and no contractual commitment to purchase any item of PPE during the year. 21.1 Movement of allowance for impairment of other assets 2023 ₦’000 2022 ₦’000 Balance at the beginning of year 2,379 2,379 Written off - - Provision for the year - - End of the year 2,379 2,379 22 Property and Equipment Land and Building ₦’000 Office Furniture and Equipment ₦’000 Computer Equipment ₦’000 Motor Vehicles ₦’000 Total ₦’000 Cost At 1 January 2023 1,121,630 287,300 182,515 352,165 1,943,610 Additions 50,352 51,193 69,115 18,000 188,660 Disposal (5,329) (5,573) (2,417) (3,295) (16,614) At 31 December 2023 1,166,653 332,920 249,213 366,870 2,115,656 Accumulated depreciation At 1 January 2023 228,947 161,402 99,540 129,611 619,500 Charge for the year 25,305 17,451 28,832 84,056 155,645 Disposals - (5,208) (2,521) (3,295) (11,023) At 31 December 2023 254,252 173,645 125,851 210,372 764,122 Cost At 1 January 2022 1,163,301 212,680 131,156 231,364 1,738,501 Additions 53,874 79,845 51,764 222,280 407,763 Disposal (95,545) (5,225) (405) (101,479) (202,654) At 31 December 2022 1,121,630 287,300 182,515 352,165 1,943,610 Accumulated depreciation At 1 January 2022 218,332 151,439 83,079 157,783 610,633 Charge for the year 23,246 14,932 16,865 53,107 108,150 Disposals (12,631) (4,969) (404) (81,279) (99,283) At 31 December 2022 228,947 161,402 99,540 129,611 619,500 NBV at 31 December 2023 912,400 159,275 123,361 156,498 1,351,533 NBV at 31 December 2022 892,683 125,899 82,975 222,554 1,324,111

131 www.abbeymortgagebank.com The intangible assets consist wholly of the Bank’s computer software. The Bank performed its annual impairment test as at 31 December 2023 and 2022, and there were no indicators of impairment of assets held as at these dates. 24 Non-Current Assets-Held For Sale In the year ended 31 December 2013, the CBN stipulated that the Bank should commence disposal of all real estate developments in its books. Consequently, the Bank commenced plans to dispose of these assets. The criteria to classify the assets as non-current assets held for sale were first met as at 31 December 2013. Sale of all the assets have not been completed at the year end due to circumstances beyond the Bank’s control, however significant portion of the assets have been sold and the Bank is committed to dispose -off the remaining assets within the next 12 months. The bank is in advance stage of selling the properties to willing parties. Negotiations have commenced and part payment received for some of the properties. 23 Intangible assets - Computer Software 2023 ₦’000 2022 ₦’000 Cost At 1 January 194,160 135,637 Addition 17,984 58,523 As at 31 December 212,143 194,160 Accumulated Amortisation At 1 January 128,694 123,631 Amortisation charge 9,459 5,063 As at 31 December 138,153 128,694 Carrying amount 73,990 65,466 25 Deposits from customers 2023 ₦’000 2022 ₦’000 Demand Deposits 3,529,577 1,466,123 Savings Deposits 7,959,128 4,709,857 Term Deposits 28,560,901 21,451,772 Balance as at 31 December 40,049,606 27,627,752 2023 ₦’000 2022 ₦’000 As at 1 January 55,251 156,436 Returned assets - - Disposal (10,000) (101,185) Balance as at 31 December 45,251 55,251 NOTES TO THE FINANCIAL STATEMENT - Cont’d

132 Borrowings are funding obtained from Development Financial Institutions. The Bank has not had any defaults of principal, interest or other breaches with respect to their borrowings during the year. The Bank’s liabilities in respect of the defined contribution scheme are charged against the profit or loss of the year in which they become payable. Payments are made to pension fund administration companies who are financially independent of the Bank. Terms and Conditions of other liabilities Accounts payable and other liabilities are made up of various expenses such as audit fee, rates, etc. which have been incurred during the year but remained unpaid as at the year end. The Bank normally settles such expenses within one to three months from the day of receipt of service to which it relates. The rent payable is due on demand. Lease liability is in respect of lease of office space for some of the Bank’s branches. The Bank’s enforceable right under the Nigerian law is to the extent of the amount paid. The lease liability relates to accruals of the short term leases and this will expire within the next 12 months. Information technology levy represents 1% of profit before tax in line with section 12(2) of the NITDA Act which became effective in 2007. 26 Other liabilities 2023 ₦’000 2022 ₦’000 Financial Liabilities Accounts payable 462,821 374,506 Lease liability 1,333 917 Non- Financial Liabilities Other liabilities 73,395 37,182 Information technology levy 713 713 Staff pension contribution 874 919 Rent received in advance 1,735 433 Balance as at 31 December 540,871 414,670 NOTES TO THE FINANCIAL STATEMENT - Cont’d Annual Report & Account 2023 27 Borrowings 2023 ₦’000 2022 ₦’000 Opening Balance - - Additions 4,400,000 - Interest expense 268,093 - Interest paid (243,001) - Principal repaid (426,525) - At 31 December 2023 3,998,567 - Development Bank of Nigeria (DBN) (see (i) below) 3,015,848 - Nigerian Mortgage Refinance Company (NMRC) (see (ii) below) 982,719 - NBV at 31 December 2022 3,998,567 -

133 www.abbeymortgagebank.com NOTES TO THE FINANCIAL STATEMENT - Cont’d i. This represents N2.4 bn (tranche 1) and N1bn (tranche 2) on-lending facilities obtained from Developmet bank of Nigeria in 21 June 2023 and 17 November 2023. The facility is priced at 17.5% (36 months) and 16.5% (12 months) respectively.The facility is secured ii. This represents N1bn on-lending facilities obtained from Nigeria Mortgage Refinance Company in 28 September 2023. The facility is priced at 14.5%.The facility is secured 28 Deposit for Shares 2023 ₦’000 2022 ₦’000 Prepaid capital contribution, Opening balance - Additional capital contribution 4,000,000 - Prepaid capital contribution, Closing balance 4,000,000 - 30.1 Deferred tax aset and liabilities are attributable to the following: 2023 ₦’000 2022 ₦’000 Accelerated tax depreciation 340,835 334,974 Non-current assets held for sale - - Allowances for loan losses (18,694) (44,355) Other assets 8,462 (714) Unutilised capitalised allowance (372,471) (310,908) Tax loss carried forward (317,997) (661,421) Unrecognised deferred tax assets 359,865 682,424 - - 29 Due to National Housing Fund 2023 ₦’000 2022 ₦’000 Due to National Housing Fund 289,624 315,153 As at 31 December 289,624 315,153 This comprises the prepaid capital contribution made by shareholders with an intent to convert to equity stake and no possibility of refund in cash. The funds are obtained from the Federal Mortgage Bank of Nigeria (“FMBN”) for the purpose of on-lending of this fund to qualifying members of the National Housing Fund loan scheme. The funds are obtained at 4% per annum from FMBN and issued to customers at 6% per annum. 30 Deferred Tax Asset And Liabilities Deferred income taxes are calculated on all temporary differences under the liability method using an effective tax rate of 30% (2022: 30%).

134 NOTES TO THE FINANCIAL STATEMENT - Cont’d Annual Report & Account 2023 31.2 Issued and fully paid share capital of 50 kobo each 2023 ₦’000 2022 ₦’000 Balance at the beginning of the period 5,076,923 5,076,923 Addition - - Balance at the end of the period 5,076,923 5,076,923 Issued share capital (Unit '000) 10,153,846 10,153,846 33 Retained earnings/(Accumulated losses): 2023 ₦’000 2022 ₦’000 Balance at beginning of year (3,540,633) (4,916,732) Profit for the year 871,284 766,159 Transfer to Statutory Reserve (174,257) - Transfer from share premium 3,540,633 Transfer from/(to) regulatory risk reserve (73,502) 609,939 Balance at end of year 623,525 (3,540,633) 32 Share premium 2023 ₦’000 2022 ₦’000 Balance at the beginning of the period 5,117,138 5,117,138 Addition (3,540,633) - Balance as at 31 December 1,576,504 5,117,138 30.2 Movements in temporary differences during the year: At Beginning of year ₦’000 Recognised in equity 1 January 2023 ₦’000 Recognised in profit or loss ₦’000 At End of Year ₦’000 Accelerated depreciation 334,974 - 5,861 340,835 Non-current assets held for sale - - - - Allowances for loan losses (44,355) - 25,661 (18,694) Other assets (714) - 9,176 8,462 Unutilised capitalised allowance (310,908) - (61,563) (372,471) Tax loss carried forward (661,421) - 343,424 (317,997) Unrecognised deferred tax assets 682,424 - (322,559) 359,865 - - - - 31.1 Authorised 2023 ₦’000 2022 ₦’000 Ordinary shares of 50 kobo each 6,000,000 6,000,000 The authorised share capital is made up of twelve billion ordinanry shares of 50 kobo each Share premium is the excess paid by shareholders over the nominal value for their shares. 31 Share Capital

135 www.abbeymortgagebank.com 34 Statutory Reserve: Undistributable earnings required to be kept in line with the central bank of Nigeria’s Prudential guideline. Nigerian banking regulations require the Bank to make an annual appropriation to a statutory reserve. As stipulated by section 16(1) of the Banks and Other Financial Institutions Act of Nigeria, an appropriation of 20% of profit after tax is made if the statutory reserve is less than paid-up share capital and 10% if the statutory reserve is greater than the paid-up capital. The deposits with the Central Bank of Nigeria and FMBN (See Notes 16 and 17) are not available to finance the Bank’s day-to-day operations and, therefore, are not part of cash and cash equivalents. The tenor for the fixed placements ranges between less than 90 days 2023 ₦’000 2022 ₦’000 At the beginning of the year 298,440 298,440 Transfer from profit or loss account 174,257 - Balance at end of year 472,697 298,440 NOTES TO THE FINANCIAL STATEMENT - Cont’d 35 Additional cash flow information 2023 ₦’000 2022 ₦’000 Cash and cash equivalents Cash on hand (note 15) 37,987 26,501 Balances with other banks 8,682,345 4,647,346 Fixed placement with banks 4,079,876 23,227,913 Bank Overdraft (10,033) (3,738,255) Balance at end of year 12,790,175 24,163,505 35.1 Change in Operating assets 2023 ₦’000 2022 ₦’000 Net Change in loans and advances to customers (8,822,797) 1,309,314 Net Change in other assets (518,184) (244,637) Purchase financial assets- securities desginated at amortised cost (26,051,399) (2,555,869) Disposal financial assets- securities desginated at amortised cost 2,720,568 66,664 Net Change in cash reserve with CBN (136,369) (162,000) Net Change in Interest Receivable 105,234 (174,793) Balance at end of year (32,702,947) (1,761,322) 35.2 Change in operating liabilities 2023 ₦’000 2022 ₦’000 Net change in due to customers 12,446,946 6,592,306 Net change in due to National Housing Fund (25,530) 97,018 Net change in other liabilities 126,202 8,699 Net change in interest payables (162,199) (241,458) 12,385,419 6,456,565

136 * Cash flows from operating interest is analysed into interest paid and received. This is also reflected for prior year. NOTES TO THE FINANCIAL STATEMENT - Cont’d Annual Report & Account 2023 35.3 Adjustment for non-cash items 2023 ₦’000 2022 ₦’000 Depreciation of property and equipment 155,645 108,150 Amortisation of intangible assets 9,459 5,063 Impairment/(writeback) on loans and advances (109) (133,342) Impairment/(writeback) on cash balances with central bank (29,102) - Impairment/(writeback) on due from banks (43,002) (36,386) Impairment charge on financial assets at amortised cost (36,271) 25,757 (Profit)/Loss on sale of non-current assets held for sale - (4,973) Fair value gain on equity instruments at FVPL (53,416) - Interest income using effective interest rate (7,203,071) (4,835,507) Interest expense using effective interest rate 4,629,097 2,805,413 Dividend income received (27,739) (23,000) (Profit)/Loss on sale of property and equipment (2,284) (39,923) (2,600,793) (2,128,747) 35.4 Operational cashflows from interest* 2023 ₦’000 2022 ₦’000 Interest expense 4,629,097 2,805,413 Movement in Interest payable (162,199) (241,458) Interest Paid 4,466,898 2,563,955 Interest received 7,203,071 4,835,507 Movement in Interest Receivable 105,234 (174,793) Interest received 7,308,305 4,660,714 35.5 ‘Proceeds on disposal of property and equipment 2023 ₦’000 2022 ₦’000 Cost 16,614 202,654 Accummulated Depreciation (11,023) (99,283) Profit or Loss on disposal of property and equipment 2,284 39,923 Sales Proceed 7,875 143,294 35.6 ‘Proceeds on disposal of non-current asset held for sale 2023 ₦’000 2022 ₦’000 Cost 10,000 101,185 Profit on disposal of non-current asset held for sale - 4,973 Sales Proceed 10,000 106,158

137 www.abbeymortgagebank.com NOTES TO THE FINANCIAL STATEMENT - Cont’d 36 Contingencies And Commitments 36.1 Guarantees And Other Commitments The Bank has no guarantees and other commitments as at 31 December 2023 (2022:Nil). 36.2 Capital Commitments At the year end, the Bank had no capital commitment. 36.3 Claims And Litigations The Bank in the ordinary course of business is presently involved in two (2) claims and litigations relating to two (2) former employees. Maximum exposure for the Bank is ₦48,500,000. Management does not believe that these claims and litigations will be successful. Thus, no provision has been made. (2022:Nil). 37 Operating Leases Bank as lessee The Bank entered into commercial leases for premises. These leases have an average life of one year but they are renewable annually. There are no restrictions placed upon the lessee by entering into these leases. Below is the undiscounted potential future rental payments relating to periods following the lease term of a year. There is no separate amount for minimum lease payment, contingent rents and sublease payment. None of the lease was sub-leased during the year. There is no restriction imposed by the lease arrangement. Bank as lessor The Bank acts as lessor of commercial premises. These leases have an average life of one year with no renewal option. There are no restrictions placed upon the lessee by entering into these leases. As at 31 December 2023, there are no future minimum lease payments under the non-cancellable operating leases. The Bank has received rental income in advance for properties and has been capitalised in other liabilities as ₦462,000 (2022: ₦462,000). The total rent recognised as income during the year is ₦1.19 million (2022: ₦ 1.683million). The properties are occupied by the Bank for its business operations with insignificant space being rented to third parties. 2023 ₦’000 2022 ₦’000 Due within 1 year 10,413 5,500 Due 2-5 years - - Due greater than 5 years - - 10,413 5,500 2023 ₦’000 2022 ₦’000 Due within one year Due within two-five years - - - -

138 NOTES TO THE FINANCIAL STATEMENT - Cont’d Annual Report & Account 2023 38 Insider related credit An analysis of insider related credit granted to companies and individuals with whom the key management of the Bank are related or in which the key management have related interests are as stated below. Credit facilities were provided by the Bank to related parties on commercial terms. Loans and advances to related parties at the reporting date, which are all performing amounted to ₦1.23 bn (2022: ₦260.03 million). Terms and conditions of transactions with related parties The above-mentioned outstanding balances arose from the ordinary course of business. The interest rates charged to and by related parties are at normal commercial rates. Outstanding balances at the year-end are fully secured for the year ended 31 December 2023 and 2023, all related party facilities were performing at year end and as such there were no amounts provided for. Name of Borrower Relationship to Bank Amount Outstanding 2023 ‘₦’000 Amount Outstanding 2022 ‘₦’000 interest paid 2023 ‘₦’000 interest paid 2022 ‘₦’000 Facility type Status Nature of Security Atiat Limited The Bank’s Director (Dipo Adeoye) is a Director of the Company 698,672 - 66,213 - Working capital Performing Cash Backed Infant Jesus Academy Bank’s former MD/CEO and major shareholder is a Director of the School - 4,500 297 5,948 Mortgage loan Performing Legal mortgage Artsplit Limited The Bank’s former Director (Nonso Okpala) is a Director of the Company 112,028 - 25,522 - Mortgage loan Performing Cash Backed VFD Group The Bank’s former Director (Nonso Okpala) is a Director of the Company 216,420 - 40,115 - Mortgage loan Performing Cash Backed Osnon Capital Limited The Bank’s former Director (Nonso Okpala) is a Director of the Company 158,049 167,928 32,712 31,489 Housing loan Performing Legal mortgage Oculus Pharmacare Ltd The Bank's former Chairman is a Director and major shareholder of the Company 46,622 87,602 13,942 18,055 Housing loan Performing Legal mortgage 1,231,791 260,030 178,801 55,492

139 www.abbeymortgagebank.com NOTES TO THE FINANCIAL STATEMENT - Cont’d 2023 ₦’000 2022 ₦’000 Salaries and other short term employee benefits 63,272 62,221 Post -employment benefits 3,560 4,607 Balance as at 31 December 66,832 66,828 38.1 Key management compensation Aggregate remuneration to key management personnel during the year is as follows: 40 Dividend Payable No dividend was paid in 2022. The board is recommending a dividend of 4 Kobo per share for the year ended 31 December 2023. 41 Compliance With Banking Regulations The Bank contravened a banking regulation in the course of the year. This contravention attracted a penalty of N 1,400,000 for the year ended 31 December 2023 (2022: Nil). Details of the banking regulation which the Bank contravened during the year was as follows: 39 Events After Reporting Date There were no subsequent event which could have had a material effect on the financial position and performance of the bank as at 31 December 2023 which had not been adequately provided for or disclosed. Analysis of balance sheet The Bank as performed a line-by-line analysis of its balance sheet and has done an assessment of whether the current uncertainty may impact any of the amounts presented at 31 December 2023. The Bank has assessed that the coronavirus affects the business of the Bank’s borrowing customers. The Bank has performed an analysis and reviewed the portfolio and the impact the pandemic would have on the Bank’s credit portfolio. Management has concluded however that the amounts recognised in the financial statements do not require further adjustment but will continue to monitor situation as new information becomes available and adjustment thereof will be reflected in the appropriate reporting period. 38.2 Directors emoluments 2023 ₦’000 2022 ₦’000 Directors Fee 32,124 32,500 Executive Compensation 63,272 62,221 Defined contribution scheme 3,560 4,607 Other directors expenses 12,700 12,580 Balance as at 31 December 111,656 111,908 The highest paid Director’s compensation 35,000 35,000 Nature of Contravention Amount ₦’000 Late submission of 2022 AFS 1,400 Total as at 31 December 2023 1,400

140 NOTES TO THE FINANCIAL STATEMENT - Cont’d Annual Report & Account 2023 42 Regulatory Risk Reserve The Regulatory Body, the Central Bank of Nigeria (CBN) stipulates that provisions for loans recognized in the profit or loss account shall be determined based on the requirements of IFRS. The IFRS provisions should be compared with provisions determined under prudential guidelines and the expected impact/changes in general reserve should be treated as follows: The Regulatory Risk Reserve accounts for the difference between the allowance for impairment on loans and advances computed based on the Central Bank of Nigeria Prudential Guidelines compared with the expected credit loss model used in calculating the impairment under IFRS. i. Prudential Provisions is greater than IFRS provisions; transfer the difference from the retained earnings to a non-distributable regulatory reserve. ii. Prudential Provisions is less than IFRS provisions; the excess charges resulting should be transferred from the regulatory risk reserve account to the retained earnings to the extent of the non-distributable reserve previously recognized Regulatory risk reserve: 2023 ₦’000 2022 ₦’000 At 1 January 746,546 1,356,485 Transfer to/(from) retained earnings 73,502 (609,939) 820,049 746,546

142 Annual Report & Account 2023 .05 Value Added Statement Five-Year Financial Summary Other National Disclosures

143 OTHER NATIONAL DISCLOSURES Annual Report & Account 2023

144 www.abbeymortgagebank.com STATEMENT OF VALUE ADDED 2023 ₦’000 % 2022 ₦’000 % Gross income 7,815,752 5,843,531 Interest expense (4,629,097) (2,805,413) Impairment charge 108,484 143,971 Brought-in-materials and services-local (1,404,067) (1,602,246) Value added 1,891,072 100 1,579,843 100 Applied to pay: Employee as wages, salaries and pensions 774,625 41 639,362 40 Income tax 80,059 4 61,109 4 Retained in business: Depreciation and amortisation 165,104 9 113,213 7 Profit for the year 871,284 46 766,159 49 Value added 1,891,072 100 1,579,843 100 Value added represents the additional wealth which the company has been able to create by its own and employees efforts . This statement shows the allocation of that wealth among the employees, shareholders, government and that retained for the future creation of more wealth. This information is presented for the purpose of the requirements of the Companies and Allied Matters Act 2020.

145 Annual Report & Account 2023 Profit/(Loss) on earnings per share (basic) are based on the profit/(loss) after tax and weighted number of ordinary shares in issue and paid up at the end of every accounting year. FIVE YEAR FINANCIAL SUMMARY STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 2023 ₦’000 2022 ₦’000 2021 ₦’000 2020 ₦’000 2019 ₦’000 Total Operating Income 3,186,655 3,038,118 1,999,200 980,067 886,722 Impairment charge for loans and other assets 108,484 143,971 180,120 (3,887,927) (79,558) Operating expenses (2,343,796) (2,354,821) (1,518,258) (1,390,012) (859,107) Profit before taxation 951,343 827,268 661,062 (4,297,872) (51,943) Income tax expense (80,059) (61,109) (38,865) (3,747) (10,693) Profit for the year 871,284 766,159 622,197 (4,301,619) (62,636) Other comprehensive income Other comprehensive income for the year Reclassification of net loss to income statement - - - - - Total comprehensive Profit/(loss) for the year 871,283 766,159 622,198 (4,301,619) (62,636) Profit/(Loss) on earnings per share (Kobo) - Basic and diluted 9 8 9 (63) (1)

146 www.abbeymortgagebank.com FIVE YEAR FINANCIAL SUMMARY STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2023 ‘₦’000 2022 ‘₦’000 2021 ‘₦’000 2020 ‘₦’000 2019 ‘₦’000 Assets Cash on hand 37,987 26,501 15,035 2,020 785 Cash balances with central bank 766,369 629,891 467,891 289,774 128,463 Due from banks 12,730,016 27,813,952 24,378,380 8,793,209 1,831,405 Loans and advances 14,138,284 5,159,962 6,161,141 4,788,092 7,738,141 Financial investments - securities at FVTPL 550,527 497,111 497,111 329,334 258,778 Financial Investments- securities at amortised cost 26,775,781 3,731,668 1,334,882 2,826,364 648,316 Other assets 1,072,504 554,320 309,683 117,742 213,188 Non-current assets held for sale 45,251 55,251 156,436 264,681 334,681 Property and equipment 1,351,533 1,324,111 1,127,868 1,092,515 1,094,520 Intangible assets 73,990 65,466 12,006 16,619 11,515 Total Assets 57,542,242 39,858,233 34,460,433 18,520,350 12,259,792 Liabilities and equity Due to financial institutions 10,033 3,738,255 5,577,842 - - Deposits from customers 40,049,606 27,627,752 21,276,904 14,629,440 6,340,597 Current income tax liability 83,843 63,988 49,327 21,606 27,982 Other liabilities 540,871 414,670 405,971 244,963 170,638 Borrowings 3,998,567 - - - - Due to National Housing Fund 289,624 315,153 218,135 269,300 325,835 44,972,544 32,159,818 27,528,179 15,165,309 6,865,052 Equity Share capital 5,076,923 5,076,923 5,076,923 3,230,769 2,100,000 Share premium 1,576,504 5,117,138 5,117,137 4,008,277 2,877,126 Accumulated losses 623,525 (3,540,633) (4,916,732) (5,029,743) (2,097,353) Statutory reserve 472,697 298,440 298,440 298,440 298,440 Regulatory risk reserve 820,049 746,546 1,356,485 847,298 2,216,527 Total equity 8,569,698 7,698,414 6,932,253 3,355,041 5,394,740 Total liabilities and equity 53,542,242 39,858,232 34,460,432 18,520,350 12,259,792

147 Annual Report & Account 2023 .06 Notice of Annual General Meeting Proxy Form Admission Card Full Dematerialization Form for Migration E-Share Registration Form E-Service/Date Update Form E-Dividend Mandate Activation Form Investors’ Information

148 www.abbeymortgagebank.com NOTICE OF ANNUAL GENERAL MEETING NOTICE IS HEREBY GIVEN that the 32nd Annual General Meeting of Abbey Mortgage Bank Plc will be held virtually via https://www.abbeymortgagebank.com/2023agm on Thursday 30th, May 2024 at 11am in the forenoon to transact the following businesses. ORDINARY BUSINESS 1. To lay before the meeting the Audited Financial Statements for the year ended 31st December, 2023 together with the Reports of the Directors, Auditors, Audit Committee and Board Appraisers thereon. 2. To declare a dividend 3. To elect/re-elect Directors. SPECIAL NOTICE Notice is hereby given pursuant to Section 282 of the Companies and Allied Matters Act 2020 for the re-election of Prof Marius Umego as a Director of the Company notwithstanding that he is up to 70 years. The following will be moved as an ordinary resolution: “that the re-election of Professor Marius Umego who is up to 70 years as a Non-Executive Director of the Company be and is hereby approved.” 4. To authorize the Directors to fix the remuneration of the Auditors for the 2024 financial year. 5. To disclose the remuneration of Managers. 6. To elect members of the Audit Committee. SPECIAL BUSINESS 7. To approve the remuneration of Directors NOTES 1. ATTENDANCE AND VOTING BY PROXY A member of the Company entitled to attend and vote at the Annual General Meeting is entitled to appoint a proxy to attend and vote instead of him/her. A proxy form is attached to this notice and if it is to be valid for the purpose of this meeting, it must be completed, stamped and deposited at the office of the Company’s Registrars – Africa Prudential Plc, 220B, Ikorodu Road, Palmgrove, Lagos or via email: [email protected] not later than 48 hours before the meeting. Shareholders may nominate any Director as proxy. 2. MEETING LINK AND ONLINE STREAMING OF AGM Further to the provisions of the Business Facilitation (Miscellaneous Provisions) Act 2022 and Article 59 of the Company’s Memorandum and Articles of Association which allow public companies to hold meetings electronically, this AGM would be held virtually. The Virtual Meeting Link for the AGM which would be live-streamed at https://www.abbeymortgagebank.com/2023agm will also be available at the company’s website https://www.abbeymortgagebank.com and other social media platforms for the benefit of shareholders. 3. CLOSURE OF REGISTER In compliance with Section 114 of CAMA 2020, the Register of Members and Transfer Books of the Company will be closed from Monday, 13th May, 2024 to Thursday, 16th May, 2024 both dates inclusive. 4. DIVIDEND The Directors have resolved to recommend to the members a dividend of 4 kobo for each 50kobo share which will be subject to the appropriate withholding tax. If the dividend is approved, payment of the same will be made on Friday, 31st day of May, 2024 to shareholders whose names appear in the Company’s Register of Members as of the close of business on Friday, 10th day of May, 2024. 5. E-DIVIDEND MANDATE Shareholders are kindly requested to update their records and advise Africa Prudential Plc of their updated records and account details for the payment of dividend. A detachable E-Mandate form is attached to the Annual Report for the convenience of shareholders . 6. AUDIT COMMITTEE In accordance with section 404(6) of CAMA 2020 any member may nominate a shareholder as a member of the Audit Committee by giving notice in writing of such nomination to the Company Secretary at least 21 days before the Annual General Meeting. In view of the statutory requirements that some members of the Committee should have basic financial literacy and be knowledgeable in internal control process, nominations should be accompanied by CVs of nominees. 7. RIGHT OF SHAREHOLDERS TO ASK QUESTIONS Shareholders have the right to ask questions not only at the meeting but also in writing prior to the meeting. Dated the 22nd day of April 2024 BY ORDER OF THE BOARD Geoff O. Amaghereonu Esq. Company Secretary FRC/2013/PRO/NBA/002/00000002815

149 www.abbeymortgagebank.com ADMISSION CARD Please use the admission link provided to the shareholder to attend the 32nd Annual General Meeting of the Company to be held on Thursday, 30th May, 2024, virtually via https://www. abbeymortgagebank.com/2023agm at 11am prompt. _____________________________ ____________________________ Name of Proxy Attending Number of shares held _____________________________ ____________________________ Name of Shareholder Signature GEOFF O. AMAGHEREONU ESQ. Company Secretary

150 www.abbeymortgagebank.com PROXY FORM AT THE 32nd ANNUAL GENERAL MEETING of Abbey Mortgage Bank Plc which will be held virtually via https://www.abbeymortgagebank.com/2023agm on Thursday the 30th day of May 2024 at 11:00 a.m. I/We ___________________________________________ (Name of Shareholder in Block Letters) of ___________________________________________ being a member of Abbey Mortgage Bank Plc hereby appoint the following individual ________________________ as my/our proxy to attend and vote for me/us and on my/our behalf at the Annual General Meeting and any adjournment thereof. Dated the ______ day of __________ 2024. SHAREHOLDER’S SIGNATURE This Proxy Form should NOT be completed and sent to the Registrars if the member will be attending the meeting. I/We desire this proxy form to be used in favour of/or against theresolution as indicated below: RESOLUTION FOR AGAINST 1. To receive and consider the Audited Financial Statements for the year ended 31st December, 2023 together with the Reports of the Directors, Auditors, the Audit Committee and Board Appraisers thereon. 2. To declare a dividend 3 (a) To re- elect Prof Marius Umego who is up to 70 years as a Non-Executive Director, special notice of same having been given. (b) To elect Mr. Obinna Ufudo as a NonExecutive Director (c) To elect Mrs. Adenike Kuti as an independent Non-Executive Director 4. To authorize the Directors to fix the remuneration of the Auditors for the 2024 financial year. 5. To disclose the remuneration of Managers. 6. To elect members of the Audit Committee 7 To approve the sum of N4m for NonExecutive Directors and N6.5m for the Chairman as Directors’ fees for the 2024 financial year and subsequent years. Please indicate with “X” in the appropriate box how your vote is to be cast on the resolutions set above. Unless otherwise instructed, the proxy will vote or abstain from voting at his/her discretion. ADMISSION LINK Please use the admission link provided to the shareholders to attend the Thirty-Second Annual General Meeting of the Company to be held on Thursday, 30th May, 2024 via https://www. abbeymortgagebank.com/2023agm at 11:00 a.m. prompt Name of Shareholder _______________________________________________________________ Address of Shareholder _______________________________________________________________ Number of Shares Held _______________________________________________________________ Signature _______________________________________________________________