The Nigerian Exchange (NGX) has absolved Abbey Mortgage Bank Plc of allegations of insider trading during a closed period. The initial report, dated May 10, had suggested a breach of Rule 17:18, which governs trading activities by insiders with material, non-public information. However, following a thorough review and consideration of the bank’s explanations, the NGX decided not to impose any penalties.
Instead, the NGX has mandated that Abbey Mortgage Bank attend a compliance training session to reinforce adherence to regulatory standards and ensure commitment to best practices in corporate governance. This training, valued at N1,230,180, highlights the NGX’s emphasis on education and compliance over punitive measures.
Abbey Mortgage Bank, a leading player in the Nigerian mortgage sector since 1992, has demonstrated resilience and stability. With strategic growth initiatives, including the addition of a significant investor in 2020, the bank has achieved remarkable progress, including a 250% increase in customer deposits from N6 billion to N21 billion in 2021 and shareholders’ funds exceeding N8.5 billion.
This positive resolution underscores the importance of due process and the NGX’s role in maintaining transparency while supporting the growth and integrity of listed companies. Abbey Mortgage Bank’s proactive response and subsequent exoneration reinforce its reputation as a trusted and compliant financial institution, poised for continued success in the mortgage banking sector.
