Shareholders of Abbey Mortgage Bank Plc have endorsed a reduction of the company’s issued share premium by N3.541 billion proposed by the board of directors.

The shareholders gave their approval at the Company’s extraordinary general meeting held at the weekend in Lagos.

They considered and passed the resolution, which is subject to the confirmation of the court, that the company’s issued share premium, including for this purpose its share premium account be reduced by N3.541 billion, the company said in a statement.

The share has been lost or unrepresented by available assets with the credit arising from the reduction expected to be used to eliminate the retained loss in the company’s audited financial statements of last year.

The bank stated: “Over the past three years, it has undergone a remarkable transformation, consistently achieving increased profits year after year. This growth is a testament to the bank’s dedication to providing innovative financial solutions and maintaining quality banking services in the industry.

“The focus of the EGM was for the shareholders to pass a resolution approving the utilisation of a portion of the share premium account to offset historically accumulated losses, enabling the bank to complete its financial housekeeping and resume the payment of dividends. This significant decision bolsters its sustainable drive to create sustainable value for both shareholders and investors.”

Speaking to shareholders at the EGM, the chairman of the company, Mazi Emmanuel Kanu, said a review of Abbey Mortgage’s financial statement for the year ended December 2022 established a deficit of N3.541 billion as accumulated permanent losses from legacy transactions.