Abbey or LivingTrust Mortgage which offers better investment now

Investors in the Nigerian market are always on the lookout for opportunities that balance risk with reward, and the mortgage banking subsector is slowly beginning to attract attention. Among the four listed companies in this space, Abbey Mortgage Bank Plc and LivingTrust Mortgage Bank Plc stand out as the strongest players, both of them recording bullish performances in 2025. The big question for investors is which of the two currently offers better value and a more compelling reason to buy.

The entire mortgage subsector, which also includes Aso Savings and Loans as well as Infinity Trust Mortgage, has a combined market capitalization of N133.91 billion as of September 29, 2025. When compared with a total asset base of N200 billion, it becomes clear that the market still values these companies at a discount relative to their underlying assets. This indicates that there is room for investor confidence to grow further, and it also suggests that the subsector could enjoy better ratings as performance and profitability continue to improve. On average, share prices in the mortgage banking sector have risen by 39 percent since the start of the year, but within that number lies uneven performance. Abbey Mortgage has recorded a remarkable 127 percent gain, while LivingTrust Mortgage has delivered a modest 29 percent rise. Both companies are ahead of many others in the financial services space, but their stories differ in scale, strategy, and growth pace.

Abbey Mortgage has built a reputation for scale and consistency. In the first half of 2025, the bank reported revenue of N8.09 billion, which represents a 60 percent increase from the previous year. Much of this was driven by short-term funds, which brought in N5.3 billion. Its profit after tax was N810 million, a 53 percent increase, and this figure almost matches the N1.1 billion profit it posted for the entire 2024 financial year. Over the past five years, Abbey has managed to grow its profit at a compound annual growth rate of 11.42 percent, accumulating N.63 billion in that period. These figures show steady, long-term expansion, making Abbey a reliable choice for investors who prefer stability over aggressive but risky growth.

LivingTrust Mortgage, while smaller in size, has been impressive in terms of percentage growth. Its revenue for the first half of 2025 was N3.02 billion, up 72 percent year on year. This growth was fueled by interest income of N2.048 billion, which came largely from loans and advances to customers totaling N1.5 billion and mortgage loans worth N526 million. Profit after tax rose by 73 percent to N551 million. Over the past five years, LivingTrust has achieved a compound annual profit growth rate of nine percent, with an accumulated profit of N2.82 billion. This means that although LivingTrust does not yet match Abbey in absolute profit size, its growth trajectory has been sharper, and that could appeal strongly to investors who want exposure to faster-rising stocks.

Looking at balance sheets provides another layer of understanding. Abbey Mortgage has grown its total asset base to N110.2 billion, nearly four times the size of LivingTrust’s N28.88 billion. Abbey’s strength comes from its heavy investment in securities, which provides liquidity and stability. However, this approach may limit how much higher-yield lending the bank can pursue. LivingTrust, on the other hand, leans more heavily toward loans and advances, a strategy that carries higher credit risk but also opens the door for bigger interest income as the loan book expands. The trade-off is clear: Abbey’s larger balance sheet gives it scale and resilience, while LivingTrust’s more loan-focused portfolio offers higher growth potential if managed effectively.

From a valuation perspective, Abbey is already commanding a premium. Its stock has more than doubled in value this year, and investors are currently paying much more for each naira of its profit or revenue compared to others in the sector. This means Abbey is already being priced like a favorite in the market. Buying into Abbey now is essentially paying for its past success and its current stability, which could still be worth it for conservative investors, but it also means the potential for massive further gains may be limited in the near term.

LivingTrust, by contrast, remains relatively cheaper. Its stock price does not yet fully reflect the level of growth it has been delivering. For investors, this could mean there is still room for the market to adjust upward as its performance becomes more recognized. If LivingTrust continues on its current trajectory of strong revenue and profit growth, it could deliver attractive returns to those who are patient enough to hold through its expansion.

In essence, the two mortgage banks offer very different investment stories. Abbey Mortgage provides scale, resilience, and consistent profitability. It is the safer bet for investors who want stability, predictability, and a strong track record. LivingTrust Mortgage, on the other hand, offers the excitement of faster growth, a leaner balance sheet tilted toward lending, and a more attractive valuation for investors seeking upside potential.

The decision for investors ultimately comes down to style. Those who prioritize safety, reliability, and proven earnings may lean toward Abbey, even if they must pay a premium to get in. Those who prefer growth, are comfortable with higher risks, and want the possibility of larger percentage returns may choose LivingTrust. Both banks are contributing positively to the image of the Nigerian mortgage subsector, and both are evidence that opportunities exist for investors who are willing to understand their different strengths.