Nigerian Microfinance Bank grows profit by 14%

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NPF Microfinance Bank Plc has grown its profit after tax, PAT, by 14 percent to N631.89 million in its financial year ended December 31, 2017 from N554.9 million in 2016.

Meanwhile the bank said it would soon notify capital market regulators of its plan to do a public offer after due diligence on the financial landscape, bearing in mind the long tenor nature of capital market investment. Managing Director/Chief Executive Officer, NPF MfB, Mr. Akin Lawal, who disclosed this at the 24th annual general meeting (AGM) of the bank held in Kano, said that in spite of the recessional period prevailing in the greater part of 2017, coupled with incessant economic headwinds, the bank recorded turnover of N3.7 billion in 2017, up by 25 percent from N2.9 billion in 2016.

He added that operating expense, however, rose by 32 percent to N2.5 billion in 2017 from N1.9 billion in 2016, due to increased inflationary pressure, increased number of staff and branches as well as rising cost of asset maintenance due to ageing. Lawal said that the bank’s profit before tax marginally increased to N819.8 million in 2017 from N803.4 million in 2016 as a result of the full cost of the 10 branches opened in 2016 adding that the management has put a lot of plans in place to curtail the rising cost and to optimize services. The bank however expended N187.9 million on tax, a reduction of 24.39 percent from N248.5 million.

Key extract of the bank’s audited annual report for the financial year ended 2017 showed that asset improved to N15.95 billion in 2017 from N12.36 billion in 2016, representing a 29.04 percent increase while shareholders’ fund increased to N4.752 billion in 2017 from N4.463 billion in 2016.

Further analysis showed that the bank achieved Earnings per share of 28 kobo in 2017, up from 24kobo in 2016. Consequently, the board proposed an increased dividend of 17kobo per share for the year up from 15kobo per share paid in 2016. Also speaking at the AGM, Chairman, NPF MfB, Rtd DIG, Azubuko Udah, said that non-performing loans ratio dropped to 2.7 percent in 2017 from 3.2 percent in December 2016 which is below the regulatory threshold of five percent and the internal benchmark of three percent. He added that capital remained strong with capital adequacy ratio of 41 percent.

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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