NPF Microfinance to pay shareholders N1.2bn as profit rises by 85%

NPF Microfinance Bank has announced plans to pay N1.2 billion in dividends to its shareholders following a strong financial performance in the 2025 financial year, marked by a 85 percent surge in profit.

According to the corporate disclosure released by the lender, a final dividend of N0.20 per 50kobo ordinary share, subject to appropriate withholding tax and approval, will be paid to shareholders whose names appear in the Register of Members as at the close of business on 19th May 2026.

Financial results released by the bank show that profit after tax rose sharply to N2.91 billion, compared with N1.57 billion in the prior year, driven by higher income generation and improved operating efficiency.

NPF Microfinance Bank’s improved performance was driven mainly by growth in interest income, stronger net interest margins, and improved fee-based earnings, even as inflationary pressures pushed up personnel and operating expenses.

NPF Microfinance Bank reported gross earnings of N19.3 billion in 2025, representing a significant increase from N12.95 billion recorded in 2024.

Interest income remained the main revenue driver, rising to N17.5 billion from N11.47 billion, reflecting growth in the bank’s loan book and improved yields on earning assets.

Net interest income rose to N15.8 billion, up from N10.37 billion a year earlier, despite higher interest expenses associated with increased funding activities.

Fee and commission income also improved, rising to N1.82 billion from N1.46 billion, providing additional support to revenue growth.

On the cost side, operating expenses increased during the year.

Personnel expenses rose to N6.72 billion, while other operating expenses increased to N5.43 billion, reflecting the combined effects of inflation, expansion-related costs, and higher overheads.

Total assets stood at N67.7 billion as of December 31, 2025, slightly below N68.63 billion recorded in the prior year.

Loans and advances to customers increased significantly to N38.8 billion from N25.53 billion, highlighting continued expansion in the bank’s core lending activities.

Customer deposits rose modestly to N42.8 billion from N42.06 billion, underscoring sustained confidence in the bank. Borrowings increased to N3.07 billion from N572.48 million, reflecting additional funding raised to support loan growth.

On the equity side, total shareholders’ funds improved to N13.8 billion, up from N11.85 billion in 2024. Retained earnings rose to N3.59 billion from N2.31 billion, supported by higher profitability.

Cash and cash equivalents declined to N19.8 billion at year-end, from N33.79 billion at the beginning of the year.

NPF Microfinance began the year with a share price of N3.71 and has since gained 56.3 percent on that price valuation, ranking it 40th on the NGX in terms of year-to-date performance.