LAPO Microfinance Bank disburses N113.70bn loan to micro businesses

LAPO Microfinance Bank Limited disbursed a total of N113.70 billion as loans to micro and small enterprises in the financial year ended December 31, 2015. This represents 23 percent growth over the N92.46 billion disbursed in 2014.

The bank recorded a significant growth in the year under with gross earnings increased by 18 percent to N19.67 billion in 2015 from N16.60 billion in 2014. LAPO’s profit before tax rose by 17 percent to N4.86 billion in 2015 from N4.14 billion in 2014, its profit after tax also increased to N3.29 billion in 2015, which was 17 percent increase compared to N2.80 billion in the preceding year.

Deposits from customers increased by 26 percent from N20.36 billion in 2014 to N25.70 billion at the end of 2015. Total assets as at December 31, 2015 stood at N52.39 billion, which represents a 32 percent increase over the N39.62 billion recorded in 2014. The bank’s client base increased from 1.41 million in 2014 to over two million in 2015.

According to Osarenren Emokpae, chairman, board of the bank, the performance during the year under review was driven by increased focus on deposit mobilization and cost curtailment, representing 47 percent growth rate.

“Beyond the financial performance, our microfinance bank has made huge progress in the implementation of its sustainability initiatives,” Osarenren said at the 5th annual general meeting of the bank held in Lagos.

He said over 26,346 clients have been supported to acquire and use solar lamps instead of the kerosene lamps.

Godwin Ehigiamusoe, managing director/CEO, noted that the bank’s return on assets and return on equity remained strong at 34 percent and 32 percent respectively.

He said over N6.33 billion was raised from local and international investors, which is a reflection of their confidence in the institutional strengths and effectiveness of the bank’s business model to increase lending to micro, small and medium enterprises (MSME) in Nigeria.

“The testimonial of our performance is depicted by the award conferred on our microfinance bank as the best microfinance bank in agricultural financing under the Agricultural Credit Guarantee Scheme (ACGS) in the year 2015”, Ehigiamusoe said at the AGM.

He said in 2015, LAPO Microfinance sustained its commitment to corporate social responsibility and promotion of green microfinance within the context of its environment, social and governance initiative. The sum of N37.47 million was committed to educational development in the form of scholarship awards to deserving children of the bank’s clients and quiz competition among secondary schools.