Accion Microfinance Bank (MfB), a microfinance institution in Nigeria, has said its shareholder funds grew marginally to N6.8 billion in 2023 from N6.76 billion in the previous year.
This was disclosed at its 18th Annual General Meeting on Thursday in Lagos. The bank said the shareholders approved the payment of 20 kobo per share in 2023 while its after-tax profit declined to N467.2 million from N1.03 billion.
“In 2023, our operations were impacted by economic volatility, resulting in increased operational costs, loan defaults, and reduced profitability,” Taiwo Joda, managing director/CEO of Accion MfB, said.
He said however, the company recorded a gross revenue of N6.12 billion, achieving 78 percent of its budget, driven primarily by loan activities.
“Despite the challenges, we concluded the year with a profit before tax of N503.6 million, reflecting a net income margin of 8.16 percent.”
“We experienced growth in our customer base, with unique savers increasing by 5.64 percent to 341,451 in 2023 from 323,230 in 2022 while number of accounts also grew by 26.2 percent from 497,574 to 627,747 during the year under review in our drive for impact,” he added.
Christian Ruehmer, chairman of Accion MfB, while giving an outlook for the 2024 fiscal year said, “Our overall prognosis for the Nigerian economy in 2024 is positive.
“According to the UN’s World Economic Situation and Prospects report, Nigeria’s economy is projected to grow by 3.1 percent in 2024 because of different reforms undertaken by the government,” he said.
Ruehmer said that 2024 is expected to be characterised by fiscal sustainability with optimism that macro-fiscal changes are likely to reduce inflation gradually.
“The continued tightening of monetary policy rates may keep borrowing costs elevated in the short run.Improved foreign exchange market stability may result in lower import costs for raw materials and finished goods in the second half of this year,” he said.
