• Thursday, March 28, 2024
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Shareholders approve 20kobo dividend payment for Accion MfB

Accion Microfinance gets CBN’s approval for national licence

Shareholders of Accion Microfinance Bank (Accion MfB) have approved a dividend payment of 20kobo per share for the year ended December 31 2021, just as the Bank was able to grow its loan portfolio by 37. 98 percent from N9. 213 billion in 2020 to N12.712 billion.

This approval was given during the hybrid 16th annual general meeting (AGM) of Accion MfB held on Thursday 2 June. Similarly, there was a sharp increase of 60. 86 percent in total disbursements when compared to disbursements of N18.30 billion in 2020. While the number of active borrowers decreased by 15. 81 percent from 45, 973 in 2020 to 38, 704 in 2021.

Also, in the year under review the Bank’s total number of deposit accounts increased by 4.82 percent from 455, 376 in 2020 to 477, 322 in 2021 and the number of savers also increased by 19.12 percent to 280, 410 in 2021 from 235,407 in 2020. However, customers’ deposits dropped to N3.81 billion in 2021 from N4. 309 billion in 2020, indicating a decline of 11.6 percent.

Similarly, the Bank’s profit after tax grew by 332 percent from N132 million in 2020 to N571 million in 2021. Total equity grew from N5,366 billion in 2020 to N5, 936 billion in 2021, which translates to 10.64 percent growth. “This leaves our bank capitalized well above the N5 billion minimum capital required for a national microfinance bank,” John Fisher, board chairman, Accion MfB said.

According to him, the Bank will keep consolidating on its capital base in order to ensure that it continues to provide services to existing clients and reinvest to grow its client base. “In 2021, we committed our resources to support the growth, development and prosperity of our immediate environment and communities. Our strategic investments in these communities positioned our brand as a leader in social responsibility thereby improving our brand awareness and recognition,” Fisher said.

Read also: Accion MfB disbursed N17bn to customers in five months – MD

Taiwo Joda, managing director/CEO, Accion MfB, disclosed that a total of 16,232 cards were issued and activated on its various channels in 2021. Cumulatively, the number of automated teller machine (ATM) cards issued to customers from inception closed at 769,959. On the other hand, the Bank onboarded a total of 1,127 agents when compared to 895 in 2020, while total transaction by its agents grew from NO.246 billion in 2020 to N3.860 billion at the end of 2021.

“Transaction count and volume in our digital channels also improved considerably at the end of 2021. Total NIBSS Instant Payment (NIP) inward transactions as at December 2021 increased by 191 percent from N7.196 billion in December 2020 to N20.975 billion, while the transaction count also increased from 116,811 to 263,375 an increase of 125 percent. In the same vein, Total NIP Outward Transaction also grew by 174 percent from N8.793 billion in 2020 to N24.122 billion while Transaction count also grew by 105 percent from 104,899 to 214,406 in 2021. We are excited at the big leap our customers took in adopting our digital channels and trusting the process,” Joda said.