Accion MFB raises dividend as stronger lending, deposits lift 2025 performance

Accion Microfinance Bank has increased its dividend payout to shareholders after delivering a stronger financial performance in 2025, driven by growth in lending, customer deposits and improved operating conditions.

At its Annual General Meeting in Lagos, the bank announced a dividend of 35 kobo per share, amounting to N422.04 million, up from 30 kobo per share paid in the previous year.

The board said the higher payout reflects confidence in the bank’s earnings outlook while maintaining a strong capital base to support future growth.

Total equity rose to N7.77 billion as of December 31, 2025, from N7.1 billion a year earlier, remaining well above the N5 billion minimum capital requirement for national microfinance banks.

The bank’s borrowings stood at N8.25 billion, strengthening its funding capacity for continued lending to small businesses and retail customers.

Taiwo Joda, managing director and chief executive officer, attributed the improved performance to greater stability in the operating environment compared with the disruptions experienced in recent years.

“There has been some measure of stability in the macroeconomic environment, and the market has been reasonably predictable. That stability enabled our customers to return to their businesses, improved market activity, and helped us serve them better,” Joda said.

According to him, lower volatility in inflation and exchange rates helped both customers and businesses plan more effectively, supporting stronger loan demand and repayment performance.

The lender expanded its branch network during the year with new locations in Ilorin and Kaduna, as well as a second branch in Kano, bringing its nationwide network to 75 branches.

Joda said the bank remains focused on expanding access to credit for small businesses and entrepreneurs operating at the lower end of the economic pyramid.

“We are in the business of granting loans to those at the lower end of the economic structure and helping them grow,” he said.

The bank also intensified its digital transformation efforts, introducing a revamped USSD onboarding platform linked to the National Identification Number to simplify account opening and access to banking services.

Other initiatives included improvements to its WhatsApp banking platform, merchant payment solutions and digital savings products aimed at deepening customer engagement and deposit mobilisation.

Stephen Olalere, chief commercial officer, said the bank recorded strong growth across key performance indicators despite persistent inflationary pressures and naira depreciation.

He disclosed that the bank’s balance sheet expanded by more than 50 percent during the year, supported by growth in loan assets and customer deposits, while profit before tax also improved significantly.

“Customers now require higher loan values to replace inventory due to rising prices. This has increased our loan volumes, even though operating costs such as salaries and expenses have also risen,” Olalere said.

The bank also reported improvements in asset quality and risk management. Portfolio at risk across all categories remained below regulatory thresholds, with PAR 1 closing at 4.3 percent, the first time the institution has achieved that level.

Looking ahead, management expressed confidence in the bank’s growth prospects for 2026, citing plans to deepen technology investments, expand customer acquisition and strengthen transaction banking capabilities.

Peter Okordion, head of business transformation, strategy and innovation, said the bank plans to deploy at least 2,000 merchant devices to boost transaction volumes and support low cost deposit mobilisation.

“Our focus is to enable customers and businesses through embedded finance and digital tools that support growth,” he said.

As part of its social investment efforts, the bank contributed more than N279, 150 to community development projects during the year and is marking its 20th anniversary with activities across its branch network nationwide.

KPMG, the bank’s external auditor, issued an opinion on the 2025 financial statements, stating that they present a true and fair view of the lender’s financial position and comply with relevant regulatory requirements.

Faith Omoboye

Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance.