NPF Microfinance Bank records 25% increase in turnover
NPF Microfinance Bank Plc defiled the tough operating environment in 2017 as it recorded improved turnover of N3.655 billion in the financial year ended December 31, 2017, this represents 25 percent over the level of N2.925 billion in the preceding year.
A breakdown of the financial result of the bank showed that asset improved from N12.36 billion in 2016 to N15.95 billion in 2017, representing a 29.04 percent where shareholders fund increased from N4.463 billion in 2016 to N4.752 billion in 2017.
The bank operating expense increased by 32 percent from N1.898 billion in 2016 to N2.516 billion in 2017 due to increased inflationary cost, increased number of staff and branches and rising cost asset maintenance due to age.
However, the bank intends to notify the capital market of its plan to do a public offer after due diligence on the financial landscape, bearing in mind the long tenor nature of capital market investment while disclosing plans to cushion the effect of hard economy and reduce the excruciating pain involved in doing business in the country.
Speaking at the 24th Annual General Meeting held in Kano, Managing Director/CEO, NPF MfB, Akin Lawal, said that in spite of the recessional period prevailing in the greater part of 2017, coupled with unstable macroeconomic state of the economy and incessant economic headwinds retarding the bank’s momentum, the bank’s turnover improved by 25 percent from N2.925 billion to N3.655 billion in the year under review.
Lawal who said that the bank’s profit before tax marginally increased from N803.4 million in 2016 to N819.8 million in 2017 as a result of the full cost of the 10 branches opened in 2016 adding that the management has put a lot of plans in place to curtail the rising cost effect and to optimize services.
The bank however expended N187.9 billion on tax, a reduction of 24.39 percent and N248.5 million.
In the final analysis, a unit of the bank’s share attracted earnings of 28kobo in 2017 as against 24kobo in 2016, out of this, the board proposed an increased dividend of 17kobo in the year when compared to 15kobo it has paid in three successive years.
He said: “As we entered 2017 in the midst of worst depression in the last 24 years of existence, rising inflationary trend and worsening exchange rate exacerbated with oil price vandalisation of our economic mainstay-oil pipelines and loads of reported ethnic clashes across the federation, our bank’s management ensured that the 3year strategic plan in operation was carefully reviewed to reflect economic realities and to ensure economic fundamentals of the bank do not slide into depression.
“This we did with good dexterity, tenacity of purpose and adequate cost management policies which at the end have put smiles on all our faces today. With the technical exit of the country from depression in the second quarter of 2017, the economic fundamentals of the bank steadily continue in a positive trend,” he said.
Earlier, Chairman, NPF MfB, Rtd DIG, Azubuko Udah, said that non-performing loan ratio reduced to 2.7 percent in December 2017 from 3.2 percent in December 2016 which is below the regulatory threshold of five percent and the internal benchmark of three percent. He added that capital remained strong with capital adequacy ratio of 41 percent.