New Telegraph

NPFMFB reports marginal drop in Q3’2020 PAT

NPF Microfinance Bank Plc has posted a 0.6 per cent decline in profit after tax for the third quarter ended September 30, 2020.

 

The microfinance bank in a report obtained from the Nigerian Stock Exchange (NSE) showed a profit after tax of N546.673 million in Q3’20 as against N550,009 million reported in 2019, representing a drop of 0.6 per cent.

 

Profit before tax equally dropped by 0.6 per cent from N733.346 million in 2019 to N728.89 million in 2020.
Gross earnings also dropped by 1.58 per cent to N3.240 billion form N3.292 million in 2019.

 

NPF Microfinance posted a 2.86 per cent decline in profit after tax for the first quarter ended March 31, 2020.

 

The microfinance institution in a report obtained from the Nigerian Stock Exchange (NSE) showed a profit after tax of N141.581 million in Q1’20 as against N145.751 million reported in 2019, representing a drop of 2.86 per cent.

 

Profit before tax equally dropped by 2.86 per cent from N194.335 million in 2019 to N188.775 million in 2020.

 

However gross earnings grew by 6.58 per cent to N1.036 billion form N972.075 million in 2019.

 

NPFMFB had last year said it planned to do a public offer with a view to raising more funds from the Nigerian Stock Exchange.

 

A statement from the bank said this would enable it to increase its working capital.

 

The Managing Director/Chief Executive Offer, NPF MFB, Mr Akinwunmi Lawal, disclosed this during the bank’s 25th annual general meeting in Akwa Ibom, for the financial year ended December 31, 2018.

 

Lawal said that the bank had completed plans to undergo the sale of its shares this year, with hopes that the offer would be hugely subscribed since the bank had maintained an unbroken trend of dividend payment for over 20 years.

 

He said that the bank would proceed to sell its shares to both existing and prospective shareholders after securing approval of the regulatory authorities, adding that the proceed would be deployed to beef up its working capital, information technology, and branch improvement, among others.

 

He stated that the bank recommended paying a dividend  of N114.332 million, which translated to five kobo per share, explaining that N81.416 million would be transferred to various reserves as there was a need to conserve money for the future developmental projects.

 

The bank’s total asset increased to N17.597 billion from N15.952 billion recorded in the previous year, representing 10.31 per cent increase.
The loans and advances improved by 17.59 per cent to N10.593 billion in 2018 from N9.008 billion in 2017.

 

Lawal said: “The deposit liability moved from N9.126 billion to N10.465 billion showing a growth of 14.67per cent which indicated the continued growth of our customer’s trust and confidence in our mission. Our borrowing from various intervention funds increased by 34.08 per cent to N2.078 billion from N1.550 billion and this is accountable for the increase in interest expenses by 34.7 per cent.”

 

The Chairman, NPF MfB, Azubuko Udah, said that the year 2018 marked the end of the three years strategy which commenced in 2016, adding that plans for the next three years, from 2019 to 2021 had been put in place to reposition the bank in the provision of microfinance services.

 

To propel this strategy, he said that the bank considered it vital to recapitalise by raising more funds from existing shareholders and inviting new investors to have a stake, adding that the bank would also leverage on technology through alternative banking channels to increase market share significantly by growing organically, the number of her customers.

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