NPF Microfinance Bank’s Shareholders Overwhelmingly Approve Transition to Commercial Bank Status

The NPF Microfinance Bank has unveiled its financial performance for the first quarter of 2023, showcasing an impressive 171.5% surge in profits, with figures soaring to N645.94 million from N242.79 million during the same period in 2022.

In a report filed with the Nigerian Exchange Limited on Thursday, the bank also demonstrated robust growth in its gross earnings, boasting a 62.79% increase to N2.28 billion from N1.47 billion. A key contributor to the bank’s revenue was its net interest income, which tallied at N1.86 billion, while fee and commission income reached N159.04 million.

A detailed breakdown of interest income revealed a substantial rise in loans and advances, climbing from N1.26 billion to N2.052 billion during the review period. Treasury bills investments also saw growth, surging to N29.53 million from N18.09 million.

The financial institution expanded its asset base by a notable 24.90%, reaching N43.09 billion in the review period, while total liabilities stood at N31.22 billion, reflecting a 30.53% increase from N23.92 billion.

It is worth noting that the bank had previously obtained shareholders’ approval to raise capital for its conversion into a commercial bank. This endorsement was secured during the 29th Annual General Meeting held in June.

The PUNCH can confirm that the bank’s shareholders overwhelmingly supported increasing the share capital to meet the regulatory requirements for transitioning into a Deposit Money Bank.

“Due to this transition, the Memorandum of Association of the bank will be amended to reflect changes in the share capital resulting from the capital raise and allotment process,” conveyed the bank’s directors to the shareholders during the AGM.

Additionally, the shareholders at the AGM also gave their nod of approval to the proposed dividend of 10 kobo per ordinary share of 50 kobo for the year ending on December 31, 2022, as put forth by the directors.

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