BY FESTUS OKOROMADU, ABUJA
The NPF Microfinance bank has released its financial results for the first quarter of 2023, where it reported a 171.5 per cent increase in profit to N645.94m from N242.79m in the same period in 2022.
According to its financial results filed with the Nigerian Exchange Limited on Thursday, the bank also grew its gross earnings by 62.79 per cent to N2.28bn from N1.47bn. Net interest income is a major contributor to the revenue of the bank at N1.86bn. Fee and commission income stood at N159.04m.
A breakdown of the interest income revealed that loans and advances rose to N2.052bn from N1.26bn within the period under review with treasury bills investment increasing to N29.53m from N18.09m.
The financial institution grew its assets by 24.90 per cent to N43.09bn in the review period as total liabilities stood at N31.22bn from N23.92bn, a 30.53 per cent increase.
Recall that the bank obtained shareholders’ approval to raise capital to convert into a commercial bank.
The approval was given at the 29th Annual General Meeting of the financial institution which was held in June.
The shareholders of the bank voted in favour of increasing the share capital by the number of shares necessary to meet the regulatory requirements for transition into a Deposit Money Bank.
“Due to the transition, the Memorandum of Association of the bank will be amended to reflect changes in the share capital as a result of the capital raise and allotment process,” Directors of the bank informed the shareholders at the AGM.
Also at the AGM, the shareholders approved the proposed dividend of 10k per ordinary share of 50k by the directors for the year ended December 31, 2022.
