DESPITE the tough operating environment in the microfinance sub-sector, the 2011 financial results of Accion Microfinance Bank (AMFB) shows growth in virtually all indices.
Results released shortly after its yearly general meeting in Lagos, indicated that the bank’s profit before tax (PBT) grew by 103 percent from N103 million in 2010 to N306 million in 2011 financial year.
Similarly, the bank’s loan portfolio, according to the yearly report, increased from N1 billion in 2010 to N1.5 billion in 2011, indicating a growth of 56 percent.
AMFB also achieved reasonable growth of 25 percent in asset, from N1.8 billion in 2010 financial year to N2.2 billion in 2011, showing appreciable expansion in business activities despite the tough operating environment.
Deposit liability grew by 46 percent from N294 million in 2010 to N431 million in 2011.
Managing Director of the bank, Bunmi Lawson, said the bank recorded significant growth in major indices of performance in the financial year 2011 as a result of dedication and hard work by a committed team of workers at Accion Microfinance Bank. She added that the bank grew in gross earnings by 38 percent from N748 million to N1 billion in 2011 and total income also grew by 40 percent from N732 million to N1 billion.
The bank, in addition, demonstrated an excellent management of its risk portfolio by reducing its Portfolio at Risk (PAR) from 5.5 percent in 2010 to 3.3 percent in 2011
Chairman of the bank, Mr. Patrick Akinwuntan, said Accion Microfinance Bank has maintained its focus in line with the mission to economically empower micro-entrepreneurs and low-income earners through the provision of financial services in a sustainable, ethical and profitable manner.
According to him, AMFB has been consistent in the utilisation of effective tools in the microfinance operating environment. The bank has continued to leverage on the strength of its domestic and international shareholders amongst which are Accion Investment in Boston, USA, International Finance Corporation (subsidiary of the World Bank), Ecobank Nigeria, Citibank Nigeria Limited, Zenith Bank and SME Managers.
The bank was also awarded the best Microfinance Bank in 2011 by LEAD AWARDS (Lagos State Enterprise Awards) for its contribution to the support of enterprise development in Lagos State.
Great Place to Work Nigeria also selected Accion Microfinance Bank amongst five top companies with outstanding workplace practices in Nigeria. The bank was the only MFI chosen in Nigeria.
In its five years of operation, Accion Microfinance Bank has successfully opened 13 branches located in major areas of Lagos, the bank has grown from its flagship branch in Oke Arin to Idi-Oro, Ladipo, Trade Fair Complex, Oyingbo, Ogba, Idumagbo, Pen Cinema, Isale Oja, Ikotun, Ketu and Surulere.
Towards the cashless/Cashlite policy, Accion Microfinance Bank is currently on its pilot stage of the project with 250 clients signed-on to use their ATM card on any ATM machine and the project will be fully deployed for all her customers before the end of 2012.
“In the New Year, the bank will not rest on it oars, but will continue to make the life of all its stakeholders bright. Indeed, for all in Accion Microfinance Bank, the future is Bright,” Lawson said.
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