NPF Microfinance Bank started the year with an impressive growth buoyed by aggressive branch network expansion, robust risk management strategy and increased customer base.
For the first six months through June 2014, the bank gross earnings rose by 20.32 percent to N1.01 billion from N841.92 million as of half year (HY) 2013.
The bank also recorded a double digit growth in net interest income as it grew by 12.23 percent to N585.24 million in HY 2014, compared with N521.41 million in the preceding year.
The microfinance bank was able to translate the impressive top-line performance to bottom-line growth as profit before tax (PBT) surge by 34 percent to N338.65 million in HY 2014, from N252.85 million in the preceding year.
Earnings per share (EPS) rose by 36.36 percent to 15k in 2014, compared with 11k in 2013.
Through effective and efficiency cost control mechanism, the bank’s cost-to-income ratio reduced to 64.77 percent from 0.73 percent in 2013, while administrative expenses reduced by 39.13 percent to N325.82 million.
The bank attributes the superb performance to its ability to satisfy customers than its competitors and also helping them unlock the real value of their businesses.
The bank is unrelenting as it is tenaciously pursuing a more improved technology that will satisfy client needs and also increase its share of the market.
NPF MFB, formerly known as Nigeria Police Microfinance Bank, is engaged in the business of microfinance banking and has emerged as one of the leading micro-finance banking institution in this sub sector.
Net margin, a measure of profitability and efficiency, increased to 33.40 percent in 2014, from 30.40 percent the same period in 2013.
Total assets fell slightly by 3.03 percent to N4.02 billion in HY 2013, as against N3.91 billion as of HY 2013.
Total operating income in the review period rose by 20.60 percent to N961.48 million, compared with N796.98 million in the preceding period.
The bank is well positioned to giving a satisfactory return to owners for using their resources to generate profits as it recorded a return on average equity of (ROaE) of 12.01 percent and a return on average assets (ROaA) of 5.41 percent, the highest in the microfinance sub sector.
The company’s share price closed at N0.92 on July 8, 2014, on the floor of the Nigerian Stock Exchange, while market capitalisation was N2.10 billion.
BALA AUGIE
