Nigeria: Accion assures of improved service delivery, as profit hits N306m ($1.86m)
BY Providence Obuh, Vanguard
Accion Microfinance Bank Limited has assured its shareholders of improved service delivery through technology by 2013, as its profit for the financial year ended December 31, 2011 grew to N306 million.
Speaking at the company’s 6th Annual General Meeting (AGM) in Lagos, the Chairman, Mr. Patrick Akinwuntan said, “the current global move to electronic and mobile payments and financial services to serve the unbanked and under banked provides an opportunity to improve on our service delivery through technology.
Akinwuntan added that the bank would leverage on the POS device, ATMs and ATM cards to ensure that customers have easier access to good quality financial services, and through mobile payment solutions. On the bank’s outlook for 2012, he said that microfinance industry may witness more changes when the Central Bank of Nigeria (CBN) completes the review of the regulatory framework of microfinance banks.
To this end, he said “Accion Microfinance Bank is positioned to explore opportunities that may arise in the industry within this context.
“Our strategy for 2012 is focused on expansion. We will be extending to other parts of Lagos to better service our existing clients and address the issue of financial inclusion for people without bank accounts. The bank is making laudable efforts in opening branches at Bariga, Akonwonjo, Alaba, Ajah and Ikeja before the end of 2012.
For the financial performances of the bank, the Chairman stated, “Despite the tough operating environment in 2011, your bank recorded significant growth in all key indices. Profit Before Tax (PBT) grew by 103 per cent from N150 million in 2010 to N306 million in 2011, while savings deposits also grew by N46 per cent from N294 million to N431 million.”
The bank proposed 18 kobo dividend per share, profit after tax stood at N211 in the year under review compared to N93 million of the previous year. Giving assurance to the shareholders, he said, “Your bank remains true to its commitment of economically empowering the active poor in the pursuit of a brighter future. Your bank also successfully increased its loan portfolio by 56 per cent from N1 billion to N1.5 billion.”
Managing Director, Mrs Bumi Lawson said urban poverty is a real issue it has to tackle, revealing that the bank has done a number of surveys in order to deal with the problem.
Lawson explained that interest generation is ploughed back to the bank customers in form of reward for their loyalty.