The NPF Microfinance Bank, which provides micro-credit primarily to serving and retired policemen and other Nigerians, will pay 20 per cent more in annual dividends following a moderate increase in net profit for last year compared to 2022....For More READ THE FULL STORY▶▶
Shareholders will receive the cash reward on 1 November provided they hold their shares in the company until at least 7 October and they endorse the move at its annual general meeting slated for the end of next month.
“A final dividend of 12 kobo per 50 kobo ordinary share, subject to appropriate withholding tax and approval will be paid to shareholders to shareholders,” NPF Microfinance Bank said in a regulatory filing on Wednesday.
That takes its potential total dividend payout for 2023 to N719.2 million, compared to the almost N600 million paid in 2022.
The microlender hit its peak profit level last year when it reached thirty years of operation as the interest it earned after settling the costs on borrowed funds surged by 51.1 per cent.
Revenue for the review period climbed 44 per cent to N10.3 billion.
The cash provisioned by the bank to offset the overdue on loans and advances that are not likely to be recovered from defaulters jumped more than tenfold to N864 million.
“Since loan impairment assessment involves judgment and assumptions, and in view of the significance of the amount as at 31 December 2023, gross loans and advances to customers amounted to N22.99 billion, representing 48% of total assets,” said Deloitte, the independent auditor.
Credit quality was a big challenge during the period, with as much as N162.1 million worth of bad debts written off compared to only N895,000 a year earlier. NPF Microfinance Bank did not provide further details or any explanatory note on how it arrived at the figure....For More READ THE FULL STORY ▶
