The Central Bank of Nigeria (CBN) has approved the request of management of the NPF Microfinance Bank for establishment of 11 more branches across the country.
The Apex bank in the approval letter signed by Mrs. A.O Kako on behalf of the Director, Other Financial Institutions Supervision Department, said, “We refer to your submissions in respect of the above subject and write to convey the approval of Central Bank of Nigeria to your proposed additional eleven (11) branches in Ibadan, Ikorodu, Abeokuta, Asaba, Tejuosho (Yaba), Onitsha 2, Port Harcourt 2, Aba, Okene, Aswani (Isolo) and Calabar”.
Commenting on its business development and future outlook, managing director and chief executive officer of the NPF Microfinance Bank, Akinwunmi Lawal explained that the idea of creating more outlets was in line with its expansion strategy and to help provide seamless services to its esteemed customers.
Lawal said the bank has already concluded arrangements to unveil 5 out of the 11 branches this week.
The new branches to be inaugurated, are located in Ibadan, Oyo state, Abeokuta in Ogun state and Ikorodu and Yaba (Tejuosho) both in Lagos state and Asaba in Delta state.
The managing director said other branches recently opened in Oji River, Enugu state and Kaduna have commenced full commercial operations with robust customer relations services and impressive results.
“This is to ensure that we close the year with at least 35 branches in line with our strategic plan” Lawal added.
He said the bank understands the key role of information technology in banking operations and has ensured that its branches are fully automated.
Lawal noted that the bank has maintained impressive financial turnover even in the face of excruciating economic environment.
The bank in 2015 recorded an improvement on its asset by 26 per cent from N10.865 billion in 2014 to N13.668 billion, and loan size by 21 per cent from N6.527 billion in 2014 to N7.881 billion in 2015.
Its turnover rose to N2.329 billion in 2015 from N2.004 billion the previous year, representing 16 percent leap.
Also, following prudence and transparent business operations the management ensured that its total operating expenses increased by only 18 percent from N1.387 billion in 2014 to N1.640 billion in 2015.
The bank however, closed the year with a Profit Before Tax (PBT) of N688.9 million from N617.5 million recorded in 2014, which was an increase of 12 percent and with a tax of N174.3 million.
Profit After Tax (PAT) stood at N514.6 million as against N477.8 million the previous year indicating a rise of eight per cent.
The executive director operations Mr Jude Ohanehi who is directly incharge of deploying resources in the opening of these branches said the management did extensive work in taking decision for the choice of location for the branches in line with strategy of the bank.
Ohanehi said that despite downward share price movement the bank’s share price has been moving upward after markdown due to our strong earning capacity and established corporate governance.