 Microfinance Bank Plc loans to customers have been growing steadily in the past five years, thanks to technology){kind=link}
Nigeria Police Force (NPF) Microfinance Bank Plc loans to customers have been growing steadily in the past five years, thanks to improved technology, better loan recovery methods, and a growing class of employees with an appetite for short term credit.
This means the company is aggressive to lending to farmers in the rural area while contemporaneously magnifying earnings and delivering higher returns to shareholders.
NPF Microfinance Bank’s total loans to customers spiked by 35.10 percent to N20.59 billion in June 2021 from 15.24 billion the previous year.
The chart below shows total loans were N8.39 billion in 2016, and it moved to N9.46 billion in 2017; N10.58 billion in 2018, and N11.34 billion in 2019.
And the lender is making money from interest it charges customers as interest loans were up 37.70 percent to N2.52 billion in the period under review from N1.83 billion the previous year.
NPF Microfinance Bank leverages technology to provide savings and lending platforms to support the CBN’s financial inclusion strategy.
With about 38 million adults unserved by the financial services industry in Nigeria, there is more emphasis on financial inclusion, and the lender is poised to provide much-needed solutions to individuals and corporates, from farmers to entrepreneurs, and industries at large.
Microfinance Banks are pivotal to economic growth as they extend affordable loans to business while at the same time creating jobs.
In Nigeria, there are officially41.5 million MSMEs, comprising at least 41.4 million micro enterprises; and 73,081 small and medium enterprises. Together, they contribute about 50 percent of GDP, are responsible for 59.6million jobs, which represent 86.3 percent of the national workforce. They also contribute 7.64 percent of export receipts.
Lack of reliable power supply, transportation bottlenecks such as bad roads and port congestions, insecurities have hindered business from striving.
Further analysis of the financial statement of NPF Microfinance Bank shows net income surged by 40.22 percent to N530.07 million in June 2021 from N378.01 million as at June 2020.
To bolster the capital of the company, the board of the microbank had announced its intention to raise the embark of rights issue.
The lender, in a notice, said it would seek authorisation of its shareholders to raise the new funds via rights issue or public offer, with the creation of additional 3 billion units of the company’s shares.