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NPF Microfinance Bank Plc’s (NPF MFB) operating revenue grew by 26.9% to N11.8 billion (USD7.7 million), as of 31 December 2024, with net interest income and non-interest income accounting for 87.6% and 12.4% of operating revenue as of the same date.
However, cost-to-income ratio remained elevated at 78.9% (2023: 73.5%), reflecting the bank’s branch-heavy operating model and the inflationary environment.
NPF MFB’s Non-performing loans (NPL) ratio declined to 2.7% in 2024 from 4.2% in 2023, due to positive credit migration, recoveries on previously impaired exposures and write offs during the period.
Similarly, the credit loss ratio moderated to 0.3% from 3.7% in the prior year. Obligors’ concentration risk is considered low, with the top twenty names accounting for 1.7% (2023: 2%) of total gross loans and advances.
Looking ahead, the bank plans to further diversify its lending portfolio by onboarding more SME customers. SME lending potentially exposes the bank to additional portfolio risks given the prevailing macroeconomic headwinds.
The bank has a stable funding structure and adequate liquidity levels.
NPF MFB is predominantly funded by customer deposits, which accounted for 98.7% of the funding base as of 31 December 2024, compared to 92.9% as at 31 December 2023.
Customer deposits which are mainly stable and low-cost, grew by 56.1% to N42.1 billion (USD27.4 million) as of 31 December 2024, driven by increased adoption of electronic banking platforms.
The deposit book is moderately diversified, though concentration increased, with the top twenty depositors accounting for 30.4% of customer deposits, up from 17% in 2023.
NPF MFB’s competitive position is underpinned by its strong brand franchise given its affiliation with the Nigeria Police Force but market share remains low at less than 1% relative to broader lending market.
However, the bank’s deliberate investment in technology, alongside increased marketing drive, have supported an estimated market share in terms of loans, customer deposits, and total assets above 1% within the microfinance subsector.
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 operating revenue grew by 26.9% to N11.8 billion (USD7.7 million), as of 31 December 2024){kind=link}