Accion Microfinance Bank has reported N6.17 billion as its gross earnings for the 2023 financial year, hitting 78 per cent of its target.
Managing Director/CEO of Accion MfB, Taiwo Joda, at the bank’s 18th yearly general meeting, said the shareholders approved a dividend payment of 20 kobo per share in 2023 while its after-tax profit declined to N467.2 million from N1.03 billion.
He added that its shareholder funds grew marginally to N6.8 billion in 2023 from N6.76 billion in the previous year.
The complex economic landscape marked by policy shifts, naira instability and market volatility resulted in the bank’s profit before tax (PBT) record at N503 million, as against N1.55 billion from the previous year.
A significant highlight of the year was the performance of the bank’s savers from 323,230 in December 2022 to 341,431 in December 2023, a year-on-year growth of 5.6 per cent. Accounts also grew by 26.2 per cent, from 497,574 in December 2022 to 627,747 in December 2023.
Though 2023 with a loss as against its 2022 gross earnings of 6.96bn, the firm was able to support 17,043 entrepreneurs and small businesses in Nigeria with financing of N13.29 billion and customer deposits of N236.43 in savings and other products.
Chairman, Board of Directors, Accion MFB, Christian Ruehmer, said the challenges of the economy affected business activities and ability to conduct businesses.
“Nigeria’s economy weakened in 2023 as macroeconomic indices worsened. This was demonstrated by several factors, including slower GDP growth, rising inflation, a severe lack of foreign exchange, increasing debt, instability of the Naira, reduced foreign portfolio investments and foreign direct investments.
“The effects of the CBN naira redesign at the end of 2022 and the twin policy reforms of removal of PMS subsidies and exchange rate unification of the current government led to rising inflation and devaluation of the naira. These reduced disposable incomes for consumers lowered the aggregate demand in the economy and slowed down business activities,” his statement read.