By Providence Emmanuel
UMUCHINEMERE Pro-credit Microfinance Bank, UPMfB has recorded 46 percent decline in profitability in the financial year ended December 31, 2017, due to incidences of bad loans.
CBN revokes 9 micro-finance banks’ licences in Niger
Meanwhile the bank has started making moves to attract additional funds to meet the deadline for the new minimum capital base of N1 billion for state MfBs.
According to the audited financial statement of the bank presented at its 23rd annual general meeting held in Enugu last week, profit after tax fell by 46 percent to N20.45 million from N38.16 million the previous year.
However, the bank said it will pay five kobo dividend per share to its shareholders in the 2017 financial year ended. This followed the shareholders’ unanimous approval of the bank’s five kobo dividend proposal at the AGM.
Speaking at the AGM, Chairman, UPMFB, Monsignor Anthony Anijielo, said that the dividend payable would have been more, but for certain circumstances occasioned by the resultant effects of bad loans that affected the bank’s performance in the year.
He stated: “Bad loan is a major factor militating against the banking sector in Nigeria and UPMfB is a major victim of the development. This adversely affected the bank’s performance in 2017 financial year.”
Anijielo said that the bank is working on certain measures to mitigate the high incidences of portfolios at risk, PAR, (non-repayment of loans) which is prevalent in the sector.
Condemning the general malaise of non-repayment of loans, otherwise referred to as portfolios at risk (PAR), in the industry and calling for its eradication from the country’s financial system, Anijielo said that UPMFB was putting certain measures in check to mitigate the high incidence of portfolios at risk prevalent in the bank sector. “An aggressive loan recovery exercise embarked on regularly in clusters of a team of staff members has assumed a primary role in saving the life of our bank.
“I am appealing to all those customers who are indebted not to wait until legal actions are taken before they repay their loans, please spare yourselves the embarrassments by repaying loans promptly,” he said.
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