MFB Deposits Surge By 168%, As Assets Value Hits N2.795trn

isaac aregbesola
Jul, Tue, 2024

Economy/Business

MFB deposits surge by 168%, as assets value hits N2.795trn

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By Kadiri Abdulrahman

The Microfinance Banks (MFB) has recorded impressive performance in all key assessment parameters with the total deposits surging by 168 per cent to N1.25 trillion at the end of second quarter 2024.

Mr Joshua Ukute, the National President, National Association of Microfinance Banks’ (NAMB’s), said this Monday in Abuja.

According to him, the subsector’s total assets has also increased to N2.795 trillion, representing 91 per cent increase year-on-year as of the end of June.

Ukute gave the performance highlights of the subsector at the NAMB’s 2024 Annual General Meeting in Abuja.

He said that as of June 30, the efficiency in the sub-sector improved by 13.09 per cent to 12.25 per cent, and that the Liquidity Ratio was 65.46 per cent due to increased lending.

He attributed the sub-sector’s sound financial and operational results of the operating MFBs during the period to the Visibility and Impact Capacity Building and Self-Regulation (VICS) project.

He said that the VICS project was initiated by the executive council of the association on assumption of office two years ago.

“The last 12 months have been exciting as the MFB subsector witnessed significant growth.

“Reports from the Central Bank of Nigeria (CBN) as of June 30 state that the Total Assets of the Sub-sector increased by 91 per cent to N2.795 trillion.

“Total Deposits increased by 168 per cent to N1.25 trillion, and Total Loans increased by 34 per cent to N1.382 trillion.

“Efficiency in the sub-sector improved as PAR improved by 13.09 per cent to 12.25 per cent and the Liquidity Ratio was 65.46 per cent due to increased lending,” Ukute said.

He recalled that the association during his tenure engaged several partners to ensure that the activities of MfBs had the desired impact on all stakeholders

“Our engagements with various agencies NFIU, FIRS, BOI and DBN, deepened the collaborations and relationships with our members,” he said.

He said that the secretariat facilitated major programmes that have positively impacted member-banks on issues relating to compliance, skills improvement, and regulators’ relations.

According to him, though the achievements recorded were impressive, the subsector continued to face some challenges, including increasing operating expenses occasioned by high energy costs, dearth of skilled staff, and inflation.

He said that these continued to put pressure on members’ businesses.

He noted that the compliance regime of CBN, and the revocation of Heritage Bank’s licence had ripple effects on MfBs with trapped funds in the liquidated bank.(NAN) (www.nannews.ng)

Edited by Isaac Aregbesola

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