NPF Microfinance Bank Plc has refuted mischievous and malicious report published in a section of the media News claiming that non-executive directors of the bank received N264.5m renumeration during the first half of this year.
The Bank will like to inform its Customers and the Public that this media news is false and misrepresentation of facts and figures. The author or whistleblower’s intention was to undermine the integrity of the bank’s board members, and corporate existence of the bank.
First, no Director of the Bank received any remuneration other than director’s fees totaling N12.5m for all the directors. As published in the half-year Account, the Directors’ remuneration is made up of Sitting Allowance, Travel/ Ticket, Directors Fee, Board Training and Statutory Audit Meetings. There were no additional payments/ renumerations outside these expenditures.
This remuneration expenses showed marginal increase from N141m in the first half of 2022 to N221m in same period of 2023, which is far below the increase in inflation, foreign exchange rate, pump price of fuel, flight tickets within the periods.
For the Bank to attain the recorded growth in profit by 135 % in the second quarter of this year, showed the diligence the board, staff and management brought to its operations. The Bank also implements a sound corporate governance practice, ensuring its Board and leadership team follow global best practices.
To set the records straight, members of our board are seasoned professionals. The Bank adopts global practice of corporate governance to ensure Board diversity and competence. The Board members cut across diverse ethnic groups and religions who have distinguished themselves in their different field of endeavors. There are executives who have served in various capacity, and on various Boards, with reputable personality and credibility. Their immense contributions to the financial institution have placed it on a sustainable path of growth and expansion.
The unaudited financial position of the bank for the period ended June 30, 2023 is on the Exchange portal for the public. The Bank remains at the forefront of good corporate governance practices. NPF MFB is the only Microfinance Bank quoted on the Nigeria Exchange which attests to our integrity, transparency and credibility in governance practice.
For the avoidance of doubt, the highlight of the bank’s performance for the first-half of the year is as follows:
June ‘23. June 22. Dec ‘22
Nm. %. Nm. Nm
Audited
G/Earnings 4,585. 49. 3,069. 7,153
N/int incom 3,758. 59. 2,358. 5,552
Revenue. 4,115. 53. 2,693. 6,299
T/Ops exps. 3,187. 31. 2,427. 4,451
Pbt. 1,396. 135. 593. 1,324
PAT. 1,047. 135. 445. 882
EPS.(k). 17. 112. 8. 15
It’s also important to note that the makeup of the director’s remuneration includes:
June,23. Growth. June ‘22
Nm. %. Nm
Sitting allwc. 39. (27). 53
Travel/ticket. 130. 136. 55
Directors fee. 13. 0. 13
Board training. 31. 138. 13
S/Audit Mtg. 8. 14. 7
As highlighted above the director’s remuneration covers several expenses and the increase in expenses is below the rising costs of inflation and other economic factors responsible for increased operational costs.
The management of the bank wishes to use this medium to urge members of the investing public, our teeming customers to disregard the mischievous act as portrayed by this publication, aimed at tarnishing the image of our directors and the good milestones the bank has witnessed in the last 30 years of her existence.
This has earned the bank several awards including the Nigeria Investor Value Awards organsied by BusinessDay and Nigeria Exchange for being the best performing stock (Financial Services: Microfinance Bank). The Bank also recently won the Development Bank of Nigeria Service Ambassadors Award and the Chartered Institute of Bankers of Nigeria (CIBN) Most Supportive Microfinance Bank Award.
The mission statement of the bank is “to create value and wealth for our stakeholders through the sustainable provision of microfinance products and services”. This is what propels us as an institution, and the board, management and staff are guided by this mission.
