By Amaka Agwuegbo
Shareholders of ACCION Microfinance Bank have shored up the bank’s paid-up capital to N1.2bn, making ACCION MFB in order to be eligible for state license from the regulatory authorities.

Speaking at its 4th Annual General Meeting (AGM) in Lagos, chairman of ACCION MFB, Mr. Patrick Akinwuntan, said with the increase in its paid-up capital, the bank will be better positioned to deliver on the vision of the shareholders and contribute positively to the financial industry in Nigeria.

The shareholders had proposed to: “To receive and consider the report of the directors, the balance sheet, together with the profit and loss account and the auditors’ report thereon, for the period ended 31 December 2009; to elect/re elect directors; to authorize the directors to fix the remuneration of the auditors; and to pass special resolutions with regards to amendment of the articles of association of the bank.

Commenting on the results of the bank for the year ended December 2009, the chairman, Akinwuntan, said though 2009 was a difficult year for the global financial sector, and the Nigerian MFB sector experienced some crisis that led to the closure of some of them, it is anticipated that MFBs will continue to provide financial services to a large number of Nigerians who, hitherto, had no access to financial services as well as improve the lives and businesses of micro-entrepreneurs.

“During 2009, we improved performance in all critical areas of operations and recorded increased disbursement of loans to our customers. We focused on best risk management practices to safeguard loan quality and ensure long-term sustainability.

“We disbursed over N3.7bn micro loans to over 12,000 customers, an increase 85 per cent when compared to N2bn in 2008. We also have over 32,660 savings customers with savings deposits amounting to N203m, representing a 63 per cent increase of 20,000 customers of N143m in 2008. Thus, the saving deposits grew by 42 percent.”

Akinwuntan ACCION MFB closed the year with a single digit PAR at just below 9 per cent and active loan portfolio of about N801m.

He also noted that for the first time and after initial set up and roll out phase, ACCION MFB achieved profitability in 2009, thus marking a turning in the growth of the bank.

In the bank’s outlook for 2010, the chairman said ACCION MFB will continue to focus on excellent customer services, development and delivery of loans and savings products to meet customers’ needs and bring the bank’s services closer to them through a wider network and multiple delivery channels.

Also, the bank shall continue to reinforce its governing framework to ensure quality and long term sustainability.
Also speaking, the Managing Director, ACCION MFB, Mrs. Bunmi Lawson, said ACCION is committed to ensuring that its services are right at the doorsteps of the customers.

“Our branch network has been increased from 10 to 15, which will aid service delivery. We would build closer relationship with customers and introduce new products to meet their needs.