Ayoku Liadi-led Kayvee Microfinance Bank Reports over 500% Surge in PBT To N371m

Kayvee Microfinance Bank Limited (Kayvee MFB), a rapidly expanding microfinance institution based in Lagos State, has said it recorded an over 500 percent surge in profit before tax in the  financial results for the full year ended December 31, 2024.

The results, recently approved by the Central Bank of Nigeria (CBN), reflect exceptional growth across all key financial metrics, underscoring the bank’s robust operational performance and strategic direction.

In a statement released by Kayvee MFB it recorded a remarkable 501 percent increase in Profit Before Tax (PBT) to ₦371 million, up from ₦62 million in 2023, while Profit After Tax (PAT) surged by 556 percent  to ₦228 million, compared to ₦41 million in the previous year.

Speaking about the report, the Chairman of the Kayvee MFB, Mr. Ade-Ibileke Adebayo, attributed the impressive financial performance to the bank’s continued investment in talent acquisition, human capital development, product innovation, and excellence in customer service.

He noted that the results also serve as a testament to the strong governance and strategic oversight provided by the Board, alongside the diligent execution by management.

According to him, interest income rose by 164 percent, while net interest income increased by 240 percent  to ₦475 million in 2024, showcasing the strength and sustainability of the bank’s core intermediation business and its expanding fee-based income streams.

He explained that operational efficiency also improved significantly with Cost-to-Income Ratio (CIR) improving to 60 percent  in 2024 from 80 percent in 2023. Cost of Risk (CoR) stood at an impressively low 0.3 percent, far below industry averages, due to strong risk management practices.

“Non-Performing Loan (NPL) ratio improved to 4 percent from 7 percent in 2023,  while NPL coverage ratio increased to 82 percent from 52% percent in 2023, demonstrating high loan asset quality and prudent provisioning for potential credit losses, respectively.

“These outcomes translated into strong profitability ratios, with a net margin of 16% and a remarkable Return on Equity (ROE) of 88%. Basic EPS computed at 1.90k per 1.00 share,” Adebayo said.

On her part, the Managing Director of Kayvee MFB, Mrs. Olatoun Ogunnaike, emphasized that the 2024 results serve as a milestone in the bank’s transformation journey.

According to her, “While we are proud of our performance in 2024, this is only the beginning. Our strategy remains focused on leveraging technology to enhance customer experience and operational efficiency. Initiatives such as the Kayvee MFB mobile app, Kayvee branded debit cards, and expanded POS deployment are just a few of the ways we are deepening our market presence. We now aim to upgrade the bank in no time, even as we remain committed to training and retraining our workforce to maintain the service excellence that our customers have come to expect.”

Commenting on the results, Group Managing Director of Bay Holdings and Non-Executive Director of Kayvee MFB, Mr. Ayoku Liadi, attributed the bank’s exceptional financial performance to the transformative leadership and strategic repositioning that began following the change in ownership in April 2022.

“At the time of acquisition, Kayvee was a modest institution with total assets of about ₦100 million and less than ₦35 million in customers’ deposits. In just under three years, through strategic investments in people, systems, and governance, we have witnessed over a 100-fold increase in deposits and substantial growth across other key financial parameters,” Mr. Liadi, a former Deputy Managing Director of UBA, and Kayvee MFB’s promoter and lead investor since its acquisition, said.

Kayvee MFB’s 2024 performance establishes it as one of the leading emerging microfinance institutions in Nigeria. With a clear growth trajectory, Kayvee MFB is positioned for continued impact in the financial inclusion space and to deliver continued value to its customers, shareholders, and other stakeholders in the years ahead.