Accion MFB Grows Gross Earnings by 51% to N11.58bn, Raises Dividend to 35 Kobo

Sunday Ehigiator

Accion Microfinance Bank Plc has reported a strong financial performance for the 2025 financial year, posting gross earnings of N11.58 billion, a 51 per cent increase from N7.65 billion recorded in 2024, while recommending a dividend of 35 kobo per share for shareholders.

The financial results were presented at the bank’s 20th Annual General Meeting (AGM), held yesterday, where the Board highlighted significant growth across key performance indicators despite prevailing macroeconomic challenges.

Speaking on behalf of the Board of Directors, Chairman of the bank, Christian Ruehmer, said the institution delivered on its mission through stronger earnings, expanded outreach and improved financial inclusion.

According to him, interest income rose to N10.76 billion, while net interest income improved to N8.67 billion, driven largely by growth in loans and advances to customers.

He disclosed that profit before tax increased to N1.82 billion from N800.25 million in 2024, while profit after tax rose to N1.03 billion from N575.63 million in the previous year. Earnings per share also improved to 85 kobo from 48 kobo in 2024.

“The Bank recorded gross earnings of N11.58 billion in 2025, representing a 51 per cent increase from N7.65 billion in 2024. Interest income rose to N10.76 billion, while net interest income improved to N8.67 billion, supported principally by the growth in loans and advances to customers,” Ruehmer stated.

He noted that the bank’s total assets increased by 52 per cent to N29.54 billion from N19.42 billion in 2024, while loans and advances grew to N23.73 billion from N16.02 billion. Customer deposits also rose significantly to N11.27 billion from N6.41 billion, reflecting stronger customer confidence and improved deposit mobilisation.

The Chairman further revealed that shareholders’ funds stood at N7.77 billion as of December 31, 2025, up from N7.10 billion in the preceding year and well above the N5 billion minimum capital requirement for national microfinance banks.

On shareholder returns, Ruehmer announced that the Board had recommended a dividend of 35 kobo per share, amounting to N422.04 million, compared to 30 kobo per share or N362.22 million paid in 2024.

“This recommendation reflects the Board’s commitment to delivering value to shareholders today as well as in the future. While distributing dividends, we are also strengthening the capital base through retained earnings to support future growth and increased valuation,” he said.

He attributed the bank’s performance to disciplined execution, digital transformation initiatives, prudent risk management and the dedication of staff.

Ruehmer also highlighted the bank’s operational expansion during the year, noting that three new branches were opened in Ilorin, Kaduna and Kano, bringing the total branch network to 75 nationwide.

Providing an operational review, Managing Director and Chief Executive Officer, Taiwo Joda, said the bank remained resilient despite economic headwinds characterised by inflationary pressures, high interest rates, exchange rate volatility and rising operating costs.

According to him, the bank maintained a balance between growth and risk management while expanding access to finance for underserved communities and small businesses.

“Our theme for the year, ‘Innovating for Impact: Scaling Access, Transforming Futures,’ speaks directly to the responsibility we carry as a national microfinance bank. Innovation for us is about removing barriers, improving access, creating income opportunities and deepening financial inclusion,” Joda said.

The MD reiterated the strong financial results, describing them as evidence of the resilience of the bank’s business model and execution discipline.

“I am pleased to report that the Bank delivered a strong performance in 2025. Gross earnings increased to N11.58 billion, supported by growth in lending activity, improved revenue generation and sustained customer engagement. Profit before tax stood at N1.82 billion, while profit after tax closed at N1.03 billion,” he stated.

Joda said the bank’s balance sheet strengthened considerably during the year, with total assets rising to N29.54 billion, customer deposits reaching N11.27 billion and loans and advances increasing to N23.73 billion.

He added that one of the institution’s most notable achievements in 2025 was the significant improvement in asset quality, as Portfolio at Risk (PAR) reduced from 8.9 per cent in 2024 to 4.6 per cent in 2025, bringing the bank below applicable regulatory benchmarks.

The CEO noted that the bank continued to create value for shareholders through improved profitability and sustainable growth, which informed the recommendation of a 35 kobo dividend per share.

He expressed confidence that the bank was well positioned to sustain growth through enhanced digital banking solutions, stronger deposit mobilisation, responsible lending and operational efficiency.