Quarter 1 - financial statement for 2026

Mr. l4abreb A. Yusuf

Managing Director

rRc/ cis/PRO/DIR/003/ICT.U/163632

Tfie accompanying noles are an integral part of thesefinancial stalemenis.

‌STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 31ST MARCH 2026

The accompanying notes are an integral part of these financial statements.

The accompanying notes are an integral part of these financial statements.

The accompanying notes are an integral part of these financial statements.

FOR THE PERIOD ENDED 31ST MARCH 2026

Total interest expense reported above relates to financial liabilities measured at amortised cost using the applicable effective interest

1. Disagregation of fee and commission income

   In the following table, fee and commission income from contracts with customers in the scope of IFRS 15 is disaggregated by major type of fees.

   Budgeted

   	In thousands of naira	31-Mar-2026	31-Mar-2025	'31-Mar-2026
   	Loan management fee	119,902	94,557	130,898
   	Loan commitment fee	0	150,656	0
   	Loan Insurance fee	187,143	89,277	182,517
   	Credit bureau/search fee	15,716	13,975	18,683
   		322,761	348,465	332,098
   	Admin and management fee	91,398	123,924	117,587
   	Account maintenance fee	55,714	67,722	46,770
   	Service fees and charges (see (iii) below)***	41,383	31,401	69,530
   		188,495	223,047	233,887
   		511,256	571,512	565,986
   ***

   The value presented as service fees and charges, credit-related fees and commission was reported in the prior year financial statements as part of "Other income". Considering the nature of the income (see note iii) and in line with the requirements of IAS 1.

   The fee and commission presented above relate to financial assets and liabilities measured at amortised cost. These figures excludes amounts incorporated in determining the effective interest rate on such financial assets and liabilities.

   Loan management fee relates to fees for loan processing and fee on overdraft facilities granted to customers.

   NOTES TO THE FINANCIAL STATEMENTS

   FOR THE PERIOD ENDED 31ST MARCH 2026

2. Performance obligation and revenue recognition policy

   Fee and commission income from contracts with customers is measured based on the consideration specified in a contract with a customer. The Bank recognises revenue when it transfers control over a service to a customer.

   The following table provides information about the nature and timing of the satisfaction of performance obligations in contracts with customers, including significant payment terms, and the related revenue recognition policies.

   For the accounting policy for fees and commissions in the scope of IFRS 9, see note 4(b).

   Type of service

   Nature and timing of satisfaction of performance obligations, including significant payment terms

   Retail and corporate banking service

   The bank provides banking services to retail and corporate customers, including account management, provision of overdraft facilities and servicing fees. Fees for ongoing account management are charged to the customer's account on a monthly basis. The rates for the different class of accounts are set on an annual basis. Transaction-based fees for interchange and overdrafts are charged to the customer's account when the transaction takes place. Loan servicing fees are charged once when the transaction takes place.

3. Service fees and charges include fees on customer requests such as issuance of letter of indebtedness, charges on issuance of drafts, seals, stamps, reference letters and signature confirmation letters. These are recognized at the point in time when the transaction takes place.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31ST MARCH 2026

Tax Expense - - 897 2,300

1,692,443 1,384,131 1,896,918 5,444,092

(i) The auditors of the Bank did not offer any other services apart from the statutory audit related activities during the period.

1. Income taxes

   In thousands of naira 31-Mar-2026 31-Mar-2025

   1. Amounts recognized in profit or loss

      Unaudited 31-Dec-2025

      Current tax expense Company income tax	502,209	545,536	727,456
      Development Levy	70,327		91,040
      National Information Technology Development Agency (NITDA) levy	-		24,375
      Nigeria Police Trust Fund (NPTF) levy	-		122
      National Agency for Science and Engineering Infrastructure (NASENI) levy	-		6,094
      	572,536	545,536	849,087
      Deferred tax expense Origination and reversal of temporary differences (see note (c))	-		-
      Tax expense	572,536	545,536	849,087
      Movement in current tax liabilities Balance at 1 January	1,665,170	858,343	858,343
      Income tax expense (see note (a) above)	572,536	545,536	1,665,170
      Tax paid	(1,665,170)	(3)	(858,344)
      Balance at 31 Mar	572,536	1,403,876	1,665,170

   2. NOTES TO THE FINANCIAL STATEMENTS

      FOR THE PERIOD ENDED 31ST MARCH 2026

   3. Movement in deferred tax balances

      31 March 2026
      	Balance at 1	Recognized in profit or loss	Recognized in	Balance at 28
      In thousands of naira	January	(see (a))	OCI	Feb
      Property and equipment	308,932	-	-	308,932
      Impairment allowance	(288,507)	-	-	(288,507)
      Others	46,213	-	-	46,213
      Deferred tax liabilities	66,637	-	-	66,637
      31 December 2025
      	Balance at 1	Recognized in profit or loss	Recognized in	Balance at 31
      In thousands of naira	January	(see (a))	OCI	December
      Property and equipment	308,932	-	-	308,932
      Impairment allowance	(288,507)	-	-	(288,507)
      Others	46,213	-	-	46,213
      Deferred tax liabilities	66,637	-	-	66,637
      Deferred tax liabilities
      The Bank's deferred tax liabilities are attributable to the following:
      	31 March 2026		31-Dec-2025
      In thousands of naira	Gross amount	Tax effect	Gross amount	Tax effect
      Property and equipment	1,733,765	308,932	1,784,767	308,932
      Impairment allowance	(223,727)	(288,507)	(223,727)	(288,507)
      Others	232,233	46,213	217,610	46,213
      	1,742,270	66,638	1,778,650	66,638

   4. Reconciliation of effective tax rate

      31 March 2026		31-Dec-2025
      %	1,595,237	%	5,694,703
      36	502,209	30	1,708,411
      4	70,327	0	10,381
      0	-	0	-
      0	-	2	91,040
      0	-	0	24,375
      0	-	0	122
      0	-	0	6,094
      40	572,536	32	1,840,423

      In thousands of naira

      Profit before tax Company Income Tax Development Levy Tax-exempt items Tertiary Education Tax NITDA Levy

      Nigeria Police Trust Fund (NPTF) levy NASENI Levy

2. Cash and cash equivalents

   In thousands of naira 31-Mar-2026 31-Mar-2025

   1. Cash and cash equivalent comprise:

      Unaudited 31-Dec-2025

      Cash on hand: Cash on hand	172,089	157,951	114,873
      Held-to-maturity Treasury Bills: Treasury Bills	0	60,607	0
      Deposits with banks:	172,089	218,558	114,873
      Current account balances with other banks	20,541,206	6,002,049	19,703,675
      Money market placements	2,422,426	23,318,964	56,868
      Cash and cash equivalents for cash flow purposes:	23,135,721	29,539,571	19,875,416
      Impairment allowance (see note (b))	(120,292) -	76,881	(120,292)
      Cash and cash equivalents	23,015,429	29,462,690	19,755,124

      NOTES TO THE FINANCIAL STATEMENTS

      FOR THE PERIOD ENDED 31ST MARCH 2026

   2. Movement in impairment allowance:

      Balance at 1 January	120,292	76,881	76,881
      Impairment loss (see note 12)	-	-	43,411
      	120,292	76,881	120,292

      Cash and cash equivalents comprise balances with less than three months' maturity from the date of acquisition, including cash-in-hand, deposits held at call with other banks, other short-term highly liquid investments with original maturities less than three months. The current balances with other banks also includes ATM working capital accounts and the suspense accounts used to manage settlement of ATM transactions with Sterling Bank to be refunded to the Head office by branches. For financial reporting purposes, the balances in the ATM related accounts were combined in order to have a net position.

3. Pledged assets

   Pledged assets, initially recognised at fair value and subsequently measured at amortised cost, represent placements and Treasury Bills with banks that serve as collateral for the Bank's borrowings, use of NIBSS platform and ATM transactions as analysed below:

   In thousands of naira			31-Mar-2026	31-Mar-2025	Unaudited 31-Dec-2025
   Underlying transaction	Counterparty	Asset description
   DBN concessionary loan	Development Bank of Niger	Treasury Bills	894,192	727,371	854,119
   NIBSS Platform	First Bank of Nigeria Plc	Fixed placement	-	-	0
   NIBSS Platform	Zenith Bank Plc	Fixed placement	1,291,029	1,200,035	1,267,888
   NIBSS Platform	Zenith Bank Plc	Fixed placement	0	1,002,319	0
   ATM Transactions	Sterling Bank Plc	Call placement	20,000	20,000	20,000
   NIBSS Platform	First Bank of Nigeria Plc	Fixed placement	-	-	-
   			2,205,221	2,949,725	2,142,007
   Impairment allowance (see note (b) below)			(108,077)	(108,077)	(108,077)
   			2,097,144	2,841,648	2,033,930
   Current			2,097,144	2,841,648	2,033,930
   Non-current			-	-	-
   			2,097,144	2,841,648	2,033,930

   (b) Movement in impairment allowance:

   Balance at 1 January Impairment loss (see note 12)	108,077 -	108,077 -	108,077 -
   	108,077	108,077	108,077

4. Loans and advances to customers

   In thousands of naira 31-Mar-2026 31-Mar-2025

   1. Loans and advances to customers comprise:

      Unaudited 31-Dec-2025

      Loan and advances to customers at amortised cost	41,963,010	29,275,170	39,391,356
      	41,963,010	29,275,170	39,391,356
      Current	35,362,019	24,670,039	33,194,899
      Non-current	6,600,991	4,605,131	6,196,457
      	41,963,010	29,275,170	39,391,356

      31 March 2026

      31 December 2025

   2. Loans and advances to customers at amortised cost:

      In thousands of naira	Amount	Allowance	Amount	Gross Amount	ECL Allowance	Amount
      Term loans	41,988,139	(1,167,242)	40,820,897	39,509,422	(1,167,242)	38,342,180
      Overdrafts	1,142,113	-	1,142,113	1,049,176	-	1,049,176
      	43,130,252	(1,167,242)	41,963,010	40,558,598	(1,167,242)	39,391,356

      NOTES TO THE FINANCIAL STATEMENTS

      FOR THE PERIOD ENDED 31ST MARCH 2026

   3. Movement in allowances for impairment

      31 March 2026

      31 Dec 2025

      In thousands of naira

      12-month

      Lifetime ECL not credit

      Lifetime ECL credit

      12-month

      Lifetime ECL not credit

      Lifetime ECL

      ECL

      impaired

      impaired Total

      ECL

      impaired credit impaired Total

      Balance at the beginning of the year 506,543 4,175 656,524 1,167,242 731,412 4,175 656,524 1,392,111

      Additional allowance during the year (see note 12) Writeback/(writeoffs) during the year	- -	- -	- -	- -	- (224,869)	- -	- -	- (224,869)
      Balance at the end of the year	506,543	4,175	656,524	1,167,242	506,543	4,175	656,524	1,167,242

5. Investment securities

   Investment securities comprise:

   1. Investment securities measured at FVTOCI:

      			Unaudited
      	31-Mar-2026	31-Mar-2025	31-Dec-2025
      Equity securities: Listed equities	10,921	1,056	50,820
      Unlisted equities	-	-	-
      	10,921	1,056	50,820

      The Bank has designated these equity investment securities at FVTOCI. They are held to be disposed off in the nearest future. The balance in unlisted equity investments have been fully impaired during the year ended 31 December 2025 (31 December 2024: Impaired), and there were no transfers to profit or loss account of any cumulative gain or loss within equity relating to these investments (31 December 2024: nil). The change in fair value on these investments were as follows:

      Balance at beginning of the year	31-Mar-2026	31-Mar-2025	31-Dec-2025
      Listed equities	50,820	1,056	51,150
      Unlisted equities	-	0	-
      Movements during the year	50,820	1,056	51,150
      Listed
      Addition/Sale	-39,899	0	(330.00)
      Fair value gain/(loss) -Equities	0	0	-
      Unlisted	-39,899
      Addition/Sale	22,499	-	22,499
      Fair value gain/(loss) -unlisted Equity	-22,499	-	-22,499
      Balance at end of period	0	0	0
      Listed equities	10,921	1,056	50,820
      Unlisted equities	-10,921	-1,056	-50,820
      (b) Investment securities at amortised cost
      Treasury bills	2,890,345	3,062,980	2,892,811
      ECL impairment	(16,470)	(16,470)	(16,470)
      	2,873,875	3,046,510	2,876,341
      Government Bond	541,115	536,097	522,345
      Total investment securities	3,425,911	3,583,663	3,449,506
      Total investment securities for cashflow purpose	2,901,266	3,064,036	2,943,631
      Current	2,884,796	3,047,566	3,449,506
      Non-current	541,115	536,097	-
      (c) Movement in impairment allowance	3,425,911	3,583,663	3,449,506
      Balance at the begining of the year	16,470	16,470	16,470
      Impairment loss/(writeback) during the year (see note 12)	-	-	-
      Balance at the end of the period	16,470	16,470	16,470

      NOTES TO THE FINANCIAL STATEMENTS

      FOR THE PERIOD ENDED 31ST MARCH 2026

      20 Other assets			Unaudited
      In thousands of naira	31-Mar-2026	31-Mar-2025	31-Dec-2025
      Other financial assets:
      Other receivables (see note (c) below)	513,361	18,259	483,211
      Impairment allowance (see note (d) below)	-	(92,706)	-
      	513,361	-74,447	483,211
      Non financial assets:
      Prepayments (see note (a) below)	659,368	466,989	199,590
      Inventories (see note (b) below)	445,625	557,694	550,952
      	1,104,993	1,024,683	750,542
      	1,618,354	950,236	1,233,753
      Current	1,549,697	950,236	1,233,753
      Non-current	68,657	0	0
      	1,618,354	950,236	1,233,753
      (a) Prepayments comprise the following:
      			Unaudited
      	31-Mar-2026	31-Mar-2025	31-Dec-2025
      Prepaid insurance	76,398	72,709	0
      Prepaid staff benefits	68,657	-	-1
      Other prepaid expense (see note (i) below)	514,313	394,280	103,249
      	659,368	466,989	199,590
      (i) Other prepaid expense comprise: Prepayment of computer maintenance cost	77,072	74,566	0
      Prepayment of SMS and USSD cost	437,241	319,714	103,249
      	514,313	394,280	103,249

   2. Inventories comprise stock of debit cards, stock of credit cards, stock of cheques, books/journals/CDs, stock of office stationeries, stock of micr cheques and non micr cheques, assets under construction, deferred share issue cost.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31ST MARCH 2026

• There was no impairment loss on all classes property and equipment during the year (31 December 2025: Nil).

• There were no property and equipment pledged as securities for liabilities (31 December 2025: Nil).

• There were no contractual commitments for the acquisition of property and equipment (31 December 2025: Nil).

  On 1 January 2019, following the adoption of IFRS 16, the Bank recognises right-of-use assets for leases of branch premises and has presented right-of-use assets

• within 'property and equipment' - i.e. the same line item in which it presents underlying assets of the same nature that it owns.

  22 Intangible asset			Unaudited
  In thousands of naira	31-Mar-2026	31-Mar-2025	31-Dec-2025
  Computer software
  Cost:
  Balance at beginning of the year	377,606	96,062	96,062
  Addition during the year	-	-	281,544
  Balance at end of the year	377,606	96,062	377,606
  Accumulated Amortisation: Balance at start of the year	148,800	97,963	95,059
  Charge for the year	23,593	253	53,740
  Balance at end of the year	172,394	98,216	148,799
  Carrying amount at end of the year	205,212	(2,154)	228,806

• All intangible assets are non current. Intangible assets of the Bank have finite useful life and are amortised over 3 years.

• The Bank does not have internally generated intangible assets.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31ST MARCH 2026

1. Deposits from customers

   			'Unaudited
   In thousands of naira	31-Mar-2026	31-Mar-2025	31-Dec-2025
   Current deposits	28,884,473	26,832,589	24,356,639
   Savings deposits	8,656,181	7,538,670	8,093,711
   Term deposits	11,964,573	8,166,834	10,109,728
   Sundry deposits	386,410	2,447,962	386,410
   	49,891,638	44,986,055	42,946,488

2. Borrowings

The Bank obtained the following Development Bank of Nigeria (DBN) loans for on-lending to micro, small and medium enterprises to grow their

(i) businesses.

The Bank has not had any defaults of principal or interest or other breaches with respect to the loan facilities as at 31 Mar 2026.

(b) The movement in borrowings during the YEAR was as follows:

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31ST MARCH 2026

1. This amounts represents accrual made at the end of the year for payment of productivity bonus to employees of the Bank. It is linked to the performance of the Bank.

2. This amount represents provision for leave allowance to staff and profit sharing unpaid as at year end.

3. These amounts comprise the transactions of the Bank's customers performed through the various e-channels but were yet to be settled as at year end.

   NPF Microfinance Bank PLC

   Monthly Report - 31 MARCH 2026

   NOTES TO THE FINANCIAL STATEMENTS

   FOR THE PERIOD ENDED 31ST MARCH 2026

   1. Share capital

      31-Mar-2026 31-Dec-2025

      Authorised: 6,000,000,000 units of ordinary shares of 50 kobo each	3,000,000 3,000,000
      Issued and fully paid: 5,992,954,557 units of ordinary shares of 50 kobo each	2,996,477 2,996,477

      The movement in share capital is as shown below:

      Balance at the beginning of the year Recapitalisation during the year

      2,996,477 2,996,477

      - -

      Balance at year end 2,996,477 2,996,477

   2. Share premium and reserves

      The nature and purpose of the share premium and reserve accounts in equity are as follows:

      1. Share premium

         The share premium warehouses the excess paid by shareholders over the nominal value for their shares. Premiums from the issue of shares are reported in share premium.

         The movement in share premium during the year was as follows:

         In thousands of naira	31-Mar-2026	31-Dec-2025
         Balance, begininig of the year	4,166,786	4,166,786
         Addition to share premium during the year	-	-

         Balance at year end 4,166,786 4,166,786

      2. Retained earnings

         Retained earnings comprise the undistributed profits from previous years, which have not been reclassified to the other reserves noted below.

      3. Fair value reserve

         Fair value reserve comprise the cumulative net change in the fair value of equity securities designated at fair value through other comprehensive income.

      4. Statutory reserve

         The Nigerian banking regulations require the Bank to make an annual appropriation to a statutory reserve. As stipulated by S.8.1.7 of the Amended Regulatory and Supervisory Guidelines for Microfinance Banks issued by the Central Bank of Nigeria (CBN), an appropriation of 50% of profit after tax is made if the statutory reserve is less than 50% of its paid-up share capital, 25% of profit after tax if the statutory reserve is greater than 50% but less than 100% of its paid-up share capital and 12.5% of profit after tax if the statutory reserve is greater than the paid up share capital.

         In line with the CBN requirement, the Bank transferred 25% of its profit after tax to statutory reserves as at year-end .
         In thousands of naira	31-Mar-2026	31-Dec-2025
         Balance, begininig of the year	2,382,330	2,382,331
         Transfer to statutory reserve during the year	-	-1

         Balance at year end 2,382,330 2,382,330

      5. Regulatory risk reserve

The regulatory risk reserve warehouses the excess of the impairment allowance on loans and advances computed based on the Central Bank of Nigeria prudential guidelines over that computed based on the expected credit loss (ECL) model under IFRS. For better presentation, the regulatory risk reserve was reclassified from retained earnings on the statement of changes in equity (see note 6(c)(ii)).

17