NPF MICROFINANCE BANK PLC RC. 220824 SECOND QUARTER UNAUDITED MANAGEMENT ACCOUNT 30 JUNE 2025
NPF Microfinance Bank PLC Monthly Report - 30 June 2025
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2025
In thousands of naira | Note | 30-June-2025 | 30-June-2024 | ||
ASSETS | |||||
Cash and cash equivalents | 16 | 9,822,331 | 12,411,404 | ||
Investment securities | 19 | 3,017,626 | 1,378,221 | ||
Loans and advances to customers | 18 | 36,111,309 | 22,324,429 | ||
Pledged assets | 17 | 1,912,242 | 1,769,592 | ||
Other assets | 20 | 884,320 | 971,819 | ||
Property and equipment | 21 | 1,506,702 | 1,424,745 | ||
Intangible asset | 22 | 741 | (809) | ||
TOTAL ASSETS | 53,255,269 | 40,279,401 | |||
LIABILITIES | |||||
Deposits from customers | 23 | 34,894,410 | 22,305,708 | ||
Current tax liabilities | 15(b) | 1,294,734 | 273,579 | ||
Other liabilities | 25 | 3,775,921 | 2,905,022 | ||
Borrowings | 24 | 327,169 | 1,247,028 | ||
Deferred tax liabilities | 15(c) | 66,642 | 124,730 | ||
TOTAL LIABILITIES | 40,358,876 | 26,856,067 | |||
CAPITAL AND RESERVES | |||||
Share capital | 26 | 2,996,477 | 2,996,477 | ||
Share premium | 27(a) | 4,166,786 | 4,166,786 | ||
Retained earnings | 27(b) | 3,363,946 | 4,026,305 | ||
Fair value reserve | 27(c) | (13,147) | 21,288 | ||
Statutory reserve | 27(d) | 2,382,331 | 1,733,915 | ||
Regulatory risk reserve | 27(e) | - | 478,563 | ||
TOTAL EQUITY | 12,896,393 | 13,423,334 | |||
TOTAL LIABILITIES AND EQUITY | 53,255,269 | 40,279,401 | |||
Mrs. Olamide M. Akin-Balogun Chief Financial Officer | Mr. Habeeb A. Yusuf Managing Director | ||||
FRC/2015/ICAN/00000011044 | FRC/2025/PRO/DIR/003/ICAN/163632 | ||||
__________________________
________________________________
The accompanying notes are an integral part of these financial statements.
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 JUNE 2025
In thousands of naira | Note | Apr-Jun 2025 | Apr-Jun 2024 | 30-June-2025 | 31-June-2024 |
Gross earnings | 4,721,986 | 2,804,381 | 9,226,752 | 5,551,809 | |
Interest income calculated using the effective interest metho | d 8 | 4,203,260 | 2,530,306 | 8,136,270 | 5,041,235 |
Interest expense | 9 | (312,830) | (257,292) | (610,173) | (534,791) |
Net interest income | 3,890,430 | 2,273,014 | 7,526,097 | 4,506,444 | |
Fee and commission income* | 10 | 518,099 | 272,508 | 1,089,611 | 508,683 |
Revenue | 4,408,529 | 2,545,522 | 8,615,708 | 5,015,127 | |
Other income* | 11 | 627 | 1,567 | 871 | 1,891 |
Net impairment loss on financial instruments | 12 | - | - | (60) | - |
Personnel expenses | 13 | (1,352,751) | (879,296) | (2,523,040) | (1,546,217) |
Other operating expenses* | 14 | (1,477,752) | (1,256,932) | (2,861,883) | (2,204,382) |
Depreciation of property and equipment | 21 | (132,614) | (102,483) | (264,815) | (206,262) |
Amortisation of intangible assets | 22 | (130) | (980) | (261) | (2,856) |
Profit before tax | 1,445,909 | 307,398 | 2,966,520 | 1,057,301 | |
Income tax expense | 15(a) | (486,765) | (76,849) | (1,032,301) | (264,325) |
Profit for the period | 959,144 | 230,549 | 1,934,219 | 792,976 | |
Other comprehensive loss | |||||
Items that will not be reclassified to profit or loss | |||||
Equity investment at fair value through OCI | 19(a) | - | - | - | - |
Other comprehensive loss for the year | - | - | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 959,144 | 230,549 | 1,934,219 | 792,976 |
Basic and diluted earnings per share (kobo) *Refer to note 36 for changes to the presentation of the comparative figures The accompanying notes are an integral part of these financial statements. | 16 | 5 | 32 | 13 |
STATEMENT OF CHANGES IN EQUITY | |||||||
FOR THE PERIOD ENDED 30 JUNE 2025 | |||||||
Share | Share | Retained | Fair Value | Statutory | Risk | ||
Capital | Premium | Earnings | Reserve | Reserve | Reserve | Total | |
Balance at 1 January 2025 | 2,996,477 | 4,166,786 | 2,312,835 | (13,147) | 2,382,331 | - | 11,845,282 |
Total comprehensive income | |||||||
Profit for the year | - | - | 1,934,219 | - | - | - | 1,934,219 |
Audit adjustments | 15,835 | 15,835 | |||||
Other comprehensive loss | |||||||
Fair value reserve (FVOCI equity instruments): | |||||||
Equity investments at FVOCI - net change in fair value | - | - | - | - | - | - | - |
Loss on derecognition of equity investments | - | - | - | - | - | - | - |
Total other comprehensive loss | - | - | - | - | - | - | - |
Total comprehensive income | - | - | 1,934,219 | - | - | - | 1,934,219 |
Transfer to statutory reserve (see note 27(d)) | - | - | - | - | - | - | - |
Transfer from regulatory risk reserve (see note 6(c)(ii)) | - | - | - | - | - | - | - |
Contributions by and distributions to equity holders | |||||||
Dividend paid (see note 33) | - | - | (898,943) | - | - | - | (898,943) |
Increase in share capital | - | - | - | - | - | - | - |
Total contributions and distributions | - | - | (898,943) | - | - | - | (898,943) |
Balance at 30th June 2025 | 2,996,477 | 4,166,786 | 3,363,946 | (13,147) | 2,382,331 | - | 12,896,393 |
FOR THE YEAR ENDED 31 DECEMBER 2024 | |||||||
Share | Share | Retained | Fair Value | Statutory | Risk | Total | |
Capital | Premium | Earnings | Reserve | Reserve | Reserve | ||
Balance at 1 January 2024 | 2,996,477 | 4,166,786 | 1,851,312 | (13,147) | 1,988,772 | - | 10,990,200 |
Total comprehensive income | |||||||
Profit for the period | - | - | 1,574,237 | - | - | - | 1,574,237 |
Audit adjustments | - | - | - | - | - | - | - |
Other comprehensive loss | |||||||
Fair value reserve (FVOCI equity instruments): | |||||||
Equity investments at FVOCI - net change in fair value | - | - | - | - | - | - | - |
Loss on derecognition of equity investments | - | - | - | - | - | - | - |
Total other comprehensive loss | - | - | - | - | - | - | - |
Total comprehensive income | - | - | 1,574,237 | - | - | - | 1,574,237 |
Transfer to statutory reserve (see note 27(d)) | - | - | (393,559) | - | 393,559 | - | - |
Transfer to regulatory risk reserve (see note 6(c)(ii)) | - | - | - | - | - | - | - |
Contributions by and distributions to equity holders | |||||||
Dividend paid (see note 33) | - | - | (719,155) | - | - | - | (719,155) |
Increase in share capital | - | - | - | - | - | - | - |
Total contributions and distributions | - | - | (719,155) | - | - | - | (719,155) |
Balance at 31 December 2024 | 2,996,477 | 4,166,786 | 2,312,835 | (13,147) | 2,382,331 | - | 11,845,282 |
The accompanying notes are an integral part of these financial statements.
STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 30 JUNE 2025 | |||
In thousands of naira | Note | 30-June-2025 | 30-June-2024 |
Cash flows from operating activities | |||
Profit before tax | 2,966,520 | 1,057,301 | |
Adjustments for: | |||
Depreciation of property and equipment | 21 | 264,815 | 206,262 |
Amortization of intangible assets | 22 | 261 | 2,856 |
Net impairment loss on loans and advances to customers | 12 | 60 | - |
Net impairment loss on pledged assets | 12 | - | - |
Net impairment loss on other assets | 12 | - | - |
Net impairment (gain)/ loss on investment securities | 12 | - | - |
Interest income | 8 | (8,136,270) | (5,041,235) |
Payment of interest on lease liability | 25(d)(i) | (9,142) | (2,630) |
Interest expense | 9 | 610,173 | 534,791 |
Profit on sale of property and equipment | 11 | (871) | (1,891) |
Gain on derecognition of lease liability | 11 | - | - |
Changes in: | (4,304,454) | (3,244,546) | |
- pledged assets | 34(b) | 828,359 | (16,262) |
- loans and advances to customers | 34(c) | (9,798,863) | (3,032,268) |
- other assets | 34(d) | (1,104,651) | 3,540,783 |
- deposits from customers | 34(e) | (7,180,415) | (4,645,422) |
- other liabilities | 34(f) | (9,424,451) | (701,317) |
(30,984,475) | (8,099,032) | ||
Interest received | 34(h) | 10,226,831 | 5,054,381 |
Interest paid* | 34(i) | (1,242,801) | (529,478) |
Tax paid | 15(b) | (595,910) | (930,968) |
VAT paid | 25 | (40,710) | (21,605) |
Net cash generated/ (used in) from operating activities | (22,637,065) | (4,526,702) | |
Cash flows from investing activities | |||
Acquisition of property and equipment | 34(a)(ii) | (4,439) | (107,899) |
Acquisition of intangible assets | 22 | - | - |
Payment for new leased properties* | 34(j) | - | 145,438 |
Proceeds from disposal of property and equipment | 34(a)(i) | 871 | 10,044 |
Dividends received | 11 | - | - |
Net cash flows used in investing activities | (3,568) | 47,583 | |
Cash flows from financing activities | |||
Repayment of principal on borrowings | 24(b) | (267,000) | (615,000) |
Repayment of interest on borrowings | 24(b) | (14,464) | (179,434) |
Payment of principal on lease liability | 25(d)(i) | (66,370) | (49,261) |
Additions to borrowings | 24(b) | - | - |
Dividend paid | 33 | (898,943) | - |
Proceeds from increase in share capital | 26 | - | |
Addition to share premium | 27(a) | - | - |
Net cash (used in)/ generated from financing activities | (1,246,777) | (843,695) | |
Net increase in cash and cash equivalents | (23,887,410) | (5,322,814) | |
Cash and cash equivalents as at 1 January | 33,786,623 | 17,735,812 | |
Cash and cash equivalents as at 28 March | 16 | 9,899,212 | 12,412,998 |
The accompanying notes are an integral part of these financial statements. -
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2025
8 Interest income | Budgeted | Audited | ||
In thousands of naira | 30-June-2025 | 30-June-2024 | '30-June-2025 | 31-Dec-2024 |
Loans and advances | 6,446,370 | 4,518,862 | 6,505,107 | 10,007,858 |
Government Securities | 12,514 | 39,422.00 | 51,218 | 78,797 |
Treasury bills | 351,206 | 94,399 | 172,968 | 266,156 |
Call accounts | 1,326,180 | 388,552 | 767,731 | 1,042,145 |
Pledged assets | - | - | - | - |
Money market placement | - | - | - | 79,115.00 |
Total interest income calculated using the effective interest method | 8,136,270 | 5,041,235 | 7,497,024 | 11,474,071 |
9 Interest expense | ||||
In thousands of naira | 30-June-2025 | 30-June-2024 | Budgeted '30-June-2025 | Audited 31-Dec-2024 |
Term deposits | 495,959 | 474,801 | 569,829 | 740,417 |
Current deposits | 40,460 | 28,182 | 45,579 | 52,554 |
Savings deposits | 29,639 | 25,029 | 30,793 | 54,574 |
Borrowings (see note 24(b)) | 36,150 | 0 | 7,547 | 232,972 |
Lease liabilities (see note 25(c)) | 7,965 | 6,779 | 11,035 | 20,144 |
Total interest expense | 610,173 | 534,791 | 664,783 | 1,100,661 |
Total interest expense reported above relates to financial liabilities measured at amortised cost using the applicable effective interest rates.
10 Fees and commission income* | Budgeted | Audited | ||
In thousands of naira | 30-June-2025 | 30-June-2024 | '30-Jun-2025 | 31-Dec-2024 |
Credit-related fees and commission | 688,334 | 328,649 | 548,851 | 843,383 |
Deposit-related fees and commission | 401,277 | 180,034 | 409,107 | 621,530 |
1,089,611 | 508,683 | 957,957 | 1,464,913 |
-
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
Audited
In thousands of naira
30-June-2025
30-June-2024
'30-June-2025
31-Dec-2024
Loan management fee
191,629
105,156
163,637
251,157
Loan commitment fee
271,455
145,760
240,892
370,687
Insurance fee
197,297
66,993
125,143
192,031
Credit search fee
27,953
10,740
19,180
29,508
688,334
328,649
548,851
843,383
Admin and management fee
219,476
59,161
169,721
261,248
Account maintenance fee
107,129
76,766
111,197
171,072
Service fees and charges (see (iii) below)***
74,672
44,107
128,190
189,210
401,277
180,034
409,107
621,530
1,089,611
508,683
957,957
1,464,913
***
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 30 JUNE 2025
-
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
Revenue recognition under IFRS 15
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.
Revenue from deposit related services are recognized overtime as the services are provided.
Revenue from credit related services are recognized at a point in time when the transaction takes place.
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.
11 Other income | Budgeted | Audited | ||
In thousands of naira | 30-June-2025 | 30-June-2024 | '30-June-2025 | 31-Dec-2024 |
Profit on disposal of property and equipment | 871 | 1,891 | 5,406 | 9,010 |
Dividend income | - | - | 245.00 | |
871 | 1,891 | 5,406 | 9,255 | |
12 Impairment loss/(write-back) on financial instruments | ||||
In thousands of naira | 30-June-2025 | 30-June-2024 | Budgeted '30-June-2025 | Audited 31-Dec-2024 |
Impairment loss on loans and advances to customers (see note 18(c)) | 60 | - | 50,000.00 | (54,089) |
Impairment loss/(write-back) on investment securities at amortised cost | - | - | - | 16,390 |
Impairment loss on other assets (see note 20(e)) | - | - | - | - |
Impairment loss on cash and cash equivalent (see note 16(b)) | - | - | - | 13,404 |
Impairment loss on pledged assets (see note 17(b)) | - | - | - | 87,593 |
60 | - | 50,000 | 63,298 |
NOTES TO THE FINANCIAL STATEMENTS | ||||
FOR THE PERIOD ENDED 30 JUNE 2025 | ||||
13 Personnel expenses | Budgeted | Audited | ||
In thousands of naira | 30-June-2025 | 30-June-2024 | '30-June-2025 | 31-Dec-2024 |
Wages and salaries | 2,307,788 | 1,484,949 | 2,456,150 | 4,421,225 |
Post-employment benefits: | ||||
Defined contribution plan - pension cost | 93,420 | 61,268 | 100,896 | 145,357 |
NSITF | 6,680 | 0 | 14,542 | - |
Gratuity | 115,149 | - | - | - |
2,523,038 | 1,546,217 | 2,571,588 | 4,566,582 |
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2025
14 Other operating expenses | Budgeted | Audited | ||
In thousands of naira | 30-June-2025 | 30-June-2024 | '30-June-2025 | 31-Dec-2024 |
Repairs and maintenance cost | 440,634 | 266,958 | 296,322 | 534,415 |
Vehicle and generator running cost | 181,264 | 202,565 | 229,463 | 379,277 |
Office expenses | 148,817 | 134,859 | 187,001 | 297,146 |
Computer expenses | 666,157 | 323,107 | 670,165 | 884,637 |
Travel expenses | 51,100 | 77,996 | 113,577 | 190,394 |
AGM expenses | 44,522 | 11,465 | 43,232 | 50,977 |
Year-end expenses | 245,918 | 141,421 | 213,969 | 353,468 |
Directors' remuneration | 437,446 | 421,324 | 367,897 | 564,585 |
Bank charges | 17,502 | 14720 | 19,406 | 32,086 |
Marketing/publicity expenses | 288,768 | 182186 | 222,558 | 374,772 |
Professional fees | 103,688 | 83245 | 92,067 | 68,879 |
Subscription fees | 8,367 | 8,822 | 8,028 | 13,270 |
Charges and levies | 63,420 | 63,025 | 74,938 | 136,885 |
Insurance cost | 56,265 | 39,047 | 55,817 | 83,177 |
NDIC premium | 0 | 72,637 | 43,946 | 72,637 |
Electricity expenses | 52,249 | 29,320 | 37,561 | 62,084 |
Recruitment expenses | 3,254 | 58,172 | 30,397 | 58,507 |
Legal expenses | 5,605 | 2,366 | 20,049 | 20,699 |
SMS alerts | 19,388 | 40,434 | 36,820 | 60,859 |
Rent and rates | 1,443.00 | - | - | (1.00) |
Audit fees (see note (i) below) | 19,348 | 16,994 | 27,412 | 48,375 |
Corporate social responsibility | 450 | - | 6,194 | 1,000.00 |
Donations | 4,323 | 5,341 | 5,212 | 8,615 |
Loan recovery expenses | 1,542 | 4 | 15 | 24 |
Fines/penalty | 0 | 3,514 | - | 8,893 |
Stamp duties | 60 | 106 | 77 | 126 |
Bad debts written off | - | - | - | 983 |
Share listing expenses | 323 | 4,734 | 22,280 | 5,561 |
Fraud, forgery and theft | 30 | 20 | 97 | 160 |
2,861,883 | 2,204,382 | 2,824,496 | 4,312,490 |
(i) The auditors of the Bank did not offer any other services apart from the statutory audit related activities during the period.
Income taxes
In thousands of naira 30-June-2025 30-June-2024
Amounts recognized in profit or loss
Audited 31-Dec-2024
Current tax expense
Company income tax
901,364
264,325
727,456
Education tax
93,707
-
91,040
National Information Technology Development Agency (NITDA) levy
29,665
-
24,375
Nigeria Police Trust Fund (NPTF) levy
148
-
122
National Agency for Science and Engineering Infrastructure (NASENI) levy
7,417
-
6,094
1,032,301
264,325
849,087
Deferred tax expense
Origination and reversal of temporary differences (see note (c))
-
14,175
Tax expense
1,032,301
264,325
863,262
Movement in current tax liabilities
Balance at 1 January
858,343
940,222
676,470
Income tax expense (see note (a) above)
1,032,301
264,325
849,087
Tax paid
(595,910)
(930,968)
(667,214)
Balance at 30 June
1,294,734
273,579
858,343
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2025
Movement in deferred tax balances
31 May 2025
Balance at 1
Recognized in
profit or loss
Recognized in
Balance at 30
In thousands of naira
January
(see (a))
OCI
April
Property and equipment
308,932
-
-
308,932
Impairment allowance
(288,507)
-
-
(288,507)
Others
46,213
-
-
46,213
Deferred tax liabilities
66,642
-
-
66,638
31 December 2024
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
235,908
73,024
-
308,932
Impairment allowance
(229,658)
(58,849)
-
(288,507)
Others
46,213
-
-
46,213
Deferred tax liabilities
52,463
14,175
-
66,638
Deferred tax liabilities
The Bank's deferred tax liabilities are attributable to the following:
30-June-2025
31-Dec-2024
In thousands of naira Gross amount
Tax effect
Gross amount
Tax effect
Property and equipment
1,370,838
308,932
1,606,107
308,932
Impairment allowance
(223,727)
(288,507)
(223,727)
(288,507)
Others
39,584
46,213
42,501
46,213
1,186,694
66,638
1,424,881
66,638
Reconciliation of effective tax rate
30-June-2025
31-Dec-2024
%
2,966,520
%
2,437,499
44
901,364
30
731,250
0
-
0
10,381
0
-
0
-
3
93,707
4
91,040
1
29,665
1
24,375
0
148
0
122
0
7,417
0
6,094
48
1,032,301
35
863,262
In thousands of naira
Profit before tax
Tax using the Bank's domestic tax rate Non-deductible expenses
Tax-exempt items Tertiary Education Tax NITDA Levy
Nigeria Police Trust Fund (NPTF) levy NASENI Levy
Cash and cash equivalents
In thousands of naira 30-June-2025 30-June-2024
Audited 31-Dec-2024
Cash and cash equivalent comprise:
Cash on hand:
Cash on hand
145,525
126,348
112,183
Held-to-maturity Treasury Bills:
Treasury Bills
60,607
94,790
60,607
Deposits with banks:
206,132
221,138
172,790
Current account balances with other banks
1,245,878
4,848,404
19,781,210
Money market placements
8,447,202
7,343,456
13,960,742
Cash and cash equivalents for cash flow purposes:
9,899,212
12,412,998
33,914,742
Impairment allowance (see note (b))
(76,881) -
1,594
(76,881)
Cash and cash equivalents
9,822,331
12,411,404
33,837,861
(a)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2025
(b) Movement in impairment allowance:
Balance at 1 January
76,881
1,594
63,477
Impairment loss (see note 12)
-
-
13,404
76,881
1,594
76,881
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.
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:
Audited
In thousands of naira
30-June-2025
30-June-2024
31-Dec-2024
Underlying transaction
Counterparty
Asset description
DBN concessionary loan
Development Bank of Nigeri
Treasury Bills
775,889
540,250
696,600
NIBSS Platform
First Bank of Nigeria Plc
Fixed placement
-
225,203
0
NIBSS Platform
Zenith Bank Plc
Fixed placement
1,224,430
0
1,124,618
NIBSS Platform
Zenith Bank Plc
Fixed placement
0
1,000,000
1,002,319
ATM Transactions
Sterling Bank Plc
Call placement
20,000
20,000
20,000
NIBSS Platform
First Bank of Nigeria Plc
Fixed placement
-
-
-
2,020,319
1,785,453
2,843,537
Impairment allowance (see note (b) below)
(108,077)
(15,861)
(108,077)
1,912,242
1,769,592
2,735,460
Current
1,912,242
1,769,592
2,735,460
Non-current
-
-
-
1,912,242
1,769,592
2,735,460
(b) Movement in impairment allowance:
Balance at 1 January
108,077
15,861
20,484
Impairment loss (see note 12)
-
-
87,593
108,077
15,861
108,077
Loans and advances to customers
In thousands of naira 30-June-2025 30-June-2024
Loans and advances to customers comprise:
Audited 31-Dec-2024
Loan and advances to customers at amortised cost
36,111,309
22,324,429
25,528,160
36,111,309
22,324,429
25,528,160
Current
30,430,820
16,053,349
21,525,046
Non-current
5,680,489
6,271,080
4,003,114
36,111,309
22,324,429
25,528,160
Loans and advances to customers at amortised cost:
30 June 2025
31 December 2024
In thousands of naira
Amount
Allowance
Amount
Amount
ECL Allowance
Amount
Term loans
32,779,129
(241,459)
32,537,670
25,917,528
(253,862)
25,663,666
Overdrafts
4,499,600
(925,961)
3,573,639
1,002,743
(1,138,249)
(135,506)
37,278,729
(1,167,420)
36,111,309
26,920,271
(1,392,111)
25,528,160
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2025
Movement in allowances for impairment
31 December 2024
30 June 2025
In thousands of naira
Lifetime
ECL not Lifetime ECL
Lifetime ECL
12-month
credit
credit
12-month
not credit
Lifetime ECL
ECL
impaired
impaired Total
ECL
impaired credit impaired Total
Balance at the beginning of the year 731,412 4,175 656,524 1,392,111 568,931 17,467 859,802 1,446,200
Additional allowance during the year (see note 12) | 60 | - | - | 60 | 162,481 | (13,292) | (203,278) | (54,089) |
Writeback/(writeoffs) during the year | (224,751) | - | - | (224,751) | - | - | - | - |
Balance at the end of the year | 506,721 | 4,175 | 656,524 | 1,167,420 | 731,412 | 4,175 | 656,524 | 1,392,111 |
0
Investment securities
Investment securities comprise:
Investment securities measured at FVTOCI:
Audited
30-June-2025
30-June-2024
31-Dec-2024
Equity securities:
Listed equities
1,056
5,324
1,056
Unlisted equities
-
30,167
-
1,056
35,491
1,056
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 2024 (31 December 2023: 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 2023: nil). The change in fair value on these investments were as follows:
30-June-2025
30-June-2024
31-Dec-2024
Balance at beginning of the year
Listed equities
1,056
5,324
1,056
Unlisted equities
-
30,167
0
1,056
35,491
1,056
Balance at end of the year
Listed equities
1,056
5,324
1,056
Unlisted equities
-
30,167
-
1,056
35,491
1,056
Fair value gain/(loss)
-
-
-
Loss on derecognition of equity investments
-
-
-
Investment securities at amortised cost
Treasury bills | 2,517,074 | 842,949 | 3,383,007 |
ECL impairment | (16,470) | (219) | (16,470) |
2,500,604 | 842,730 | 3,366,537 | |
Government Bond | 515,966 | 500,000 | 517,110 |
Total investment securities | 3,017,626 | 1,378,221 | 3,884,703 |
Total investment securities for cashflow purpose | 2,518,130 | 878,440 | 3,384,063 |
Current | 3,017,626 | 1,378,221 | 3,884,703 |
Non-current | - | - | - |
3,017,626 | 1,378,221 | 3,884,703 | |
(c) Movement in impairment allowance | |||
Balance at the begining of the year | 16,470 | 219 | 80 |
Impairment loss/(writeback) during the year (see note 12) | - | - | 16,390 |
Balance at the end of the period | 16,470 | 219 | 16,470 |
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2025
20 Other assets | |||
Audited | |||
In thousands of naira | 30-June-2025 | 30-June-2024 | 31-Dec-2024 |
Other financial assets: | |||
Other receivables (see note (c) below) | 30,540 | 558,360 | 772,279 |
Impairment allowance (see note (d) below) | (92,706) | (156,664) | (92,707) |
(62,166) | 401,696 | 679,572 | |
Non financial assets: | |||
Prepayments (see note (a) below) | 347,401 | 326,190 | 72,120 |
Inventories (see note (b) below) | 599,086 | 243,933 | 118,867 |
946,487 | 570,123 | 190,987 | |
884,320 | 971,819 | 870,559 | |
Current | 884,320 | 767,949 | 870,559 |
Non-current | 0 | 45,188 | 0 |
884,320 | 971,819 | 870,559 | |
(a) Prepayments comprise the following: | |||
30-Jun-2025 | 30-Jun-2024 | ||
Prepaid insurance | 51,105 | 32,687 | 42,825 |
Prepaid staff benefits | - | 45,188 | (1) |
Other prepaid expense (see note (i) below) | 296,296 | 248,315 | 29,295 |
347,401 | 326,190 | 72,120 | |
(i) Other prepaid expense comprise: | |||
Prepayment of computer maintenance cost | 91,432 | 58,317 | 22,629 |
Prepayment of SMS and USSD cost | 204,864 | 189,998 | 6,666 |
296,296 | 248,315 | 29,295 |
(b) 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.
In thousands of naira | 30-June-2025 | 30-June-2024 | 31-Dec-2024 |
Stock (see note (i) below) | 118,901 | 146,494 | 129,724 |
Assets under construction | 480,185 | 97,439 | (10,857) |
Deferred share issue cost | - | - | - |
599,086 | 243,933 | 118,867 | |
(i) The amount in stock comprise: | 30-June-2025 | 30-June-2024 | 31-Dec-2024 |
Stock of cheques | 335 | 427 | 396 |
Stock of office stationeries | 22,737 | 17,287 | 15,401 |
Stock of micr cheques | 26,104 | 26,117 | 26,108 |
Stock of non-micr cheques | 32,446 | 38,095 | 35,466 |
Stock of ATM cards | 27 | 12,904 | 4,787 |
Stock of credit cards | 31,342 | 36,055 | 35,081 |
Stock of adhesive stamps | 5,911 | 15,609 | 12,485 |
118,901 | 146,494 | 129,724 | |
(c) Other receivables includes staff cash advances and sundry debtors. | |||
(d) Movement in impairment allowances: | |||
In thousands of naira | 30-June-2025 | 30-June-2024 | 31-Dec-2024 |
Balance at the begining of the year | 92,707 | 156,664 | 92,707 |
Impairment loss during the year | - | - | - |
Balance at the end of the year | 92,707 | 156,664 | 92,707 |
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2025
21 Property and Equipment
In thousands of naira
Buildings
Freehold
Land
Right-of-Use
Asset
Furniture and Fittings
Motor Vehicles
Computer Equipment
Office
Equipment Total
Cost: | ||||||||
Balance as at 1 January 2024 | 510,775 | 52,118 | 395,322 | 247,415 | 821,613 | 726,845 | 461,004 | 3,215,091 |
Additions during the year | - | - | 29,305 | 30,977 | 370,746 | 165,056 | 102,184 | 698,268 |
Disposals | - | - | (12,691) | (1,173) | (89,124) | (6,976) | (27,524) | (137,487) |
Write-off | - | - | - | (727) | - | (670) | - | (1,397) |
Balance at 31 December 2024 | 510,775 | 52,118 | 411,936 | 276,493 | 1,103,235 | 884,255 | 535,664 | 3,774,475 |
Balance as at 1 January 2025 | 510,775 | 52,118 | 411,936 | 276,493 | 1,103,235 | 884,255 | 535,664 | 3,774,475 |
Additions during the year | - | - | - | - | - | 4,439 | - | 4,439 |
Disposals | - | - | - | - | - | (5,040) | - | (5,040) |
Write-off | - | - | - | - | - | - | - | - |
Balance at 31 MAY 2025 | 510,775 | 52,118 | 411,936 | 276,493 | 1,103,235 | 883,654 | 535,664 | 3,773,875 |
Accumulated Depreciation: | ||||||||
Balance as at 1 January 2024 | 82,110 | - | 204,225 | 135,460 | 527,147 | 450,695 | 284,192 | 1,683,828 |
Charge for the year | 10,355 | - | 63,644 | 36,221 | 136,781 | 149,752 | 69,912 | 466,665 |
Disposals | - | - | (19,693) | (1,173) | (89,124) | (6,976) | (27,524) | (144,489) |
Write-off | - | - | - | (727) | - | (670) | - | (1,397) |
Balance at 31 December 2024 | 92,465 | - | 248,176 | 169,781 | 574,804 | 592,802 | 326,580 | 2,004,608 |
Balance as at 1 January 2025 | 92,465 | - | 248,176 | 169,781 | 574,804 | 592,802 | 326,580 | 2,004,608 |
Charge for the year | 5,166 | - | 27,895 | 17,717 | 95,564 | 83,357 | 35,116 | 264,815 |
Disposals | - | - | - | - | - | (5,040) | - | (5,040) |
Write-off | - | - | - | - | - | - | - | - |
Balance at 31 MAY 2025 | 97,631 | - | 276,071 | 187,498 | 670,368 | 671,119 | 361,696 | 2,264,383 |
Carrying amount as at 1 January 2024 | 428,665 | 52,118 | 191,097 | 111,955 | 294,466 | 276,150 | 176,812 | 1,531,263 |
Carrying amount: 31 December 2024 | 418,310 | 52,118 | 163,760 | 106,711 | 528,432 | 291,454 | 209,083 | 1,769,867 |
Carrying amount: 31 May 2025 | 413,144 | 52,118 | 135,865 | 88,994 | 432,867 | 212,535 | 173,968 | 1,506,702 |
There was no impairment loss on all classes property and equipment during the year (31 December 2024: Nil).
There were no property and equipment pledged as securities for liabilities (31 December 2024: Nil).
There were no contractual commitments for the acquisition of property and equipment (31 December 2024: 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
In thousands of naira
30-June-2025
30-June-2024
Audited 31-Dec-2024
Computer software
Cost:
Balance at beginning of the year
96,062
96,062
96,062
Addition during the year
-
-
-
Balance at end of the year
96,062
96,062
96,062
Accumulated Amortisation:
Balance at start of the year
95,059
94,015
94,015
Charge for the year
261
2,856
1,044
Balance at end of the year
95,321
96,871
95,059
Carrying amount at end of the year
741
(809)
1,003
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 30 JUNE 2025
23 Deposits from customers In thousands of naira | 30-June-2025 | 30-June-2024 | Audited 31-Dec-2024 |
Current deposits | 20,342,553 | 10,372,030 | 27,119,227 |
Savings deposits | 7,721,096 | 6,347,811 | 6,917,061 |
Term deposits | 6,456,814 | 5,181,555 | 5,575,006 |
Sundry deposits | 373,947 | 404,312 | 2,447,961 |
34,894,410 | 22,305,708 | 42,059,255 | |
24 Borrowings | Audited | ||
In thousands of naira | 30-June-2025 | 30-June-2024 | 31-Dec-2024 |
(a) Borrowings comprise: | |||
BOI concessionary loan | - | - | - |
CBN concessionary | - | - | - |
DBN concessionary loan (see note (i) below) | 327,169 | 1,247,028 | 572,483 |
CBN housing microfinance loan | - | - | - |
327,169 | 1,247,028 | 572,483 |
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.
Amount (₦'million) | Outstanding Amount (₦'million) | Outstanding Amount (₦'million) | |||
Date facility was obtained | 30- June-2025 | 31-Dec-2024 | Rate (%) | Tenor | |
04 August 2023 | 500 | 72 | 187 | 18.50 | 2 years |
19 September 2023 | 1,000 | 255 | 385 | 18.50 | 2 years |
1,500 | 327 | 572 | |||
The Bank has not had any defaults of principal or interest or other breaches with respect to the loan facilities as at 31 May 2025.
(b) The movement in borrowings during the YEAR was as follows:
In thousands of naira | 30-June-2025 | 30-June-2024 | 31-Dec-2024 |
Balance, beginning of the year | 572,483 | 2,041,462 | 2,065,020 |
Additions during the year | - | - | - |
Interest accrued during the year (see note 9) | 36,150 | - | 259,960 |
Interest paid during the year | (14,464) | (179,434) | (252,496) |
Principal repayment during the year | (267,000) | (615,000) | (1,500,000) |
Balance at period end | 327,169 | 1,247,028 | 572,483 |
Total repayment of borrowings (for cashflow | (281,464) | (794,434) | (1,752,496) |
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2025
25 Other liabilities In thousands of naira | 30-June-2025 | 30-June-2024 | Audited 31-Dec-2024 |
Financial liabilities: | |||
Accounts payable | 10,034 | 6,888 | 5,845 |
Productivity bonus (see note (a)) | 12,974 | 5,266 | 902,116 |
Sundry creditors (see note (b)) | 149,267 | 249,748 | 241,844 |
Accruals | 538,831 | 99,128 | 341,721 |
Settlement accounts (see note (c)) | 1,017,987 | 1,446,343 | 10,980,290 |
Other payables | 1,770,671 | 916,075 | 534,342 |
Unearned income | 783.00 | 783 | 783 |
Deposit for shares | - | 1,298 | 388 |
3,500,547 | 2,725,529 | 13,007,329 | |
Lease liability (see note (d)) | 97,022 | 98,762 | 122,262 |
Non-financial liabilities: | |||
Withholding tax payable | 137,642 | 59,126 | 78,532 |
VAT payable | 40,710 | 21,605 | 17,489 |
3,775,921 | 2,905,022 | 13,225,612 | |
Current | 3,678,899 | 2,451,813 | 13,103,350 |
Non-current | 97,022 | 137,506 | 122,262 |
3,775,921 | 2,905,022 | 13,225,612 |
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.
This amount represents provision for leave allowance to staff and profit sharing unpaid as at year end.
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.