Npf Microfinance Bank PlcNSENG: NPFMCRFBK

Quarter 3 - financial statement for 2025

· Issued by Npf Microfinance Bank Plc


‌NPF MICROFINANCE BANK PLC RC. 220824 UNAUDITED FINANCIAL STATEMENT 30 SEPTEMBER 2025






‌7.777,3fifl









19

3,4f›4,7'yl

18

AU, IfI/i.410

17

l,9Gf›,9/›5

20

l,3 l fi,3fi0

1,461.131

I

I.4HfJ,8fXJ

I,724,f•fi3

22



II,52 I j





23

36,700,834

28,388,965

turrcml ias hahilitics

15a)

1,257,391

1,157,474

UT v liabilities

28

4,419,003



Borro«mgs

]4

730,386

Deferred tax liabilities

)5(c)

66,638

52,463

TOT.41. LI.ABILITIES

42,443,866

36,944J79

C.4PlT.4L AXD RESER'ES

Share capital

26

2,996,477

2,996,477

Share premium

27(a)

4,166,786

4,166,786

Retained earnings

27(b)

4,220,073

3,354,329

Farr "aIue rcsco'c

27(c)

(13.147)

(13,147)

Su stag rcscn'e

27(d)

2,382,33 I

1,988,772

Rczulaorj risk resen'e

27(e)

TOT.ML EQL ITY

13,752,520

I2,493g17

TOT.4L LL4BlLITIES AND EQUITY

56,196486

49,438,095

















tin. Okoide 'II. Akin-Balogun Chief Financial Officer FRC/2ñl5/ICA S' 000ññ0ll044

Air. Habeeb A. Yusuf Managing Director

FRCf2025fPRO/DIR/003fICAN/163632

The a‹compuiiying notes are an integral part ofthesefnancial statements.

‌STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 30 SEPTEMBER 2025

In thousands of naira Note July- Sept 2025 July- Sept 2024 30-Sept-2025 30-Sept-2024

Gross earnings

5,105,665

3,569,177

14,332,416

9,081,147

Interest income calculated using the effective interest

method 8

4,420,165

3,053,542

12,556,434

8,094,777

Interest expense

9

(1,132,438)

(282,557)

(1,742,611)

(817,348)

Net interest income

3,287,727

2,770,985

10,813,823

7,277,429

Fee and commission income*

10

683,642

508,683

1,773,253

977,527

Revenue

3,971,369

3,279,668

12,587,076

8,254,956

Other income*

11

1,858

6,952

2,729

8,843

Net impairment loss on financial instruments

12

60

-

-

-

Personnel expenses

13

(1,341,788)

(1,011,965)

(3,864,826)

(2,558,182)

Other operating expenses*

14

(1,436,569)

(1,244,805)

(4,298,453)

(3,449,187)

Depreciation of property and equipment

21

(131,980)

(122,581)

(396,795)

(328,843)

Amortisation of intangible assets

22

(131)

(712)

(392)

(3,568)

Profit before tax

1,062,819

906,557

4,029,339

1,924,019

Income tax expense

15(a)

(225,089)

(216,680)

(1,257,390)

(481,005)

Profit for the period

837,730

689,877

2,771,949

1,443,014

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

837,730

689,877

2,771,949

1,443,014

Basic and diluted earnings per share (kobo)

14

12

46

24

The accompanying notes are an integral part of these

financial statements.

STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30 SEPTEMBER 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

-

-

2,771,949

-

-

-

2,771,949

Audit adjustments

34,232

34,232

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

-

-

2,771,949

-

-

-

2,771,949

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 31st October 2025

2,996,477

4,166,786

4,220,073

(13,147)

2,382,331

-

13,752,520

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 SEPTEMBER 2025

In thousands of naira

Note

30-Sept-2025

30-Sept-2024

Cash flows from operating activities

Profit before tax

4,029,339

1,924,019

Adjustments for:

Depreciation of property and equipment

21

396,795

328,843

Amortization of intangible assets

22

392

3,568

Net impairment loss on loans and advances to customers

12

-

-

Net impairment loss on cash and cash equivalents

12

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

(12,556,434)

(8,094,777)

Payment of interest on lease liability

25(d)(i)

(9,142)

(9,142)

Interest expense

9

1,742,611

817,348

Profit on sale of property and equipment

11

(2,238)

(8,843)

Loss on disposal of treasury bills

11

-

-

Gain on derecognition of lease liability

11

-

-

Changes in:

(6,398,677)

(5,038,984)

- pledged assets

34(b)

773,636

(906,322)

- loans and advances to customers

34(c)

(13,798,299)

(850,651)

- other assets

34(d)

(1,447,015)

(462,947)

- deposits from customers

34(e)

(5,373,991)

1,434,908

- other liabilities

34(f)

(8,774,889)

2,491,595

(35,019,235)

(3,332,401)

Interest received

34(h)

13,666,566

12,280,862

Interest paid*

34(i)

(2,013,382)

(1,813,369)

Tax paid

15(b)

(858,342)

-

VAT paid

25

(20,526)

(4,549,235)

Net cash generated/ (used in) from operating activities

(24,244,919)

2,585,857

Cash flows from investing activities

Acquisition of property and equipment

34(a)(ii)

(108,961)

(530,921)

Acquisition of intangible assets

22

-

-

Payment for new leased properties*

34(j)

(1,523)

(2,242)

Proceeds from disposal of property and equipment

34(a)(i)

2,238

17,520

Dividends received

11

491

-

Net cash flows used in investing activities

(107,755)

(515,643)

Cash flows from financing activities

Repayment of principal on borrowings

24(b)

(579,500)

(1,222,553)

Repayment of interest on borrowings

24(b)

(34,864)

-

Payment of principal on lease liability

25(d)(i)

(66,370)

(66,370)

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

(1,579,677)

(1,288,923)

Net increase in cash and cash equivalents

(25,932,351)

781,291

Cash and cash equivalents as at 1 January

33,786,623

17,551,263

Cash and cash equivalents as at 30 September

16

7,854,271

18,332,554

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

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 SEPTEMBER 2025

8 Interest income

Budgeted

Audited

In thousands of naira

30-Sept-2025

30-Sept-2024

'30-Sept-2025

31-Dec-2024

Loans and advances

10,382,736

7,174,180

10,358,133

10,007,858

Government Securities

18,986

39,422

81,555

78,797

Treasury bills

460,757

155,856

275,418

266,156

Call accounts

1,612,197

725,319

1,220,944

1,042,145

Pledged assets

51,069

-

-

-

Money market placement

30,689

-

-

79,115.00

Total interest income calculated using the effective interest method

12,556,434

8,094,777

11,936,050

11,474,071

9 Interest expense

In thousands of naira

30-Sept-2025

30-Sept-2024

Budgeted '30-Sept-2025

Audited 31-Dec-2024

Term deposits

1,587,569

726,083

743,719

740,417

Current deposits

64,517

39,470

185,534

52,554

Savings deposits

30,340

39,838

51,210

54,574

Borrowings (see note 24(b))

41,881

0

359,375

232,972

Lease liabilities (see note 25(c))

18,304

11,957

16,712

20,144

Total interest expense

1,742,611

817,348

1,356,551

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-Sept-2025

30-Sept-2024

'30-Sept-2025

31-Dec-2024

Credit-related fees and commission

1,029,981

546,351

886,605

843,383

Deposit-related fees and commission

743,272

431,176

660,865

621,530

1,773,253

977,527

1,547,470

1,464,913

  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

    Audited

    In thousands of naira

    30-Sept-2025

    30-Sept-2024

    '30-Sept-2025

    31-Dec-2024

    Loan management fee

    302,244

    169,902

    264,422

    251,157

    Loan commitment fee

    279,235

    238,889

    389,069

    370,687

    Insurance fee

    404,711

    119,723

    202,134

    192,031

    Credit search fee

    43,791

    17,837

    30,980

    29,508

    1,029,981

    546,351

    886,605

    843,383

    Admin and management fee

    296,917

    254,685

    274,168

    261,248

    Account maintenance fee

    117,467

    112,702

    179,622

    171,072

    Service fees and charges (see (iii) below)***

    328,888

    63,789

    207,076

    189,210

    743,272

    431,176

    660,865

    621,530

    1,773,253

    977,527

    1,547,470

    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 SEPTEMBER 2025

  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

    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.

  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.

11 Other income

Budgeted

Audited

In thousands of naira

30-Sept-2025

30-Sept-2024

'30-Sept-2025

31-Dec-2024

Profit on disposal of property and equipment

2,238

8,843

8,109

9,010

Dividend income

491

-

245.00

2,729

8,843

8,109

9,255

12 Impairment loss/(write-back) on financial instruments

In thousands of naira

30-Sept-2025

30-Sept-2024

Budgeted '30-Sept-2025

Audited 31-Dec-2024

Impairment loss on loans and advances to customers (see note 18(c))

-

-

75,000.00

(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

-

-

75,000

63,298

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 SEPTEMBER 2025

13 Personnel expenses

Budgeted

Audited

In thousands of naira

30-Sept-2025

30-Sept-2024

'30-Sept-2025

31-Dec-2024

Wages and salaries

3,528,699

2,457,242

3,684,226

4,421,225

Post-employment benefits:

Defined contribution plan - pension cost

142,454

100,940

151,344

145,357

NSITF

20,948

-

21,813

-

Gratuity

172,724

-

-

-

3,864,826

2,558,182

3,857,382

4,566,582

(b) Director's emolument

The remuneration paid to the executive and non-executive Directors of the Bank (excluding pension and certain allowances) was:

Audited

In thousands of naira

30-Sept-2025

30-Sept-2024

31-Dec-2024

Directors' fees

37,500

37,500

50,000

Sitting allowances

70,150

77,050

99,300

Other Directors' expenses

512,773

449,255

415,285

Total non-executive Directors' remuneration (see note 14(a))

620,423

563,805

564,585

Executive compensation (see note 28(b)(i))

9,631

86,682

58,534

630,054

650,487

623,119

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 SEPTEMBER 2025

14 Other operating expenses

In thousands of naira

30-Sept-2025

30-Sept-2024

Budgeted '30-Sept-2025

Audited 31-Dec-2024

Repairs and maintenance cost

653,193

398,201

460,902

534,415

Vehicle and generator running cost

270,749

281,216

347,828

379,277

Office expenses

226,768

213,005

283,362

297,146

Computer expenses

998,911

728,416

1,005,682

884,637

Travel expenses

89,760

139,412

169,159

190,394

AGM expenses

25,365

17,584

64,848

50,977

Year-end expenses

382,779

257,234

322,257

353,468

Directors' remuneration

620,423

568,738

551,846

564,585

Bank charges

31,357

20,665

28,928

32,086

Marketing/publicity expenses

384,885

265369

341,249

374,772

Professional fees

144,350

128255

138,100

68,879

Subscription fees

8,641

9,935

12,042

13,270

Charges and levies

106,752

90,922

110,815

136,885

Insurance cost

83,784

62,238

83,726

83,177

NDIC premium

105,364

72,637

65,538

72,637

Electricity expenses

70,279

44,713

80,874

62,084

Recruitment expenses

3,119

58,507

45,595

58,507

Legal expenses

9,033

3,762

30,074

20,699

SMS alerts

36,388

40,434

53,964

60,859

Rent and rates

2,009.00

-

-

(1.00)

Audit fees (see note (i) below)

29,903

33,743

41,118

48,375

Corporate social responsibility

450

-

9,291

1,000.00

Donations

6,845

4,995

8,309

8,615

Loan recovery expenses

3,488

4

3,907

24

Fines/penalty

0

3,515

-

8,893

Stamp duties

60

106

115

126

Bad debts written off

-

-

-

983

Share listing expenses

1,028

5,561

33,419

5,561

Fraud, forgery and theft

470

20

145

160

Tax Expense

2,300.00

-

-

-

4,298,453

3,449,187

4,293,091

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.

  1. Income taxes

    In thousands of naira 30-Sept-2025 30-Sept-2024

    1. Amounts recognized in profit or loss

      Audited 31-Dec-2024

      Current tax expense

      Company income tax

      1,090,980

      481,005

      727,456

      Education tax

      115,842

      -

      91,040

      National Information Technology Development Agency (NITDA) levy

      40,293

      -

      24,375

      Nigeria Police Trust Fund (NPTF) levy

      201

      -

      122

      National Agency for Science and Engineering Infrastructure (NASENI) levy

      10,074

      -

      6,094

      1,257,390

      481,005

      849,087

      Deferred tax expense

      Origination and reversal of temporary differences (see note (c))

      -

      14,175

      Tax expense

      1,257,390

      481,005

      863,262

      Movement in current tax liabilities

      Balance at 1 January

      858,343

      676,470

      676,470

      Income tax expense (see note (a) above)

      1,257,390

      481,005

      849,087

      Tax paid

      (858,342)

      -

      (667,214)

      Balance at 30 Sept

      1,257,391

      1,157,474

      858,343

    2. NOTES TO THE FINANCIAL STATEMENTS

      FOR THE PERIOD ENDED 30 SEPTEMBER 2025

    3. Movement in deferred tax balances

      30 Sept 2025

      Balance at 1

      Recognized in

      profit or loss

      Recognized in

      Balance at 30

      In thousands of naira

      January

      (see (a))

      OCI

      August

      Property and equipment

      308,932

      -

      -

      308,932

      Impairment allowance

      (288,507)

      -

      -

      (288,507)

      Others

      46,213

      -

      -

      46,213

      Deferred tax liabilities

      66,638

      -

      -

      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-Sept-2025

      31-Dec-2024

      In thousands of naira Gross amount

      Tax effect

      Gross amount

      Tax effect

      Property and equipment

      1,358,161

      308,932

      1,606,107

      308,932

      Impairment allowance

      (223,727)

      (288,507)

      (223,727)

      (288,507)

      Others

      32,707

      46,213

      42,501

      46,213

      1,167,141

      66,638

      1,424,881

      66,638

    4. Reconciliation of effective tax rate

      30-Sept-2025

      31-Dec-2024

      %

      4,029,339

      %

      2,437,499

      31

      1,090,980

      30

      731,250

      0

      -

      0

      10,381

      0

      -

      0

      -

      3

      115,842

      4

      91,040

      1

      40,293

      1

      24,375

      0

      201

      0

      122

      0

      10,074

      0

      6,094

      35

      1,257,390

      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

  2. Cash and cash equivalents

    In thousands of naira 30-Sept-2025 30-Sept-2024

    Audited 31-Dec-2024

    Cash and cash equivalent comprise:

    Cash on hand:

    Cash on hand

    198,527

    147,156

    112,183

    Held-to-maturity Treasury Bills:

    Treasury Bills

    60,607

    26,347

    60,607

    Deposits with banks:

    259,134

    173,503

    172,790

    Current account balances with other banks

    4,213,336

    6,449,001

    19,781,210

    Money market placements

    3,381,801

    11,710,050

    13,960,742

    Cash and cash equivalents for cash flow purposes:

    7,854,271

    18,332,554

    33,914,742

    Impairment allowance (see note (b))

    (76,881) -

    63,477

    (76,881)

    Cash and cash equivalents

    7,777,390

    18,269,077

    33,837,861

    (a)

    NOTES TO THE FINANCIAL STATEMENTS

    FOR THE PERIOD ENDED 30 SEPTEMBER 2025

    (b) Movement in impairment allowance:

    Balance at 1 January

    76,881

    63,477

    63,477

    Impairment loss (see note 12)

    -

    -

    13,404

    76,881

    63,477

    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.

  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:

    Audited

    In thousands of naira

    30-Sept-2025

    30-Sept-2024

    31-Dec-2024

    Underlying transaction

    Counterparty

    Asset description

    DBN concessionary loan

    Development Bank of Niger

    Treasury Bills

    807,807

    527,492

    696,600

    NIBSS Platform

    First Bank of Nigeria Plc

    Fixed placement

    -

    1,225,203

    0

    NIBSS Platform

    Zenith Bank Plc

    Fixed placement

    1,247,235

    1,048,594

    1,124,618

    NIBSS Platform

    Zenith Bank Plc

    Fixed placement

    0

    20,000

    1,002,319

    ATM Transactions

    Sterling Bank Plc

    Call placement

    20,000

    20,000

    NIBSS Platform

    First Bank of Nigeria Plc

    Fixed placement

    -

    -

    -

    2,075,042

    2,821,289

    2,843,537

    Impairment allowance (see note (b) below)

    (108,077)

    (20,484)

    (108,077)

    1,966,965

    2,800,805

    2,735,460

    Current

    1,966,965

    2,800,805

    2,735,460

    Non-current

    -

    -

    -

    1,966,965

    2,800,805

    2,735,460

    (b) Movement in impairment allowance:

    Balance at 1 January

    108,077

    20,484

    20,484

    Impairment loss (see note 12)

    -

    -

    87,593

    108,077

    20,484

    108,077

  4. Loans and advances to customers

    In thousands of naira 30-Sept-2025 30-Sept-2024

    1. Loans and advances to customers comprise:

      Audited 31-Dec-2024

      Loan and advances to customers at amortised cost

      40,186,440

      22,858,140

      25,528,160

      40,186,440

      22,858,140

      25,528,160

      Current

      33,864,912

      19,262,440

      21,525,046

      Non-current

      6,321,528

      3,595,700

      4,003,114

      40,186,440

      22,858,140

      25,528,160

      30 September 2025

      31 December 2024

    2. Loans and advances to customers at amortised cost:

      In thousands of naira

      Amount

      Allowance

      Amount

      Amount

      ECL Allowance

      Amount

      Term loans

      36,515,810

      (1,153,303)

      35,362,507

      25,917,528

      (253,862)

      25,663,666

      Overdrafts

      4,823,479

      454

      4,823,933

      1,002,743

      (1,138,249)

      (135,506)

      41,339,289

      (1,152,849)

      40,186,440

      26,920,271

      (1,392,111)

      25,528,160

      NOTES TO THE FINANCIAL STATEMENTS

      FOR THE PERIOD ENDED 30 SEPTEMBER 2025

    3. Movement in allowances for impairment

      30 Sept 2025

      31 December 2024

      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)

      - - -

      - 162,481 (13,292) (203,278) (54,089)

      Writeback/(writeoffs) during the year

      (239,262)

      -

      -

      (239,262)

      -

      -

      - -

      Balance at the end of the year

      492,150

      4,175

      656,524

      1,152,849

      731,412

      4,175

      656,524 1,392,111

  5. Investment securities

    Investment securities comprise:

    1. Investment securities measured at FVTOCI:

      Audited

      30-Sept-2025

      30-Sept-2024

      31-Dec-2024

      Equity securities:

      Listed equities

      51,056

      1,056

      1,056

      Unlisted equities

      -

      -

      -

      51,056

      1,056

      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-Sept-2025

      30-Sept-2024

      31-Dec-2024

      Balance at beginning of the year

      Listed equities

      1,056

      1,056

      1,056

      Unlisted equities

      -

      0

      0

      1,056

      1,056

      1,056

      Balance at end of the year

      Listed equities

      51,056

      1,056

      1,056

      Unlisted equities

      -

      0

      -

      51,056

      1,056

      1,056

      Fair value gain/(loss)

      -

      -

      -

      Loss on derecognition of equity investments

      -

      -

      -

    2. Investment securities at amortised cost

Treasury bills

2,895,037

1,824,824

3,383,007

ECL impairment

(16,470)

(80)

(16,470)

2,878,567

1,824,744

3,366,537

Government Bond

535,168

500,000

517,110

Total investment securities

3,464,791

2,325,800

3,884,703

Total investment securities for cashflow purpose

2,946,093

1,825,880

3,384,063

Current

3,464,791

2,325,800

3,884,703

Non-current

-

-

-

3,464,791

2,325,800

3,884,703

(c) Movement in impairment allowance

Balance at the begining of the year

16,470

80

80

Impairment loss/(writeback) during the year (see note 12)

-

-

16,390

Balance at the end of the period

16,470

80

16,470

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 SEPTEMBER 2025

20 Other assets

Audited

In thousands of naira

30-Sept-2025

30-Sept-2024

31-Dec-2024

Other financial assets:

Other receivables (see note (c) below)

344,079

952,229

772,279

Impairment allowance (see note (d) below)

-

(92,707)

(92,707)

344,079

859,522

679,572

Non financial assets:

Prepayments (see note (a) below)

205,020

390,521

72,120

Inventories (see note (b) below)

770,291

211,088

118,867

975,312

601,609

190,987

1,319,390

1,461,131

870,559

Current

1,319,390

1,246,829

870,559

Non-current

0

214,302

0

1,319,390

1,461,131

870,559

(a) Prepayments comprise the following:

30-Sept-2025

30-Sept-2024

31-Dec-2024

Prepaid insurance

29,736

25,128

42,825

Prepaid staff benefits

-

214,302

-1

Other prepaid expense (see note (i) below)

175,285

151,091

29,295

205,020

390,521

72,120

(i) Other prepaid expense comprise:

Prepayment of computer maintenance cost

60,707

49,674

22,629

Prepayment of SMS and USSD cost

114,578

101,417

6,666

175,285

151,091

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-Sept-2025

30-Sept-2024

31-Dec-2024

Stock (see note (i) below)

141,654

134,404

129,724

Assets under construction

628,637

76,684

-10,857

Deferred share issue cost

-

-

-

770,291

211,088

118,867

(i) The amount in stock comprise:

30-Sept-2025

30-Sept-2024

31-Dec-2024

Stock of cheques

0

413

396

Stock of office stationeries

24,287

17,326

15,401

Stock of micr cheques

26,104

26,115

26,108

Stock of non-micr cheques

30,184

36,887

35,466

Stock of ATM cards

19,797

9,407

4,787

Stock of credit cards

33,771

35,676

35,081

Stock of adhesive stamps

7,510

8,580

12,485

141,654

134,404

129,724

(c) Other receivables includes staff cash advances and sundry debtors.

(d) Movement in impairment allowances:

In thousands of naira

30-Sept-2025

30-Sept-2024

31-Dec-2024

Balance at the begining of the year

92,707

92,707

92,707

Impairment loss during the year

-

-

-

Balance at the end of the year

92,707

92,707

92,707

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 SEPTEMBER 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

3,774,476

Additions during the year

4,200

-

1,523

19,457

-

35,307

48,672

110,484

Disposals

-

-

-

(52)

(32,025)

(5,297)

-

(37,374)

Write-off

-

-

-

-

-

-

-

-

Balance at 30 Sept 2025

514,975

52,118

413,459

295,898

1,071,210

914,265

584,336

3,847,586

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

7,727

-

42,644

26,616

141,212

125,398

53,115

396,795

Disposals

-

-

-

(52)

(32,025)

(5,297)

-

(37,374)

Write-off

-

-

-

-

-

-

-

-

Balance at 30 Sept 2025

100,192

-

290,820

196,345

683,991

712,903

379,695

2,364,029

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: 30 Sept 2025

414,783

52,118

122,639

99,552

387,219

201,362

204,641

1,480,800

  • 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-Sept-2025

    30-Sept-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

    392

    3,568

    1,044

    Balance at end of the year

    95,452

    97,583

    95,059

    Carrying amount at end of the year

    610

    (1,521)

    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 SEPTEMBER 2025

23 Deposits from customers

In thousands of naira

30-Sept-2025

30-Sept-2024

Audited 31-Dec-2024

Current deposits

19,213,518

14,351,766

27,119,227

Savings deposits

8,673,130

6,753,931

6,917,061

Term deposits

8,440,776

6,878,930

5,575,006

Sundry deposits

373,410

404,338

2,447,961

36,700,834

28,388,965

42,059,255

24 Borrowings

Audited

In thousands of naira

30-Sept-2025

30-Sept-2024

31-Dec-2024

(a) Borrowings comprise:

BOI concessionary loan

-

-

-

CBN concessionary

-

-

-

DBN concessionary loan (see note (i) below)

0

730,386

572,483

CBN housing microfinance loan

-

-

-

0

730,386

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- Sept-2025

31-Dec-2024

Rate (%)

Tenor

19 September 2023

1,000

0

385

18.50

2 years

1,500

0

572

The Bank has not had any defaults of principal or interest or other breaches with respect to the loan facilities as at 30 Sept 2025.

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

In thousands of naira

30-Sept-2025

30-Sept-2024

31-Dec-2024

Balance, beginning of the year

572,483

2,252,569

2,065,020

Additions during the year

-

-

-

Interest accrued during the year (see note 9)

41,881

-

259,960

Interest paid during the year

(34,864)

(300,000)

(252,496)

Principal repayment during the year

(579,500)

(1,222,183)

(1,500,000)

Balance at period end

0

730,386

572,483

Total repayment of borrowings (for cashflow

(614,364)

(1,522,183)

(1,752,496)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 SEPTEMBER 2025

25 Other liabilities

In thousands of naira

30-Sept-2025

30-Sept-2024

Audited 31-Dec-2024

Financial liabilities:

Accounts payable

8,179

6,139

5,845

Productivity bonus (see note (a))

12,081

31,873

902,116

Sundry creditors (see note (b))

209,365

263,739

241,844

Accruals

527,887

331,880

341,721

Settlement accounts (see note (c))

1,059,365

-124,900

10,980,290

Other payables

2,359,958

1,396,596

534,342

Unearned income

783.00

0

783

Deposit for shares

-

388

388

4,177,618

1,905,715

13,007,329

Lease liability (see note (d))

90,542

97,251

122,262

Non-financial liabilities:

Withholding tax payable

130,317

63,390

78,532

VAT payable

20,526

4,549,235

17,489

4,419,003

6,615,591

13,225,612

Current

4,328,461

6,518,340

13,103,350

Non-current

90,542

97,251

122,262

4,419,003

6,615,591

13,225,612

  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

    Annual Report - 30 September 2025

    NOTES TO THE FINANCIAL STATEMENTS

    FOR THE PERIOD ENDED 30 SEPTEMBER 2025

    1. Share capital

      30-Sept-2025 31-Dec-2024

      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 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

        30-Sept-2025

        31-Dec-2024

        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

        30-Sept-2025

        31-Dec-2024

        Balance, begininig of the year

        2,382,330

        1,988,772

        Transfer to statutory reserve during the year

        -

        393,558

        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

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