NPF MICROFINANCE BANK PLC RC. 220824 FOURTH QUARTER UNAUDITED FINANCIAL STATEMENT
NPF Microfinance Bank PLC Monthly Report - 31st December 2025
STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER 2025In thousands of naira | Note | 31-Dec-2025 | 31-Dec-2024 |
ASSETS | |||
Cash and cash equivalents | 16 | 19,755,124 | 33,837,861 |
Investment securities | 19 | 3,449,505 | 3,884,703 |
Loans and advances to customers | 18 | 39,391,356 | 25,528,160 |
Pledged assets | 17 | 2,033,930 | 2,735,460 |
Other assets | 20 | 1,233,753 | 870,559 |
Property and equipment | 21 | 1,998,934 | 1,769,867 |
Intangible asset | 22 | 228,806 | 1,003 |
TOTAL ASSETS | 68,091,408 | 68,627,613 | |
LIABILITIES | |||
Deposits from customers | 23 | 42,946,488 | 42,059,255 |
Current tax liabilities | 15(b) | 1,665,169 | 858,343 |
Other liabilities | 25 | 5,322,569 | 13,225,612 |
Borrowings | 24 | 3,098,777 | 572,483 |
Deferred tax liabilities | 15(c) | 66,638 | 66,638 |
TOTAL LIABILITIES | 53,099,640 | 56,782,331 | |
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) | 5,459,321 | 2,312,835 |
Fair value reserve | 27(c) | (13,147) | (13,147) |
Statutory reserve | 27(d) | 2,382,331 | 2,382,331 |
Regulatory risk reserve | 27(e) | - | - |
TOTAL EQUITY | 14,991,768 | 11,845,282 | |
TOTAL LIABILITIES AND EQUITY | 68,091,408 | 68,627,613 | |
Mrs. Olamide M. Akin-Balogun | Mr. Habeeb A. Yusuf | ||
Chief Financial Officer | 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 31ST DECEMBER 2025
Audited | |||||
In thousands of naira | Note | Oct-Dec 2025 | 31-Dec-2025 | Oct-Dec 2024 | 31-Dec-2024 |
Gross earnings | 4,904,477 | 19,236,893 | 3,867,092 | 12,948,239 | |
Interest income calculated using the effective interest method | 8 | 4,853,639 | 17,410,073 | 3,379,294 | 11,474,071 |
Interest expense | 9 | 98,122 | (1,644,489) | (283,313) | (1,100,661) |
Net interest income | 4,951,761 | 15,765,584 | 3,095,981 | 10,373,410 | |
Fee and commission income* | 10 | 47,673 | 1,820,926 | 487,386 | 1,464,913 |
Revenue | 4,999,434 | 17,586,510 | 3,583,367 | 11,838,323 | |
Other income* | 11 | 3,165 | 5,894 | 412 | 9,255 |
Net impairment loss on financial instruments | 12 | (43,411) | (43,411) | (63,298) | (63,298) |
Personnel expenses | 13 | (1,907,037) | (5,771,863) | (2,008,400) | (4,566,582) |
Other operating expenses* | 14 | (1,145,639) | (5,444,092) | (863,303) | (4,312,490) |
Depreciation of property and equipment | 21 | (187,743) | (584,538) | (137,822) | (466,665) |
Amortisation of intangible assets | 22 | (53,348) | (53,740) | 2,524 | (1,044) |
Profit before tax | 1,665,420 | 5,694,759 | 513,479 | 2,437,499 | |
Income tax expense | 15(a) | (407,780) | (1,665,170) | (382,257) | (863,262) |
Profit for the period | 1,257,640 | 4,029,589 | 131,222 | 1,574,237 | |
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 | 4,029,589 | 1,574,237 | |||
Basic and diluted earnings per share (kobo) | 32 | 67 | 26 | ||
The accompanying notes are an integral part of these financial statements.
STATEMENT OF CHANGES IN EQUITY | |||||||
FOR THE PERIOD ENDED 31ST DECEMBER 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 | - | - | 4,029,589 | - | - | - | 4,029,589 |
Audit adjustments | 15,840 | 15,840 | |||||
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 | - | - | 4,029,589 | - | - | - | 4,029,589 |
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 December 2025 | 2,996,477 | 4,166,786 | 5,459,321 | (13,147) | 2,382,331 | - | 14,991,768 |
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 31ST DECEMBER 2025 | |||
Audited | |||
In thousands of naira | Note | 31-Dec-2025 | 31-Dec-2024 |
Cash flows from operating activities | |||
Profit before tax | 5,694,759 | 2,437,499 | |
Adjustments for: | |||
Depreciation of property and equipment | 21 | 584,538 | 466,665 |
Amortization of intangible assets | 22 | 53,740 | 1,044 |
Net impairment loss on loans and advances to customers | 12 | - | (54,089) |
Net impairment loss on cash and cash equivalents | 12 | ||
Net impairment loss on pledged assets | 12 | - | 87,593 |
Net impairment loss on other assets | 12 | - | - |
Net impairment (gain)/ loss on investment securities | 12 | - | 16,390 |
Interest income | 8 | (17,410,073) | (11,474,071) |
Payment of interest on lease liability | 25(d)(i) | (9,142) | (9,142) |
Interest expense | 9 | 1,644,489 | 1,100,661 |
Profit on sale of property and equipment | 11 | (5,228) | (9,010) |
Loss on disposal of treasury bills | 11 | - | - |
Gain on derecognition of lease liability | 11 | - | - |
Changes in: | (9,446,917) | (7,436,460) | |
- pledged assets | 34(b) | 706,671 | (928,570) |
- loans and advances to customers | 34(c) | (12,913,861) | (3,448,506) |
- other assets | 34(d) | (1,361,378) | 127,625 |
- deposits from customers | 34(e) | 871,663 | 15,105,198 |
- other liabilities | 34(f) | (8,006,144) | 9,076,605 |
(30,149,966) | 12,495,892 | ||
Interest received | 34(h) | 18,621,047 | 8,501,209 |
Interest paid* | 34(i) | (1,907,117) | (1,088,495) |
Tax paid | 15(b) | (858,344) | (667,214) |
VAT paid | 25 | (39,581) | (17,489) |
Net cash generated/ (used in) from operating activities | (14,333,961) | 19,223,903 | |
Cash flows from investing activities | |||
Acquisition of property and equipment | 34(a)(ii) | (706,736) | (668,963) |
Acquisition of intangible assets | 22 | (281,544) | - |
Payment for new leased properties* | 34(j) | (109,910) | (36,307) |
Proceeds from disposal of property and equipment | 34(a)(i) | (20,338) | 2,008 |
Dividends received | 11 | 666 | 245 |
Net cash flows used in investing activities | (1,117,861) | (703,016) | |
Cash flows from financing activities | |||
Repayment of principal on borrowings | 24(b) | (579,500) | (1,500,000) |
Repayment of interest on borrowings | 24(b) | (34,865) | |
Payment of principal on lease liability | 25(d)(i) | (66,370) | (66,370) |
Additions to borrowings | 24(b) | 3,000,000 | - |
Dividend paid | 33 | (898,943) | (719,155) |
Net cash (used in)/ generated from financing activities | 1,420,322 | (2,285,525) | |
Net increase in cash and cash equivalents | (14,031,500) | 16,235,362 | |
Cash and cash equivalents as at 1 January | 33,786,623 | 17,551,263 | |
Cash and cash equivalents as at 31 December | 16 | 19,755,123 | 33,786,623 |
The accompanying notes are an integral part of these financial statements.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31ST DECEMBER 2025
8 Interest income | Budgeted | Audited | ||
In thousands of naira | 31-Dec-2025 | '31-Dec-2025 | 31-Dec-2024 | |
Loans and advances | 14,904,649 | 13,810,844 | 10,007,858 | |
Government Securities | 83,937 | 108,740 | 78,797 | |
Treasury bills | 582,812 | 367,224 | 266,156 | |
Call accounts | 1,118,977 | 1,627,926 | 1,042,145 | |
Pledged assets | 194,915 | - | - | |
Money market placement | 524,782 | - | 79,115.00 | |
Total interest income calculated using the effective interest method | 17,410,073 | 15,914,734 | 11,474,071 | |
9 Interest expense | ||||
In thousands of naira | 31-Dec-2025 | Budgeted '31-Dec-2025 | Audited 31-Dec-2024 | |
Term deposits | 1,351,038 | 991,626 | 740,417 | |
Current deposits | 89,372 | 247,379 | 52,554 | |
Savings deposits | 30,995 | 68,281 | 54,574 | |
Borrowings (see note 24(b)) | 140,659 | 479,167 | 232,972 | |
Lease liabilities (see note 25(c)) | 32,425 | 22,282 | 20,144 | |
Total interest expense | 1,644,489 | 1,808,735 | 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* | ||||
In thousands of naira | 31-Dec-2025 | Budgeted '31-Dec-2025 | Audited 31-Dec-2024 | |
Credit-related fees and commission | 1,080,045 | 1,182,139 | 843,383 | |
Deposit-related fees and commission | 740,881 | 881,154 | 621,530 | |
1,820,926 | 2,063,293 | 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
31-Dec-2025
'31-Dec-2025
31-Dec-2024
Loan management fee
442,612
352,563
251,157
Loan commitment fee
56
518,758
370,687
Insurance fee
578,127
269,512
192,031
Credit search fee
59,250
41,306
29,508
1,080,045
1,182,139
843,383
Admin and management fee
399,421
365,557
261,248
Account maintenance fee
136,874
239,496
171,072
Service fees and charges (see (iii) below)***
204,586
276,101
189,210
740,881
881,154
621,530
1,820,926
2,063,293
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 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 DECEMBER 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 | |||
In thousands of naira | 31-Dec-2025 | Budgeted '31-Dec-2025 | Audited 31-Dec-2024 |
Profit on disposal of property and equipment | 5,228 | 10,812 | 9,010 |
Dividend income | 666 | - | 245.00 |
5,894 | 10,812 | 9,255 | |
12 Impairment loss/(write-back) on financial instruments | |||
In thousands of naira | 31-Dec-2025 | Budgeted '31-Dec-2025 | Audited 31-Dec-2024 |
Impairment loss on loans and advances to customers (see note 18(c)) | - | 100,000.00 | (54,089) |
Impairment loss/(write-back) on investment securities at amortised cost (see note 19(c)) | - | - | 16,390 |
Impairment loss on other assets (see note 20(e)) | - | - | - |
Impairment loss on cash and cash equivalent (see note 16(b)) | 43,411 | - | 13,404 |
Impairment loss on pledged assets (see note 17(b)) | - | - | 87,593 |
43,411 | 100,000 | 63,298 | |
NOTES TO THE FINANCIAL STATEMENTS | ||||
FOR THE PERIOD ENDED 31ST DECEMBER 2025 | ||||
13 Personnel expenses | Budgeted | Audited | ||
In thousands of naira | 31-Dec-2025 | '31-Dec-2025 | 31-Dec-2024 | |
Wages and salaries | 5,531,364 | 4,912,301 | 4,421,225 | |
Post-employment benefits: | ||||
Defined contribution plan - pension cost | 192,133 | 201,791 | 145,357 | |
NSITF | 20,948 | 29,084 | - | |
Gratuity | 27,418 | - | - | |
5,771,863 | 5,143,177 | 4,566,582 | ||
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31ST DECEMBER 2025
14 Other operating expenses | Budgeted | Audited | ||
In thousands of naira | 31-Dec-2025 | '31-Dec-2025 | 31-Dec-2024 | |
Repairs and maintenance cost | 907,747 | 614,537 | 534,415 | |
Vehicle and generator running cost | 362,470 | 463,770 | 379,277 | |
Office expenses | 324,212 | 377,816 | 297,146 | |
Computer expenses | 1,346,737 | 1,340,909 | 884,637 | |
Travel expenses | 141,507 | 225,545 | 190,394 | |
AGM expenses | 25,365 | 86,464 | 50,977 | |
Year-end expenses | 307,079 | 429,676 | 353,468 | |
Directors' remuneration | 548,262 | 735,794 | 564,585 | |
Bank charges | 44,620 | 38,570 | 32,086 | |
Marketing/publicity expenses | 515,297 | 454,998 | 374,772 | |
Professional fees | 133,698 | 184,133 | 68,879 | |
Subscription fees | 10,487 | 16,056 | 13,270 | |
Charges and levies | 166,078 | 147,754 | 136,885 | |
Insurance cost | 118,503 | 111,634 | 83,177 | |
NDIC premium | 210,729 | 87,384 | 72,637 | |
Electricity expenses | 91,814 | 107,832 | 62,084 | |
Recruitment expenses | 3,119 | 60,794 | 58,507 | |
Legal expenses | 35,577 | 40,098 | 20,699 | |
SMS alerts | 55,829 | 71,952 | 60,859 | |
Rent and rates | 37,622 | - | (1.00) | |
Audit fees (see note (i) below) | 40,767 | 54,824 | 48,375 | |
Corporate social responsibility | 2,580 | 12,388 | 1,000.00 | |
Donations | 4,610 | 11,079 | 8,615 | |
Loan recovery expenses | 3,703 | 5,209 | 24 | |
Fines/penalty | 0 | - | 8,893 | |
Stamp duties | 60 | 153 | 126 | |
Bad debts written off | - | - | 983 | |
Share listing expenses | 2,800 | 44,559 | 5,561 | |
Fraud, forgery and theft expenses | 520 | 194 | 160 | |
Tax Expense | 2,300.00 | - | - | |
5,444,092 | 5,724,121 | 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 31-Dec-2025
Amounts recognized in profit or loss
Audited 31-Dec-2024
Current tax expense
Company income tax
1,426,059
727,456
Education tax
167,641
91,040
National Information Technology Development Agency (NITDA) levy
56,948
24,375
Nigeria Police Trust Fund (NPTF) levy
285
122
National Agency for Science and Engineering Infrastructure (NASENI) levy 14,237 6,094
1,665,170
849,087
Deferred tax expense
Origination and reversal of temporary differences (see note (c))
- 14,175
Tax expense
1,665,170 863,262
Movement in current tax liabilities
Balance at 1 January
858,343
676,470
Income tax expense (see note (a) above)
1,665,170
849,087
Tax paid (858,344) (667,214)
Balance at 31 Dec 1,665,169 858,343
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31ST DECEMBER 2025
Movement in deferred tax balances
31 December 2025
Balance at 1
Recognized in
profit or loss
Recognized in
In thousands of naira
January
(see (a))
OCI
Balance at 30 Nov
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:
31-Dec-2025
31-Dec-2024
In thousands of naira Gross amount
Tax effect
Gross amount
Tax effect
Property and equipment
1,784,767
308,932
1,606,107
308,932
Impairment allowance
(223,727)
(288,507)
(223,727)
(288,507)
Others
217,610
46,213
42,501
46,213
1,778,650
66,638
1,424,881
66,638
Reconciliation of effective tax rate
31-Dec-2025
31-Dec-2024
%
5,694,759
%
2,437,499
29
1,426,059
30
731,250
0
-
0
10,381
0
-
0
-
3
167,641
4
91,040
1
56,948
1
24,375
0
285
0
122
0
14,237
0
6,094
33
1,665,170
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 31-Dec-2025
Cash and cash equivalent comprise:
Cash on hand:
Audited 31-Dec-2024
Cash on hand 114,873 112,183
Held-to-maturity Treasury Bills:
Treasury Bills 0 60,607
114,873 172,790
Deposits with banks:
Current account balances with other banks 19,703,675 19,781,210
Money market placements 56,868 13,960,742
Cash and cash equivalents for cash flow purposes: 19,875,416 33,914,742 Impairment allowance (see note (b)) (120,292) (76,881)
Cash and cash equivalents 19,755,124 33,837,861
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31ST DECEMBER 2025
Movement in impairment allowance:
Balance at 1 January 76,881 63,477
Impairment loss (see note 12) 43,411 13,404
120,292 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
31-Dec-2025
31-Dec-2024
Underlying transaction Counterparty Asset description
DBN concessionary loan Development Bank of Niger Treasury Bills
854,119
696,600
NIBSS Platform First Bank of Nigeria Plc Fixed placement
-
0
NIBSS Platform Zenith Bank Plc Fixed placement
1,267,888
1,124,618
NIBSS Platform Zenith Bank Plc Fixed placement
0
1,002,319
ATM Transactions Sterling Bank Plc Call placement
20,000
20,000
NIBSS Platform First Bank of Nigeria Plc Fixed placement - -
2,142,007
2,843,537
Impairment allowance (see note (b) below) (108,077) (108,077)
2,033,930 2,735,460
Current 2,033,930 2,735,460
Non-current - -
2,033,930 2,735,460
(b) Movement in impairment allowance:
Balance at 1 January 108,077 20,484
Impairment loss (see note 12) - 87,593
108,077 108,077
Loans and advances to customers
In thousands of naira 31-Dec-2025
Loans and advances to customers comprise:
Audited 31-Dec-2024
Loan and advances to customers at amortised cost 39,391,356 25,528,160
39,391,356 25,528,160
Current 33,194,899 21,525,046
Non-current 6,196,457 4,003,114
39,391,356 25,528,160
Loans and advances to customers at amortised cost:
31 December 2025
31 December 2024
In thousands of naira Amount Allowance Amount Gross Amount ECL Allowance Carrying Amount
Term loans
39,509,422
(1,167,242)
38,342,180
25,917,528
(253,862)
25,663,666
Overdrafts
1,049,176
-
1,049,176
1,002,743
(1,138,249)
(135,506)
40,558,598
(1,167,242)
39,391,356
26,920,271
(1,392,111)
25,528,160
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31ST DECEMBER 2025
Movement in allowances for impairment
31 Dec 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
(224,869)
-
-
(224,869)
-
-
- -
Balance at the end of the year
506,543
4,175
656,524
1,167,242
731,412
4,175
656,524 1,392,111
Investment securities
Investment securities comprise:
Investment securities measured at FVTOCI:
Audited
31-Dec-2025
31-Dec-2024
Equity securities:
Listed equities
50,820
1,056
Unlisted equities
-
-
50,820
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 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:
31-Dec-2025
31-Dec-2024
Balance at beginning of the year
Listed equities
1,056
1,056
Unlisted equities
-
0
1,056
1,056
Balance at end of the year
Listed equities
51,150
1,056
Fair value gain/(loss) on listed Equities
(330)
-
Unlisted equities
22,499
Fair value gain/(loss) on unlisted Equity
(22,499)
50,820
1,056
Loss on derecognition of equity investments - - -
Investment securities at amortised cost
Treasury bills | 2,892,811 | 3,383,007 | |
ECL impairment | (16,470) | (16,470) | |
2,876,341 | 3,366,537 | ||
Government Bond | 522,345 | 517,110 | |
Total investment securities | 3,449,506 | 3,884,703 | |
Total investment securities for cashflow purpose | 2,943,631 | 3,384,063 | |
Current | 3,449,506 | 3,884,703 | |
Non-current | - | - | |
3,449,506 | 3,884,703 | ||
(c) Movement in impairment allowance | |||
Balance at the begining of the year | 16,470 | 80 | |
Impairment loss/(writeback) during the year (see note 12) | - | 16,390 | |
Balance at the end of the period | 16,470 | 16,470 |
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31ST DECEMBER 2025
20 Other assets In thousands of naira | 31-Dec-2025 | Audited 31-Dec-2024 | |
Other financial assets: | |||
Other receivables (see note (c) below) | 483,211 | 772,279 | |
Impairment allowance (see note (d) below) | - | (92,707) | |
483,211 | 679,572 | ||
Non financial assets: | |||
Prepayments (see note (a) below) | 199,590 | 72,120 | |
Inventories (see note (b) below) | 550,952 | 118,867 | |
750,542 | 190,987 | ||
1,233,753 | 870,559 | ||
Current | 1,165,096 | 870,559 | |
Non-current | 68,657 | 0 | |
1,233,753 | 870,559 | ||
(a) Prepayments comprise the following: | |||
Audited | |||
31-Dec-2025 | 31-Dec-2024 | ||
Prepaid insurance | 42,963 | 42,825 | |
Prepaid staff benefits | 68,657 | -1 | |
Other prepaid expense (see note (i) below) | 87,970 | 29,295 | |
199,590 | 72,120 | ||
(i) Other prepaid expense comprise: | |||
Prepayment of computer maintenance cost | 28,434 | 22,629 | |
Prepayment of SMS and USSD cost | 59,537 | 6,666 | |
87,970 | 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 | 31-Dec-2025 | 31-Dec-2024 |
Stock (see note (i) below) | 111,103 | 129,724 |
Assets under construction | 439,849 | -10,857 |
Deferred share issue cost | - | - |
550,952 | 118,867 | |
(i) The amount in stock comprise: | 31-Dec-2025 | 31-Dec-2024 |
Stock of cheques | 0 | 396 |
Stock of office stationeries | 24,542 | 15,401 |
Stock of micr cheques | 26,104 | 26,108 |
Stock of non-micr cheques | 28,269 | 35,466 |
Stock of ATM cards | 18,599 | 4,787 |
Stock of credit cards | 3,591 | 35,081 |
Stock of adhesive stamps | 9,997 | 12,485 |
111,103 | 129,724 | |
(c) Other receivables includes staff cash advances and sundry debtors. | ||
(d) Movement in impairment allowances: | ||
In thousands of naira | 31-Dec-2025 | 31-Dec-2024 |
Balance at the begining of the year | 92,707 | 92,707 |
Impairment loss during the year | - | - |
Balance at the end of the year 92,707 92,707
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31ST DECEMBER 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 Motor Cycle
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 | 5,336 | - | 84,344 | 70,345 | 71,301 | 357,191 | 201,238 | 791,079 | 1,325 |
Disposals | - | - | (900) | (973) | (65,065) | (5,867) | - | (72,806) | - |
Write-off | - | - | - | - | - | - | - | - | |
Balance at 31 Dec 2025 | 516,111 | 52,118 | 495,380 | 345,864 | 1,109,471 | 1,235,578 | 736,902 | 4,492,749 | 1,325 |
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 | 10,307 | - | 59,502 | 37,384 | 189,617 | 211,916 | 75,646 | 584,538 | 166 |
Disposals | - | - | (26,466) | (973) | (65,065) | (5,867) | - | (98,372) | - |
Write-off | - | - | - | - | - | - | - | - | |
Balance at 31 Dec 2025 | 102,772 | - | 281,212 | 206,192 | 699,356 | 798,850 | 402,226 | 2,490,774 | 166 |
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 Dec 2025 | 413,339 | 52,118 | 214,167 | 139,672 | 410,115 | 436,728 | 334,676 | 1,998,934 | 1,159 |
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 31-Dec-2025
Computer software
Cost:
Audited 31-Dec-2024
Balance at beginning of the year 96,062 96,062
Addition during the year 281,544 -
Balance at end of the year 377,606 96,062
Accumulated Amortisation:
Balance at start of the year 95,059 94,015
Charge for the year 53,740 1,044
Balance at end of the year 148,800 95,059
Carrying amount at end of the year 228,806 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 31ST DECEMBER 2025
23 Deposits from customers
'Audited | |||
In thousands of naira | 31-Dec-2025 | 31-Dec-2024 | |
Current deposits | 24,356,639 | 27,119,227 | |
Savings deposits | 8,093,711 | 6,917,061 | |
Term deposits | 10,109,728 | 5,575,006 | |
Sundry deposits | 386,410 | 2,447,961 | |
42,946,488 | 42,059,255 | ||
24 Borrowings
In thousands of naira | 31-Dec-2025 | '' Audited 31-Dec-2024 | |
(a) Borrowings comprise: BOI concessionary loan | - | - | |
CBN concessionary | - | - | |
DBN concessionary loan (see note (i) below) | 3,098,777 | 572,483 | |
CBN housing microfinance loan | - | - | |
3,098,777 | 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 | 31-Dec-2025 | 31-Dec-2024 | Rate (%) | Tenor | |
30 October 2025 | 1,000 | 1,000 | 385 | 23.50 | 24 Months |
6 November 2025 | 1,000 | 1,000 | 0 | 23.50 | 24 Months |
25 November 2025 | 1,000 1,000 0 | 23.50 | 24 Months | ||
3,000 3,000 385 | |||||
The Bank has not had any defaults of principal or interest or other breaches with respect to the loan facilities as at 31 Dec 2025.
(b) The movement in borrowings during the YEAR was as follows:
In thousands of naira | 31-Dec-2025 | 31-Dec-2024 | |
Balance, beginning of the year | 572,483 | 2,065,020 | |
Additions during the year | 3,000,000 | - | |
Interest accrued during the year (see note 9) | 140,659 | 259,960 | |
Interest paid during the year | (34,865) | (252,496) | |
Principal repayment during the year | (579,500) | (1,500,000) | |
Balance at period end | 3,098,777 | 572,483 | |
Total repayment of borrowings (for cashflow | (614,365) | (1,752,496) |
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31ST DECEMBER 2025
25 Other liabilities | |||
In thousands of naira | 31-Dec-2025 | Audited 31-Dec-2024 | |
Financial liabilities: | |||
Accounts payable | 8,082 | 5,845 | |
Productivity bonus (see note (a)) | 12,256 | 902,116 | |
Sundry creditors (see note (b)) | 278,815 | 241,844 | |
Accruals | 298,781 | 341,721 | |
Settlement accounts (see note (c)) | 2,752,930 | 10,980,290 | |
Other payables | 1,612,343 | 534,342 | |
Unearned income | 783.00 | 783 | |
Deposit for shares | - | 388 | |
4,963,990 | 13,007,329 | ||
Lease liability (see note (d)) | 225,363 | 122,262 | |
Non-financial liabilities: | |||
Withholding tax payable | 93,635 | 78,532 | |
VAT payable | 39,581 | 17,489 | |
5,322,569 13,225,612 | |||
Current | 5,097,206 | 13,103,350 | |
Non-current | 225,363 | 122,262 | |
5,322,569 | 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.
NPF Microfinance Bank PLC
Monthly Report - 31st December 2025
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2025
Share capital
31-Dec-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
Share premium and reserves
The nature and purpose of the share premium and reserve accounts in equity are as follows:
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-Dec-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
Retained earnings
Retained earnings comprise the undistributed profits from previous years, which have not been reclassified to the other reserves noted below.
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.
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-Dec-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
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