Distinguished Shareholders, Invited Guests,
Ladies and Gentlemen:
It is my pleasure to welcome you all to the 8th combined with the 9th Annual General Meeting of DEC Microfinance Bank Limited and to lay before you the Bank’s annual accounts and financial statement for the year ended December 31st, 2007.
I note with joy that as a result our Bank’s complete conversion from Community Bank to Microfinance Bank, we now have over 75.6 million Naira in Assets as of 31st December 2007 as against 28 million Naira in December 2006.
But before unveiling our financial results may I crave your indulgence to review the economic and banking environment in which our bank operated during the just concluded financial year. This will enable us appreciate the difficulties and challenges under which we operated.
THE ECONOMY:
The political environment was relatively stable with various fall-outs of the 2007 general election being resolved in the various Tribunals set up for the purpose. The guideline policy framework for Microfinance Banks in
Nigeria remained the linch-pin of government’s economic reform polices and programme, though its implementation and results appeared inadequate, despite improved funding arising from surge in revenue. Lack of constant power (energy) from the National Grid of the Power Holdings of Nigeria remained the greatest impediment to growth . Government’s efforts to improve road network, especially in the present democratic dispensation suffered acute inertia during the period under review.
The Banking industry faced great challenges during the period as the Central Bank, in its efforts to strengthen the Banking institutions increased the minimum capital requirement of Community Banks to N20 million. The major aim of this policy is to create greater opportunity for majority of the middle and low class individuals to access available funds from microfinance banks for the improvement of their small and micro enterprises.
This address will not be complete, if I fail to dwell on our strategic direction in the recently concluded conversion of Community Banks to Microfinance Banks. Right from the start, our Bank was clearly perceived by both the regulators and the general public as one of those that will have no problem in meeting the new capital base. We have since surpassed the N20m requirement.
OPERATING RESULT
Distinguished Shareholders, ladies and gentlemen, I am glad to inform you that it is rather delightful that under such harsh operating environment, our bank has emerged even stronger, bigger and more reliable. Our operating results have shown tremendous improvements.
The Bank’s gross earnings rose to N13 million up from N4m recorded in the preceding year, while profit before tax rose to N7.5 million. The Bank’s total assets stood at N76.5 million, up from N28 million recorded in the preceding year.
The result before you has confirmed the resolve of the Board and Management of our Bank to brace all odds in achieving superior shareholder value in the Microfinance Banking industry. .The result has further improved DEC-Brand value in the industry, while underscoring the passion and dedication of the workforce as well as the loyalty of our customers.
DIVIDEND
In view of the improved performance, your Board is proposing a final dividend of N3, 000,000.00translated into 15k dividend per share for all our Shareholders.
Your Board is also recommending for your approval bonus issue of 1:10 for every shareholder and to all shareholders as of 31st December 2007.
ON SCALING UP:
The Bank in her strategic plan will employ more Credit Officers to enable her reach out to all nooks and corners of Enugu Urban, while at the same time enhance the capacity of all her staff both managers and field workers. Our plan is to give loans to not less than 10,000 clients on or before the end of 2008.
HUMAN CAPITAL
Our staff remain our greatest asset. Their commitment to duty and resilience contributed to the impressive result that you have before you today. The Board will continue to hold them in high esteem, and provide them with effective training programmes and ensure that their welfare package remains competitive.
CORPORATE SOCIAL RESPONSIBILITY:
Our Bank has been investing in the area of improving the social sector, especially in the provision of basic infrastructures being embarked upon by our women clients in their communities, like Health Centre and Maternity, Adult Literacy programmes and Campaign against HIV/AIDS scourge with DEC youth vanguards.
THE BOARD
There was no change in the Board of the Bank in the last one year.
FUTURE PROSPECTS
Distinguished Shareholders, Invited Guests, Ladies and Gentlemen:
I want to assure you all that the future of our bank has become brighter than ever in the light of the on-going transformation and consolidation of Microfinance Banks in Nigeria. The Board of our Bank is poised to make our Bank a force to reckon with in Nigeria, having started off well as among the limited number of Microfinance Banks granted Final licence to operate in Nigeria as of 28th December 2007.Finally, I wish to thank all our customers who made us what we are today due to their continued patronage, the management and staff of our Bank for their hard work and dedication to duty. The impressive result you have seen bears good testimony to the level of their commitment and dedication.
May I also on behalf of the Board thank our valued shareholders for the confidence reposed in the Board and the Bank. I want to assure you of our commitment in the quest for increased returns on your investments.I thank you all for your kind attention, and may the Almighty God continue to bless our efforts.
