Chairman’s statement

Fellow shareholders, Invited Guests, Distinguished Ladies and Gentlemen.

I am very pleased to welcome you to the 7th Annual General meeting (AGM) of your bank- DEC Enugu Microfinance Bank Limited and to present to you the Annual Report and Financial statement for the year ended 31st December 2008.

Operation Environment.
I will like to start my address with a quick review of the socio-micro economic environment of the country during 2008. The Nigerian economy which continues to struggle with a number of challenges particularly those of energy and infrastructure was able to record a modest growth during the 1st half of the year judging by trends in key Micro-economic parameters and indicators such as GDP growth, inflation rate, interest rate and exchange rate.
The economy recorded good growth with gross domestic product of N22.91 trillion showing a 24% minimal growth from the previous year. The impressive growth in the early half of 2008 was helped largely in part by strong global demand for crude oil and increased oil sector investment inflows.
The improved performance was further driven by growth in non-oil sector, particularly in telecommunication, Agriculture and solid minerals.
The economy was officially reported to have achieved single digit inflation, thanks to the ability of Central Bank of Nigeria (CBN) to maintain liquidity in the financial sector. The Monetary Policy Rate (MPR) introduced by the CBN in December 2006 proved quite effective in achieving interest rate stability during 2007 until early 2008. The growth of oil revenue during the period and increased foreign investment also made the Naira exchange rate which stood at N118 to USD1.00 as at 31st March 2008 compared to N 128 as at 31st March 2007.
In spite of the impressive performance and promising out look, the country's economy is still faced with monumental challenges. Increased tempo of the civil unrest in the Niger Delta and kidnappings in some states in the southeast is a serious issue, which must be tackled as a matter of priority for both industry and commerce to strive. We believe that Government needs to show greater commitment to address the issues of lack of improvement in public power supply, further deterioration of road infrastructures and the railways, which some improvement in some states is being experienced as of recent. Based on the financial services reform, the Nigerian Banking industry performed creditability in 2007 and part of 2008.
The licensing of more than six hundred (600) Microfinance banks by the Central Bank of Nigeria to operate all over the country; in what may yet be another phase of consolidation in the industry is meant to reach out to more than 60% of our population who lack access to Banking Services.

Results
I am pleased to report that we achieved a moderate growth in the year 2008 against the background of difficult operating environment coupled with increase in competition by the commercial banks who have aggressively invaded the Microfinance industry in their own way of achieving set targets. We ended the financial year on a happy note with our fundamentals remaining strong and the tempo of our Microfinance business moving in the right direction. Overall, it has been a remarkable year particularly for the Bank as all sectors reported improved profitability.
Turnover rose by 50.4% to a record level of N19.7million in 2008 as against N13.1 million in 2007,while the profit after tax rose from N5.01million in 2007 to N10.89 million in 2008.
The bank turnover amount to N75 million, a slight drop from N76 million of last year 2007 due to drop in customers deposits.

Dividend and Capitalization.
In view of the profit after tax for the year, the Directors are pleased to propose to shareholders at the Annual General Meeting, the payment of a record dividend of N3,641,338.95 . The amount proposed translates to a dividend of 15k per ordinary share of N1.00. The payment reflects the Board’s confidence in our business growth and giving Hope to our rural women shareholders in their investment with us. Additionally, the Board has considered it necessary to further strengthen our capital base and balance sheet by ploughing back part of the bank earnings so that our Bank is better fortified to meet future challenges. I am therefore pleased to inform you that the Directors will propose to shareholders at the Annual General Meeting that a sum of N724,407 be capitalized by transfer from General Reserve in order to complete the issuance of the 25M authorized shares.
Riding on the back of the performances of our bank since 2007, the Board has considered it necessary to increase our capital base to 50 Million Naira.
You will be called upon to increase your holding in the near future.

The Board:
There was no change with Board of the Bank in the year under review.

CONCLUSION
Let me seize this opportunity to thank members of the Board for their immense contributions, Management staff for their excellent contribution in achieving our corporate objectives in the review period, our valued customers for their unflinching loyalty and continued patronage, and our esteemed shareholders for the confidence that they have reposed on us.
I have no doubt that the enthusiasm of the Board, Management and staff and their commitment and determination, coupled with support from the regulatory authorities, will ensure that the success enjoyed in 2008 is sustained and indeed enhanced in the 2009 financial period.
Distinguished ladies and gentlemen, I thank you most sincerely for your kind attention.
God bless you.

Chief. Cecilia. U. Asogwa
Chairman,
Board Of Directors
DEC Enugu Microfinance Bank Limited.