KMFB holds Annual General Meeting: ready to open 4 new branches

KMFB holds Annual General Meeting: ready to open 4 new branches

By Alphonsus N. Ogili

Kenechukwu Microfinance Bank (Nig.) Ltd. (KMFB) has, on Friday October 28th, 2016, held its 6th Annual General Meetings (AGM) and declared a 25 kobo dividend per share for every N1.00 for its shareholders. The bank has equally unveiled plans to open up 4 new branches to better serve its customers well. 

The meeting held at the Princess Alexandra Auditorium, University of Nigeria, Nsukka, and attended by many including its numerous shareholders; saw the management and staff of the bank portray the financial institution as the vanguard of grassroots banking in Nsukka metropolis for the year ended 31st December, 2015.

Presenting a critical analysis of the period under review, the Chairman, Board of Directors, KMFB, Dr. Steve A. Okolo noted that the period 2015 was, without doubt, a trying year.

He said that, in spite of the alarming level of the present economic hardship rocking the country and the challenges posed to financial institutions in Nigeria, KMFB, Nsukka has remained financially robust within the last few years of its operation.

“Many macro and micro trends first seen in 2014 intensified in 2015, to the detriment of the global and Nigerian banking industry. Overall, 2015 was a trying year,”he said.

The Chairman who commended the management of the bank for their foresight and proactive planning which ensured that the bank did not fare worse however said that “Careful spending reviews and cost cutting initiatives ensured that our bank operated efficiently, with significant annual increase in profits.”

To the excitement of the shareholders, Dr. Steve announced that the Central Bank of Nigeria, (CBN) has given the bank its nod to open 4 new branches in Enugu-Ezike in Igbo-Eze North; Ibagwa-Aka in Igbo-Eze South; Adani in Uzo-Uwani and Ogbede in Igbo-Etiti Local Government Areas in addition to the 2 already existing branches at Orba and Obollo-Afor both in Udenu Local Government Area.

Commenting on the strategic nature of the proposed areas for the new branches, Dr. Okolo said, “We have carried out feasibility studies in these 4 locations and the reports of the studies affirm that these 4 locations are viable, though not without risks for our bank to do microfinance business there.”

To the esteemed shareholders, the Chairman equally announced the resolve of the bank to pay the sum of 25 kobo per share of N1.00 owing to the approval of the shareholders, adding that it will represent an increase of 20 percent on the previous year's dividend.

In his review, the Managing Director/CEO, KMFB, Mr. Christopher O. Ezema extolled the management of the bank, saying the financial institution has maintained steady growth in microfinance industry in the country and has generated satisfactory results in the year under review.

“In 2015, Enugu State government selected 7 microfinance banks out of 22 microfinance banks in the state including our bank to disburse the CBN Micro, Small and Medium Entrepreneur (MSME) loans to beneficiaries in the state,”he said.

“In the first batch of the exercise, we received N29, 020,000.00 of the fund and disbursed the entire amount to the beneficiaries. The loans we disbursed in this first batch had 12 months tenure and we have recovered N28, 253,000.00 from the borrowers and have returned same to the CBN,” continued Ezema.

He added that in the second batch of the activity, the bank received and disbursed the sum of N56, 000,000.00 to various beneficiaries. According to him, the loans in this batch have 3 years tenure and as a result are still running.

The Catholic Bishop of Nsukka and Chief Promoter of the bank, Most Rev. Godfrey I. Onah, in his address, enjoined the management and shareholders of the company to be sincere with one another in their daily transactions.

“Our mission is to show the rest of Igbo people that it is possible to be honest and still rich and great; this microfinance bank is an example,”the cleric said.

Bishop Onah further commended the bank's management team, remarking that KMFB has been able to make steady progress despite the fact that microfinance banking is a very difficult area of investment. He noted that this is why the Central Bank is so strict in its rules in microfinance banking in the country.

According to the Chief Shepherd, the outstanding performances of KMFB over the years was the motivating factor behind the approval by the CBN for the company to open 4 more branches at a time when the same CBN is closing down some microfinance banks in the country.

Highlights of the meeting included question and answer session, refreshment and staff decoration.