2019 Annual General Meeting

CHAIRMAN'S STATEMENT

1. Why We Are Here

My fellow Shareholders, Distinguished Guests, Ladies and Gentlemen. I am very much pleased to welcome you to the 12th Annual General Meeting of our Bank. I am very happy for many of you that have always supported us and ensured that we keep to the regulatory mandate of holding this Annual General Meeting; where the Board of Directors and the Management are expected to give a comprehensive account of their stewardship to the shareholders. 

2. Appreciation

God Almighty deserves all praises and adorations for making us to be alive today in sound mind and in good health. A lot had happened since the last time we gathered to discuss the future of our Bank. The whole world was rampaged by the deadly disease called Corona virus (COVID 19), coupled with severe economic downturn; yet we are alive today. Some amongst us had passed to the great beyond. May the souls of all the departed, rest in perfect peace.

I must recognize and appreciate everyone here and in mentioning names; I must of course begin with:

Our Royal Father, Kabiyesi the Akire of Ikire Kingdom, HRM Oba Olatunde Falabi Lambeloye III; The Akire in Coucil, The Honourable Chairmen of our two Local Governments and their Council Members and staff. Our Religious and Community leaders are also highly welcomed. Your immeasurable efforts towards the peace of this great kingdom are highly appreciated. I must acknowledge the support of our Regulators, the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC). They have been outstanding in their duties, highly detailed and supportive over the years. Their guidance and friendly policies have enabled our Bank to operate strictly in accordance with the terms and conditions stipulated in our license.

I must not fail to appreciate our regular partners who have been there with us over the years and are still with us. The Company Secretary, the External Auditors, the Legal Adviser, and the Security Personnel all of you have been wonderful and important to the story of Ikire Microfinance Bank. 

3. Performance and Challenges

I am aware that the Managing Director has a detailed analysis of the Bank's performance in his report. It is expedient for me to inform you, that your Bank was stronger and better positioned at the end of the year 2019 when compared with the previous years. The Total Asset, Total Deposit, Shareholders' fund and Capital Reserve all increased by 8%, 3%, 38% and 21% respectively over the figures achieved in 2018. The management had proposed a dividend of 7kobo per share, which you will today, be required to ratify at this AGM.

I want to use this opportunity to appeal to our Bad Debtors, to change from their negative habits and repay the Bank's loan trapped in their hands. While we acknowledge the challenges being faced by some of them who found themselves in an unavoidable business downturn, many of them are deliberately defaulting and will require a concerted effort for credits willingly and cheerfully obtained by them to be recovered.

I must appreciate the Board of Directors for the duty of Care and Loyalty to the Bank. You have contributed immensely to the Capital of the Bank since our agreement to raise the Capital of the Bank to Two Hundred and Fifty Million (250,000,000.00). You are equally instrumental to the current peaceful and stress free transition taking place at the Bank.

I must therefore encourage all and that the Bank's shares are still on sale. It is my hope that each of us will join our fellow shareholders who have increased their investment in the Bank. You will recall that our annual appeal to you, the existing Shareholders had been the need for you to increase your shareholdings to enable the Bank achieves its authorized share capital of #250million. It might also interest you to note that many of us are still having shares less than the required minimum of 10,000units of the Bank's shares.

4. Change of baton

The Bank was in receipt of the resignation letter from our Emeritus Chairman, Prof T. Ademola Oyejide and five other Directors early in the year. They had thus ceased to be the Directors of our Bank: though they remained our major stakeholders and will still be attending shareholders' meetings like the one of today.

They will therefore today, be appreciated for their meritorious services to the bank since its conversion to Microfinance Bank.

Moreover, before bowing out and to make our work of today easier, they had met and resolved on the next set of shareholders who will take over the mantle of leadership from where they were dropping the baton. The new Directors and Audit Committee members were being nominated based on their respective shareholdings at the Bank, both directly and indirectly.

The shareholders will therefore be required to ratify their nominations for the nominees to function in their respective offices with effect from this AGM.

5. Conclusion

I want to express my deep gratitude for the dedication of the Management and Staff of our Bank under the leadership of the new Managing Director, Mr Wasiu Olatunde Mustapha. You have lived up to our expectation. However, I must encourage you all to be prepared for the challenges ahead with the arrival of a new dawn. Total digitalization is the way forward as we take the Bank to an enviable height amongst the Microfinance Banks in Nigeria.

Thank You and God bless you all.

Folashade Ade-Ogunlola (FCIB),
Chairperson, Board of Directors.

MANAGING DIRECTO'S STATEMENT

Kabiesi, Akire of Ikire, Oba Olatunde Falabi, Lanbeloye III, The noble Chiefs of Ikire Kingdom, Distinguished Shareholders, Other invited dignitaries, Ladies and Gentlemen . I am delighted to welcome you to the 2019 Annual General Meeting of Ikire Microfinance Bank limited and present the Bank's scorecard for the 2019 financial year. During the year under review, our strategic focus on growing our customer base exponentially through the use of appropriate channels in the most efficient manner in line with our mission and vision was successful. 

There is no gainsaying that the 2019 financial year was a challenging year for the country. Although there were a lot of issues during the period, it is pertinent to note that Ikire Microfinance successfully weathered the storm and recorded growth across key financial indices and reaffirmed our position as a leading and well managed Microfinance Bank in Osun State and indeed Nigeria as a whole. We sustained and made a remarkable progress in our customers’ services strategy, thereby accelerating our service turnaround time to our customers and enabling us to deliver products and services to our customers in an efficient manner towards achieving a brighter future. This also enabled us impact positively towards the realization of the Central Bank of Nigeria policy on financial inclusion drive in Nigeria. 

Delivering on your Growth Mandate

It is interesting to note that despite the observed challenges as it affects the macro and micro economy; we made a significant progress in 2019 when compared with 2018. I am glad to inform you that the approval from the Central Bank of Nigeria to inject the additional shares of N28.1m paid for in year 2018 has officially increased our paid up capital to N93.8m as at the close of financial year, 31st December, 2019. Meanwhile, there was an additional share of N23.1m which was also paid for during the year 2019 but the injection of which has not been approved by the CBN as at the end of year 2019. 

In 2019, we recorded 8% increase on the total loan disbursed as the bank’s outstanding total loan moved from N57.9m in year 2018 to N62.3m at the end of the year 2019. We were also able to record a profit before tax (PBT) of N14.3million which shows an increase of 5.6% from N13.5million in 2018 financial year. The 2019 operations gave us; gross earnings of N93.7 million which was a 7.3% increase over N86.9 million recorded in 2018. The bank’s deposit liabilities grew by 3% from N305million in 2018 to N314million in 2019. Distinguished shareholders, your bank is very liquid as evidenced by the investment of N293 million in money market instruments.

We have upgraded our core banking application to serve our customers better while also deploying Customer-Centric ICT initiatives. Some of these include the USSD Code that allows our customers to transfer money, pay bills and buy recharge cards at the comfort of their home irrespective of the type of their phones with or without internet. They only need to dial *347*38# on their registered phone number with the bank. Another one is Ikire Mfb mobile app that can be downloaded at Google Play Store for customers with the android phone.

Building the Bank of the Future

In line with the saying that the customer remains the King; we have invested heavily on ICT to meet the needs of our Kings and Queens. We are committed to our digital strategy implementation in line with the changing business environment. Our aim is to delight our customers and make financial services affordable, simple and readily available to everyone via our channels. The bank had concluded all the arrangements for the deployment of your long awaited Ikire Microfinance Bank Automated Teller Machine (ATM). Ikire Microfinance Bank Website is live and available on www.ikiremfb.com.

The work on the bank’s inbound transfer that will provide opportunity for our customers to transfer money to their account in Ikire Microfinance Bank from any Deposit Money Bank is almost completed. Furthermore, the work is at the top gear to deploy direct sales agents and agency banking strategy of the Bank to make loan collection, savings and delivering of other banking services convenient for our clients. It is important to mention, that your bank has modified some of its products and created other new products that will meet our numerous customers’ tastes and preferences. Few among them are: Ebi Ikire Microfinance Bank (Group Lending Scheme), Ikire Mfb Housing Loan and Building Improvement Loan. ETC.

The maxim that says if you don’t train them don’t blame them was put into consideration by sending some members of staff to external trainings, while inhouse training was on daily basis. The training programme of the bank was designed in order to fill some identified skills gap and to deepen the personal development of our employees. The result of all these ideas was the manifestation of how our employees carried out their duties with high level of professionalism. 

I therefore use this opportunity to appreciate and dedicate the achievements during the period under review to our clients who are the reason for our existence. I also want to appreciate the members of staff who have continued to live up to the clear vision and mission of the Bank, through their commitments and hard work, our achievement every year has been amazing. This is why I am so proud of our people and always being motivated to reciprocate all the time. 

Permit me also to use this medium to recognize and appreciate the support of our Board of Directors for their continuous guidance and direction during the year. My hopes are high that with the continued support of both our Customers, Staff and Board of Directors, the achievement of our 2020 goals will be seamless and better.

Thank you for your continued trust.

Mustapha Wasiu O. (MCIB)
MD/CEO

DIRECTORS REPORT

1. The Directors submit their report together with the Accounts for the period ended 31st December, 2019

2. ACTIVITIES
The Company is engaged in the provision of Microfinance Banking services subject to the existing enabling statute.

3. STATEMENT OF AFFAIRS
In the opinion of the Directors the state of the Company’s affairs is satisfactory and there has been no material change since the date of the balance sheet.

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1. Adequate internal control procedures are instituted to safeguard the bank’s asset as well as prevent and protect fraud including other irregularities.
2. Proper accounting records are maintained.
3. Applicable accounting standards are maintained.
4. Suitable accounting policies are used and consistently applied.
5. The financial statements are prepared on a going concern basis unless it is inappropriate to presume that the bank will continue in business.

It is our responsibility to form our independent opinion, based on our audit, on the financial statement prepared by the Directors and to report our opinion to you.