Olabisi Onabanjo University Microfinance Bank has posted N12.3million profit before tax for the financial year ended December 31st, 2019. Also the Bank made N68.3million as its Gross Earnings in the year under review. This information was made known to the shareholders of the Bank during its 13th Annual General Meeting (AGM) held on December 3, 2020 at the OGD Hall, Main Campus of the University.
At the AGM, new members of the Board of Directors were elected while three new representatives were also elected to the Statutory Audit Committee of the Bank. Statutorily, the Board of Directors of the Bank consists of seven members, including the Chairman, who is a Non-Executive Director, the Managing Director, and five other Non-Executive Directors.
As a result, membership of the Board now comprises Prof. Ganiyu Olatunji Olatunde, Chairman; Mr Semiu Makinde, the University Bursar; Mr M. A. B. Lawal; Mrs M.R. Taiwo, Dr. Bamidele Ilo and Dr. Adeyemi Akeem Adekunle, as well as the Managing Director, Mr Peter Ogunlolu. The trio of Mrs. M. R. Taiwo, Dr. Bamidele Ilo and Dr. Adeyemi Adekunle replaced Prof. Titi Hassan, Mr. P. O. Osineye and Mr. E. O. Adesanwo who all retired from the Board, having represented individual shareholders, Unions and Cooperative Societies respectively.
Presenting the performance of the Bank, the Chairman of the Board, who is also the Vice-Chancellor, Olabisi Onabanjo University (OOU), Ago-Iwoye, Prof. Ganiyu Olatunji Olatunde, said the year 2019 was fairly stable as the Microfinance Bank was able to sustain its profitability. According to him, the Bank’s posted profit before tax of N12.3million for 2019 financial year showed an improvement of N1.6million when compared to N10.669million recorded in 2018.
He said the Bank’s Gross Earnings grew from N62.7 million in 2018 to N68.3 million in 2019 while the total risk asset increased from N101,576 million in 2018 to N109,815 million in 2019, representing 7.5% increase. The Chairman added that shareholders fund increased to N115,702 million in 2019 from N104,560 million in 2018, representing 9.63% increase.
Prof. Olatunde, who assured that the Bank would always strive to satisfy its shareholders, stated that the Board was seeking approval for a cash dividend of 12 kobo per share and a bonus share of 6kobo per share. “This is higher than the dividend and bonus declared in 2018 financial year. We believe in God that things will continue to be better,” he added.
The Board Chairman averred that the Bank’s strong emphasis on staff welfare had continued to pay off, saying the practice provides an enabling environment that encourages good interpersonal relationships, team spirit, good initiatives, self-confidence, creativity and self-development at work. His words: “Staff development is a top priority in our Bank. Management and staff are allowed to attend seminars and courses most especially those organised by the Central Bank of Nigeria (CBN) and other training institutions to ensure innovation, efficiency and increased output. Staff members are encouraged to upgrade themselves academically in areas recognised in industry and commerce to enhance their effectiveness.”
He commended the immediate past Directors and members of the audit committee for their unflinching support and positive contributions to the development of the Bank. He also thanked customers, business partners, shareholders and regulators, among others, for their invaluable contributions to the growth of the microfinance bank.
He said, “We are optimistic that our effective business networking approach to shareholders within the community and outside it also added value to our business interest and will continue to help us in the development, penetration of new markets and the dream to make our Bank, a state Microfinance Bank. We shall continue to improve and strengthen our operations, such that the Bank remains the number one source of value to all who regularly interact with it.”
On his part, the Managing Director, Mr Peter Ogunlolu, declared that the Bank made good strides in enhancing balance sheet efficiency. Ogunlolu, while presenting the Chief Executive’s Review, noted that the microfinance sub-sector continued to make positive impact, particularly in the area of poverty alleviation through financial intermediation between the deficit and surplus units of the society.
He explained that the Bank’s operating environment in 2019 was fairly stable with little or no disruption to academic activities, leading to improvement in economic activities within and outside the University community. He further said the Bank continued to leverage on improved technological advancement to provide innovative banking services to its numerous customers.
“Our Bank has made significant progress in accomplishing its strategic objectives despite the challenging economic and regulatory landscape. We remain extremely committed to optimizing value for all our stakeholders in the years ahead,” he said. The Managing Director also expressed gratitude to the shareholders and customers for their contributions to making the Bank to remain afloat.
“I want to thank our retiring Directors for their tremendous contributions to the growth and sustainability of the Bank over the years. We are indeed privileged to have benefitted from their wealth of experience as seasoned administrators. On behalf of my colleagues, I would like to thank them for their stewardship while wishing them well in their future endeavours,” he said.
