15 Jul 2013

News: UP MFB disburses N406m in 6 months

Umuchinemere Pro-credit Micro Finance Bank (UPMFB) has disbursed a total of N405, 656,100 million micro credit funds in its half year financial result, January to June, 2013.

Meanwhile, the bank posted 205 percent growth in profit in the period under review, while about 1,961 poor persons benefited from the fund owned by the Roman Catholic diocese of Enugu State, in line with its resolve to sustain the church efforts to eradicate poverty in the society through what it call “economic evangelism.”


Statement from the bank, signed by head of Public/Media Relations, Mr. Abuchi Anueyiagu, revealed that seven, out of about 17 local government areas in the state got the fund.

Managing Director of the bank, Mrs. Nnenna Ekete, said that the profit before tax of N58.2 million or a 204.6 percent cumulative growth recorded with the period is comparatively lower than the N75 million profits the bank recorded within a similar period of 2012.

“We have not done well comparatively as we did last year in terms of profit making in similar period of measurement. Between January and June 2012, we recorded a profit of almost N75 million, but this year it is N58 million within the same period.”
She adduced the lower profitability to increase in the bank’s administrative cost and most of the other indices of measurement.

She lamented that the bank spent more of its resources on purchase of diesel to power its private electricity generating set, unlike the power supply situation of the previous year.

According to her, “the bank has been operating on the average of N32, 000 every two days on purchase of diesel. Electricity supply from the Power Holding Company of Nigeria (PHCN) has been very poor since the beginning of the year.”

She cited governments multiple taxation, as well as the UPMFB’s new investments that are yet to start yielding profits as another indices that accounted for the lower profit of the bank in the first six months of the year.

She said, “Despite these odds, the bank’s client level has been on the increase, and is projected to hit a 15 percent increase by the end of the year, as it is fast extending its operations to the rural areas to economically empower the grassroots out of poverty and meet government’s millennium development goal of poverty eradication.”

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