Chairman's Speech

TO THE SHAREHOLDERS AT THE 3RD ANNUAL GENERAL MEETING OF ACCION MICROFINANCE BANK LIMITED HOLDING ON JUNE 11, 2009.

Ladies and Gentlemen,
It is with pleasure that I welcome you to the 3rd Annual General Meeting of ACCION Microfinance Bank Limited and to present the financial performance and achievements of the bank and economic review for the year ended 31st December 2008.
The year 2008 which started with high expectations turned out to be year of significant challenge for the global economy. The Nigerian economy was not insulated from the global financial meltdown with its attendant negative impact on key economic indices.
Notwithstanding these developments, the Nigerian microfinance industry grew during 2008 in terms of the number of institutions and total portfolio of loans. Today the sector is now a distinct sub sector of the financial services industry with over 860 licensed institutions operating within the purview of the Central Bank of Nigeria. It is anticipated that these microfinance banks will provide financial services to a large number of Nigerians who hitherto had no access to financial services.

Major Achievements
At ACCION Microfinance Bank, our mission is to economically empower micro-entrepreneurs and low income earners by providing financial services in a sustainable, ethical and profitable manner. Many of our clients continue to testify of the positive changes in their lives since coming in contact with ACCION Microfinance Bank. In spite of the growth in number of licensed micro finance institutions and the challenge of competition, we remain committed to being a major player and a market leader in the sub sector. Our vision of building a world class microfinance bank and providing a brighter future for our customers continue to guide our strategy.
Since our commencement of operations in Oke arin in May 2007, we have achieved significant milestones in various areas.
In 2008, we increased our number of locations to ten consisting of seven branches and three business units in order to bring our services closer to our customers. We have disbursed approximately N2billion micro loans to over 12,000 customers and now have over 20,000 savings customers with savings deposits amounting to N143million.
We closed the year with a gross income of N409 million and N1.357 billion in total assets. This is a growth of 77% and 101% compared to the previous year’s performance of N232million and N678 million respectively. Our loan portfolio also grew from N87million to N667million. During the year, our shareholders demonstrated their continuing commitment to the bank by increasing our paid- up capital from N578 million to N908 million. Subsequent to year end, we have further increased our share capital to N1.238 billion making our bank eligible for a state license. With staff strength of over 150, a robust and scalable technology, ACCION Microfinance Bank is well positioned to play a key role in the microfinance industry in Nigeria today.

Outlook for 2009
Within the financial sector, emphasis is now placed on portfolio quality, quality of service, stability of operations and growth in a sustainable manner.
During 2009, we will continue to focus on excellent customer service, development and delivery of loans and savings products to meet our customers’ needs and bring our services closer to them through a wider network and multiple delivery channels.
We will also continue to invest in our people, processes and technology to assure efficient and effective delivery of services.
I would like to end by expressing our gratitude to our customers and regulators for their support and confidence. Last, but not the least, let me express appreciation to the board, management and staff of ACCION Microfinance Bank for their support during the year.

Together, our future is bright

Patrick Akinwuntan
Chairman