Kayvee Microfinance Bank Limited (Kayvee MFB) saw its post-tax profit jump 556 percent in 2024 as key margins surged, underscoring the bank’s robust operational performance and strategic direction.
According to its financial results for the full year ended December 31, 2024, which were recently approved by the Central Bank of Nigeria (CBN), the Lagos-based lender posted a 501 percent increase in Profit Before Tax (PBT) to N371 million, up from N62 million in 2023.
This is as its Profit After Tax (PAT) surged by 556% to N228 million, compared to N41 million in the previous year.
The bank grew interest income by 164 percent, while net interest income increased by 240 percent to N475 million in 2024, showcasing the strength and sustainability of the bank’s core intermediation business and its expanding fee-based income streams.
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The lender also demonstrated effective operational efficiency as its cost-to-income ratio (CIR) improved to 60 percent in 2024 from 80 percent in 2023.
Cost of Risk (CoR) stood at a low of 0.3 percent, far below industry averages, due to strong risk management practices.
Also, Non-Performing Loan (NPL) ratio improved to 4 percent up from 7 percent in the previous year, while NPL coverage ratio increased to 82 percent compared to 52 percent in 2023, demonstrating high loan asset quality and prudent provisioning for potential credit losses, respectively.
These outcomes translated into strong profitability ratios, with a net margin of 16 percent and a remarkable Return on Equity (ROE) of 88 percent. Basic EPS computed at 1.90k per 1.00 share.
Ade-Ibileke Adebayo, chairman of Kayvee MFB, attributed the impressive financial performance to the bank’s continued investment in talent acquisition, human capital development, product innovation, and excellence in customer service.
Adebayo noted that the results also serve as a testament to the strong governance and strategic oversight provided by the Board, alongside the diligent execution by management.
Olatoun Ogunnaike, managing director of Kayvee MFB, emphasised that the 2024 results serve as a milestone in the bank’s transformation journey, stating that “this is only the beginning.”
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“Our strategy remains focused on leveraging technology to enhance customer experience and operational efficiency. Initiatives such as the Kayvee MFB mobile app, Kayvee-branded debit cards, and expanded POS deployment are just a few of the ways we are deepening our market presence,” Ogunanaike said.
“We now aim to upgrade the bank in no time, even as we remain committed to training and retraining our workforce to maintain the service excellence that our customers have come to expect.”
Commenting on the results, Ayoku Liadi, group managing director of Bay Holdings and non-executive director of Kayvee MFB, attributed the bank’s exceptional financial performance to the transformative leadership and strategic repositioning that began following the change in ownership in April 2022.
“At the time of acquisition, Kayvee was a modest institution with total assets of about N100 million and less than N35 million in customers’ deposits. In just under three years, through strategic investments in people, systems, and governance, we have witnessed over a 100- fold increase in deposits and substantial growth across other key financial parameters,” Liadi, a former deputy managing director of UBA, and Kayvee MFB’s promoter and lead investor since its acquisition, said.
“The journey has not been without challenges, but we have remained committed to a culture of excellence and relentless execution. This is just the beginning,” he added.
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