NPF MICROFINANCE BANK PLC NPF MICROFINANCE BANK PLC
2022
SUSTAINABILITY
REPORT
Building Beyond Sustainable Growth and Future
20222
Table of Contents
About this Report | 3 | |
A Few Words About Us | 4 | |
Corporate Information | 5 | |
Chairman's Statement | 6-7 | |
Managing Director's Statement | 8-10 | |
Board of Directors | 11 | |
Management Team | 12-13 | |
Our Sustainability Strategy | 14 | |
Materiality Matrix | 15-16 | |
Stakeholder Engagement | 17-18 | |
Our Environmental Footprint | 19-20 | |
Our Social Footprint | 21-26 | |
Economic | 27-31 | |
Corporate Governance | 32-35 | |
Our commitment & progress report on (NSBP) | 35-37 |
Our commitment &progress report on (NSE-GRI)38-39
Our commitment & progress report on SDGs | 40-41 | ||
Supplementary Information | 42-43 | ||
Other Information | 44 | ||
About this Report
- Year In Review
In this NPF Microfinance Bank Plc Sustainability Report 2022 (Building Beyond Sustainable Growth and Future), we disclose the economic, environmental, and social impact and performance of our business activities in the 2022 financial year and present our current activities in the area of sustainability.
The aim of the Report is to give a comprehensive account of how NPF Microfinance Bank Plc (NPFMFB) has fulfilled its sustainability mission during the reporting period and how it plans to implement and improve its sustainability performance in the future.
This report is prepared in accordance with the new GRI Standards using the Core option (GRI 102-54); and the GRI content index and Core option. The GRI standards are internationally recognized standards for sustainability reporting promulgated by the Global Reporting Initiative. In addition, selected indicators with respect to information related to the financial services sector are included.
The General Disclosure and Management Approach guidelines for the different indicators, as well as the Financial Services Sector specific disclosure guidelines are followed in the reporting. It includes a Sustainability Materiality Matrix covering all issues and indicators that were material to us during the review period. The boundaries for the different identified impacts are clearly indicated.
The report underscores our progress and challenges in sustainable banking during the period under review. It discloses our banking operations footprints on the economy, natural environment and the society in 2022.
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It also highlights the different stakeholders' engagement platforms that we deployed, the material issues that emerged from these engagements and how they were managed and or addressed during the year.
Coverage | ||||||
This | report | covers | the | Sustainability/ | ||
ESG | principles, initiatives | and | performance | |||
of | our | operations | across | key | markets. | |
It | contains | information for the | financial | |||
year | 1 | January to | 31 | December | 2022 | |
unless | otherwise stated. |
The report also demonstrates how we complied with integrating the Nigerian Sustainable Banking Principles, established by the Central Bank of Nigeria in 2012, and also the Sustainability Disclosure Guidelines of the Nigerian Exchange Group which was approved 9th of November 2018.
The aim is to measure our environmental and social footprints to determine the extent to which they contribute towards the attainment of the SDGs. With this initiative, our SDG footprints are now better documented, measured, monitored and reported.
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Few Words About Us
NPF Microfinance Bank Plc. (Formerly NPF Community Bank Ltd) was incorporated on 19th May, 1993 as a Limited Liability Company under the provision of the Companies and Allied Matters Act cap C20 LFN 2004.
The bank is one of the largest Microfinance Banks in Nigeria. The bank provides banking services to both serving and retired Officers and men of Nigeria Police Force, its ancillary institutions and the general banking public. We are in a strong position to help our customers meet their financial objectives by providing banking services based on our financial competencies and through our dedicated focus on developing leading and innovative solutions.
The bank commenced business on 20th August, 1993 at 1 Ikoyi Road Obalende, Lagos having obtained a provisional license to operate as a Community Bank on 12th July 1993 from Central Bank of Nigeria.
Our Vision
To be the clear leader in the provision of microfinance services. .
Our Mission
To create value and wealth for our stakeholders through the sustainable provision of microfinance products and services.
Our Values
- Professionalism
- Integrity
- Customer-focused
- Excellence
- Loyalty
Corporate Information
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6
Chairman's Statement.
Azubuko Joel Udah
Esq NPM, mni (DIG Rtd)
Chairman, Board of Directors
Distinguished Shareholders, Other Stakeholders, Members of the Board of Directors, Ladies and Gentle- men; I am pleased to present to you our bank's Sustainability Report for the year 2022.
At NPF Microfinance Bank Plc we are committed to operating our business in a sustainable manner and minimizing our impact on the environment. We believe that sustainability reporting is a key component of our efforts to be transparent and accountable to our stakeholders.
In today's rapidly changing world the importance of sustainability cannot be understated. As a responsible bank we understand the need to protect and preserve the environment while ensuring social and economic progress for all.
Sustainability reporting allows us to measure, track and communicate our progress in key areas such as carbon emissions, water usage, waste management, social and ethical practices.
By reporting on these aspects of our business we are able to identify areas for improvement and strive for greater achievement in our environmental footprint. It demonstrates our commitment to sustainability across multiple areas including environmental, stewardship, social responsibility, and ethical governance. It also highlights the steps we have taken to minimize our environmental footprint, engagement with local communities and maintain a high standard of corporate governance.
In addition to meeting regulatory requirements we understand the importance of sustainability reporting to our customers, investors and employees. Many of our stakeholders are increasingly concerned about issues such as climate change, resource scarcity and human rights and they want to know that we are taking these issues as priority and making tangible efforts in addressing them.
Chairman's Statement Cont. | 7 |
To ensure the integrity and credibility of our sustainability reporting we follow internationally recognized frameworks such as the Global Reporting Initiative (GRI). These frameworks provide guidelines for reporting on a wide range of sustainability practices and help us compare our performance with industry peers.
3. Governance and Ethics: Our corporate governance practicesincluding our policies and proceduresfor ensuring fairness, ethics and integrity in our business operations by developing an Environment and Social Governance Frame-work to guide and govern our sustainability implementa-tion. We also disclose any legal and regulatory compliance issues and any efforts to improve our governance practices. We have whistle blowing process which is a mechanism by which suspected breaches of the bank's internal policies, processes, procedure and unethical activities are reported for necessary actions In compliance with the Securities and Exchange Commission (SEC) rules of 2015, the Bank has in place a complaint management policy and channels pro-vided for customers feedback; ccare@npfmicrofinance-bankplc.ng Toll free line: 08008008008.
4. Stakeholder Engagement: Our engagement with stakeholders including employees, customers, investors and local communities. We seek their input and feedback on our sustainability practices and initiatives and we strive to incorporate their perspectives into our decision-mak-ing processes through the Investor Relations page on the bank's website (www.npfmicrofinancebankplc.ng), annual reports, customer satisfactory surveys, customers' forum. For the employees end of year Christmas party organized to allow for bonding and fun after the year's work. Train-ing, mentorship and leadership programmes are also or-ganized. We have a dedicated marketing and communi-cations team that engages the media through agencies to ensure that information disseminated to the public is done professionally and according to the bank's external com-munications policy.
By reporting on these, we aim to demonstrate our com-mitment to sustainable development and foster trust and transparency with our stakeholders. We believe that sus-tainability reporting is not only a responsibility but also an opportunity to drive positive
change and create long-term
We will continue to refine and improve our sustainability reporting practices as we strive for continuous improvement in our sustainability performance. Thank you for your continuous support and engagement on our sustainability journey.
Azubuko Joel Udah
Esq NPM, mni (DIG Rtd)
Chairman, Board of Directors
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Managing Director's Statement
Dear esteem stakeholders,
As the Managing Director of NPF Microfinance Bank
Plc, I am proud to present the 3rd Edition of our Sustainability Report. This report highlights our commitment to sustainability and our efforts to create a better future for our planet.
At NPF Microfinance Bank Plc, we are committed to
mainstreaming environmentally friendly policies into our business practices to manage the operational impact on the environment and are committed to carrying out periodic reviews of our policies and processes to identify areas of potential adverse en-
vironmental impact and mitigate them as efficiently
as possible.
Mr. Akinwunmi Lawal
(Managing Director)
Significant steps taken to improve on our environmental footprint:
- Introduction of sustainable practices in our business by reducing our energy consumption. We sensitize our staff and also put signage on the strategic part of the bank to remind staff to switch off energy sources that are not in immediate use.
- Transition to the use of more renewable and environmentally friendly sources for business operations, provision of LED energy savings bulbs and investing in renewable energy sources in our branches such as uninterrupted power supply and the use of inverter to avoid total shut down of operations when electricity is interrupted or main source of power is totally shut down.
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Managing Director's Statement Cont.
- Waste management is not left out as we recognized the importance of responsible disposal and management of waste to reduce environmental pollution and health hazard. The bank has an environmentally friendly waste manage- ment practices to reduce environmental pollution, ns we have taken steps by supplying 3 colored waste separation bins in our head office and branches towards effective waste separation process.
- Environmental beautification, we beautify the environment in our head office and branches with flowers planted in the environment.
Our commitment to sustainability extends beyond our environmental impact. We strive to create a positive social impact by providing a safe and healthy work environment for our employees who are vital to our long-term performance and business continuity. We resist all forms of discrimination on the basis of gender, colour, tribe or ethnicity, religion, marital status or physical challenges. Our Human Resource Policy clearly defines these standards and lays down strict penalties for violations. In accordance with International Labour Organisation (ILO) Forced Labour Convention (2014), NPFMFB Bank does not condone the use of forced or compulsory labour in its operations or in its dealing with third parties.
Our presence in the communities where we operate is not only for business, but also to support the growth and resilience of the people and businesses in the local communities. Our customers are not left out as we ensure they are always treated fairly and satisfactorily. We offer a range of solutions to our customers, from the most basic to the most sophisticated of financial services.
Our Share value (Stakeholder Engagement)
We believe that the long-term profitability of our business and corporate existence are independent on the shared value, we continue to create, not only for our shareholders but also for our customers, employees, the local communities where we operate and other stakeholders.
We periodically and continuously engage our various stakeholders to gain insights on matters that are important to them through our Annual and Quarterly reports, Investor Relations page on the bank's website(www.npfmicrofinancebankplc.ng), Annual general meeting (AGM), direct engagement through various channels such as branches and contact cen- tres, customer satisfaction surveys, customers' fo- rum, periodic communications to clients via emails, social media platforms, SMS, we have a dedicated marketing and communication team that engages the media through agencies to ensure that information disseminated to the public is done professionally and according to the bank's external communications policy.
The bank successfully waded through the tides and was able to achieve an impressive operating result at the close of the books for the year 2022.
Gross Earnings improved by 23.97% with the N7.15Billion recorded in the year as compared with the N5.77Billion earned in 2021. Net operating income improved by 24.85% from N5.114Billion to N6.385Billion in 2022.
Total Operating Expenses increased by 23.94% from N4.084Billion to N5.061Billion the increase was as a result of increased staff cost and other operating cost due to rising inflation in the economy.
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Managing Director's Statement Cont.
Loans and Advances to customers grew from N17.448Billion recorded as at December 2021 to N23.498Billion in De- cember 2022 representing a Year-on-Year growth of 34.67%. This gives credence to our continuous support to the business of our customers.
The bank recorded an impressive Portfolio at Risk (PAR) of 3.58% in the same period. Deposit Liabilities improved by 15.27% from N16.279Billion to N18.765Billion attesting to Management dogged marketing effort.
Total Assets grew to N34.496Billion in year 2022 from N31.967Billion recorded in year 2021 representing a growth rate of 7.91%
Equity of the bank stood at N10.578Billion at the year end. The bank had been able to grow the Equity at 84.57% above the closing figure of N5.731Billion as at December 2021. The growth was impacted by the cashflow from the hybrid offer of 2021. Basic earnings of 15k for our 50k ordinary share representing a downward slide of 51.61% from 31k in 2021. A dividend of 1ok is proposed for year 2022 due to a widened shareholder base from 2.28Billion in year 2021 t0 5.99Billion in year 2022.
We are proud of the progress we have made but we recognize there is still much work to be done. We remain committed to continuous improvement and will continue to prioritize sustainability in everything we do. I am glad to say that NPFMFB is well-positioned for the future. Our commitments to the United Nations Sustainable Development Goals, (SDGs), the Sustainability disclosure guideline of the NGX, Nigeria Sustainable Banking Principles of CBN 2012, and the GRI Standards amongst others make us standout amongst our peers.
I would like to conclude by thanking all our Shareholders and other Stakeholders most sincerely for your patronage and interest in our sustainability. I believe in the resilience of our organisation and its ability to achieve great result and we look forward to your continued support in creating a better future for all.
Earnings for the | 84.5% | 23.9% | ||||||||||
Yours sincerely, | year grew by | |||||||||||
23.9% | Equity Growth | Total Operating Ex- | ||||||||||
by | penses increased by | |||||||||||
Mr. Akinwunmi Lawal | 34.6% | 7.9% | 15.2% | |||||||||
Loans & Advances | Growth in | Deposit Liabili- | ||||||||||
(Managing Director) | increased by | Total Assets | ties improved | |||||||||
increased by | by | |||||||||||
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NPF Micro Finance Bank plc published this content on 31 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 October 2023 15:03:09 UTC.
