Salutation
I welcome you, shareholders and stakeholders, to the 26th Annual General Meeting (AGM) of the listening Bank, Umuchinemere Procredit Micro-Finance Bank Nigeria Limited (UPMFB). I would like to start by expressing gratitude to God that we, as a Bank, are having our 26th AGM today, which is for the year ended, 2021. It is indeed something to be thankful for, especially when one recalls the humble beginnings of this institution in 1995, when, under the able, leadership of the late Bishop Michael Eneja, the Catholic Diocese of Enugu founded the Bank with a share capital of just ₦250,000.
Like the Biblical mustard seed, the Bank has grown by leaps and bounds over the decades of its existence, and it now stands proudly in the midst of other microfinance institutions in the country as one of the best in the business, offering economic succour and development to countless individuals and organisations. This AGM has been delayed due to regulatory demands regarding the 2021 Financial Statements, which is why we are having it this late, but the important thing is that the shareholders and stakeholders are gathered once again to receive information on the state of the Bank’s health, discuss its affairs, and then chart a way forward that would lead it to greater heights.
Gratitude
Our bank is doing well. I thank the Bishop, Most Rev. Callistus Onaga, for his presence at this AGM, and for his immense support and invaluable assistance in the year 2021 and beyond. I thank the immediate past Chairman of the Bank, Very Rev. Fr. Dr Geoffrey Aguigwo, who retired as a Director in 2021, for his sterling leadership and numerous contributions to the Bank’s wellbeing. I thank the immediate past Managing Director (MD). Mrs Nnenna Ekete, for her long and fruitful years in the Bank’s service, and for the legacy that she left behind when she retired in 2021.
I thank the past and current Directors for their constant support, their admirable sacrifices, their salient contributions, and their willingness to synergise under my leadership in order to deliver concrete results for the Bank. I thank the Management and staff for their loyalty and diligence, the parishes and institutions of the Diocese for their partnership, the shareholders for keeping faith with the Board and the Bank in general, the customers for their patronage, the regulators for their oversight and solicitude, and the government for its policies and general good will. I can assure you that your confidence in the Bank is not misplaced, and UPMFB is equal to the task.
Challenges and Opportunities
There are many challenges besetting both the global and the national operating environments of the Bank at the moment. However, UPMFB is equal to the task because a perusal of its history would show that it has seen worse problems in the past and has overcome them without undue damage. That is what gives one the confidence to believe that UPMFB shall overcome its current challenges. The figures contained in the Audited Financial Statements for the Year Ended, 2021, which you have in your possession, further illustrate how resilient the Bank has been (and continues to be).
In spite of the crippling after-effects of the COVID-19 lockdown and the End SARS protest of 2020, rising energy costs, mounting insecurity, personnel challenges, infrastructural issues, etc., all of which the Bank faced in the year under review, UPIMFB was able to not only surmount those challenges but also meet its obligations and even make some profit. The secret of the Bank’s resilience is simple: UPMFB is a product of the people’s faith in God and their trust in His divine providence. Not only that, it has always tried its best to ensure that the right people are placed in the right positions, and that the right things are done at the right time and in the right manner.
It takes care to marry efficiency with expertise and technological innovations, while also investing in the training and welfare of its staff. with everything geared towards recording maximum results and achieving its strategic goals and objectives. UPMFB is not dismissive of the challenges it currently has, but it is also aware that the world is going digital by the day, more businesses are being opened, society is evolving, and there are numerous opportunities out there which it can exploit to achieve more growth and financial success.
Presentation of the Audited Financial Statements for the Year Ended, 2021
I present, for your adoption, the Audited Financial Statements for the Year Ended, 2021, along with the Directors’ Report, the Audit Committee’s Report, and the External Auditors’ Report therein. I also propose, for your approval, the payment of a dividend of five kobo (5k) per share for the year ended, 2021. Shareholders have the option, if the dividend is approved, of either collecting it at our Shares Unit or ploughing it back into the purchase of more UPMFB shares.
One of our Directors, Rev. Fr. Dr Donatus C. Onuigbo, resigned from the Board in 2022, and Rev. Fr. Stanley Ikeche was appointed by the Board as his replacement at the behest of the Diocese, I ask that you ratify the appointment of Fr. Ikeche as a Director of the Bank, and I also request that you elect Rev. Fr. Ambrose Agu and Dr Nkechi Egenti to the Audit Committee, along with the other members of the Committee (namely, Chief Sir Emeka Ibe, Chief Sir Gilbert Obu, and Rev. Fr. Wilfred Agu).
The question of mandatory recapitalisation in line with CBN stipulations, which was a thorn in the flesh of the Bank for several years, was settled a few months after I assumed office as the Chairman of the Bank, when we mobilised and forwarded a total of ₦338,705.871 in deposit for shares to the CBN for approval before the 1st April 2022 deadline. We are currently awaiting official communication from the apex body conveying its approval of the foregoing matter.
Our Next Strategic Steps to be the Leading Microfinance Bank (MFB) in Nigeria
The great British Prime Minister, Sir Winston Churchill, once said that “he who fails to plan is planning to fail.” Now that UPMFB has attained a minimum capital of ₦1bn, it is only natural that it ought to take the next step in its evolution by moving beyond the status of “State MFB” which it currently enjoys. However, such a next step requires careful planning in order to avoid catastrophic failure, and that is why the Bank, under my Chairmanship, has devised a well-drafted and thoroughly-examined Five-Year Strategic Plan that would cover the next five years. In line with the provisions of the Plan, we have embarked upon the following activities:
1. Setting up of more Branches and CMPs, especially in the areas hitherto without UPMFB presence (e.g. Akpugo, Owo, etc.).
2. Migration to a new, globally-recognised software system that would facilitate e-banking activities and promote transparency.
3. Corporate image building and rebranding.
4. Institution of new products, especially in the area of e-banking.
5. Aggressive marketing of all of the Bank’s products.
6. Policy revisions to bring them more in line with best practices in the banking industry.
7. Provision and distribution of POS terminals to individuals, businesses, and parishes who desire those terminals.
8. Adequate fund utilisation to bring in maximum returns on investment.
9. Renovation of the Bank’s Branches and expansion of the Head Office building.
10. Continuous staff training to update their knowledge of financial services.
11. Mutually beneficial business associations and partnerships within the regulatory framework circumscribed by the CBN.
Conclusion
I thank you for your presence and patience. May The Lord bless you and return you safely to your various destinations.
SIGNED
VERY REV. MSGR. PROF. OBIORA IKE
CHAIRMAN