Omiye Microfinance Bank Limited is making efforts to raise its share capital to N1bn from N500m, targeting an upgrade in its operational license to tier-1 MFB.
This was disclosed by the Chairman of the Board of Directors of the bank, Esan Ogunleye, during the its Annual General Meeting on Saturday.
The company was incorporated in Nigeria in June, 1991 as Ilupeju-Ekiti Community Bank Nigeria Limited, with registration number 165215, and commenced operations on September 28, 1991. It was recertified and licensed by the Central Bank of Nigeria to operate as Omiye Microfinance Bank Limited on 22nd January 2008.
Ogunleye said, “Despite the delay in obtaining our upgrade license to Tier 1 Unit MFB, the Board had taken necessary steps towards a desired increase in our Authorised Share Capital from N500m to N1bn to pave the way for both existing and prospective shareholders who would be interested in buying into the bank shares. Our proposal for the desired banking license upgrade is currently under consideration for approval by the Central Bank of Nigeria.
“A license upgrade to the state level will facilitate our branch development agenda across the state, thus facilitating the achievement of our twin objective of social and financial benefits to our shareholders and host communities.
Our move to partner and collaborate with Ekiti State Government, local governments/LCDAs, government agencies, and educational institutions, as well as community development associations, to assist in achieving their respective goals and objectives, are already yielding positive results. Despite the envisaged challenges, we remain optimistic about the prospects for national economic growth in Nigeria, and we are well-positioned to take advantage of the opportunities presented by the economic outlook.”
In the short term, the bank aims to deepen its market and expand the branch network within Ekiti State to bridge the financing gap of the large numbers of MSMEs and credit demand of low-risk public sector employees.
“The branch expansion is intended to grow its market share. In the medium term, the bank seeks to obtain a state license to enable it to expand its offerings to all the 16 local government areas of the state. In the long term, the bank aims to obtain a national license towards repositioning to be among the leading microfinance banks in Nigeria,” the bank added.
In the 2023 financial year, Omiye MFB had seen its gross earnings rise by 43 per cent from N152m in 2022 to N217m in 2023. This impressive growth showcases the bank’s strong market presence and financial performance. Profit before tax showed impressive growth, increasing by 80 per cent in 2023.
In the year under review, customers’ deposits increased by 50 per cent from N218m in 2022 to N328m in 2023. Loans and advances grew by 17 per cent in 2023, following a 62 per cent growth in 2022, demonstrating the bank’s commitment to supporting the economic growth and development of its customers and communities.
