‎Accion Microfinance Bank has said that stronger loan quality and an expanded digital banking push were among the key drivers of its 2025 performance, as they reported growth in lending, customer deposits and its nationwide branch network.
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‎This was at its At its Annual General Meeting in Lagos, where the MfB revealed that it achieved improvements across risk management, digital service delivery and customer acquisition while continuing to expand access to finance for small businesses and retail customers.
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‎Chief Commercial Officer, Accion MfB, Stephen Olalere said the bank’s balance sheet grew by more than 50 per cent during the year, supported by increases in loan assets and customer deposits, while profit before tax also improved significantly.
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‎”Customers now require higher loan values to replace inventory due to rising prices. This has increased our loan volumes, even though operating costs such as salaries and expenses have also risen,” Olalere said.
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‎The bank also reported improvements in asset quality. Portfolio at Risk (PAR) 1 closed at 4.3 per cent, the first time the institution has achieved that level, while risk indicators across all categories remained below regulatory thresholds.
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‎As part of its digital transformation programme, Accion MFB introduced a revamped USSD onboarding platform linked to the National Identification Number to simplify account opening and improve access to banking services. The bank also upgraded its WhatsApp banking platform, merchant payment solutions and digital savings products.
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‎Head of Business Transformation, Strategy and Innovation, Peter Okordion said the bank plans to deploy at least 2,000 merchant devices to boost transaction volumes and support low-cost deposit mobilisation.
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‎”Our focus is to enable customers and businesses through embedded finance and digital tools that support growth,” Okordion said.
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‎During the year, the MfB opened new branches in Ilorin and Kaduna and added a second branch in Kano, bringing its nationwide network to 75 branches.
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‎Managing Director and Chief Executive Officer, Accion MfB, Taiwo Joda said greater stability in the operating environment helped businesses recover from earlier disruptions and supported stronger loan demand and repayment performance.
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‎”There has been some measure of stability in the macroeconomic environment, and the market has been reasonably predictable. That stability enabled our customers to return to their businesses, improved market activity, and helped us serve them better,” Joda said.
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‎He added that reduced volatility in inflation and exchange rates allowed customers and businesses to plan more effectively.
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‎Total equity rose to N7.77 billion as of December 31, 2025, from N7.1 billion a year earlier, remaining above the N5 billion minimum capital requirement for national microfinance banks. Borrowings stood at N8.25 billion.
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‎Shareholders approved a dividend of 35 kobo per share, amounting to N422.04 million, compared with 30 kobo per share paid in the previous year.
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‎Management said it expects further growth in 2026 through deeper technology investments, expanded customer acquisition and stronger transaction banking capabilities.