Accion Microfinance Bank

” Delivering impeccable financial services through technological innovations is at the center of our strategy and we have invested in digital technologies and channels aimed at making our services accessible to our customer to drive efficiency and improve customer experience. ”.

” Shaping a Brighter Future Through Digitization ”

Dear Shareholders,

In 2019, the bank achieved significant growth in most of our financial indicators. Our social impact and sustainability goals were achieved.We grew the number of our active borrowers by 18.2%, from 45,151 in 2018 to 53,374 in 2019. Our total loan portfolio grew by 15.4%, from N8.84billion in 2018 to N10.2billion in 2019. Total disbursements recorded growth of 15.6%, from N23.22billion in 2018 to N26.85billion in 2019.Our total number of deposit accounts also witnessed a growth of 13.5%, from 406,807 in 2018 to 461,612 in 2019.The number of savers recorded a growth of 3.9% from 253,523 in 2018 to 263,281 in December 2019, while customers' deposits grew from N2.8bn in 2018 to N4bn in 2019,thereby translating to 42.8% growth.

The bank invested heavily in digital optimization in 2019 which led to a lower profit after tax of N915 million as against N1.05bn recorded in 2018. We are confident that investment in digital transformation would soon yield the desired impact on the business. We are however happy to announce that shareholders' funds grew to N5.24billion in 2019 from N4.6billion in 2018, resulting in a 12% growth. With this feat, your bank has crossed the new capital base of N5billion for a national microfinance bank as required by regulation significantly ahead of the scheduled deadline for compliance.

The financial performance shows the resilience and commitment of the board and our people to the growth of the bank. It gladdens our heart to see transformation of lives and businesses in our customers' journey with the bank.

Service outlets grew from 80 locations across 11 states in 2018 to 93 locations across 12 states in 2019 resulting in 16.3% growth. However, we will continue to leverage technology to serve our customers remotely and drive scale in the coming years.

Finally, I would like to express my heartfelt gratitude to the stakeholders that have enabled us to make such immense progress over the years. Thanks to my fellow members of the Board, the management and staff of Accion Microfinance Bank for their hard work, our customers for their tireless support and all our development partners who have believed in us throughout this journey. Together we will deliver even more in 2020 and continue to create a brighter, better future.

John Fischer

Chairman

Accion Microfinance Bank Limited

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