Chairman’s Statement

Distinguished Fellow Shareholders,
Representatives of the Central Bank of Nigeria;
Invited Guests
Gentlemen of the Press
Ladies and Gentlemen.

It is my pleasure to warmly welcome you all to the 12th Annual General Meeting of our bank, Ologbon Microfinance Bank Limited, and present to you the Annual Reports and Financial Statements of your company for the year ended December 31, 2010.

Our Business Environment
In the year under review, health of the global economy showed a tremendous improvement after the economic crisis of the preceding two years.  However its complications and consequences abounded, albeit in varying degrees, in the economic and financial sectors across the nations of the world.

In Nigeria, general major initiatives, developmental schemes and programmes were introduced by the government through the Central Bank of Nigeria in 2010 as part of its on-going reforms to strengthen and protect our financial sectors from adverse effects of  the fading economic meltdown.  Notable among these are:
                                                                                                               

• Withdrawal of the license of a large number of MFBs considered to be technically distressed.

• Necessary and adequate support given to the Eight of the Commercial Banks previously sanctioned for being insolvent.

• Creation of an Asset Management Company (AMCON) empowered to purchase toxic assets from the banks.

• Movement of all banks accounting systems to the calendar year,

• Instructing all banks to adopt International Financial Reporting Standards (IFRS) by 2012.

• Commencement of Microfinance Certification Programme for the principal officers of MFBs,

• Establishment of Small and Medium Scale Enterprises Guarantee Scheme.

• Organization and encouragement of Committee of Governors and Bankers Committee initiative on infrastructure aimed at mobilizing the commercial banks to finance basic infrastructure projects that promote sustainable economic growth.

All the above steps are producing a healthy and stable financial system, with improved corporate governance and efficient risk managements in our banks, and of course, restoration of confidence in our banking system, and provision of essential ingredients for infrastructural development in the community.

Failure of the government to effectively and practically address the epileptic power sector, general property and life insecurity, corruption in low and high places, insincerity and dishonesty among government functionaries with non provisioning of enabling infrastructures are the daunting challenges facing our business environment.

Our Performance
Our resolution to manage the company profitably in the face of increasing challenges made the bank post a Profit After Tax of N12,313,000 as against N7,118,000 recorded in 2009. The Shareholders’ fund has increased from N48,935,000 in 2009 to N61,371,000 in 2010; representing 25% increase. The gross earnings increased by 4% from 32,327,000 in 2009 to       N33,636,000 in 2010. Total Assets rose from N116,216,000 in 2009 to N128,034,000 in 2010.

Dividend Declaration
The Board having seriously considered the performance of the bank along with its anticipated future growth and development is proposing for your approval N1,925,000 to be paid as dividends translating to 0.10k per share. If this recommendation is approved by Members at the AGM the dividend warrants shall be due for collection from 18th of November, 2011 to members whose names appear in the Register of members at the close of business on 31st December, 2010.

Future Outlook
There are reasons to project a more positive outlook for the economy in 2011. The return of confidence in the banking sector and the Capital market and expectations of higher crude oil prices are indications that it is possible to achieve a greater economic growth.

As we anticipate continual growth in the sector during the new financial year, the board and management would continue to raise the bar in the provision of innovative services to our clients. We shall entrench an unflinching commitment to enable our esteemed shareholders receive adequate returns on their investment.

Appreciation
I wish to express my sincere appreciation to all of you for your unwavering support to the Board and management. On behalf of the Board of Directors of this great bank, I sincerely thank the management team, the Regulators especially Central Bank of Nigeria and Nigeria Deposit Insurance Corporation, our numerous customers and our reference banks for your support, advice, cooperation and commitment.

I thank you all and God bless you.

Dr. S. A. Oyelami
Chairman
Ologbon Microfinance Bank