Al-Barakah Microfinance Bank has recorded consecutive profit growth over two financial years, driven by expanded non-interest retail banking services and asset quality improvements.
Al-Barakah Microfinance Bank one of the leading Nigerian Islamic microfinance institution has posted steady growth across earnings, investment and profitability. Building on this momentum, Managing Director Mr. Rasak Tunde Agboola announced plans to transition the bank from a unit-level microfinance institution into a state-level operator.
Agboola announced the expansion plans on Saturday, August 15, 2026 during the bank’s Annual Stakeholders’ Meeting in Lagos where investors and key stakeholders gathered to review performance outcomes for the 2024 and 2025 financial years.
He noted that the bank maintained its resilience through challenging economic conditions and now shifting its focus toward consolidating gains, driving financial inclusion, upgrading digital services and broadening its geographical footprint.
According to the financial report presented at the meeting, Al-Barakah’s gross earnings grew from ₦198.742 million in 2024 to ₦232.412 million in 2025 driven by an investment portfolio expansion from ₦352 million to ₦499.9 million. Over the same period, net profit rose from ₦34.12 million to ₦43.853 million, bringing the bank’s cumulative two-year profit after tax to ₦77.973 million.
Stakeholders approved a dividend of five kobo per share alongside a 1-for-10 bonus share issuance as part of the meeting’s key resolutions. Agboola noted that these returns underscore the bank’s operational progress and stability despite ongoing macroeconomic pressures impacting Nigerian businesses and households.
Agboola noted that Al-Barakah has extended over ₦5.5 billion in financing to small businesses, SMEs and micro-entrepreneurs. He also said that the bank complements its funding with hands-on business monitoring, proposal reviews and strategic financial advice to ensure sustainable growth and profitability for its clients.
The Managing Director noted that rising living costs have heightened the need for accessible financing among low-income earners, highlighting the bank’s commitment to supporting existing businesses while guiding aspiring entrepreneurs through business proposal development and strategy.
Prof. Khadijah Idowu, an Independent Director at Al-Barakah, commended the bank’s performance, noting steady progress across both financial and non-financial metrics despite the broader economic headwinds in the country.
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She credited this progress to strong management, prudent financial practices, and the steadfast support of shareholders and clients. Prof. Idowu expressed optimism for the institution’s trajectory, highlighting that Al-Barakah has maintained a track record of steady, consistent performance growth.
Alhaji Abdulrazaq Abdussalam, the pioneer Amir of The Muslim Congress (TMC) noted that Al-Barakah’s trajectory since its 2010 inception highlights its evolution from a cooperative society into a microfinance bank as a major milestone. He also said that the bank was founded to deliver non-interest financial solutions and voiced confidence in its potential to expand into a national institution.
Prince Sulaiman Olagunju a bank Director praised Al-Barakah’s performance relative to its capital base, while urging management to prioritize investments in information technology and digital banking channels. He noted that while shareholders are pleased with current results there remains significant room for digital transformation and growth.
