Digitally pushed monetary establishment VFD Microfinance Financial institution has returned to the trail of profitability within the 2024 monetary yr because it recorded N366.6m revenue after tax from the N333m loss it had suffered within the earlier yr.
The audited outcomes of the financial institution have been revealed at its third Annual Normal Assembly, which was held on Thursday underneath the theme ‘Banking with Function, Delivering with Influence’, an announcement from the financial institution indicated.
On the AGM, the board and administration of the financial institution acknowledged the numerous macroeconomic headwinds that characterised 2023, together with excessive inflation, foreign money depreciation, and sluggish GDP development, which impacted the monetary providers sector. Whereas VFD Microfinance Financial institution reported a lack of N333.3m for the 2023 monetary yr, the management emphasised that this era served as a vital inflection level, resulting in strategic changes and a robust turnaround within the subsequent yr.
Talking on the ground of the AGM, the Board Chairman, Collins Chikeluba, stated, “The yr underneath evaluation was certainly one of unprecedented macroeconomic and operational challenges. Whereas the loss in 2023 was disappointing, it displays each the exterior constraints and the interior changes we undertook. Importantly, our 2024 audited financials replicate a constructive turnaround, with vital income development and a return to profitability. We’re laying a stable basis for sustainable profitability and future dividend payouts, pushed by our give attention to deepening monetary inclusion and leveraging expertise.”
Managing Director/Chief Government Officer of the financial institution, Rotimi Awofisibe, commented, “The yr 2023 was a testing interval, but it surely sharpened our strategic readability and operational self-discipline. Regardless of the recorded loss, we took decisive steps to reposition the financial institution, and the indications from our 2024 efficiency, together with a 39.8% income development and a revenue of N366.6 million, show the effectiveness of those actions.
We stay targeted on enhancing our digital footprint, scaling our buyer base, and sustaining monetary self-discipline to ship long-term worth to all our stakeholders.”
Within the yr underneath evaluation, VFD Microfinance Financial institution recorded a income development of 39.8 per cent, rising from N3.2bn in 2023 to N4.5bn in 2024.
On the AGM, the financial institution underscored its dedication to driving monetary inclusion by means of digital innovation, tailor-made SME options, and enhanced buyer engagement. The financial institution additionally highlighted its strengthened danger administration framework and strategic partnerships to broaden its attain and enhance service supply.
Talking on the operational enhancements, Chief Working Officer Theodore Asamoah famous, “Our staff has labored diligently to optimise our operations and improve effectivity. The numerous income development and return to profitability in 2024 are a testomony to our collective efforts and the resilience of our enterprise mannequin. We stay dedicated to leveraging expertise and innovation to enhance our service supply and broaden our attain, making certain we proceed to ship with affect.”
VFD Microfinance Financial institution reiterated its dedication to its strategic goals of deepening monetary inclusion, leveraging expertise for scalability, and delivering sustainable worth to its stakeholders. Though no dividend was declared for the interval underneath evaluation, the financial institution stays optimistic about its prospects for future profitability and sustained worth creation.
