VFD Microfinance Bank rebounds with N366m profit

Digitally driven financial institution VFD Microfinance Bank has returned to the path of profitability in the 2024 financial year as it recorded N366.6m profit after tax from the N333m loss it had suffered in the previous year.

The audited results of the bank were revealed at its third Annual General Meeting, which was held on Thursday under the theme ‘Banking with Purpose, Delivering with Impact’, a statement from the bank indicated.

At the AGM, the board and management of the bank acknowledged the significant macroeconomic headwinds that characterised 2023, including high inflation, currency depreciation, and sluggish GDP growth, which impacted the financial services sector. While VFD Microfinance Bank reported a loss of N333.3m for the 2023 financial year, the leadership emphasised that this period served as a critical inflection point, leading to strategic adjustments and a strong turnaround in the subsequent year.

Speaking on the floor of the AGM, the Board Chairman, Collins Chikeluba, said, “The year under review was one of unprecedented macroeconomic and operational challenges. While the loss in 2023 was disappointing, it reflects both the external constraints and the internal adjustments we undertook. Importantly, our 2024 audited financials reflect a positive turnaround, with significant revenue growth and a return to profitability. We are laying a solid foundation for sustainable profitability and future dividend payouts, driven by our focus on deepening financial inclusion and leveraging technology.”

Managing Director/Chief Executive Officer of the bank, Rotimi Awofisibe, commented, “The year 2023 was a testing period, but it sharpened our strategic clarity and operational discipline. Despite the recorded loss, we took decisive steps to reposition the bank, and the indicators from our 2024 performance, including a 39.8% revenue growth and a profit of N366.6 million, demonstrate the effectiveness of these actions.

We remain focused on enhancing our digital footprint, scaling our customer base, and maintaining financial discipline to deliver long-term value to all our stakeholders.”

In the year under review, VFD Microfinance Bank recorded a revenue growth of 39.8 per cent, increasing from N3.2bn in 2023 to N4.5bn in 2024.

At the AGM, the bank underscored its commitment to driving financial inclusion through digital innovation, tailored SME solutions, and enhanced customer engagement. The bank also highlighted its strengthened risk management framework and strategic partnerships to expand its reach and improve service delivery.

Speaking on the operational improvements, Chief Operating Officer Theodore Asamoah noted, “Our team has worked diligently to optimise our operations and enhance efficiency. The significant revenue growth and return to profitability in 2024 are a testament to our collective efforts and the resilience of our business model. We remain committed to leveraging technology and innovation to improve our service delivery and expand our reach, ensuring we continue to deliver with impact.”

VFD Microfinance Bank reiterated its commitment to its strategic objectives of deepening financial inclusion, leveraging technology for scalability, and delivering sustainable value to its stakeholders. Although no dividend was declared for the period under review, the bank remains optimistic about its prospects for future profitability and sustained value creation.