VFD Microfinance Bank, a digitally oriented financial institution, has achieved a remarkable financial recovery, posting a profit after tax of N366.6 million for the 2024 financial year, a stark contrast to the N333.3 million loss reported in 2023.
The bank’s audited results, unveiled at its third Annual General Meeting held on Thursday, highlighted a robust rebound fueled by strategic realignments and operational enhancements. The meeting, themed “Banking with Purpose, Delivering with Impact,” provided a platform to showcase the institution’s progress despite challenging economic conditions.
The 2023 financial year presented significant hurdles, with high inflation, currency devaluation, and sluggish GDP growth weighing heavily on Nigeria’s financial sector. These factors contributed to the bank’s loss during that period, which leadership described as a turning point that prompted critical internal adjustments.
The proactive measures implemented by management paved the way for a strong financial performance in 2024, marked by substantial revenue growth and a return to profitability.
At the Annual General Meeting, Board Chairman Collins Chikeluba addressed shareholders, reflecting on the challenges of 2023 while celebrating the bank’s subsequent achievements. He explained that the prior year’s loss stemmed from a combination of external economic pressures and intentional restructuring efforts.
Chikeluba expressed optimism about the bank’s future, citing the 2024 financial results as proof of a solid foundation for sustained growth. He underscored the institution’s dedication to promoting financial inclusion and leveraging technology to ensure long-term profitability, with plans for potential dividend payouts in the future.
Rotimi Awofisibe, the Managing Director and Chief Executive Officer, provided further insight into the strategic initiatives driving the bank’s recovery. He described 2023 as a challenging yet clarifying period that sharpened the institution’s focus and operational discipline. Through decisive actions, the bank recorded a 39.8% revenue increase, growing from N3.2 billion in 2023 to N4.5 billion in 2024.
Awofisibe noted that the N366.6 million profit in 2024 demonstrated the success of these efforts. He reaffirmed the bank’s commitment to expanding its digital infrastructure, growing its customer base, and maintaining financial discipline to create lasting value for stakeholders.
The bank’s 2024 performance was supported by operational improvements and a steadfast commitment to its mission. Chief Operating Officer Theodore Asamoah highlighted the team’s efforts to streamline processes and boost efficiency. He credited the significant revenue growth and restored profitability to the strength of the bank’s business model and its strategic use of technology.
Asamoah emphasized the institution’s focus on digital innovation to enhance service delivery and expand its reach, aligning with its goal of delivering meaningful impact through banking.
During the Annual General Meeting, VFD Microfinance Bank reiterated its strategic priorities, which include advancing financial inclusion, scaling operations through technology, and fostering sustainable value.
The bank showcased its progress in digital innovation, customized solutions for small and medium enterprises, and strengthened customer engagement strategies. It also highlighted improvements to its risk management framework and the establishment of strategic partnerships to broaden its presence and enhance service quality.
Although no dividends were declared for the 2024 financial year, the bank expressed confidence in its future outlook. Management conveyed assurance in the institution’s ability to maintain its positive trajectory and deliver consistent value to shareholders.
The leadership’s vision focuses on sustaining operational discipline, embracing technological advancements, and solidifying the bank’s role as a driver of financial inclusion in Nigeria’s dynamic economic environment. With its 2024 results, VFD Microfinance Bank signals a promising path toward continued growth and resilience.
