VFD Microfinance Bank, a digitally-driven financial organisation, recorded a N366.6 million profit after taxes in the 2024 fiscal year, reversing its N333 million deficit from the year before.
According to the bank’s announcement, the audited results were presented during its third annual general meeting, which took place on Thursday and was themed ‘Banking with Purpose, Delivering with Impact.’
Macroeconomic challenges
The bank’s board and management recognised at the AGM the substantial macroeconomic challenges that confronted the financial services industry in 2023, including high inflation, currency devaluation, and slow GDP growth.
Despite reporting a N333.3 million loss for the 2023 fiscal year, VFD Microfinance Bank’s leadership underlined that this time was a pivotal moment that resulted in strategic changes and a robust recovery the following 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.”
VFD’s Managing Director and CEO, Rotimi Awofisibe, said, “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 percent revenue growth and a profit of N366.6 million, demonstrate the effectiveness of these actions.
He adds, “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.”
39.8 % increase in revenue
VFD Microfinance Bank saw a 39.8 percent increase in revenue over the reviewed year, going from N3.2 billion in 2023 to N4.5 billion in 2024.
The bank reaffirmed at the AGM its dedication to promoting financial inclusion via digital innovation, customised SME solutions, and improved client interaction. In order to increase its reach and enhance service delivery, the bank also emphasised its improved risk management structure and strategic alliances.
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 reaffirmed its dedication to its strategic goals of increasing financial inclusion, utilising technology to scale, and providing stakeholders with long-term value.
Despite the fact that no dividend was announced during the reviewed period, the bank is confident in its potential to continue creating value and being profitable in the future.