Update shared on 09 Nov 2025
Fair value Decreased 18%Executive Summary VFD Group Plc (VFD or “the Group”) reported a resilient performance for the nine months ended 30 September 2025, reflecting strong growth across its core income lines and continued diversification of its investment portfolio. The Group delivered a gross earnings increase of 34.9% year-on-year to ₦60.72 billion (9M 2024: ₦45.01 billion), driven by sustained momentum in investment income and fair value gains on financial assets. Despite a challenging operating environment marked by elevated interest rates and tighter liquidity, VFD maintained operational efficiency while strengthening its balance sheet through strategic capital deployment and expansion in funds under management.
Financial Performance Overview
Topline Growth Driven by Strong Investment Income Gross earnings advanced by ₦15.71 billion to ₦60.72 billion, underpinned by higher investment and similar income, which surged by 28.7% YoY to ₦49.00 billion (9M 2024: ₦38.04 billion). This growth was largely attributed to increased yields on financial assets and higher returns from managed funds. The Group’s net investment income expanded by 44.7% YoY to ₦45.65 billion, signaling improved efficiency in managing funding costs as investment and similar expenses declined notably by 48.4% to ₦3.35 billion from ₦6.50 billion in 2024.
Other Income and Fair Value Gains Bolster Revenue Other income rose sharply by 57.7% to ₦6.06 billion (9M 2024: ₦3.84 billion), reflecting higher fee-based and transactional income from portfolio companies. Furthermore, net gains on financial assets at fair value through profit or loss increased to ₦5.58 billion (9M 2024: ₦3.06 billion), driven by favorable revaluations in equity holdings and stronger market valuations of proprietary investments. Consequently, net revenue climbed to ₦54.97 billion, representing a 49.1% YoY growth compared to ₦36.86 billion in the prior year.
Cost Management and Profitability Operating expenses remained relatively contained despite inflationary pressures. Personnel expenses rose modestly by 33.4% to ₦4.25 billion, while other operating expenses increased by 19.4% to ₦9.29 billion, reflecting the Group’s expansion activities and inflation-driven cost adjustments. Depreciation and amortisation expenses moderated to ₦1.59 billion (2024: ₦1.87 billion), signaling improved asset efficiency. Overall, total operating expenses increased by only 17.9% YoY, significantly below revenue growth, highlighting improved cost discipline.
As a result, operating profit before tax rose by 65.8% to ₦39.85 billion (9M 2024: ₦24.03 billion). However, higher finance costs of ₦31.94 billion (9M 2024: ₦19.15 billion) due to increased borrowings and cost of funds tempered overall profitability.
Profit Before and After Tax Performance Despite elevated finance costs, profit before tax advanced by 61.5% to ₦7.99 billion (9M 2024: ₦4.95 billion). After accounting for a ₦1.36 billion tax charge, profit after tax settled at ₦6.63 billion, up 48.6% YoY from ₦4.47 billion in the prior year.
Comprehensive Income and Earnings per Share
VFD recorded substantial fair value appreciation on equity investments, resulting in other comprehensive income (OCI) of ₦12.50 billion, compared to a ₦43.50 million loss in 2024. This translated to a total comprehensive income of ₦19.13 billion (9M 2024: ₦4.42 billion), reflecting a 333% year-on-year increase. Earnings per share improved to 64 kobo (basic and diluted) from 45 kobo in 2024, reinforcing the Group’s strong profitability momentum.
Balance Sheet Highlights
Robust Asset Growth and Improved Liquidity Total assets grew by 29.7% to ₦383.39 billion as of September 2025, compared to ₦295.67 billion at FY 2024. This expansion was driven by significant increases in funds under management (₦83.84 billion vs. ₦49.38 billion), investment in financial assets (₦78.15 billion vs. ₦50.99 billion), and trade and other receivables (₦88.82 billion vs. ₦55.66 billion). The Group’s cash and cash equivalents also surged by 53.6% to ₦20.50 billion, underscoring enhanced liquidity and operational cash flow.
Investment Portfolio and Subsidiary Growth VFD’s strategic investments continued to expand, with investments in associates rising to ₦7.43 billion from ₦6.74 billion, and investment property valued at ₦22.44 billion. On a separate company basis, investment in subsidiaries increased by 28.2% to ₦39.16 billion, reflecting continued capital injection and growth in its portfolio companies.
Liabilities and Capital Structure Total liabilities rose to ₦311.89 billion, mainly on account of higher deposit liabilities (₦59.20 billion vs. ₦34.90 billion) and other liabilities (₦44.48 billion vs. ₦25.21 billion), both indicative of expanding business operations and customer activity. Borrowings moderated slightly to ₦119.77 billion (FY 2024: ₦121.43 billion), demonstrating prudent leverage management despite higher financing needs.
Strong Shareholders’ Fund and Capital Adequacy Shareholders’ funds grew robustly by 22.2% to ₦71.50 billion (FY 2024: ₦58.53 billion), supported by retained earnings growth and substantial fair value gains recognized in other reserves. The Group’s equity base remains strong, with ₦52.90 billion attributable to equity holders and ₦18.60 billion to non-controlling interests.
Analyst Commentary
VFD Group’s 9M 2025 performance underscores its strategic focus on investment-driven income generation and efficient capital management. The Group’s strong revenue trajectory, enhanced by fair value gains and diversified income streams, demonstrates its resilience amid macroeconomic headwinds such as elevated interest rates and inflationary cost pressures.
Going forward, management’s commitment to portfolio optimization, improved cost efficiency, and prudent balance sheet management positions VFD favorably for sustained earnings growth. The strong capital base and rising funds under management signal increased investor confidence and growing institutional relevance in Nigeria’s financial services sector.
Overall, VFD Group’s financial results for 9M 2025 reflect a solid blend of growth, profitability, and balance sheet strength, underscoring its position as a leading investment and financial services group with diversified income resilience.
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