VFD Microfinance Bank has reported a significant turnaround in its financial performance, returning to profitability in the 2024 financial year with a profit after tax of N366.6 million. This marks a substantial improvement from the N333 million loss recorded in the previous year.
Key Highlights
- Return to Profitability: VFD Microfinance Bank recorded a profit after tax of N366.6 million in 2024, a significant improvement from the N333 million loss in 2023.
- Revenue Growth: The bank reported a revenue growth of 39.8% in 2024, increasing from N3.2 billion to N4.5 billion.
- Operational Improvements: The bank's leadership attributed the return to profitability to strategic adjustments, operational improvements, and a strong focus on deepening financial inclusion and leveraging technology.
- Digital Innovation: VFD Microfinance Bank is committed to driving financial inclusion through digital innovation, tailored SME solutions, and enhanced customer engagement.
- Strengthened Risk Management: The bank has strengthened its risk management framework and strategic partnerships to expand its reach and improve service delivery.
Management's Perspective
The bank's leadership, including the Board Chairman and Managing Director/CEO, expressed optimism about the bank's prospects for future profitability and sustained value creation. They highlighted the bank's commitment to leveraging technology and innovation to improve service delivery and expand its reach.
Outlook
VFD Microfinance Bank remains committed 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 is optimistic about its prospects for future profitability and sustained value creation.
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