VFD Group has made a significant investment of N5 billion into its subsidiary, VFD Microfinance Bank, also known as V Bank. This strategic move aims to strengthen the digital bank's operations and reinforce its commitment to financial inclusion and digital banking transformation.
Key Point: VFD Group has invested N5 billion in V Bank to boost its digital banking operations and reinforce its commitment to financial inclusion.
According to Nonso Okpala, Group Managing Director of VFD Group, the investment reflects the company's confidence in V Bank's potential and its commitment to seeing it flourish. Okpala emphasized that V Bank is an integral part of Nigeria's financial services ecosystem, and the company is committed to scaling its operations, expanding its reach, and reinforcing its position as a trusted financial partner to millions of Nigerians.
Subject: VFD Group Plc migrates from loss to N12.46bn profit in 2024 amid Divests 57.26% Stake in Atiat Limited for N7 Billion
VFD Group Plc has announced a remarkable turnaround in its financial performance, migrating from a loss before tax of N1.02 billion in 2023 to a profit before tax of N12.46 billion in the unaudited financial year ended December 31, 2024.
Key Highlights:
- N12.46 billion profit before tax in 2024, a significant improvement from N1.02 billion loss in 2023
- N10.41 billion profit after tax in 2024, compared to a loss of N0.75 billion in 2023
- Total comprehensive income of N10.85 billion in 2024, up from N0.15 billion in 2023
- Basic earnings per share of N8.22/share in 2024, a significant improvement from -N3.95/share in 2023
- Return on average assets of 3.80% in 2024, compared to -0.41% in 2023
- Return on average equity of 22.02% in 2024, up from -2.34% in 2023
The company's impressive performance was driven by a significant increase in gross earnings, which rose by 84.45% to N83.21 billion in 2024. The growth in gross earnings was primarily driven by investment and similar income, which increased by 107.62% to N71.17 billion in 2024. Additionally, the company's total assets grew significantly, driven by a 145.7% increase in prepayment and receivables.
Part 2: VFD Group Plc has announced the successful divestment of its 57.26% stake in Atiat Limited, a key subsidiary, in a transaction valued at approximately N7 billion. This strategic move marks a significant milestone for both companies, enabling them to embark on new growth trajectories.
Key Highlights:
- VFD Group Plc divests 57.26% stake in Atiat Limited for N7 billion
- The transaction reflects the strong value created by VFD Group under its stewardship
- Atiat Limited has recorded exponential growth in revenue, profitability, and shareholder value over the last four years
- The divestment aligns with VFD Group's strategic framework, emphasizing portfolio optimization and directing resources toward high-growth opportunities
According to Nonso Okpala, Group Managing Director of VFD, "This transaction is a testament to the quality of our investment decisions and our ability to unlock value for our investors. The divestment of our stake in Atiat Limited is a strategic move that allows us to redeploy capital into higher-growth opportunities while maintaining our focus on delivering exceptional returns for institutional and retail investors."
The divestment is expected to have a positive impact on both companies, allowing Atiat Limited to chart an independent course while capitalizing on new opportunities in the financial ecosystem. VFD Group Plc will redeploy the capital from the transaction into high-growth opportunities, aligning with its strategic framework.
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