VFD Group has announced that its board has sanctioned a capital injection of N5 billion into VFD Microfinance Bank (V Bank), effective February 18, 2025.
This information was disclosed in a statement released on the Nigerian Exchange (NGX) on February 19, 2025, and was signed by the company secretary, Gbeminiyi Shoda.
The statement indicates that the board's decision aligns with Section 289(8) of the Companies and Allied Matters Act 2020, reflecting VFD Group’s commitment to bolstering the operations of its digital-first financial institution.
The announcement highlights, “This strategic investment underscores VFD Group’s dedication to strengthening V Bank’s position as a formidable player in Nigeria’s financial services ecosystem.”
In light of this development, Nonso Okpala, the Group’s Managing Director and Chief Executive, stated, “This milestone signifies a transformative leap in empowering Nigerians through innovative banking solutions. We envision V Bank as a catalyst for economic growth, crafted to meet the diverse needs of our communities.”
He also underscored the goal of creating “a more inclusive financial environment that fosters opportunity and trust for all.”
Mr. Rotimi Awofisibe, Managing Director of V Bank, stressed the significance of the investment: “This capital infusion will enable us to enhance our technological capabilities and improve customer experience. With the support of VFD Group, we are ready to reach new heights, bringing innovative, efficient, and accessible banking solutions to more Nigerians.”
As a fully digital banking institution, V Bank provides technology-focused financial services tailored for individuals and businesses, with the goal of enhancing the banking experience.
VFD Group Plc announced a pre-tax profit of N12.4 billion for the fiscal year 2024, as detailed in their earnings report published on the Nigerian Exchange (NGX) on February 10, 2025. This marks a significant recovery from a pre-tax loss of N1 billion recorded in 2023.
The group's net revenue surged to N32.2 billion, reflecting a remarkable 164.15% increase from N12.1 billion in the prior year.
Investment income, which accounted for 85.54% of total earnings, climbed by 107.62% to N71.1 billion, up from N34.28 billion.
This growth can be attributed primarily to divestments, interest from treasury operations, loans, and dividends. Additionally, other income, representing 11.24% of total earnings, rose by 31.60% to N9.35 billion, fueled by logistics, hospitality, fair value gains, and foreign exchange profits.
Total assets also expanded to N328.6 billion, marking a 49.90% increase from N219.2 billion in 2023. Nonso Okpala, the Group’s Managing Director and Chief Executive, noted that the rise in earnings and profitability was driven by strategic investments and divestments made throughout the year.