VFD Microfinance Bank records 39.8% revenue growth for 2023
VFD Microfinance Bank has reported a 39.8 per cent increase in revenue, rising from N3.2 billion in 2022 to N4.5 billion for the year ending December 31, 2023.
This announcement was made by the bank’s Board Chairman, Mr Collins Chikeluba, during the company’s 3rd Annual General Meeting, which took place on Thursday in Lagos.
The AGM, themed “Banking with Purpose, Delivering with Impact,” provided shareholders with an in-depth overview of the bank’s performance.
Chikeluba noted that the bank had achieved a remarkable recovery in profitability, posting a Profit After Tax (PAT) of N366.6 million in 2024, marking a significant recovery from the loss incurred the previous year.
He reaffirmed the bank’s dedication to its strategic goals of promoting financial inclusion, leveraging technology to scale operations, and delivering sustainable value to its stakeholders.
He said, “The year under review presented unprecedented macroeconomic and operational challenges.
“While the loss in 2023 was disappointing, it reflects both the external constraints we faced and the internal adjustments we implemented.
“Most importantly, our 2024 audited financial results show a positive turnaround, with notable revenue growth and a return to profitability.
“We are now laying a strong foundation for ongoing profitability and future dividend distributions, driven by our focus on expanding financial inclusion and harnessing technology.”
Rotimi Awofisibe, the bank’s Managing Director, also spoke, saying, “The year 2023 was a challenging one, but it has sharpened our strategic focus and operational discipline.
“Despite the loss recorded, we took decisive steps to reposition the bank, and the indicators from our 2024 performance, including a 39.8 per cent increase in revenue and a profit of N366.6 million, clearly show the success of these measures.
“We remain focused on expanding our digital presence, growing our customer base, and upholding financial discipline to ensure long-term value for all our stakeholders.”
Regarding operational improvements, Mr Theodore Asamoah, the bank’s Chief Operating Officer, commented, “Our team has worked diligently to optimise operations and enhance efficiency.
“The remarkable revenue growth and return to profitability in 2024 are a direct result of our collective efforts and the resilience of our business model.
“We are committed to continuing to leverage technology and innovation to improve our service delivery and expand our reach, ensuring that we continue to make a significant impact.”
The bank also noted the strengthening of its risk management framework and the forging of strategic partnerships aimed at expanding its reach and improving service delivery.
Although no dividend was declared for the period under review, the AGM acknowledged the significant macroeconomic challenges of 2023, including high inflation, currency depreciation, and sluggish GDP growth, all of which had a considerable impact on the financial services sector.
