VFD Group announced that its board has approved a capital injection of N5 billion into VFD Microfinance Bank (V Bank), dated February 18, 2025.
This announcement was made in a release published on the Nigerian Exchange (NGX) on February 19, 2025, and signed by the company secretary, Gbeminiyi Shoda.
According to the release, the board’s decision complies with Section 289(8) of the Companies and Allied Matters Act 2020, indicating VFD Group’s intention to support the operations of its digital-first financial institution.
The disclosure states, “This strategic investment underscores VFD Group’s dedication to strengthening V Bank’s position as a formidable player in Nigeria’s financial services ecosystem.”
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In response to the recent development, Nonso Okpala, the Group’s Managing Director and Chief Executive, remarked, “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 further highlighted the ambition of establishing “a more inclusive financial environment that nurtures opportunity and trust for everyone.”
Mr. Rotimi Awofisibe, Managing Director of V Bank, emphasized the importance 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 bank, V Bank offers technology-driven banking services designed for both individuals and businesses, aiming to simplify the banking experience.
VFD Group’s FY 2024 performance overview
VFD Group Plc reported a pre-tax profit of N12.4 billion for the fiscal year 2024, according to their earnings report released on the Nigerian Exchange (NGX) on February 10, 2025. This is an improvement from a pre-tax loss of N1 billion in 2023.
The group’s net revenue reached N32.2 billion, which is a 164.15% increase from N12.1 billion the previous year.
Investment income, making up 85.54% of gross earnings, rose by 107.62% to N71.1 billion, up from N34.28 billion.
- This growth was mainly due to divestments, interest from treasury operations, loans, and dividends.
- Other income, which constituted 11.24% of gross earnings, increased by 31.60% to N9.35 billion, driven by logistics, hospitality, fair value gains, and foreign exchange gains.
- Total assets also grew to N328.6 billion, a 49.90% increase from N219.2 billion in 2023.
Nonso Okpala, the Group’s Managing Director and Chief Executive, stated that the increase in earnings and profitability was influenced by strategic investments and divestments throughout the year.
