VFD Microfinance Bank today announced the successful conclusion of its 3rd Annual General Meeting (AGM) for the 2023 financial year.
The meeting, themed “Banking with Purpose, Delivering with Impact,” provided shareholders with a comprehensive review of the bank’s performance in a challenging economic climate and offered a promising outlook based on its performance in 2024.
The AGM acknowledged the significant macroeconomic headwinds that characterised 2023, including high inflation, currency depreciation, and sluggish GDP growth, which impacted the financial services sector.
While VFD Microfinance Bank reported a loss of (₦333.3) million for the 2023 financial year, the leadership emphasised that this period served as a critical inflexion point, leading to strategic adjustments and a strong turnaround in the subsequent year.
As Board Chairman Collins Chikeluba stated, “The year under review was one of unprecedented macroeconomic and operational challenges. While the loss in 2023 was disappointing, it reflects both the external constraints and the internal adjustments we undertook.
Importantly, our 2024 audited financials reflect a positive turnaround, with significant revenue growth and a return to profitability. We are laying a solid foundation for sustainable profitability and future dividend payouts, driven by our focus on deepening financial inclusion and leveraging technology.”
Shareholders were also presented with highlights of the encouraging results for 2024, demonstrating the effectiveness of the repositioning efforts. VFD Microfinance Bank recorded a significant revenue growth of 39.8%, increasing from ₦3.2 billion in 2023 to ₦4.5 billion in 2024.
Furthermore, the bank achieved a remarkable turnaround in profitability, posting a Profit After Tax (PAT) of ₦366.6 million in 2024, a substantial recovery from the previous year’s loss. Managing Director/CEO Rotimi Awofisibe commented, “The year 2023 was a testing period, but it sharpened our strategic clarity and operational discipline.
Despite the recorded loss, we took decisive steps to reposition the bank, and the indicators from our 2024 performance, including a 39.8% revenue growth and a profit of ₦366.6 million, demonstrate the effectiveness of these actions. We remain focused on enhancing our digital footprint, scaling our customer base, and maintaining financial discipline to deliver long-term value to all our stakeholders.”
The AGM underscored VFD Microfinance Bank’s commitment to its core mission of driving financial inclusion through digital innovation, tailored SME solutions, and enhanced customer engagement. The bank also highlighted its strengthened risk management framework and strategic partnerships to expand its reach and improve service delivery.
Speaking on the operational improvements, Chief Operating Officer Theodore Asamoah noted, “Our team has worked diligently to optimise our operations and enhance efficiency. The significant revenue growth and return to profitability in 2024 are a testament to our collective efforts and the resilience of our business model.
We remain committed to leveraging technology and innovation to improve our service delivery and expand our reach, ensuring we continue to deliver with impact.”
VFD Microfinance Bank reiterated its commitment 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 remains optimistic about its prospects for future profitability and sustained value creation.
