VFD Microfinance Bank, the technology-driven banking arm of VFD Group Plc, has reported a profit of ₦366 million ($232,233) for the year ended 2024, marking a significant rebound from a loss of ₦211 million ($132,739) in 2023. Notably, this also represents a substantial increase from the modest profit of ₦1.8 million ($1127) recorded in 2022, as confirmed by the bank’s Audited Financial Statements (AFS) for that year. This clarifies the bank’s financial trajectory since its inception in 2015.
The ten-year-old microfinance bank achieved an operating income of ₦4.5 billion ($2,830,946) in 2024. Operating expenses, including finance costs, remained substantial at ₦3.9 billion ($2,472,658). This contrasts with 2023, where operating expenses of ₦5.42 billion ($3,436,360) outstripped the ₦5.2 billion ($3,292,889) operating income, resulting in a loss. The bank also saw significant growth in its lending activities, with the value of loans disbursed increasing by 90% to ₦15 billion ($9,498,660) in 2024.
VFD Microfinance Bank’s positive performance contributed to a wider recovery for its parent company, VFD Group Plc, which also rebounded to profitability after a ₦750 million ($471,824) loss in the previous year. Notably, 11 out of the 12 subsidiaries within the VFD Group reported profits for the full year of 2024, with VFD Ghana being the only exception.
Further bolstering its digital banking ambitions, VFD Group injected ₦5 billion into VBank, the virtual banking platform powered by VFD Microfinance Bank, in February 2025. This capital infusion is earmarked for accelerating technological advancements and expanding the platform’s service offerings.
VBank has rapidly established a strong presence in Nigeria’s financial sector by offering a fully digital banking experience with zero maintenance fees and competitive interest rates for individual and business customers.
____________________________________________________________________________________________________________
Editor’s Note: This article has been updated to clarify that 2024 was not the first year VBank recorded a profit; the bank was first profitable in 2022. Additionally, VBank was founded in 2015, not 2014.
