VFD Microfinance Bank Ltd. held its 3rd Annual General Meeting for the 2023 financial year on Thursday, the 10th of April, at Herel Play, Ikoyi Lagos. The AGM was themed “Banking with Purpose, Delivering with Impact.”
The meeting’s agenda included presenting the audited financial statements for 2022 and 2023, re-electing and appointing directors, re-appointing auditors, and determining the remuneration for auditors and directors.
Audited by Pricewaterhouse Coopers (PwC), VFD Microfinance Bank reported a ₦333.3 million loss in 2023, citing economic volatility, removal of fuel subsidies, naira depreciation and continued foreign exchange scarcity. “This outcome, while disappointing, reflects both the external macroeconomic constraints and internal adjustments we undertook to reposition the bank for a stronger future,” Dr. Collins Chikeluba, Chairman of VFD Microfinance Bank, said.
Despite facing challenges in 2023, VFD Microfinance Bank affirmed that it had implemented strategic changes which yielded positive results in 2024. The bank’s leadership responded to the previous year’s losses by restructuring operations, optimizing cost efficiency, and enhancing customer engagement strategies. These adjustments have already shown promising outcomes in the 2024 financials, demonstrating the bank’s commitment to delivering sustainable value to stakeholders and deepening financial inclusion.
“2023 was the most testing period for the Nigerian economy. Inflation reached multi-decade highs coupled with a sluggish GDP growth of 2.8%. Despite this, we are focused on our long-term vision, and this setback has served as a critical inflection point,” Rotimi Awofisibe, Managing Director of VFD Microfinance Bank, said.
The microfinance bank delivered a strong performance in 2024, with revenue surging 39.8% to ₦4.5 billion, up from ₦3.2 billion in 2023. “Through diligent efforts, we have optimized operations and enhanced efficiency, driving substantial revenue growth and profitability in 2024. Moving forward, we will continue leveraging technology and innovation to improve service delivery and expand our impact,” Theodore Asamoah, Chief Operating Officer, VFD Microfinance Bank noted.
The bank also registered a remarkable turnaround in profitability, transitioning from a loss in 2023 to a Profit After Tax (PAT) of ₦366.6 million in 2024, indicating a significant recovery. “Our 2024 financial performance points towards a strong turnaround, reflecting our adaptability and innovative approach to banking. This is a testament to the effectiveness of our business model and dedication from our team,” Awofisibe said.
Reaffirming its commitment to strategic goals, VFD Microfinance Bank aims to enhance financial inclusion, harness technology, and deliver sustainable value to stakeholders. The bank also emphasises its commitment to institutionalizing Corporate Governance principles and adherence to the corporate governance rules of the Central Bank of Nigeria.
The meeting approved several leadership changes. Mr. Adeniyi Adenubi, Non-Executive Director, and Mr. Chioma Nkechika, Independent Non-Executive Director, were re-elected. Additionally, Mrs. Helen Onasanya, Mr. Nonso Okpala, CEO of VFD Group Plc, and Mr. John Okonkwo, Executive Director, Finance, Risk and Compliance at VFD Group, were appointed as directors. Dr. Collins Chikeluba was reappointed as Chairman. Furthermore, the remuneration for Non-Executive Directors was set at ₦29,500,000 for the year ending December 31, 2024, with payments effective retroactively from January 1, 2024.
No dividend was declared for the year reviewed. The bank maintains a positive outlook on its future profitability and remains committed to delivering sustained value to its stakeholders.
“As we look ahead, we remain focused on executing our strategic objectives of deepening financial inclusion, leveraging technology to scale and delivering long-term value to our stakeholders,” Chikeluba said.
