VFD Microfinance Bank Ltd. recently held its 3rd Annual General Meeting (AGM) for the 2023 financial year on April 10th at Herel Play, Ikoyi, Lagos, under the theme “Banking with Purpose, Delivering with Impact.” The AGM served as a platform to reflect on a challenging year and present a strategic roadmap toward recovery and growth.
The meeting’s agenda featured the presentation of audited financial statements for both 2022 and 2023, re-election and appointment of board members, auditor reappointment, and determination of remuneration for directors and auditors.
Audited by PricewaterhouseCoopers (PwC), the bank reported a net loss of ₦333.3 million for 2023. This performance was largely attributed to persistent macroeconomic pressures—including the removal of fuel subsidies, naira depreciation, and a volatile foreign exchange environment. “While disappointing, this result mirrors the tough economic conditions and necessary internal adjustments we made to reposition the bank for long-term strength,” said Dr. Collins Chikeluba, Chairman of VFD Microfinance Bank.
Despite the challenges faced in 2023, VFD Microfinance Bank initiated a strategic overhaul to enhance operational efficiency, streamline costs, and improve customer engagement. These reforms have already borne fruit, with early 2024 figures indicating a strong turnaround.
Rotimi Awofisibe, Managing Director of the bank, emphasized the broader economic difficulties: “2023 was one of the most testing periods in Nigeria’s recent history, with inflation soaring and GDP growth stagnating at 2.8%. Yet, it was also a turning point for us—a moment that fueled decisive action.”
In 2024, VFD Microfinance Bank recorded a robust recovery. Revenue surged by 39.8%, rising from ₦3.2 billion in 2023 to ₦4.5 billion. “Through strategic efforts, we have enhanced efficiency and optimized our operations, leading to notable revenue and profitability gains,” said Theodore Asamoah, Chief Operating Officer.
Profitability also returned, with the bank posting a Profit After Tax (PAT) of ₦366.6 million in 2024—marking a significant rebound from the prior year’s losses. “This financial performance underscores the strength of our business model and the dedication of our team,” added Awofisibe.
As part of its forward strategy, the bank reaffirmed its focus on deepening financial inclusion, adopting technology to scale operations, and consistently delivering value to its stakeholders. It also reiterated its commitment to upholding strong corporate governance standards in line with the Central Bank of Nigeria (CBN) regulations.
During the AGM, shareholders approved key board changes. Mr. Adeniyi Adenubi and Mr. Chioma Nkechika were re-elected as Non-Executive and Independent Non-Executive Directors respectively. New board appointments included Mrs. Helen Onasanya, Mr. Nonso Okpala (CEO of VFD Group Plc), and Mr. John Okonkwo (Executive Director, Finance, Risk & Compliance, VFD Group). Dr. Collins Chikeluba was also reappointed as Chairman.
The remuneration for Non-Executive Directors was approved at ₦29.5 million for the 2024 financial year, effective retroactively from January 1st, 2024.
Although no dividend was declared for 2023, the bank remains optimistic about its future performance and sustained profitability. “Our focus remains clear: deepening inclusion, leveraging innovation, and creating long-term stakeholder value,” Dr. Chikeluba concluded.
