Onome Amuge
VFD Group Plc, the investment holding company with stakes spanning financial services, technology, real estate and energy, is strengthening its position as one of Nigeria’s most efficient capital allocators, with its nine-month unaudited financials for 2025 showing an increase in profitability and balance sheet resilience.
The group’s results, released to the Nigerian Exchange (NGX), reveal a 61 per cent year-on-year rise in profit before tax to N7.99 billion for the period ended September 30, 2025, up from N4.95 billion a year earlier, driven by operating efficiency, improved investment returns and tighter balance sheet management.
Operating income also rose by 49 per cent to N54.97 billion, underscoring the firm’s ability to generate stronger returns even amid an uncertain macroeconomic environment.
“Our third-quarter results reflect the compounding effect of disciplined execution and the effectiveness of our strategy. We are optimizing capital allocation and consolidating our unique position as ecosystem builders, while maintaining exposure to key growth sectors,” said Nonso Okpala, group managing director of VFD Group.
A closer look at the numbers reveals a business leveraging efficiency to outpace growth in top-line earnings. Gross earnings grew 34.9 per cent to N60.72 billion, while operating profit jumped 65.8 per cent to N39.85 billion,the highest quarterly run-rate since its 2019 listing.
Cost-to-income ratio moderated by 700 basis points to 30.4 percent, a key indicator of cost discipline and operational efficiency. The improvement in margins lifted profitability metrics, with profit after tax climbing 48.3 percent year-on-year to N6.63 billion, and earnings per share rising to 64 kobo from 45 kobo.
VFD Group’s net investment income margin expanded by 510 basis points to 75.2 per cent, reflecting healthy portfolio performance across subsidiaries, including VFD Microfinance Bank, Abbey Mortgage Bank, and fintech unit Bvndle.
“Our Q3 2025 results underscore the effectiveness of our strategy. The combination of cost efficiency and margin expansion has delivered quality earnings growth and improved returns to shareholders,” said Folajimi Adeleye, executive director, finance and investor relations.
VFD’s latest results also highlight steady deleveraging and capital reinforcement. The group’s debt-to-equity ratio improved to 1.68x from 2.07x in the same period last year, signaling lower leverage and stronger capital efficiency.
Total assets grew by 29.7 per cent to N383.39 billion, while shareholders’ equity rose by 28.8 per cent to N71.50 billion, driven by retained earnings and prudent capital management. The group’s debt position fell slightly to N119.77 billion, even as asset growth outpaced borrowings, improving its debt-to-assets ratio to 0.31x from 0.41x.
The company’s ongoing rights issue, expected to be completed before year-end, is set to further strengthen the balance sheet and support its plan to reduce funding costs and scale long-term profitability.
“We are committed to financial prudence. The proceeds from our ongoing rights issue will enable us to deleverage, improve liquidity, and create a more efficient capital structure,” Adeleye noted.
Beyond the numbers, VFD’s results reflect a deeper strategic transition. Once a niche investment firm, it is fast evolving into a portfolio ecosystem that links finance, technology, and consumer services, an approach the group believes will deliver sustained alpha over the next decade.
Subsidiaries and associate companies now operate in a coordinated ecosystem, generating cross-portfolio synergies. VFD Microfinance Bank remains a key earnings driver, while Bvndle, its fintech and loyalty platform, continues to show rapid scale-up potential.
“The diversification of our portfolio offers a unique blend of growth and resilience. We are leveraging both scale and scope economies to enhance group profitability and shareholder value,” Okpala said.
The group’s operating cash flow turned positive at N12.21 billion in the third quarter, a signal of improving earnings quality and disciplined asset-liability management.
VFD Group’s management maintains an optimistic outlook for the final quarter of the year, citing improved capital efficiency, stable funding costs, and the planned rollout of growth initiatives across its investment ecosystem.
The group’s Return on Average Assets (ROAA) stood at 2.6 per cent, up from 2.31 per cent in 2024, while Return on Average Equity (ROAE) remained strong at 13.6 per cent. Despite a decline in ROAE due to higher equity base, the figures indicate sustained profitability and long-term value creation.
Looking ahead, the company plans to channel fresh capital from the rights issue into high-yield, risk-adjusted opportunities, particularly in fintech, consumer lending, and real estate, while maintaining strict capital discipline.
Okpala added that the group’s next growth phase will hinge on digitisation, ecosystem integration, and strategic partnerships.
