VFD Group posts twofold jump in half-year profit amid higher investment income

Investment company VFD Group has announced a significant doubling of its net profit for the first half of the year, a performance attributed to a substantial improvement in its investment income. The unaudited report for the period ending Friday revealed that the company's revenue climbed to N53.7 billion from N41.2 billion in the same period last year.

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The first half of 2026 performance demonstrates the value of disciplined execution in a market that continues to reward thoughtful execution.

The driving force behind this growth was a remarkable 102.8 percent surge in investment income. Net investment income specifically expanded by 19.8 percent, reaching N42 billion from N35 billion. VFD Group also saw a sharp increase in other income, which jumped more than sevenfold to N3.8 billion, largely due to a N3.9 billion fair value gain on investment property that was not present in the prior year. The company also managed to reduce its provision for impairment of financial assets, particularly loans and advances, by nearly half to N657.5 million.

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Profit grew more than three times faster than revenue because we remain focused on deploying capital only where risk-adjusted returns justify.

Managing Director Nonso Okpala stated that the first half of 2026 performance reflects the value of disciplined execution in a market that rewards thoughtful strategy. He noted that profit grew more than three times faster than revenue, emphasizing the company's focus on deploying capital only where risk-adjusted returns are justified. The company also reported N79.1 million in profit share from associates, a notable increase from N22 million a year earlier, which further boosted pre-tax profit.

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We enter the second half of the year with the strongest capital position in the group’s history, a materially lower cost of funding, and a portfolio of high-quality earning assets.

Despite a slight decrease in EBIT margin to 62.5 percent from 66 percent in the prior year, profit before tax surged by 98.4 percent to N12 billion. After-tax profit more than doubled, reaching N10.1 billion from N5 billion. In light of these results, the board of directors declared an interim dividend of N0.24 per share, potentially amounting to a N3 billion payout. Executive Director for Finance Folajimi Adeleye expressed confidence, stating the group enters the second half with its strongest capital position, lower funding costs, and high-quality earning assets, prioritizing consistent returns that exceed debt costs.

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Our priority now is straightforward: ensuring that every naira of new capital consistently generates returns that exceed the cost of the debt it replaced.