VFD Group Plc posted a modest enchancment in profitability for the 12 months ended December 31, 2025, regardless of sturdy progress in income and funding revenue as elevated finance prices and rising impairment fees continued to stress web earnings.
Gross earnings elevated to ₦88.36 billion in 2025 from ₦78.04 billion in 2024, a 13.2 p.c progress pushed by growth throughout its funding portfolio.
Web funding revenue rose to ₦57.96 billion from ₦52.63 billion, supported by a decline in investment-related bills and regular revenue era from monetary property.
Nevertheless, different revenue declined to ₦6.43 billion from ₦8.80 billion, partially offsetting beneficial properties from core operations. The group recorded a one-off achieve of ₦2.74 billion from the disposal of subsidiaries, which contributed to total income progress.
A key concern stays the sharp enhance in impairment fees on monetary property, which rose to ₦2.40 billion from ₦544.51 million.
Regardless of this, web beneficial properties on monetary property measured at truthful worth surged to ₦10.69 billion from ₦3.90 billion, indicating sturdy market-related beneficial properties.
Web income rose to ₦75.42 billion from ₦64.79 billion. Working bills elevated to ₦23.17 billion from ₦19.39 billion, pushed by greater personnel prices and common working bills.
Working revenue improved to ₦52.25 billion from ₦45.40 billion, demonstrating sturdy core efficiency. Nevertheless, the group’s capital construction continues to exert stress on profitability.
Finance prices elevated considerably to ₦38.20 billion from ₦35.41 billion, consuming a considerable portion of working revenue. This stays essentially the most crucial drag on earnings and displays the group’s excessive leverage and value of borrowing.
Revenue earlier than tax rose to ₦14.18 billion from ₦10.02 billion, representing a 41.5 p.c enhance. Tax bills additionally elevated to ₦4.46 billion from ₦2.27 billion, in keeping with greater taxable revenue.
Revenue after tax stood at ₦9.72 billion, up from ₦8.69 billion in 2024, indicating a modest progress of 11.8 p.c. Earnings per share elevated to 95 kobo from 82 kobo.
Whole complete revenue rose considerably to ₦18.88 billion from ₦13.41 billion, pushed largely by truthful worth beneficial properties on fairness securities amounting to ₦8.57 billion. This highlights the significance of unrealized beneficial properties in supporting complete returns.
Steadiness Sheet Enlargement and Threat Concerns
Whole property surged to ₦445.81 billion from ₦295.67 billion, reflecting aggressive growth in funding property, funds underneath administration, and money holdings.
Money and money equivalents rose sharply to ₦79.47 billion from ₦13.35 billion, whereas funding in monetary property practically doubled to ₦98.70 billion.
Funds underneath administration elevated to ₦77.35 billion from ₦49.38 billion, reinforcing the group’s asset administration progress technique.
Nevertheless, this growth has been accompanied by a major enhance in liabilities. Whole liabilities rose to ₦376.19 billion from ₦237.14 billion, pushed by greater borrowings, deposit liabilities and different obligations.
Borrowings elevated to ₦123.86 billion, whereas deposit liabilities rose to ₦65.30 billion, underscoring the group’s reliance on exterior funding to drive progress.
Fairness grew to ₦69.62 billion from ₦58.53 billion, supported by retained earnings and capital restructuring. Nevertheless, the dimensions of liabilities relative to fairness signifies a extremely leveraged steadiness sheet, which exposes the group to rate of interest and liquidity dangers.
Important Evaluation
VFD Group’s 2025 outcomes mirror a enterprise in growth mode, leveraging its funding platform to drive income and asset progress. Robust beneficial properties in truthful worth property and improved working revenue spotlight efficient portfolio administration.
Nevertheless, the sustainability of earnings stays a key concern. A good portion of profitability is being eroded by excessive finance prices, which proceed to eat a big share of working revenue.
Moreover, the rise in impairment fees alerts rising danger throughout the mortgage and funding portfolio.
The group’s heavy reliance on unrealized truthful worth beneficial properties to spice up complete revenue introduces volatility, significantly in unsure market circumstances. Moreover, the sharp enhance in liabilities relative to fairness raises questions on long-term monetary stability and capital effectivity.
Whereas VFD Group has delivered progress throughout key metrics, future efficiency will depend upon its means to cut back borrowing prices, enhance asset high quality and maintain core working revenue with out over-reliance on market-driven beneficial properties.
