May 26, 2021

VFD Group shareholders to get N8.51 per share dividend

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By Peter Egwuatu

Shareholders of GFD Group Plc is to get N8.51 per share dividend for the financial year ended December 31, 2020 despite the coronavirus. COVID-19 pandemic and economic headwinds during the period.

VFD Group Plc, a leading proprietary investment company in Lagos, whose result was released for 2020, recorded  Profit After Tax, PAT of N3.3 billion representing a growth of 166 per cent from N1.24 billion in 2019.

The result showed significant growth and resilience despite lingering uncertainties during the period under review.

The performance indicators showed that the Company’s gross earnings grew by 96 per cent  to N6.65 billion from N3.39 billion; Profit Before Tax, PBT grew year-on-year by 176 per cent; Trading and Other Non-Interest Income grew by 47 per cent  to N.4.66 billion from N3.17 billion.

The Company recorded a four per cent year-on-year decline in Credit Losses and Impairment despite the well documented impact of COVID 19 on the Nigerian economy and in particular, financial services, while total asset growth of 85 per cent to N81.67 billion from N44.23 billion.

Further details of the report shows that gross earnings performance was driven by significant growth in Interest Income which grew by 90 per cent , while the impressive PBT result was also supported by the business’s ability to keep cost growth lower than revenue growth as Expenses grew by only 34 per cent.

Based on the impressive results, Vanguard gathered that VFD Group Plc has proposed a final dividend of N8.51 per share.

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Market operators say this is a validation of the Company’s investment strategy and leadership which reaffirms its position as a unique industry-agnostic investment outfit. In comparison, this is a 158% increase in dividend payout.

According to Nonso Okpala, Group Managing Director/CEO , VFD Group:  “2020 was a challenging year for the global economy with the onset of a pandemic that questioned every known business principle. However, we weathered it and delivered our best financial performance so far. This was only made possible through the dedication of our staff and the support from our shareholders and other key business stakeholders. It is quite rewarding to see the outcome of those uncertain twelve months.”

Focusing on strategic activities, VFD Group reported that its leading digital banking application which was launched during the year had crossed the N250,000 milestone in unique customer acquired. Other strategic highlight includes investment in Abbey Mortgage Bank, Atiat Leasing Limited, revamping of its hospitality business, and investment in Atiat Insurance Brokers Limited.

Okpala noted that:  “The Company is well on course to achieve all outlined objectives in its 13yr strategic plan while it also shifts its short-term focus towards partnership and investment opportunities beyond Nigeria.”