VFD Group has reported a twofold increase in net profit for the first half of the year, with after-tax profit leaping to N10.1 billion from N5 billion in the same period last year. The unaudited financial statements, released on Friday, reveal a profit before tax of N12 billion, representing a 98.4% climb year-on-year.
The company's revenue advanced to N53.7 billion from N41.2 billion a year earlier, a growth of approximately 30%. This headline growth was powered by a surge in investment income, which jumped by 102.8%. Net investment income also improved by 19.8% to N42 billion, compared with N35 billion in the corresponding period of the previous year.
Key Financial Highlights
The half-year performance was marked by several notable achievements:
- Investment income increased by 102.8% year-on-year.
- Net investment income expanded by 19.8% to N42 billion.
- Other income shot up more than sevenfold to N3.8 billion, driven by a fair value gain of N3.9 billion on investment property.
- Impairment provisions for financial assets, particularly loans and advances, were reduced by nearly half to N657.5 million.
- Share of profit from an associate rose to N79.1 million from N22 million.
- EBIT margin stood at 62.5%, slightly lower than the 66% recorded a year ago.
- Profit before tax climbed 98.4% to N12 billion.
- After-tax profit doubled to N10.1 billion.
Investment Portfolio and Strategy
VFD Group operates as a proprietary investment holding company, meaning it invests its own capital in target companies for direct market gain. This distinguishes it from investment banks, which deploy funds on behalf of clients. According to the company's website, its portfolio includes stakes in the Nigerian Exchange Group, Veritas Kapital Assurance, NASD Plc, and CSCS Plc.
The strong growth in investment income, coupled with a significant reduction in impairment charges, underscores the quality of the group's asset selection and risk management. The fair value gain on investment property, which did not exist in the prior year, added an additional N3.9 billion to other income, further boosting the bottom line.
Management Commentary
Managing Director Nonso Okpala credited the results to disciplined execution. “The first half of 2026 performance demonstrates the value of disciplined execution in a market that continues to reward thoughtful execution,” he said. He added: “Profit grew more than three times faster than revenue because we remain focused on deploying capital only where risk-adjusted returns justify.”
The contribution from associates also provided a boost, with the share of profit increasing from N22 million to N79.1 million. This indicates that the group's equity investments are generating stronger returns.
Dividend and Capital Position
In a separate announcement on Friday, the board of directors declared an interim dividend of N0.24 per share. Based on the company's share count, this translates into a potential payout of N3 billion to shareholders.
Folajimi Adeleye, the executive director for finance, highlighted the group's strengthened financial position. “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,” he said. He further stated: “Our priority now is straightforward: ensuring that every naira of new capital consistently generates returns that exceed the cost of the debt it replaced.”
Outlook
While the company has not provided explicit guidance for the remainder of the year, management's comments suggest confidence in sustaining growth. The reduction in funding costs and the strong capital position could support further investment opportunities. The EBIT margin, though slightly weaker than last year, remains robust at 62.5%, indicating healthy operational efficiency.
The interim dividend declaration also signals management's commitment to returning value to shareholders. With a diversified portfolio and a focus on risk-adjusted returns, VFD Group appears well-positioned for the second half of the financial year.
