The Board of the VFD Group at its 5th Annual General Meeting (AGM) assured shareholders that it will leverage on the 2020 financial year performance, to provide valuable financial market services.
Mr. Olatunde Busari, SAN, the Chairman of the company’s Board of Directors noted that despite the adverse effect of the COVID-19 pandemic on the economy, VFD Group expanded its business focus into industries and sectors that allowed it to build a strong financial service franchise.
According to him during the year 2020, the group finalized the acquisition of a significant stake in Anchoria Investment Securities Limited and Atiat Insurance Brokers Limited. He said the focus in 2021 would be to build the route to becoming a commercially viable proprietary investment company.
For the Group Managing Director of VFD, Mr. Nonso Okpala, operational gains in the treasury and fixed income markets translated to a successful financial year in 2020.
Speaking further he outlined some of the factors that contributed to the landmark performance which include; investment income from its Eurobond portfolio, interest income from lending activities, earnings from other subsidiaries, and FX valuation gain.
Giving a breakdown of the holding company’s business he said the group achieved gross earnings of N6.65bn in 2020, or a 96% increase from 2019’s N3.39bn and a 32% growth in other incomes to N5.33bn in 2020. The growth in earnings resulted in a profit before tax (PBT) of N4.08bn or a 173% increase from 2019.
The independent auditor’s report by Mr. Ojo Joshua, FCA, of Deloitte and Touche, and that of the Audit Committee presented by the Chairman of the Committee, Mr. John Okonkwo, observed that the VFD Group’s 2020 financial report aligned with the Company and Allied Matters Act (CAMA) and International Financial Reporting Standard (IFRS).
Karen Abah a shareholder commended the group for paying an N8.50k dividend per share despite the challenging environment in 2020. She was optimistic that 2021 would see better performance in FY 2020.
The Chief Financial Officer (CFO), Mr. Folaji Adeleye, said the focus for 2021 will be effective risk management and cost efficiency, to ensure that the operations of the group remain seamless and stable.