Shares of VFD Group Jumps 65% on Impressive Financial Performance

Shares of VFD Group Plc have experienced a significant surge, rising by 69% in April 2025 to reach N79.80 by market close on April 10, 2025.

This growth is attributed to the company’s impressive financial performance, particularly in investment income, which soared by 97.95% year-on-year to N74.5 billion.

The group’s audited financial statement for the year ended December 31, 2024, revealed a pre-tax profit of N11.2 billion, a substantial shift from the pre-tax loss of N1 billion recorded in 2023. This improvement is largely attributed to the significant increase in investment income, which contributed to a 95% increase in net interest income to N58.9 billion.

In late March 2025, VFD Group announced that its board approved investments in Abbey Mortgage Bank Plc and the e-commerce platform Bvndle Loyalty Limited, with the goal of strengthening the operations of these companies and allowing VFD to pursue new, profitable opportunities. This strategic move is expected to enhance the group’s financial stability and expand its investment options.

The market has responded positively to these developments, with VFD shares surging by 69% in April 2025, breaking above the N70 barrier. The market volume has also increased significantly, with over 14 million shares traded in April, compared to just 2 million shares in March.

Commenting on the results, Group Managing Director and CEO Nonso Okpala noted, “Investments and divestments have helped improve our earnings this year. We are focused on building our financial stability, expanding our investment options, and enhancing our governance, with an emphasis on digital innovation.”

VFD Group’s share price has experienced significant fluctuations in recent months. In January 2025, the stock price remained stagnant at N44.40, despite a market volume of 4.3 million shares.

However, in mid-February, the stock began to experience bullish price action, propelling it past the N50 barrier to close the month at N52.40. In March, the stock closed at N47.20, but has since surged to N79.80 in April, with a market volume of over 14 million shares.

In February 2025, VFD Group announced a capital injection of N5 billion into VFD Microfinance Bank (V Bank), effective February 18, 2025, aimed at enhancing its banking services. Later, in March 2025, the group revealed that its board approved investments in Abbey Mortgage Bank Plc and the e-commerce platform Bvndle Loyalty Limited. These investments are intended to support the operations of these companies and help VFD tap into new growth opportunities.

The VFD Board has also authorized funding for its subsidiaries, VFD UK and VFD South Africa, to assist in their expansion efforts in the UK and across Africa. This move is expected to enhance the group’s global presence and diversify its revenue streams.

For FY 2024, VFD Group reported a pre-tax profit of N11.2 billion, recovering from the N1 billion loss reported in 2023. The improvement was primarily due to a 97.95% increase in investment income, which rose to N74.5 billion from N37.6 billion the previous year.

The market has responded positively to VFD Group’s financial performance, with the stock price surging by 69% in April 2025. The increased market volume and bullish price action are expected to continue, driven by the company’s strategic investments and expansion efforts.