VFD Group Plc has posted a strong profit surge for the first half of 2025, nearly doubling its pretax earnings from a year earlier, driven by robust investment income and disciplined portfolio management despite a significant rise in borrowing costs.
In its financial results for the six months ended June 30, 2025, the financial services and investment company reported a pretax profit of N6.03 billion, representing a 79.97 percent increase from N3.35 billion recorded in the same period of 2024. Post-tax profit rose notably to N5 billion from N2.5 billion, underlining the group’s resilience in a high-cost operating environment.
The earnings growth was anchored by a sharp jump in investment income, which climbed 49.5 percent to N37.5 billion compared to N25.1 billion in the prior year. The top contributors to this performance were interest from placements at N9.6 billion, investment income of N6.6 billion, interest from loans and advances totaling N6.2 billion, and N5.6 billion from interest on investment logistics. As a result, net investment income stood at N35.6 billion, up from N23.8 billion a year ago.
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Gross earnings increased to N41.1 billion, representing a 43.99 percent year-on-year rise, while net revenue expanded by 44.74 percent to N37.9 billion. Operating profit rose sharply to N27.1 billion, a 64.15 percent increase from N16.5 billion in the first half of last year.
However, the group faced a steep rise in financing costs, with expenses linked to borrowings climbing 60.18 percent to N21.1 billion. Total operating expenses also grew, rising 11.54 percent to N10.7 billion from N9.6 billion in H1 2024. Even so, the strong revenue growth was enough to offset these pressures and deliver a healthy bottom-line expansion.
Chief Executive Officer Nonso Okpala described the half-year performance as the result of “deliberate strategic moves, disciplined portfolio management, improved group-wide efficiency, and focused capital deployment.”
Looking ahead, he reaffirmed that the group remains committed to its “North Star” strategy, which outlines a clear path toward continental expansion, deeper institutional capabilities, and securing market leadership.
The company’s performance has also been reflected on the Nigerian Exchange (NGX), where its shares have gained 63.51 percent year-to-date as of the trading day ended August 11, 2025, closing at N12.10 per share. Investor sentiment has been buoyed by the strong results, even as analysts caution that the rising finance costs could become a more pressing concern if borrowing pressures persist.
This robust showing in the first half of the year positions VFD Group for a potentially stronger full-year performance, though its ability to maintain this trajectory will depend on how effectively it manages funding costs while executing its ambitious expansion plans across the continent.
