VFD Group's Profit Doubles in First Half of the Year Thanks to Better Investment Income

Investment company VFD Group has seen its net profit double in the first half of the year. This rise is mainly due to a big jump in investment income, according to its report released on Friday.

VFD Group focuses on making direct investments. This means it puts money into companies to make profits, unlike investment banks that invest for their clients.

They have stake in various firms including Nigerian Exchange Group, Veritas Kapital Assurance, NASD Plc, and CSCS Plc, as stated on their website.

Revenue grew to N53.7 billion from N41.2 billion last year. This increase was driven mostly by investment income, which rose by 102.8 percent. Net investment income also went up by 19.8 percent to N42 billion from N35 billion.

The company reported a huge rise in other income, which jumped more than seven times to N3.8 billion. This came after they made N3.9 billion from fair value gain in investment property. Last year, they did not have this kind of income.

They reduced the provision for bad loans and advances by almost half to N657.5 million.

"The first half of 2026 performance shows how disciplined execution pays off in a market that rewards careful planning," said Managing Director Nonso Okpala in a statement.

"Profit grew more than three times faster than revenue because we are careful about where we invest our money," he added.

The company made N79.1 million from its share of profit from associates, up from N22 million last year. This helped increase pre-tax profit.

The EBIT margin, which measures how profitable a company is, was at 62.5 percent. This is a bit lower than the 66 percent they had in the same period last year.

Profit before tax rose by 98.4 percent to N12 billion. After-tax profit also increased to N10.1 billion from N5 billion.

In another announcement on Friday, the board of directors said they will pay an interim dividend of N0.24 per share. This means they could pay out a total of N3 billion.

"We are entering the second half of the year with the strongest capital position in the group’s history, a much lower cost of borrowing, and a set of high-quality earning assets," said Folajimi Adeleye, the executive director for finance.

"Our main goal now is simple: making sure every naira of new capital earns more than the cost of the debt it replaced," he added.