VFD Group Plc has reported a strong financial performance for the first half of 2026, with profit after tax (PAT) more than doubling to N10.06 billion, representing a 100.8 per cent increase from the corresponding period of 2025.
The investment company also announced an interim dividend of 24 kobo per ordinary share, amounting to a total payout of about N3.04 billion, reflecting what it described as confidence in its earnings quality, capital position and long-term growth prospects.
According to its unaudited financial results, the Group recorded gross earnings of N53.71 billion during the period, up 30.5 per cent year-on-year, driven largely by the strength of its investment portfolio.
Profit before tax (PBT) rose by 98.4 per cent, while investment and similar income increased by 30.2 per cent to N49.13 billion, accounting for 91.5 per cent of gross earnings. The Group attributed the performance to disciplined capital allocation, improved operating leverage and efficient earnings retention.
The company’s standalone performance was even stronger, with gross earnings rising by 62.5 per cent to N23.87 billion. PBT surged by 295 per cent to N5.95 billion, while PAT climbed 328 per cent to N5.03 billion.
VFD also strengthened its balance sheet during the period, with shareholders’ funds more than doubling to N91.02 billion. Borrowings declined by seven per cent to N116.18 billion from N124.9 billion as of December 2025, following the strategic deployment of proceeds from its rights issue to reduce debt and optimise its capital structure.
Although total assets were marginally lower than the December 2025 level, the company said this reflected its deliberate strategy to deleverage and improve financial flexibility for future investments.
Commenting on the results, the Group Managing Director, Mr. Nonso Okpala, said the first-half performance validated the company’s disciplined investment strategy.
He noted that profit grew more than three times faster than revenue because the Group remained focused on deploying capital only into investments capable of delivering superior risk-adjusted returns.
“We told the market that the benefits of the rights issue would ultimately be reflected in earnings, and these results clearly validate that expectation. Company-level PBT increased by 295 per cent, borrowings declined, shareholders’ equity more than doubled and earnings per share grew by 110 per cent despite an enlarged share base,” he said.
Okpala added that the Board approved the interim dividend to reward shareholders while maintaining sufficient capital to support the Group’s long-term expansion strategy.
Also commenting on the performance, Executive Director, Finance, Mr. Folajimi Adeleye, said the company entered the second half of the year with its strongest capital position to date, a significantly lower cost of funding and a portfolio of high-quality earning assets.
According to him, management’s priority would be to ensure that every naira of new capital consistently generates returns above the cost of the debt it replaced.
Looking ahead, VFD said it would continue to optimise its balance sheet through a structured deleveraging programme, deploy capital into high-conviction investment opportunities, strengthen portfolio management and build institutional capacity to sustain long-term growth.
The Group expressed confidence that its stronger financial position, disciplined investment approach and high-quality portfolio would support even stronger performance in the second half of 2026.