VFD Group Plc has reported a 44 per cent rise in gross earnings for the first half of 2025, climbing to ₦41.17bn from ₦28.59bn in the same period of 2024, on the back of strong investment income growth.

The surge was driven largely by a 50 per cent increase in investment and similar income, which accounted for over 91 per cent of total earnings. This category rose to ₦37.58bn from ₦25.14bn a year earlier, boosted by higher returns from interest, treasury operations, loans, placements, and dividend income.

Although investment-related expenses rose 50 per cent to ₦1.92bn, the group maintained profitability through operational efficiencies and strong revenue generation. Other income contributed ₦645m, down from ₦3.4bn in the prior period.

VFD’s share of profit from associates more than doubled to ₦22m, while net gains on financial assets at fair value reached ₦2.92bn, making up 7.1 per cent of gross earnings a new income stream absent in the previous year.

Net investment income climbed 50 per cent to ₦35.67bn, translating to a net investment income margin of 94.9 per cent, compared with 10 per cent in H1 2024. Net revenue rose 45 per cent to ₦37.95bn, while operating profit jumped 64 per cent to ₦27.16bn, with margins improving to 66 per cent from 58 per cent a year earlier.

Total expenses increased by 11.54 per cent to ₦10.79bn, led by a 43.42 per cent rise in personnel costs to ₦2.9bn due to workforce expansion and salary adjustments. Other operating expenses which make up 62 per cent of total costs rose modestly by 4.14 per cent to ₦6.7bn, while depreciation and amortisation dipped 2.15 per cent to ₦1.2bn.

Profit before tax soared 80 per cent to ₦6.04bn, with the effective tax rate falling to 17.02 per cent from 23.02 per cent. Profit after tax nearly doubled to ₦5.01bn, translating to earnings per share of ₦0.49, up from ₦0.26 last year. Total comprehensive income surged to ₦17.19bn from ₦2.88bn.

The group’s total assets grew to ₦356.87bn from ₦295.67bn at year-end 2024, driven by a 72 per cent rise in investment in financial assets to ₦87.62bn, a 59 per cent increase in funds under management to ₦78.68bn, and a 29 per cent expansion in investment property to ₦32.09bn.

Liabilities rose to ₦288.52bn from ₦237.14bn, mainly due to higher current liabilities and borrowings, which stood at ₦123.51bn from commercial notes and private placements. Gearing ratios improved, with debt-to-equity falling to 1.81 times from 2.07 times, and debt-to-assets reducing to 0.35 times from 0.41 times, reflecting stronger financial stability.