The Fiji Development Bank (FDB) has announced an impressive net profit of $5.60 million for the 2024 fiscal year, marking a significant 46.2% increase compared to the previous year. This remarkable profit growth was achieved despite a decrease in total revenue, as outlined in the bank’s Annual Report 2024, submitted to Parliament.
The boost in profits can largely be attributed to effective cost management strategies, including a reduction in borrowing expenses by $2.82 million, and a significant $11.72 million cut in credit impairment allowances—indicative of improved loan recovery measures. Although FDB’s total net revenue fell by 11.7%, dropping from $32.95 million to $29.10 million due to lower market interest rates and increased competition in lending, they managed to exceed their lending target by a wide margin. The bank disbursed $91.26 million in new loans against a set goal of $80 million, focusing predominantly on sectors such as agriculture, micro, small, and medium enterprises (MSMEs), and women entrepreneurs, aligning with its developmental mission.
Operational expenses witnessed a slight rise to $15.54 million due to property and IT maintenance but were kept within budget through rigorous cost control. Furthermore, FDB successfully reduced expected credit losses by 67%, from $17.42 million in the prior year to $5.70 million.
As of the conclusion of June 2024, FDB’s total assets amounted to $529.01 million, experiencing a decrease from the previous year mainly due to fewer borrowings and a strategic pivot towards utilizing internal funding. Correspondingly, liabilities decreased by $70.55 million to $341.16 million, while total equity strengthened, rising to $187.85 million, which bolstered the bank’s capital position.
The bank characterized 2024 as a transformative year focused on sustainability, with key investments made in digital systems, infrastructure, and support for underserved sectors. This financial performance demonstrates FDB’s capacity to adapt and strategically maneuver through a competitive and volatile market, reflecting its strong management and unwavering commitment to supporting Fiji’s economic development through accessible financial solutions.
In essence, FDB’s 2024 results underscore a successful balance of sustaining profitability while advancing its mission to uplift communities. This sets a positive example for future efforts aimed at enhancing financial inclusivity and driving economic growth in Fiji.