The Fiji Development Bank (FDB) has achieved a notable net profit of $5.60 million for the 2024 financial year, marking a significant 46.2% increase from the previous year. This impressive growth in profit comes despite a decrease in overall revenue, as reported in the bank’s Annual Report 2024 presented to Parliament. The expansion in profits can largely be attributed to strategic cost control efforts, notably a $2.82 million decrease in borrowing expenses, and an $11.72 million reduction in credit impairment allowances, which indicate improved loan recovery strategies.
Although the bank’s total net revenue decreased by 11.7%, from $32.95 million to $29.10 million, due to lower market interest rates and heightened competition in lending, FDB surpassed its lending target significantly. The bank disbursed $91.26 million in new loans against a goal of $80 million, with a strong focus on agriculture, micro, small, and medium enterprises (MSMEs), and women entrepreneurs, aligning with its developmental mandate.
Operational expenses saw a slight increase to $15.54 million because of property and IT maintenance, yet remained on budget through diligent cost management. The bank also managed to substantially cut expected credit losses by 67% from the previous year’s $17.42 million to $5.70 million.
As of the end of June 2024, FDB’s total assets stood at $529.01 million, a decrease from the previous year largely due to a reduction in borrowing and a strategic shift towards utilizing internal funds. Concurrently, liabilities were reduced by $70.55 million to $341.16 million, strengthening total equity, which rose to $187.85 million, thereby enhancing the bank’s capital position.
The bank highlighted that 2024 was a transformative year focused on sustainable practices, with significant investments made in digital systems, infrastructure, and support for underrepresented sectors. This financial performance showcases FDB’s adaptability and strategic acumen in navigating a competitive and fluctuating market, demonstrating its robust management and commitment to supporting Fiji’s economic development through accessible financial solutions.
Overall, FDB’s results from 2024 reflect a successful balance of maintaining profitability while advancing its mission to uplift communities, thereby setting a positive precedent for future initiatives directed at fostering financial inclusivity and economic growth in Fiji.