HFC Bank, Fiji’s fully locally-owned commercial bank, has announced a record dividend of $34.5 million for the financial year ending June 30, 2025. This achievement marks the highest dividend in the bank’s ten-year history and signifies a total of $100 million in dividends paid to Fijians over the past three years, showcasing the bank’s robust financial position.
In their announcement, HFC Bank reflected on its journey, evolving from modest beginnings in a competitive banking landscape to establishing itself as Fiji’s most successful homegrown financial institution. The bank takes pride in being entirely Fijian-owned, with a dedicated team of local professionals committed to serving their community with excellence.
Chief Executive Officer Rakesh Ram, who has led the bank since 2018, noted the remarkable growth achieved during his tenure. Under his leadership, profits surged from $12 million to $43 million, while total assets skyrocketed from $956 million to $2.33 billion. Efficiency has also improved significantly, evidenced by a decrease in the cost-to-income ratio from 50.8% to 33.5%. Ram acknowledged the challenges faced, particularly under public scrutiny, but celebrated the achievements, asserting that the progress made in the last five years was once deemed nearly impossible.
HFC Bank’s strong performance for the fiscal year 2025 features several notable achievements, including:
– Operating profits of $57 million and a net profit after tax of $43 million.
– Sustained growth with an annual increase of $100 million in net loan assets for six consecutive years.
– A broadening revenue stream, mainly in the corporate sector.
– A cost-to-income ratio maintained below 35% and non-performing assets under 3%, aligning with international standards.
– A return on investment exceeding 15% for shareholders.
– A solid capital adequacy ratio of 25%, surpassing the regulatory requirement of 12%.
The record dividend and the overall impressive financial performance underscore the strength of the banking sector in Fiji. HFC Bank’s commitment to innovation and community-focused banking solutions has not only driven local economic growth but also positioned it as a significant player in the face of global financial challenges.
Looking ahead, HFC Bank aims to sustain its leadership in the local banking industry, prioritizing customer relationships and value-added services in its mission. This positive trajectory offers a hopeful outlook for Fiji’s financial landscape, as HFC Bank endeavors to enhance its contributions to both the local community and the economy in the years to come.