HFC Bank, Fiji’s fully locally-owned commercial bank, has reported a record dividend of $34.5 million for the financial year ending June 30, 2025. This dividend is not only the highest in the bank’s ten-year history but also brings the total dividends paid to Fijians to $100 million over the last three years, reflecting the bank’s strong financial health.
In its announcement, HFC Bank emphasized its journey from modest beginnings in a competitive banking landscape to becoming Fiji’s most successful homegrown financial institution. The bank proudly notes that it is entirely Fijian-owned and operated by a dedicated team of local professionals, committed to excellence and service to the community.
Chief Executive Officer Rakesh Ram, who has been at the helm since 2018, highlighted the bank’s impressive growth during his tenure, with profits increasing from $12 million to $43 million, assets expanding from $956 million to $2.33 billion, and efficiency improving significantly as evidenced by a reduction in the cost-to-income ratio from 50.8% to 33.5%. Ram described the challenges faced amidst public scrutiny, but celebrated the bank’s achievements, stating that what has been accomplished in the last five years seemed almost impossible.
HFC Bank’s impressive performance for the fiscal year 2025 includes key achievements such as:
– An operating profit of $57 million and a net profit after tax (NPAT) of $43 million.
– Consistent growth with an annual increase of $100 million in net loan assets for six consecutive years.
– A steadily expanding revenue base, primarily in the corporate segment.
– A cost-to-income ratio below 35% and non-performing assets below 3%, meeting international standards.
– Delivering a return on investment of over 15% to shareholders.
– A capital adequacy ratio of 25%, exceeding the regulatory requirement of 12%.
The significant milestone of the record dividend and the overall financial performance of HFC Bank illustrate the strength of the banking sector in Fiji. The bank’s commitment to innovation and community-focused banking solutions has not only fostered local economic growth but has also positioned HFC Bank as a prominent player amidst global financial challenges.
With intentions to maintain its status as a leader in the local banking industry, HFC Bank continues to pave the way for future growth, emphasizing the importance of customer relationships and value-adding services in its mission. The positive trajectory sets a hopeful outlook for the financial landscape of Fiji as HFC Bank aims to further enhance its contributions to the local community and economy in the years to come.