The Fiji Development Bank (FDB) recorded a net profit of $5.60 million in the 2024 financial year, a 46.2 percent increase from the previous year, despite a dip in overall revenue, according to the bank’s Annual Report 2024 tabled in Parliament.
The profit growth was largely driven by strategic cost control and a significant $2.82 million reduction in borrowing expenses, alongside an $11.72 million drop in credit impairment allowances, signalling improved loan recovery efforts.
Total net revenue fell by 11.7 percent from $32.95 million to $29.10 million, which the bank attributed to lower market interest rates and increased competition in the lending space.
Despite the revenue pressure, FDB exceeded its lending target by disbursing $91.26 million in new loans, surpassing its $80 million goal.
The majority of the new lending went to agriculture, MSMEs (micro, small and medium enterprises), and women entrepreneurs, in line with the bank’s development mandate.
Operating expenses rose slightly to $15.54 million, due to property and IT maintenance, but remained within budget thanks to tight cost control measures.
FDB also booked expected credit losses of $5.70 million, sharply down from $17.42 million the year before.
As of June 30, 2024, the bank’s total assets stood at $529.01 million, down from $593.95 million, a result of reduced borrowing and a strategic reliance on internal funds.
Liabilities declined by $70.55 million to $341.16 million, while total equity increased to $187.85 million, reinforcing the bank’s strong capital position.
The bank said 2024 was a “pivotal year of sustainable transformation”, with increased investment in digital systems, infrastructure, and support for underserved sectors.
