Monday, June 17, 2024
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FDB records impressive growth despite challenges

The Fiji Development Bank has recorded a net profit of $990,000 for the Year Ending 2021, while at the same time the banks’ lending portfolio grew to $618 million for the same year.

The major driver of this increase was the disbursements of $118.5 million, representing a customer base of more than 4.5k of loan accounts.

This has been highlighted in the Consolidated Review Report of the Bank’s 2020-2021 Annual Reports that was tabled in Parliament earlier this month.

The Bank’s performing loan portfolio stood at $455.8 million and an increase of over three per cent.

Chairperson of the Standing Committee on Economic Affairs Sakiusa Tubuna revealed that non-performing loans recorded an increase of 59 per cent, totalling $16.9 million compared to the last financial year.

Tubuna said that the 2020-2021 financial year was undoubtedly challenging for the Bank due to the second wave of the pandemic, tropical cyclones, and other subsequent floods.

He said the Bank has to continually reassess its position and adopt new plans to assist customers and remain sustainable.

“Stringent cost-control measures and positive movements in net operating revenue were the key contributors to achieving the profit.”

The Assistant Minister, Office of the Prime Minister said the Bank’s total operating revenue recorded a growth of 2.7 per cent of its main income stream: Interest Income increased from$43.3 million in 2020 to $45.2 million in 2021.

This is due to the Bank’s overall loan portfolio.

FDB has also indicated that with the reduced economic activity and a build-up of liquidity in the financial market, there was a significant drop in market borrowing rates.

Meanwhile, members of the Standing Committee are Deputy Chairperson Sashi Kiran, Tomasi Tunabuna, Premila Kumar and Semi Koroilavesau.

Ilaitia Ravuwai
Ilaitia Ravuwai
Journalist | news@fijilive.com

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