Home Finance Corporation (HFC) Bank has announced a milestone dividend of $30.105 million to the Fijian people after a record profit for the financial year that ended in June this year.
The bank declared dividends of $22.579 million and $7.526 million to FNPF and Unit Trust of Fiji, which hold shareholding of 75 percent and 25 percent respectively.
The HFC Bank Board in a statement said they have been providing lucrative return on equity to shareholders of 16 percent for the past 2 years (post COVID-19) and this is returned to the people of Fiji as part of annual interest to members of FNPF and dividends to unit holders at Unit Trust of Fiji.
“This also demonstrates the role of a strong and successful local Bank in the development and growth of Fijian economy; therefore, a robust and sustainable local Bank is imperative for the nation.”
During the financial year ending 30th June 2023, the bank posted a net profit after tax of $43.007 million, compared to $32.229 million the previous year.
This is a historic profit in its nine years of banking operations and net profit after tax grew by 34 percent compared to prior financial year and the return on assets has been boosted by 19 percent.
HFC Bank chief executive Rakesh Ram said he is elated to lead the only Fijian Bank with the strong guidance and leadership from the Board and work with one of the best talents in the country.
Ram said being the youngest bank in Fiji, they have demonstrated their capability with 100 percent local staff to effectively compete with the well-established international banks to significantly contribute towards Fiji’s economic success and growth.
He said they are humbled to be providing significant returns to the Fijian people and their overall improved performance has been underpinned by consistent growth in net lending book averaging over $100 million for the last 6 years with the 2022-2023 financial year netting a growth of $159 million, an increase of 13.3 per cent.
Ram added this is further complimented by continued diversification of their revenue base, and a highly cost-effective operating model and the bank’s total assets have grown to $2 billion.