FDB profit jumps 46% to $5.6m, showing confidence in Fiji’s economy

The Fiji Development Bank recorded a 46.2 percent increase in net profit to $5.60 million in 2024, with Minister for Lands and Mineral Resources Filimoni Vosarogo saying the result, together with growing private-sector investment, points to continued confidence in Fiji’s economy.

Vosarogo highlighted the Bank’s performance following the tabling in Parliament this week of the Review Report on the FDB 2024 Annual Report.

FDB’s net profit increased to $5.60 million despite a decline in overall revenue, supported by cost-control measures and a $2.82 million reduction in borrowing expenses.

Credit impairment allowances also fell significantly, from $17.42 million to $5.70 million, which Vosarogo said signalled improved loan recovery efforts.

The Bank exceeded its 2024 lending target, disbursing $91.26 million in new loans against a target of $80 million.

Its total assets stood at $529 million, with a loan portfolio of $464.4 million and total equity of $187.8 million.

Vosarogo said the results were particularly significant when viewed alongside wider private-sector investment activity in Fiji.

There are currently 254 active private-sector investment projects valued at approximately $8.9 billion, with 116 already under construction across sectors including tourism, real estate, renewable energy and digital infrastructure.

This compares with 177 active projects valued at $5.8 billion reported a year earlier.

Vosarogo said the figures were an important indication that investors and businesses continued to commit significant capital to Fiji despite domestic and international economic challenges.

“These are important signs of confidence. Businesses borrow when they see opportunities to expand, developers commit capital when they see future demand, and farmers invest when they believe there is a future in production,” he said.

Vosarogo also linked continued investment confidence to improvements in land administration, saying certainty around land could determine whether major developments proceeded or remained stalled.

He said ongoing work to digitise land records, modernise land administration, review legislation and resolve longstanding land matters could reduce risk and provide greater certainty for investors and financial institutions.

FDB’s reach also continued to expand, with 9,709 active customer accounts in 2024 and 54 percent of its loan portfolio directed to rural areas.

Loans to young people increased by $1.7 million, or 46 percent from 2023, while women entrepreneurs accounted for 18 percent of the Bank’s total loan value.

Vosarogo said the combination of increased private investment, continued lending and major projects progressing across different industries provided grounds for confidence in Fiji’s economic potential.

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