The Fiji Development Bank (FDB) has reported a profit of $5.5 million for the year 2024, demonstrating an increase from the previous year’s profit of $3.78 million. This was revealed during a presentation of the financial reports for 2022 and 2023 before the Parliamentary Standing Committee on Economic Affairs. FDB General Manager for Finance and Administration, Saiyad Hussain, highlighted that while the bank is focused on sustainability and providing affordable loan options, it has still achieved significant profit.
In response to committee member Premila Kumar’s question about the bank’s prioritization of profit, Mr. Hussain emphasized that their goal is to make loan access easier for clients. He pointed out that the bank has lowered interest rates for various loan packages, such as the sustainable SME loan package, which has an interest rate of 3.99%. Other packages range between 3.9% and 4.5%, making them competitive against other commercial banks.
Mr. Hussain noted that while FDB’s funding costs are slightly higher because they source funds directly from the market, their efforts to maintain low interest rates reflect a commitment to support their clients amidst the current market conditions.
This positive trend in profitability suggests that FDB is navigating the economic landscape efficiently and balancing its financial health with the needs of its customers. The bank’s emphasis on affordable lending can further enhance the growth of small and medium enterprises in Fiji, contributing to the country’s overall economic development.
In conclusion, FDB’s increasing profitability alongside its commitment to lower loan costs represents a hopeful scenario for both the bank and its clients, indicating a proactive approach to fostering financial inclusivity and economic growth in the region.
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