The Fiji Development Bank (FDB) has reported a significant profit of $5.5 million for the year 2024. This figure marks an increase from the previous year’s profit of $3.78 million, as outlined by FDB’s General Manager of Finance and Administration, Saiyad Hussain, during a presentation of the financial reports for 2022 and 2023 to the Parliamentary Standing Committee on Economic Affairs.
In response to questions from committee member Premila Kumar regarding the bank’s profit generation strategy, Mr. Hussain clarified that while profit is important, the bank’s priority is to facilitate easier access to loans for its clients. He highlighted a reduction in interest rates for many loan packages, such as the sustainable SME loan package, which has an interest rate of 3.99 percent, with other loans ranging from 3.9% to 4.5%. These rates are competitive compared to the broader market.
Mr. Hussain explained that while the FDB’s costs for borrowing funds are slightly higher than those of other commercial banks, they are making efforts to remain competitive by offering lower interest rates. The bank’s strategy reflects a commitment to supporting its clients while also achieving financial profitability.
In summary, the Fiji Development Bank’s substantial profit growth demonstrates its strong performance in a challenging economic environment, alongside its dedication to providing accessible financial services. This positive outcome sets a hopeful tone for future developments and the potential for enhanced support for local businesses and individuals in Fiji.
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