HFC Bank, Fiji’s exclusively locally-owned and operated commercial bank, has announced a remarkable dividend payout of $34.5 million for the financial year ending June 30, 2025. This figure represents the highest dividend in the bank’s decade-long history and contributes to a significant total of $100 million distributed to Fijians over the past three years, primarily through its two principal shareholders, the Fiji National Provident Fund (FNPF) and the Unit Trust of Fiji.
In its financial results announcement, HFC Bank characterized its journey from humble beginnings amid competitive challenges to becoming Fiji’s most successful indigenous financial institution. The bank proudly noted that it is fully Fijian-owned and operated by a dedicated team of young professionals committed to serving their community.
Chief Executive Officer Rakesh Ram, who has led HFC Bank since 2018, attributed the bank’s impressive growth to innovative strategies and a focus on customer relations. During his tenure, HFC Bank transformed its profit performance from $12 million to $43 million and its assets from $956 million to an impressive $2.33 billion. Furthermore, the bank improved its efficiency with a cost-to-income ratio now below 35%, while also maintaining non-performing assets below 3%, in line with international standards.
Ram emphasized the importance of strong relationships with customers and a commitment to excellence, stating that the accomplishments achieved over the past five years were once seen as near impossible. He expressed pride in continuing to support Fijians through the bank’s operations while focusing on traditional banking philosophies.
Additional highlights from HFC Bank’s financial performance for the 2025 fiscal year include an operating profit of $57 million, consistent annual increases of $100 million in net loan assets for six consecutive years, and a capital adequacy ratio of 25%, significantly above the regulatory requirement of 12%. The bank is recognized as one of the highest taxpayers in the country, holding a Gold Card Membership with the Fiji Revenue and Customs Service (FRCS).
These results demonstrate the robust health of HFC Bank, which has not only shown resilience in a competitive banking landscape but has also positioned itself as a vital contributor to Fiji’s economy. The bank’s commitment to innovation, coupled with its dedication to customer service, lays a hopeful foundation for continued growth and stability in the financial sector. This optimistic outlook is further enhanced by HFC Bank’s initiatives, including its support for local entrepreneurship through the Fiji Innovation Hub, which aims to foster innovative financial solutions and enhance economic growth across the islands.
Leave a comment