{"id":559,"date":"2025-04-11T23:47:31","date_gmt":"2025-04-11T22:47:31","guid":{"rendered":"https:\/\/techstream.africa\/?p=559"},"modified":"2025-04-11T23:47:31","modified_gmt":"2025-04-11T22:47:31","slug":"fairmoney-grows-revenue-by-62-in-2024-but-faces-credit-risks","status":"publish","type":"post","link":"https:\/\/techstream.africa\/?p=559","title":{"rendered":"FairMoney Grows Revenue by 62% in 2024, But Faces Credit Risks"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"724\" src=\"https:\/\/techstream.africa\/wp-content\/uploads\/2025\/04\/img_7341-1-1024x724.jpg\" class=\"wp-image-558\" srcset=\"https:\/\/techstream.africa\/wp-content\/uploads\/2025\/04\/img_7341-1-1024x724.jpg 1024w, https:\/\/techstream.africa\/wp-content\/uploads\/2025\/04\/img_7341-1-300x212.jpg 300w, https:\/\/techstream.africa\/wp-content\/uploads\/2025\/04\/img_7341-1-768x543.jpg 768w, https:\/\/techstream.africa\/wp-content\/uploads\/2025\/04\/img_7341-1.jpg 1536w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"p1\">Nigerian fintech FairMoney reported impressive growth in 2024, with gross revenue up by 62% to \u20a6121.9 billion and profit after tax rising to \u20a67.9 billion, according to its unaudited financial report. A key driver was its reliance on customer deposits, which funded 56% of its loan book, up from just \u20a62.9 billion in 2021 to \u20a672.9 billion in 2024, a massive 1,467% increase.<\/p>\n\n\n\n<p class=\"p1\">This shift helped FairMoney reduce its reliance on expensive borrowings, cutting its dependence from 80% in 2020 to under 5% in 2024. Most revenue came from interest on loans, which hit \u20a6116 billion. However, the fintech still spent \u20a641 billion in operating costs and recorded a high cost-to-income ratio\u2014spending \u20a678 to earn \u20a6100.<\/p>\n\n\n\n<p class=\"p1\">Despite strong growth, loan impairments rose by 30% to \u20a659.4 billion, pushing the impairment ratio to 45.7%, although FairMoney attributes this to its conservative accounting method. The fintech\u2019s net interest margin stands at a strong 81.7%, but this depends heavily on high-interest loans, raising concerns about credit risk.<\/p>\n\n\n\n<p class=\"p1\">FairMoney\u2019s growth story is compelling, but sustainability hinges on improving risk management and reducing costs.<\/p>\n\n\n\n<p class=\"p1\">Read the full news here:<\/p>\n\n\n\n<figure class=\"wp-block-embed p1\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"DJ1bn7GaJv\"><a href=\"https:\/\/techcabal.com\/2025\/04\/10\/fairmoney-2024-revenue\/\">FairMoney grew revenue to \u20a6121.9 billion in 2024 on deposit-led lending<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; visibility: hidden;\" title=\"&#8220;FairMoney grew revenue to \u20a6121.9 billion in 2024 on deposit-led lending&#8221; &#8212; TechCabal\" src=\"https:\/\/techcabal.com\/2025\/04\/10\/fairmoney-2024-revenue\/embed\/#?secret=cioIqKMvGY#?secret=DJ1bn7GaJv\" data-secret=\"DJ1bn7GaJv\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Nigerian fintech FairMoney reported impressive growth in 2024, with gross revenue up by 62% to \u20a6121.9 billion and profit after tax rising to \u20a67.9 billion, according to its unaudited financial report. A key driver was its reliance on customer deposits, which funded 56% of its loan book, up from just \u20a62.9 billion in 2021 to&#8230;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-559","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/techstream.africa\/index.php?rest_route=\/wp\/v2\/posts\/559","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/techstream.africa\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/techstream.africa\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/techstream.africa\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/techstream.africa\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=559"}],"version-history":[{"count":1,"href":"https:\/\/techstream.africa\/index.php?rest_route=\/wp\/v2\/posts\/559\/revisions"}],"predecessor-version":[{"id":560,"href":"https:\/\/techstream.africa\/index.php?rest_route=\/wp\/v2\/posts\/559\/revisions\/560"}],"wp:attachment":[{"href":"https:\/\/techstream.africa\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=559"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/techstream.africa\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=559"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/techstream.africa\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=559"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}