BOI RECORDS N39.33BN PROFIT
The Bank of Industry has said the profit before tax of the group grew by 7.2 per cent year-on-year to N39.33bn at the end of 2019 from N36.66bn at the corresponding period of 2018. The increase in profitability was as a result of improvement in loan book, as well as the efficient management of the group’s other assets and liabilities.
Despite a slow start in the first quarter of the year due to the build-up to the 2019 general elections, loans and advances grew by 16.7 per cent from N634.11bn in 2018 to N740.03bn in 2019. The group’s total equity at the end of 2019 was N293.09bn, showing a 13.4 per cent increase over 2018 position of N258.24bn. A statement from the bank also said it disbursed N234bn to 10,145 enterprises, facilitating the creation of an estimated one million direct and indirect jobs.
It stated that the disbursement to the micro, small and medium enterprises segment increased from N33.9bn in 2018 to N53bn in 2019, representing a 56.3 per cent year-on-year growth. Interest income and interest expense increased by 20 per cent and 54 per cent on a year-on-year basis respectively due to increase in loan book as well as the impact of borrowings (full year impact on the interest expense in 2019, while 2018 impact was for six months).
The bank said it also consolidated its role as the managing partner of one of the Federal Government’s Social Investment Programmes, Government Enterprise and Empowerment Programme. It stated that N8.2bn was disbursed to beneficiaries in 2019, bringing the total disbursed amount since inception to N36.9bn to 2.3 million beneficiaries nationwide. In 2019, the bank said it initiated discussions with its international strategic partners towards raising funds to boost its operations.
This transaction was concluded in March 2020, it added. It added that €1bn (approximately $1.11bn) was raised through a syndicated guaranteed senior loan facility from 24 international financial institutions. “The success of this transaction shall enable the Bank of Industry to catalyse domestic production and job creation on a transformational scale. “It will enhance local industry competitiveness, attract domestic and foreign investments, integrate local industries into domestic, regional and global value chains, grow export earnings and positively impact the overall economic development of the country,” the statement said.