By Chinyere Joel-Nwokeoma
The Bank of Industry (BoI) says it recorded a profit before tax of N39.33 billion for the financial year ended Dec. 31, 2019.
The bank said the profit represented a growth of 7.2 per cent when compared with ₦36.66 billion achieved in the corresponding period of 2018.
The Managing Director of BoI, Mr Olukayode Pitan, in a statement on Wednesday in Lagos, said that the performance reflects a strong balance sheet and sustained business growth in line with both regulatory requirements and global best practices.
“It also indicates a strong alignment with the strategic objectives of the Federal Government, especially in the areas of industrial growth and job creation.
“The group’s total equity as at year ended 2019 was ₦293.09 billion showing a 13.4 per cent increase over 2018 position of ₦258.24 billion,” he said.
Pitan said that the increase in profitability was as a result of improvement in the bank’s loan book, as well as the efficient management of the group’s assets and liabilities.
According to him, in spite of the slow start in the first quarter of the year due to the 2019 general elections, loans and advances grew by 16.7 per cent from ₦634.11 billion in 2018 to ₦740.03 billion in 2019.
He said that 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.
Besides, Pitan said that BoI in the year under review disbursed ₦234 billion to 10,145 enterprises across the country, thus reduced the country’s unemployment rate, as it created one million direct and indirect jobs.
Pitan noted that disbursement to the Micro, Small and Medium Enterprises (MSME) segment increased from ₦33.9 billion in 2018 to ₦53 billion in 2019, representing a 56.3 per cent year-on-year growth.
He said that the bank also consolidated its role as the managing partner of one of Federal Government’s Social Investment Programmes, Government Enterprise and Empowerment Programme (GEEP).
According to him, ₦8.2 billion was disbursed to beneficiaries in 2019, bringing the total disbursed fund since inception of the programme to ₦36.9 billion, to 2.3 million beneficiaries nationwide.
“In light of this outstanding performance, GEEP was recognised by the Desmond Tutu Fellowship for its role in driving financial inclusion.
“The programme also won the African Development Bank’s African Bankers’ Award as the most impactful Financial Inclusion programme in Africa,” he said.
Pitan added that during the year, the bank initiated discussions with its international strategic partners towards raising funds to boost its operations, noting that the transaction was concluded in March 2020.
According to him, €1 billion (approximately $1.11 billion) was raised through a Syndicated Guaranteed Senior Loan Facility from 24 international financial institutions.
Pitan said that the success of the transaction would enable BoI to catalyse domestic production, job creation, enhance local industry competitiveness, and attract domestic and foreign investments.
He added that the fund would integrate local industries into domestic, regional and global value chains, grow export earnings and positively impact the overall economic development of the country.