The Bank of Industry (BoI) says it has recorded a profit after tax of N35.54 billion for the financial year ended December 31, 2020, with its total assets now at N1.86 trillion.
Olukayode Pitan, managing director, BoI, in a statement made available to BusinessDay on Monday, said the performance demonstrates resilience, strength, and an indication of synergy with the various interventions developed by the Federal Government, the Central Bank of Nigeria (CBN), and other strategic partners.
The group’s total assets grew from N1.04 trillion to N1.86 trillion between 2019 and 2020, driven by the successful debt syndication of €1 billion and $1 billion that were concluded in March and December 2020, respectively.
The group’s total equity increased by 14.8 percent from N293.08 in the previous year to N336.48 billion in 2020. Loans and advances grew marginally in 2020 by 1.3 percent to N749.84 billion from the 2019 position, a reflection of the adverse impact of the challenging operating environment on growth of new loans.
Profit before tax fell by 9.6 percent from N39.34 billion in 2019 to N35.54 billion, attributable to the economic slowdown in the year as well as the various interventions and support initiated by the bank for its customers were responsible for this result.
Pitan explained that the bank, in line with CBN directive, also reviewed and restructured all its managed projects under the CBN intervention programme with interest rate reduction from 9 percent to 5 percent per annum for a period of one year and moratorium extension of 3 months (with a possible extension up to 12 months).
“The bank also directly implemented the following palliatives for its customers in the year: Reduced interest rates on all BOI-funded projects from 10 percent to 8 percent per annum, with effect from April 1, 2020 for one year and extended additional moratorium of (3 months) on principal repayment. This palliative led to a reduction of the bank’s Interest Income by N6.3 billion. The challenging business environment also led to an increase in loan loss provision by N6.4 billion.
“Additionally, the bank worked with funding partners, notably Nigerian Content Development Management Board to reduce the interest rates on credit facilities approved under its managed fund from 8 percent to 6 percent per annum, which also include extension of moratorium period.
“As part of our corporate social responsibility disposition, we also donated N962 million towards the Coalition Against COVID-19 (CACOVID) initiative,” MD said.
In recognition of the successful conclusion of the bank’s €1 billion syndicated loan facility in March 2020 as well as its sustained support for SMEs in Nigeria, the bank was bestowed with the Deal of the year (Debt) and SME Bank of the year Awards respectively at the African Banker Awards, organised by the Africa Development Bank. The bank also won the best bank in Support of Manufacturing Award at the second edition of the Manufacturing Excellence Award by The Guardian Newspaper Nigeria”, he added.
