A total of N35.54 billion was made by the Bank of Industry in 2020, with total assets hitting N1.86 trillion.
The Managing Director of BoI, Olukayode Pitan, said this in a statement on Thursday.
Pitan said the performance demonstrates resilience and strength, and indicates synergy with the various interventions developed by the Federal Government, Central Bank of Nigeria as well as other strategic partners, despite the significant challenges in the operating environment on account of the impact of the COVID-19 pandemic.
The statement added that 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 the €1 billion and $1 billion that were concluded in March and December 2020 respectively.
Meanwhile, total equity increased by 14.8 per cent from N293.08 in the previous year to N336.48 billion in 2020.
Loans and Advances grew marginally in 2020 by 1.3 per cent 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% 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 per cent to 5 per cent per annum for a period of one year and moratorium extension of three months (with a possible extension up to 12 months).
He said: “The bank also directly implemented the following palliatives for its customers in the year: Reduced interest rates on all BOI-funded projects from 10% to 8% pa, 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 N6.4bn.
“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% pa to 6% pa, which also include extension of moratorium period.
“As part of its corporate social responsibility disposition, the bank also donated the sum of N962 million towards the Coalition Against COVID-19 (CACOVID) initiative.
“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.”
- by Ifeoma Ekeke