The Bank of Industry (BoI), has recorded a profit of N39.33 billion for the 2019 financial year.
It also disbursed ₦234 billion to 10,145 enterprises, thus facilitating the creating of an estimated one million direct and indirect jobs.
The 2019 financial accounts of the Bank of Industry group reflects a strong balance sheet, as well as sustained business growth in line with both regulatory requirement 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% increase over 2018 position of ₦258.24 billion.
In the same vein, Profit Before Tax of the group grew to ₦39.33 billion marking a year-on-year growth of 7.2% over ₦36.66 billion of 2018. The increase in profitability is 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% from ₦634.11billion in 2018 to ₦740.03 billion in 2019.
Interest Income and Interest Expense increased by 20% and 54% 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 6months).
The disbursement to the Micro, Small and Medium Enterprises (MSME) segment increased from ₦33.9 billion in 2018 to ₦53.0 billion in 2019, representing a remarkable 56.3% year-on-year growth.
The bank also consolidated its role as the managing partner of one of the federal government’s Social Investment Programmes, Government Enterprise and Empowerment Programme (GEEP). ₦8.2 billion was disbursed to beneficiaries in 2019, thus bringing the total disbursed amount since inception 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.
In the course of 2019, the bank initiated discussions with its international strategic partners towards raising funds to boost its operations. This transaction was concluded in March 2020.
The sum of €1 billion, approximately $1.11billion, 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, 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.