The Bank of Industry (BOI) Group concluded 2020 financial year on a strong note with growth of assets from N1.04 trillion to N1.86 trillion between 2019 and 2020.
The development financial institution in its financial statement described the feat, “as a resounding success in a period of significant challenges in the operating environment on account of the impact of the COVID-19 pandemic on the economy.”
According to the BOI, the positive result was a demonstration of its resilience and strength.
“It also indicates synergy with the various interventions developed by the Federal Government, the Central Bank as well as other strategic partners towards ameliorating the impact of the pandemic on Nigerian enterprises,” a statement by the bank yesterday added.
It explained that, “The 78.9 per cent increase of the Group’s assets was driven to a large extent 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 also increased by 14.8 per cent from N293.08 billion in the previous year to N336.48 billion in 2020.
As a reflection of the adverse impact of the challenging operating environment on growth of new facilities, loans and advances grew marginally in 2020 by 1.3 per cent to N749.84 billion from the 2019 position.
Although it profit before tax fell by 9.6 per cent from N39.34 billion in 2019 to N35.54 billion, the bank explained that it was largely due 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.
In line with the directive by the Central Bank of Nigeria (CBN) towards supporting Nigerian enterprises following the adverse impact of COVID-19, the bank reviewed and restructured all its managed projects under the CBN intervention programme with interest rate reduction from nine per cent to five per cent per annum for a period of one year and moratorium extension of three 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 per cent to eight per cent 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, it stated.
Additionally, the bank said it worked with funding partners, notably the Nigerian Content Development Management Board to reduce the interest rates on credit facilities approved under its managed fund from eight per cent per annum to six per cent, which also include extension of moratorium period.
As part of its corporate social responsibility disposition, the bank disclosed that it donated the sum of N962 million towards the Coalition Against COVID-19 (CACOVID) initiative.