Bank of Industry Profit Declined by 9.6% to ₦35.5Bn in 2020

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How To Apply For Bank Of Industry (BOI) Entrepreneurship Programme 2023
How To Apply For Bank Of Industry (BOI) Entrepreneurship Programme 2023

Nigeria’s oldest, largest and most successful development financing institution, Bank of Industry (BoI), said in the 2020 fiscal year, it recorded a 9.6 per cent decrease in its Pre-tax profit at N35.5 billion as against N39.3 billion recorded in 2019.

This was confirmed at the 61st Annual General Meeting (AGM) of the bank held on Thursday, in Abuja by the Chairman of the Board of Directors of BoI, Mr Aliyu Dikko.

The Board Chairman attributed this to the slowdown witnessed during the year caused by the COVID-19 pandemic, as well as the various interventions and support initiated by the lender for its customers.

However, this did not impact the company’s total assets, which grew to N1.86 trillion during the 2020 financial year, despite the negative impacts of the COVID-19 on global economies.

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Mr Dikko explained that the assets stood at N1.86 trillion, 79.1 per cent higher than the N1.04 trillion recorded in the 2019 financial year.

He attributed the achievement to the bank’s resilience and strive amidst the challenges posed by the COVID-19 pandemic to businesses.

According to him, the increase in total assets was driven to a large extent by the successful debt syndications of €1 billion and $1 billion that were concluded in March and December 2020, respectively.

He added that the group’s total equity increased by 15.3 per cent from N293.08 billion in the previous year to N336.48 billion in 2020.

The Chairman informed shareholders at the meeting that loans and advances grew marginally in 2020 by 1.3 per cent to N749.84 billion, stating that it was a reflection of the adverse impact of the challenging operating environment on the growth of new loans.

Mr Dikko said that the bank facilitated the disbursement of N2.5 billion and N1.2 billion under the N-Power and Government Enterprise & Empowerment Programmes to 300,011 and 109,039 beneficiaries, respectively, as part of the bank’s partnership with the federal government under the National Social Intervention Programme.

He further explained that BoI also made donations that impacted economic integration and intra-Africa trade, by creating key opportunities for growth in the region particularly in food, pharmaceuticals, logistics and the digital economy.

According to him, “Despite the challenging year, I am pleased to announce that the group’s financial statements remain strong and resilient.

“The COVID-19 pandemic has forced the world to transform much faster than expected from the way we work to how we communicate; from the way, we learn, to how we travel.

“We have witnessed improved opportunities in key sectors and industries, notably health care and Information and Communication Technology.

“The IMF projects a growth of 1.5 per cent for Nigeria on the back of the recovery in the oil economy, as well as the implementation of key initiatives aimed at spurring economic growth.

“Our broad strategy in the coming year shall mirror that of the government, in terms of focusing on business recovery, whilst keeping an eye on growth and new business opportunities.”

Mr Dikko expressed appreciation to the bank’s board, its management and staff and relevant stakeholders, including the Central Bank of Nigeria (CBN), customers, government agencies and other strategic partners for ensuring its continued growth and success.