Despite the strong challenges presented by Covid as well as the recession which followed, the Bank of Industry (BOI) has shown that this won’t hamper or hinder its outstanding financial performance and development as it crossed the N2 trillion mark at the end of the year 2022.
The bank has grown in leaps and bounds in all major financial indices on a year-on-year basis, thereby consolidating its position as Nigeria’s largest and most impactful financial institution.
The year 2022, saw the group’s total assets cross the N2 trillion mark to N.38 trillion which indicates a 39.2% growth compared to the previous year. This major leap was achieved after it completed three landmark capital-raising transactions in 2022, worth €1.85 billion (about $2 billion) in the international financial markets.
BOI’s financial statement also showed that gross earnings also grew from N184.55 billion in 2021 to N 212.96 billion in 2022, a growth of 15.4%. Meanwhile, interest income from noth customer loans and investments also rose from N175.83 billion in 2021 to N212.96 billion in 2022, a 21.1% increase.
BOI Total Assets Hits N2.38 Trillion
Profit tax rose by 15.6% to N71.99 billion from N 62.28 billion in 2021 which is due to a significant growth in interest income as well as other income rincome lines, with a reduction in impairment charges. Total equity also experienced a growth of 11.7%, which saw it rise from N384.85 billion in 2021 to N 429.83 billion in 2022, with loans and advances rising by 3.2% from N780.48 billion in 2021 to N805.46 billion in 2022.
During this developmental increase, BOI also disbursed N210.7 billion to 418.436 beneficiaries for the year under review, through both direct and indirect lending platforms, also through funds managed by the industry for its strategic partners.
BOI’s three major capital-raising transactions at the international financial markets include the bank’s maiden Eurobond of €750 million in February 2022. It was the first of its kind for the bank, the country, and Africa. This deal was BOI’s first Eurobond transaction and the first Euro-denominated Eurobond transaction in Nigeria. The transaction was also the first Eurobond transaction that was covered by Nigeria’s sovereign guarantee and represented the first of its kind done by a national development finance institution in Africa.
The transaction also won BOI, the Agency Bond Deal of the year award at the 2023 award event of the Bonds, Loans, and ESG Capital Markets in Capetown, South Africa. The second major capital-raising transaction was the €1 billion guaranteed senior loan facility, which was concluded in August 2022. It also ranked the first of its kind, by any Nigerian financial institution, in terms of size and structure.
This transaction helped the Bank of Industry raise liquidity while helping it diversify its funding sources by attracting new lenders, despite the expensive international capital markets which shut out many borrowers at that time.
BOI also completed a €100 million line of credit from the French Development Agency in August 2022, The credit facility helped the bank expand its financing interventions in environmentally friendly green projects. A grant of €2.5 million was also secured which helped provide support capacity building for both staff and customers.
According to the Bank of Industry, it also completed major intervention programs in the year 2022, which cut across several sectors and segments in the Nigerian economy, contributing significantly to national goals of economic recovery and job creation as well as business empowerment, for micro, small and medium enterprises to help them maintain sustainable operations.