BoI records N39.33b profit, disburses N234b to 10,145 enterprises

With 234 billion disbursed to 10,145 enterprises, thus facilitating the creating of an estimated 1 million direct and indirect jobs, the bank of Industry (BoI) has recorded a profit of N39.33 billion for the2019 financial year.

Indeed, 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 N293.09 billion showing a 13.4% increase over 2018 position of N258.24 billion.

In the same vein, Profit Before Tax of the group grew to N39.33billion marking a year-on-year growth of 7.2% over N36.66 billion of2018. 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 by16.7% from N634.11billion in 2018 to N740.03 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).

In the year, the Bank of Industry (the bank) disbursed a total of N234 billion to 10,145 enterprises, thus facilitating the creating of an estimated 1 million direct and indirect jobs.

The disbursement to the Micro, Small and Medium Enterprises (MSME)segment increased from N33.9 billion in 2018 to N53.0 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, GovernmentEnterprise and Empowerment Programme (GEEP). N8.2 billion was disbursed to beneficiaries in 2019, thus bringing the total disbursed amount since inception to N36.9 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 AfricanBankers’ Award as the most impactful Financial Inclusion programme in Africa.

Source: The Guardian News