BoI records N35.5bn profit as assets hit N1.8tr

The Bank of Industry (BoI) has recorded a profit after tax of N35.54 billion for the financial year ended Dec. 31, 2020, while its total assets hit N1.86 trillion.

The Managing Director of BoI, Mr Olukayode Pitan, in a statement, yesterday, said the performance demonstrates resilience and strength despite the significant challenges in the operating environment on account of the impact of the COVID-19 pandemic.

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The group’s total assets grew from N1.04tr to N1.86tr between 2019 and 2020, driven by the successful debt syndication of €1bn and $1bn that were concluded in March and December 2020 respectively.

The group’s total equity increased by 14.8 percent from N293.08bn in the previous year to N336.48bn in 2020. Loans and advances grew marginally in 2020 by 1.3% to N749.84bn from the 2019 position, a reflection of the adverse impact of the challenging operating environment on the growth of new loans.

Profit before tax fell by 9.6% from N39.34bn in 2019 to N35.54bn, attributable to the economic slowdown in the year as well as the various interventions and support initiated by the bank for its customers.

Pitan explained that the bank, in line with CBN directive, also reviewed and restructured all its managed projects under the CBN intervention programme with interest rate reduction from 9% to 5% per annum (pa) for a period of one year and moratorium extension of three months (with possible extension for 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% to 8% pa from April 1, 2020, and extended additional moratorium of three months on principal repayment.

“This palliative led to a reduction of the bank’s Interest Income by N6.3bn.

“The challenging business environment also led to an increase in loan loss provision by N6.4bn.”

The bank also said it worked with funding partners, notably the Nigerian Content Development Management Board (NCDMB) to reduce the interest rates on credit facilities approved under its managed fund from 8% pa to 6% pa, which also included the extension of the moratorium period.

As part of its corporate social responsibility, the bank also donated N962 million towards the Coalition Against COVID-19 (CACOVID) initiative.