The Development Bank of Nigeria (DBN) has disbursed more than N631 billion to slightly over 313,000 MSMEs across the country, from N482 billion to more than 208,000 MSMEs at the end of the previous year.
The Managing Director/ Chief Executive Officer, Dr. Tony Okpanachi disclosed this Tuesday at the venue of the 2023 Annual general meeting of the Bank in Abuja.
The shareholders also approved the board of directors’ proposal for a dividend of N3.4 billion, which represents 25% of retained earnings (Profit After Tax and after statutory reserves transfers) in the year ended 31 December 2022 (31 December 2021: Nil). The basis of the proposed dividend is N34.18 per share.
Speaking on the performance of the bank, he said in the last five years of DBN’s operations, the Bank has been at the forefront of development, playing a focal and catalytic role in alleviating financing constraints for Nigeria’s underserved MSMEs.
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He said: “By the end of December 2022, the Development Bank of Nigeria had disbursed more than N631 billion to slightly over 313,000 MSMEs across the country, which grew from N482 billion to more than 208,000 MSMEs at the end of the previous year. This implies a 31 percent growth in financing support and 50 percent growth in MSMEs impacted.
“Of the total MSME beneficiaries of DBN funds over the 5-year period, 67 percent were women and 27 percent were young people, with well more than 250,000 jobs already created.”
By the end of the 2022 financial year, the Bank achieved earnings of N47.6 billion and profit before tax (PBT) of N29.5 billion, cost to income ratio of 15.9%. The low cost-to-income result emphases the impact of the cost-saving measures implemented by the Bank during the course of the financial year.
The bank recorded strong earnings of N49.4bn for the year, and this represented a 25% year-on-year growth from N39.6bn recorded in 2021. This was on account of the bank’s increased loan portfolio coupled with the high yields observed in the Nigerian economic climate in the latter half of the year.
Income from Loans increased by 37% year-on-year from N23.0bn in 2021 to N31.6bn in 2022.
Chairman, Development Bank of Nigeria Plc. Dr. Shehu Yahaya who was re-elected by the shareholders at the AGM said the bank will deepen its commitment to continue to expand funding for Nigerian MSMEs through our Participating Financial Institutions.
He said: “The Bank will continue to engage with all stakeholders to search for solutions and in uence policies aimed at addressing the constraints faced by Micro, Small, and Medium Scale Enterprises, especially as they relate to access to nance and building their capacity to upscale sustainably.
In the coming year, especially given the context of the general election and the uncertainties engendered by political transition, the Bank will intensify its efforts to develop ideas,policies, programmes, and projects to boost growth, help bolster macro economic frameworks, reduce financial vulnerabilities, provide support to vulnerable population groups and reduce the long-term impacts of the global shocks of recent years on the MSMEs- all critical to how we can flourish as a Nation.”
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