Connect with us

NEWS

Bank of Industry grows assets from N1.04t to N1.86t

Published

on

BANK of Industry Group has concluded 2020 financial year with growth of assets from N1.04 trillion to N1.86 trillion between 2019 and 2020.

  A statement by the bank on Monday, said that the group’s financial statement demonstrated resilience and strength, noting that “as resounding success in a period of significant challenges in the operating environment on account of the impact of the COVID-19 pandemic on the economy.

  “It also indicates synergy with the various interventions developed by the federal government, the Central Bank as well as other strategic partners towards ameliorating the impact of the pandemic on Nigerian enterprises.

  The bank explained that “The 78.9% increase of the group’s assets was driven to a large extent by the successful debt syndication of €1 billion and $1 billion that were concluded in March and December, 2020, respectively.”

  The group’s total equity increased by 14.8% from ₦293.08 in the previous year to ₦336.48 billion in 2020.

  As a reflection of the adverse impact of the challenging operating environment on growth of new facilities, loans and advances grew marginally in 2020 by 1.3% to ₦749.84 billion from the 2019 position.

  Profit Before Tax fell by 9.6% from ₦39.34 billion in 2019 to ₦35.54 billion, the bank explained that it was largely due to the economic slowdown in the year as well as the various interventions and support initiated by the bank for its customers were responsible for this result.

  In line with the directive by the Central Bank of Nigeria (CBN) towards supporting Nigerian enterprises following the adverse impact of COVID-19, the bank reviewed and restructured all its managed projects under the CBN intervention programme with interest rate reduction from 9% to 5% per annum for a period of one year and moratorium extension of three months (with a possible extension up to 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, with effect from April 1, 2020, for one year and extended additional moratorium of (three months) on principal repayment.

  This palliative led to a reduction of the bank’s interest income by ₦6.3 billion.

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

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

  As part of its corporate social responsibility disposition, the bank donated the sum of ₦962 million towards the Coalition Against COVID-19 (CACOVID) initiative.

  The bank’s performance was crowned with many awards during the period under review. In recognition of the successful conclusion of the bank’s €1 billion syndicated loan facility in March 2020 as well as its sustained support for SMEs in Nigeria.

  Bank Of Industry was awarded with the Deal of the Year (Debt) and SME Bank Of The Year Awards respectively at the African Banker Awards, organised by the Africa Development Bank.

  The bank also won the best bank in Support of Manufacturing Award at the second edition of the Manufacturing Excellence Award by The Guardian Newspaper, Nigeria.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending