The Bank of Industry (BoI) says it recorded a profit after tax of N35.54 billion for the financial year ended December 31, 2020. The bank’s assets also hit N1.86 trillion within the period.
In a statement, Managing Director of BoI, Olukayode Pitan, said the performance demonstrates resilience and strength, and also indicates synergy with the various interventions developed by both the Federal Government, the Central Bank as well as other strategic partners.
The success of the bank, he added was despite the significant challenges in the operating environment on account of the impact of the COVID-19 pandemic.
The group’s total assets grew from N1.04 trillion to N1.86 trillion between 2019 and 2020, driven 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 15.3 per cent from N293.08 in the previous year to N336.48 billion in 2020. Loans and Advances grew marginally in 2020 by 1.3 per cent to N749.84 billion from the 2019 position, a reflection of the adverse impact of the challenging operating environment on growth of new loans.
Profit Before Tax fell by 9.6 per cent from N39.34 billion in 2019 to N35.54 billion. 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.
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 nine per cent to per cent per annum for a period of one year and moratorium extension of 3 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 eight per cent 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 N6.3 billion. The challenging business environment also led to an increase in loan loss provision by N6.4 billion.
The bank also worked with funding partners, like the Nigerian Content Development Management Board to reduce the interest rates on credit facilities approved under its managed fund from eight per cent pa to six per cent per annum, which also include extension of moratorium period.
“As part of its corporate social responsibility disposition, the bank also donated the sum of N962 million towards the Coalition Against COVID-19 (CACOVID) initiative.
 says it recorded a profit after tax of N35.54 billion for the financial year ended December 31, 2020. The bank's){kind=link}