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

The Managing Director of BoI, Olukayode Pitan, in a statement, yesterday, said that the performance demonstrates resilience and strength, and also indicates synergy with the various interventions developed by both the Federal Government, the Central Bank of Nigeria (CBN) as well as other strategic partners, despite the significant challenges in the operating environment on account of the impact of the COVID-19 pandemic.

Olukayode Pitan

The group’s total assets grew from ₦1.04 trillion to ₦1.86 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 14.8 per cent from ₦293.08 in the previous year to ₦336.48 billion in 2020. Loans and advances grew marginally in 2020 by 1.3 per cent to ₦749.84 billion 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 per cent from ₦39.34 billion in 2019 to ₦35.54 billion, attributable 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.

Pitan explained that the bank, in line with the CBN directive, also reviewed and restructured all its managed projects under the CBN intervention programme with interest rate reduction from nine per cent to five per cent per year for a period of one year and moratorium extension of three months (with a possible extension up to 12 months).

He said: “The bank also directly implemented the following palliatives for its customers in the year: Reduced interest rates on all BOI-funded projects from 10 per cent to eight per cent yearly, with effect from April 1, 2020, for one year and extended additional moratorium of (3 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 eight per cent to six per cent pa, which also include an extension of moratorium period.”

Pitan added that as part of its corporate social responsibility disposition, BoI also donated the sum of ₦962 million towards the Coalition Against COVID-19 (CACOVID) initiative.

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