BoI’s support for businesses hits N171b
•Posts N17b profit
Following its intervention to businesses in the 2016 financial year, the Bank of Industry (BoI) has posted an operating profit before tax of N17 billion in 2016, 44 per cent increase, over the N11.9bn recorded in 2015.
Indeed, the Bank’s loans and advances also rose by 10 per cent to N171bn in 2016 from N156bn in 2015, followed by disbursements to Small and Medium Enterprises that similarly went up by 42 per cent within the same period to N8bn compared with N5.64bn in 2015.
Besides, the bank has assured its shareholders of a very bright and positive financial year, noting that its financial operations in Q1 2017 have already showed the bank performed brilliantly and profitably as against Q1 2016.
Indeed, the Development Finance Institution (DFI) stated that with the recent approval of its accounts by the Central Bank of Nigeria (CBN), clearly shows that 2017 will definitely be a profitable year for the bank.
A review of the bank’s financial activities during the year showed that the quality of its risk assets also improved phenomenally with a reduction in the ratio of non-performing loans (NPL) to 3.72 per cent in 2016 from 5.87 in 2015.
According to the bank, the feat was achieved in year when the average ratio of non-performing loans in the nation’s banking industry rose sharply to 14% which is beyond the Central Bank of Nigeria’s threshold of 5%.
Commenting on the bank’s performance in the financial year under review, the institution’s Acting Managing Director and Chief Executive Officer, Waheed Olagunju attributed the growth to strong commitment, professionalism and strict adherence to global best practices by the bank’s competent, dedicated as well as passionate management team and staff.
He added that these achievements also culminated in BOI’s consistently high ratings by international and domestic rating agencies being upgraded and affirmed, describing it as the best in the bank’s history despite last year’s economic head winds.
While Moody’s assigned BOI Aa1 in 2016 up from Ba3 of 2015, Agusto’s rating of AA- in 2016 was higher than A+ of 2015. AA+ assigned by Fitch in 2015 was affirmed in 2016.
Acknowledging the Bank’s feat, the Institute of Chartered Accountants of Nigeria (ICAN) at its yearly dinner and awards conferred a merit award on the bank for its outstanding contributions to national development.
Reacting to the awards presented to BOI, he said: “We are delighted that the country we serve and the various constituencies we serve continue to appreciate the bank’s contributions to development of Nigeria which is also coming from such a prestigious and reputable professional body, (ICAN). This will have a very positive effect on us as we are going to be challenged to do more for the development of Nigeria.”
“We have lots of ICAN members in the bank who have made phenomenal contributions through the bank and have continued to do so. We will continue to support ICAN as well as their members who work in the bank because they are making valuable contributions to the bank. It is only a competent management that can efficiently and confidently manage an organization and human resources are one of the major elements of an organization,” he added.
He stated that for the bank to continue to deliver on its mandate on a sustainable basis in the country, it must be able to mobilize financial resources from the public and the private sectors domestically and internationally, saying that the only way to achieve this is having heavy financials.