ICAN recognises BoI’s support for industrial growth

Bank nominated for merit award
In recognition of its outstanding contribution to the growth of businesses and the nation’s economy, the Institute of Chartered Accountants of Nigeria (ICAN) has nominated the Bank of Industry (BoI) for this year’s edition of its merit award.

According to the Institute, the bank is being recognised in the corporate body category of its merit award having reviewed the bank’s activities and found that the bank in the last one-year, has recorded remarkable improvements especially regarding support for Micro Small and Medium Enterprises (MSMEs) in line with one of the priorities of the Federal Government.

Review of activities during the 2016 financial year showed that the bank’s loans approvals as at December 2016 rose by nine per cent to N150bn compared to N138.5bn that was achieved in 2015.

Indeed, disbursements to MSMEs also went up by 42 per cent within the same period to N8bn from N5.64bn in 2015, while the bank wide ratio of non-performing loans (NPL) reduced to 3.87 per cent in 2016 from 5.75% in 2015.

Also the operating profit before tax (PBT) rose to N17.4bn in 2016 from N11.95bn in 2015, which represented 46 per cent increase.

“All these culminated in BOI’s ratings by international and domestic rating agencies being upgraded and affirmed throughout 2016. 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 February 2017”, the bank stated in a statement.

In the last one-year, bold steps were taken to implement the economic programmes of the Federal and many State Governments in collaboration with domestic and foreign development partners.

The bank noted that conscious efforts have continued to be made towards evolving a favourable ecosystem for SMEs in Nigeria and further deepen the its credit delivery process and have it revitalized for speed and efficiency.

These include expansion of the bank’s branch network, automation of its operations and equipping youths with relevant business skills in solid minerals, agro processing as well as cotton, textile and garmenting, therefore engendering considerable job creation opportunities and several other developmental impacts.

The award event is scheduled to hold on April 28 in Lagos.