BOI records 67 per cent asset growth in H1

The Bank of Industry (BOI) has recorded a year-on-year (YoY) growth of 67 per cent in its total asset as of half year (H1) 2023 by achieving N3.3 trillion as of June 30, 2023 compared to N1.97 trillion in June 2022.

In the report made available to journalists in Lagos, yesterday, BOI attributed the growth in assets to the prudent management of the bank’s assets and full hedge of the foreign currency assets as profit before tax after impairments (PBT) grew by 177 per cent YoY from N37.5 billion in June 2022 to N104 billion in June 2023.

The report stated that the bank has historically been able to maintain a non-performing loan (NPL) rate below the regulatory threshold of five per cent. The Bank’s NPL as of June 2023 was 1.88 per cent down from 3.6 per cent as of December 2022.

“BOI has also grown its equity position by 57 per cent since June 2022 from ₦403.6 billion to ₦634 billion in June 2023 (H1). BOI’s equity position exceeds the regulatory requirement of ₦10bn for retail DFIs.” It stated.

The report further stated that the industry has contributed to the national budget by paying dividends of approximately N42.2 billion and taxes amounting to N64.2 billion from 2017 to date.

It stated that from 2017 to date, BOI has raised over $5 billion from the international financial markets to support its mandate of growing Nigerian industries, MSMEs, women entrepreneurs and youths.

Chief Executive Officer (CEO) Olukayode Pitan, said in 2023, the BOI continued its impressive growth in major financial indices on a year-on-year basis, thus consolidating its position as Nigeria’s largest and most impactful Development Finance Institution.

Pitan stressed that the bank raised liquidity at affordable rates and diversified its funding sources by attracting new lenders at a time when the international capital markets were prohibitively expensive and shut to many borrowers through the transactions made.

“A €100 million line of credit from the French Development Agency (AFD) was also concluded in August 2022 representing the sixth capital raising. Through this credit facility, the bank can expand its financing interventions in environmentally friendly and green projects. A grant of €2.5 million was also included in this deal to support capacity building for both BOI staff and customers,” he said.

The report stated that though the bank intervenes in sectors and projects that are considered highly risky and unrewarding by conventional lenders, it’s able to develop a business model to de-risk the affected sectors and projects for other lenders to invest in.

“Obviously, more of these interventions are required for the continued growth and development of our economy, creation and retention of jobs for our youthful labour force amongst other socio-economic benefits, these interventions are better done using patient capital like equity rather than debts.

“All the above achievements would not have been made possible without the fact that BOI has consistently been managed by competent and ethically sound professionals,” it stated.