Nigeria's Bank of Industry (BOI) has recorded significant growth in its financial performance, with total assets reaching N3.3 trillion as of June 2023. The bank's profit before tax after impairments saw a substantial increase, and it maintained a low non-performing loan rate. Under the leadership of Olukayode Pitan, BOI has raised billions of dollars to support the growth of Nigerian industries and small businesses.
Nigeria's Bank of Industry (BOI) has continued its remarkable growth trajectory, reaching new heights in various financial indicators. According to its recently released financial report, the bank's total assets stood at an impressive N3.3 trillion as of June 2023. This represents a remarkable 67% year-on-year increase from its N1.97 trillion asset level in June 2022.
One of the key drivers of BOI's growth is its profit before tax after impairments (PBT). The bank recorded a remarkable 177% year-on-year growth in PBT, soaring from N37.5 billion in June 2022 to N104 billion in June 2023 (H1). This significant increase can be attributed to the bank's prudent management of its assets and the successful hedge of its foreign currency assets.
Another notable achievement for BOI is its non-performing loan (NPL) rate, which dropped to 1.88% as of June 2023, down from 3.6% in December 2022. The bank has consistently maintained an NPL rate below the regulatory threshold of 5%, a testament to its robust risk management framework.
BOI has also bolstered its equity position, which grew by 57% since June 2022, reaching N634 billion in June 2023 (H1). This exceeds the regulatory requirement of N10 billion for retail development finance institutions (DFIs), further affirming the institution's financial strength.
Since assuming office in 2017, Olukayode Pitan, the managing director and chief executive officer of BOI, has successfully raised over $5 billion from the international financial markets. These funds have been instrumental in supporting the bank's core mandate of fostering the growth of Nigerian industries, micro, small, and medium enterprises (MSMEs), women entrepreneurs, and youths.
BOI's capital raising efforts have been noteworthy. The bank concluded its first syndication in 2017, raising $750 million with the support of Afreximbank and other international financial institutions. This syndication was fully paid off and marked BOI's debut foray in the international financial markets.
In subsequent transactions, BOI successfully closed a Euro 1 billion syndication in March 2020 and another $1 billion syndication in December 2020. The latter is expected to be fully paid off by December 2023. These capital raising activities have further cemented BOI's position as a reputable financial institution with access to global funding sources.
Olukayode Pitan expressed his satisfaction with BOI's growth, stating, "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."
It is worth noting that BOI has not only played a vital role in Nigeria's economic development but has also contributed to the national budget through dividend payments and taxes. From 2017 to date, BOI has paid dividends of approximately N42.2 billion and taxes amounting to N64.2 billion.
BOI's core focus remains supporting industries and MSMEs to thrive. Over the past five years, the bank has disbursed over N1.4 trillion to more than 4.4 million customers, including a significant number of women-owned businesses. These interventions have created and saved a staggering 10.005 million jobs in Nigeria.
In addition to its exceptional financial achievements, BOI has made significant strides in accessing funding through various innovative transactions. The bank's €750 million maiden Eurobond, concluded in February 2022, marked several milestones for BOI, Nigeria, and Africa. It was the first Eurobond transaction by the bank, the first Euro-denominated Eurobond transaction in Nigeria, and the first Eurobond transaction covered by Nigeria's sovereign guarantee.
BOI's commitment to innovation and diversification of funding sources was further exemplified by its €1 billion guaranteed senior loan facility concluded in August 2022. This transaction, the largest of its kind by any Nigerian financial institution in terms of both size and structure, enabled the bank to raise liquidity at affordable rates.
Recognizing the importance of green projects, BOI secured a €100 million line of credit from the French Development Agency (AFD) in August 2022. With this credit facility, the bank can expand its financing interventions in environmentally friendly initiatives. Additionally, a grant of €2.5 million was included in the deal to support capacity building for BOI staff and customers.
BOI's achievements demonstrate its unwavering commitment to driving economic growth in Nigeria. With a strong financial position, prudent management practices, and a focus on supporting industries and MSMEs, BOI continues to empower businesses, create jobs, and contribute to the country's development.
Source of content: OOO News 2023-09-12 News
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