BoI disburses N127bn loans to MSMEs in 2014

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The Bank of Industry (BoI) disbursed N127 billion loans in support of Medium and Small Scale Enterprises in (MSMEs) in 2014 financial year at N127billion Chairman, Board of Directors, BoI, Alhaji Abdulsamad Rabiu, said at the bank’s 55th Annual General Meeting, held in Abuja, that the bank was able to wade through the nation’s challenging business environment to achieve loans and advances of N544.3 billion in 2014.

The loans and advances, he added, represent a nine percent growth when compared to the 2013 figure of N498.2bn. “The group achieved loans and advances of N544.3bn.3bn in 2014 compared to N498.2bn in 2013, which represents a growth of nine per cent despite a challenging operating environment.” He said despite the harsh economic climate, the group’s capital and reserves grew by 5.9 per cent from N153.7bn in 2013 to N162.2bn in 2014.

In the same vein, he said profit for the year improved significantly from N2.18bn in 2013 to N5.19bn representing a growth of 137 per cent. The Chairman further noted that the growth profitability was an indication that shareholder value was being enhanced owing to its achievement of its developmental mandate.

The bank also declared a dividend of N612 million for the year ended 31st December, 2014, claiming it created over 500,000 direct and indirect jobs from the N127 billion loans disbursed within the year under review.

Th e dividend payment approved by its shareholders at an annual general meeting (AGM) held in Abuja, represents 10 per cent of the bank’s profit after tax of N6.12 billion in the same years. The bank’s major shareholders are the Federal Ministry of Finance Incorporated (MOFI) and the Central Bank of Nigeria (CBN). According to the bank, there are 42 other private corporate and individual shareholders.

He said: “In the year under review, our bank disbursed loans worth about N127 billion to enterprises, while over 500,000 jobs were created directly and indirectly through our business activities. The group achieved loans and advances of N544.3 billion in 2014 compared to N498.2 billion in 2013, which represents a growth of nine per cent despite a challenging operating environment,” he said. He noted that the group’s capital and reserves grew by 5.9 per cent from N153.7 billion in 2013 to N162.2 billion in 2014.

Speaking on the future outlook for the bank, Rabiu said BoI would continue to monitor developments in the operating environment in order to ensure that pro-active steps are taken to achieve its corporate objectives. “Our new strategy blueprint provides a framework within which we shall operate by providing strategic focus in addressing the ever changing needs of our customers.