The Bank of Industry (BoI) has posted an operating profit before tax of N17 billion in 2016, 44 per cent increase, over the N11.9 billion recorded the year before a feat it described as unprecedented in the history of the bank.
Its loans and advances also rose by 10 per cent to N171billion in 2016 from N156billion in 2015, followed by disbursements to Small and Medium Enterprises (SMEs) that similarly went up by 42 per cent within the same period to N8bn compared with N5.64billion in 2015.
Also, the bank 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.
It stated that 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 a year when the average ratio of non-performing loans in the nation’s banking industry rose sharply to 14 per cent which is beyond the CBN’s threshold of five per cent.
Its Acting Managing Director , Waheed Olagunju attributed the growth to strong commitment, professionalism and strict adherence to global best practices by the bank’s dedicated 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 BiI 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.”
Source: The Nation