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BoI disburses N127bn loans to MSMEs

By on May 14, 2015

The Bank of Industry says it has disbursed a total loan of N127bn to Medium, Small and Medium Enterprises in the country within the 2014 financial year.

Through the disbursement of the loans to the enterprises, the bank said it had been able to create over 500,000 jobs within the period under review.

The Chairman, Board of Directors, BoI, Mr. Abdulsamad Rabiu, stated this during the bank’s 55th Annual General Meeting which was held in Abuja.

Rabiu, who described the operating environment as challenging, said despite the harsh economic climate, the bank was able to achieve loans and advances of N544.3bn in 2014.

The amount, he added, represented a nine per cent growth when compared to the 2013 figure of N498.2bn.

He said, “In the year under review, our bank disbursed loans worth about N127bn to enterprises, while over 500,000 jobs were created directly and indirectly through our business activities.

“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 said the growth in profitability was an indication the lender was achieving its developmental mandate.

The bank, at the AGM, proposed a dividend of N612m for the year ended 31st December, 2014, which was also approved by its shareholders.

The bank’s major shareholders are the Federal Ministry of Finance Incorporated and the Central Bank of Nigeria. There are 42 other private corporate and individual shareholders.

The dividend payment approved by the shareholders at the AGM represents 10 per cent of the bank’s profit after tax of N6.12bn for the 2014 financial period.

 

 

[Punch]