BOI Approves N6bn For Loans, Investments  
 

By Toba Agboola

8th May 2008

The Bank of Industry (BOI) has recorded what could be described as the best quarterly performance in the first quarter of this year by approving a total of N5.87 billion for new loans and investments.

The approved sum, which represents a 117.2 per cent increase when compared with the N550 million recorded in the first quarter of last year, is a clear indication of a continued upward surge of its indices’ performance.

This enviable feat is coming 27 months after the bank’s launch of its Paradigm Shift Initiative (in January 2006).

According to a document obtained by our correspondent in Abuja, the total credits that were approved between 2001 and 2005 stood at N9.8 billion, while those of 2006 and 2007 stood at N11.8 billion and N10.83 billion, respectively.

Without compromising the quality of its investments, BOI, which has continued to strive at global best practice, has witnessed an unprecedented expansion in its credit operations between January 2006 and March 2008.

The cumulative number of approved loans and investments grew by 289 per cent from just 88 to 342, while the value of fresh loans and investments rose by 290 per cent from N9.8 billion to N38.3 billion during the period under review.

The bank’s efficiency and productivity made a remarkable improvement as the percentage of its annual lending to Small and Medium Enterprises (SMEs) witnessed an increase from 35 per cent in 2005 to 92 per cent.

While its portfolio declined from 65 per cent in December 2005 to 10.67 per cent by last December, the ratio of its annual operating expenses to gross income also witnessed a drop from 92 per cent in 2005 to 57 per cent in 2007.

Meanwhile, the bank has disclosed that its profit has risen by 1,167 per cent from N105 million in 2005 to N1.33 billion in an audited 2006 (with a yet to be audited N1.7 billion as at December 31, 2007).

"Going by its 2007 results, it is clear that the bank has been able to sustain and improve on its level of profitability for four consecutive years," the document said.

The document further disclosed that "the development effectiveness of its operations has also been remarkable as cumulative direct and indirect jobs have been projected to reach 530, 000 by last December. From all accounts, not only has BOI clearly emerged as Nigeria’s most successful development financial institution, it was recently adjudged the best development bank in Africa for the year 2007".

Source: The Nation

Back to Top
Post Your Feedback