Development Bank of Nigeria (DBN) has rendered its 2022 financial year ended report which shows that it recorded an impressive operational and financial performance despite the challenges within the operating environment.
According to the annual integrated and statutory report 2022 of the bank that was released yesterday, by the end of the 2022 financial year, the bank achieved earnings of N47.6 billion and profit before tax (PBT) of N29.5 billion.
Its cost to income ratio stood at 15.9 per cent.
Managing director/CEO of the bank, Dr. Tony Okpanachi said the low cost-to-income result emphasised the impact of the cost-saving measures implemented by the bank during the course of the financial year. He made the remarks at the 6th annual general meeting of the bank in Abuja yesterday.
Meanwhile, the directors of DBN approved a dividend payment of N3,418,435,000 to its shareholders which represents 25 percent of retained earnings (Profit After Tax and after statutory reserves transfers) in the year ended 31 December 2022 (31 December 2021: Nil).
The basis of the approved dividend is N34.18 per share. Shareholders had approved dividend freeze for five years from 2021 to enable the bank build a capital base.
According to Dr Okpanachi, by the end of December 2022, the Development Bank of Nigeria had disbursed more than N631 billion to slightly over 313,000 MSMEs across the country, which grew from N482 billion to more than 208,000 MSMEs at the end of the previous year.
That implies a 31 per cent growth in financing support and 50 percent growth in MSMEs impacted. Of the total MSME beneficiaries of DBN funds over the 5-year period, 67 percent were women and 27 percent were young people, with well more than 250,000 jobs already created.
Within its first five years of operation, the bank has grown from being a DFI merely striving to navigate the waters of wholesale development finance to becoming a successful case reference for several African Development Finance Institutions (DFIs) and governments.
“2022 was a rewarding year despite the challenges. Our focus will continue to be on our mandate. For us, the 2023 outlook is critical, and we will take every opportunity it presents to deliver more value to our stakeholders.
on many projections for the year 2023, it will most likely constitute more challenging times, with many small businesses taking the hit. However, in all these and against all odds, we remain resolute and optimistic about a brighter tomorrow for DBN and the Nigerian MSMEs,” the CEO said.
Participants at the AGM also approved the appointment of Mr. Aminu Umar-Sadiq, as a non-executive director of the bank and appointment of Mr. Omar Sefiani, as an alternate director.
The board of directors were also authorized to fix the designations of Messrs Aminu Umar-Sadiq and Omar Sefiani, pursuant to the requirements of clause 9.5.7 of the bank’s Articles of Association.
“The Development Bank of Nigeria will deepen its commitment to continue to expand funding for Nigerian MSMEs through our Participating Financial Institutions.
“The Bank will continue to engage with all stakeholders to search for solutions and influence policies aimed at addressing the constraints faced by Micro, Small, and Medium Scale Enterprises, especially as they relate to access to finance and building their capacity to upscale sustainably.
“In the coming year, especially given the context of the general election and the uncertainties engendered by political transition, the Bank will intensify its efforts to develop ideas, policies, programmes, and projects to boost growth, help bolster macroeconomic frameworks, reduce financial vulnerabilities, provide support to vulnerable population groups and reduce the long-term impacts of the global shocks of recent years on the MSMEs,” DBN chairman, Dr. Shehu Yahaya said.
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