Hits high-watermark of 32,000 entrepreneurs served
MONTREAL, July 23, 2015 /CNW Telbec/ - BDC reported another strong year of financial performance driven by an increasing demand for its services and the sustained financial health of its 32,000 entrepreneur clients.
"Small and medium-sized businesses are the engine of our country's economy. As Canada's development bank, we aspire to help make these companies the most competitive in the world." said Paul Buron, acting President & CEO, BDC. "Our financial sustainability, plus Parliament's recent affirmation and refinement of BDC's role, fuel our constant efforts to improve our offering, including non-financial services."
For the period ending March 31, 2015, BDC:
- Disbursed $4.7 billion in loans to SMEs across the country;
- Earned $490.7 million in net income, of which a dividend of $62.9 million will be paid to the Government of Canada and the balance reinvested in Canadian entrepreneurs;
- Supported the delivery of entrepreneurship-related policy priorities of the Government of Canada, including, for example:
- By authorizing $114.8 million in investments in support of the Venture Capital Action Plan.
- By disbursing $200 million in financing to SMEs pursuing the adoption of digital technologies, as part of Digital Canada 150. Also in support of this strategy, BDC will invest an additional $300 million in venture capital in the coming years for companies in the information and communications technologies (ICT) sector.
"Canadian companies must be globally competitive. In this context, we continually refine and tailor BDC's future strategic direction and our product offerings from innovative financing solutions to targeted consulting services," added Samuel L. Duboc, Chair of the Board of Directors, BDC.
BDC continued to improve its productivity with the focus of better serving Canadian entrepreneurs. In fact, efforts to make the bank's operations more efficient have helped significantly improve its financing efficiency ratio—the amount of expenses required to generate each dollar of revenue. This ratio has decreased from 41.4% in fiscal 2011 to 38.6% in fiscal 2015. In other words, for every 39 cents spent, BDC generates a dollar in revenue.
Key Highlights for Fiscal 2015
- BDC's financing business line processed over 12,000 new transactions in fiscal 2015, which lifted the bank's closing portfolio to $18.9 billion, before allowance for credit losses, representing an increase of 6.8% over 2014.
- To address the full spectrum of risk capital, BDC brought together its two teams responsible for venture capital and growth and transition capital, creating BDC Capital. This team is well positioned to serve entrepreneurs who require equity-type investments. It focuses on entrepreneurs' needs: working capital for growth, transition, capital for acquisitions.
- BDC Capital now exceeds $1 billion in venture capital investment commitments and its venture capital portfolio was profitable.
- Its growth & transition capital unit continued to support the growth plans of Canadian entrepreneurs through its diverse product offering, with clients accepting a total of $231.5 million in financing this year, compared to $186.6 million last year.
- The bank launched the first phase of a transformation plan for its consulting unit, with a key focus on client impact. BDC's consulting offering now includes solutions to help entrepreneurs increase their firms' operational efficiency, promote enterprise growth and improve organizational and management capabilities.
- BDC also continued providing capital to lenders that provide financing to SMEs for the vehicles and equipment they need to improve productivity. At March 31, 2015, the bank's asset-backed portfolio stood at $407.7 million with total disbursements of $210.7 million for the year.
Read BDC's annual report.
Read about our accomplishments in our online supplement.
BDC is the only bank dedicated exclusively to entrepreneurs. With more than 100 business centres and over 32,000 clients across Canada, it offers loans, investments and advisory services. BDC's purpose is to support Canadian entrepreneurship with a focus on small and medium-sized businesses. To learn more, visit www.bdc.ca.
SOURCE Business Development Bank of Canada
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