MONTREAL, Sept. 22, 2014 /CNW Telbec/ - The financial health and resiliency of Canadian small and medium-sized enterprises (SME) has resulted in another successful year for the Business Development Bank of Canada (BDC). As a result of an enhanced focus to support young and smaller SMEs, the bank experienced a 6.7% increase in the number of clients it serves, now totalling more than 30,000 small and medium-sized enterprises in every part of Canada.
"I believe BDC is uniquely positioned to be a powerful lever to help drive Canada's economy. Its relationships with Canadian SMEs give it direct access to and insights into the minds of the people who are responsible for much of the prosperity created in the Canadian marketplace," said Samuel L. Duboc, Chair of the Board of Directors, BDC.
For the period ending March 31, 2014, BDC:
- Disbursed $4 billion in new loans to SMEs across the country;
- Authorized $154.8 million in both direct and indirect venture capital (VC) investments, as well as an additional $210 million in authorized fund investments as part of the Venture Capital Action Plan, to be made available for deployment into Canada's VC ecosystem over the coming years;
- Undertook 2,505 consulting mandates; and
- Earned $432.6 million in net income, of which a dividend of $54.6 million will be paid to the Government of Canada and the balance reinvested in Canadian entrepreneurs.
"During fiscal 2014, we provided more small loans and loans to new businesses than ever before. This is absolutely essential to the grassroots and future health of Canada's small and medium-sized business community," said Jean-René Halde, President and CEO, BDC, in the bank's 2014 Annual Report.
See related interactive supplement:
Entrepreneurs First: Our Accomplishments in 2013-2014
Accelerating the success of Canadian SMEs
The report also emphasized that fast growing companies are critically important to Canada's future economic success through increased competitiveness. Mr. Halde added, "Of equal importance, we helped entrepreneurs who want to grow their firms and paid particular attention to high-growth firms because—when these firms succeed—they make an outsized contribution to job creation, gross domestic product (GDP) and value of Canadian exports."
More efficient operations
Operational efficiency continues to be a priority at BDC. In fact, the bank's financing efficiency ratio—the amount of expenses required to generate each dollar of revenue—has decreased from 43.7% in fiscal 2010 to 40% in fiscal 2014. In other words, for every 40 cents spent, BDC generates a dollar in revenue. This is as a result of constant efforts to refine processes and IT platforms with a view of enhancing client experience.
Key Highlights for Fiscal 2014
- Responding to the needs of its clients, BDC's financing business line processed 10,976 new transactions during fiscal 2014, which lifted the bank's closing portfolio to $17.7 billion, representing an increase of 7.9% over 2013.
- Our subordinate financing group—now known as Growth & Transition Capital—continued to support the growth plans of Canadian entrepreneurs, with a closing portfolio of $601 million, up from $566 million the year before.
- The measure of success for BDC's work in the venture capital market is in its impact. The bank maintained its position as the most active VC investor in Canada, having a positive effect in an otherwise improving but still difficult VC market. Total amounts committed stood at $861.9 million, up from $821.9 million in fiscal 2013.
- BDC undertook a review of its consulting group to refine its approach to providing value-added and complementary services to entrepreneurs to help improve their management capability and leverage technology to become more productive and to grow both at home and internationally.
- The bank remained active in the securitization market to help ensure the availability of financing for entrepreneurs who wish to invest in productivity-enhancing equipment, with asset-backed securities (ABS) totalling $336.5 million with total disbursements of $200.4 million for the year. On another positive note, all ABS issued as part of the Canadian Secured Credit Facility were fully repaid in October 2013, bringing this program to a successful completion.
Read BDC's annual report.
Canada's business development bank, BDC, puts entrepreneurs first. With almost 2,000 employees and more than 100 business centres across the country, BDC offers loans, consulting services, growth and business transition capital, securitization, as well as venture capital to more than 30,000 small and medium-sized companies. Their success is vital to Canada's economic prosperity. Visit www.bdc.ca for more information.
SOURCE: Business Development Bank of Canada
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