BDC reaches more entrepreneurs, posts robust performance for fiscal 2022
October 7, 2022, Montreal — BDC, Canada’s bank for entrepreneurs, today released its fiscal 2022 annual results, showing the Bank provided vital support to a historic number of Canadian business owners during the year. As of March 31, 2022, BDC served 95,000 clients, including 16,500 via programs delivered in partnership with the private sector.
“While uneven, the economic recovery gathered momentum through the year, and many entrepreneurs invested in new and postponed growth projects. This created exceptional demand for BDC’s financing and advisory solutions,” said Isabelle Hudon, BDC’s President and CEO. “Building on an approach that is consistent with our unique mission, BDC was able to extend its reach and deepen its impact through lending deployed in collaboration with financial institutions to help entrepreneurs weather the pandemic’s effect.”
In fiscal 2022, BDC:
- authorized $14.4 billion in financing and investments, including $3.4 billion in indirect lending through Canada’s private financial institutions
- provided essential, expert advice to entrepreneurs through 1,400 advisory mandates and helped 8,000 entrepreneurs develop key management capabilities via e-learning
- supported hundreds of Canadian tech innovators with $636 million in authorizations that included both direct and indirect investments (BDC Capital now has $5.7 billion in assets under management, spanning Venture Capital, Capital Incentive Programs and the Bridge Financing Program.)
- launched a second $250-million Growth Equity Partners Fund, helping companies accelerate their growth, while maintaining ownership in Canadian hands
Enhanced reach through greater collaboration
Through its own relief initiatives and those delivered in partnership with the federal government and private-sector financial institutions, BDC increased its reach to support more entrepreneurs in challenging times. The Bank:
- deployed a total of $3.6 billion to nearly 16,000 companies under the Highly Affected Sectors Credit Availability Program (HASCAP) since its launch in February 2021 until March 31, 2022, when the program ended
- lent a total of $1.1 billion under the Business Credit Availability Program (BCAP) to nearly 800 companies since its launch in April 2020 until December 31, 2021, when the program ended.
Progress on diversity and sustainability
Over the past year, BDC substantially enhanced its support for greater diversity, equity and inclusion in the Canadian economy, including through the launch of the $160-million Black Entrepreneurship Loan Fund and the Black Innovation Fund as part of its Black entrepreneurs’ strategy. The Bank also saw the first loan authorized under the $150-million Indigenous Growth Fund. Building on global best practices, BDC launched the first standardized diversity, equity and inclusion reporting template for Canadian fund managers and their portfolios.
BDC also saw its commitment to sustainability-linked projects reach $1.2 billion, including $600 million for its Cleantech Practice –initially launched in 2018 – which invests in globally competitive Canadian cleantech firms as they discover and commercialize ways to combat climate change and pollution. BDC took yet another step in its journey towards sustainability by joining the Partnership for Carbon Accounting Financials (PCAF), an industry-led initiative of climate action takers. In 2021, BDC announced its support for the Task Force on Climate-related Financial Disclosures and began work towards implementing its recommendations.
Robust financial performance
Overall, BDC earned consolidated net income of $2.5 billion in fiscal 2022. BDC’s overall profitability was fueled by record net revenue on investments and unrealized fair value appreciation in BDC Capital’s portfolio, reinforcing its leadership position in venture capital even in a disruptive environment. The higher net income was also due to reversals of provisions for expected credit losses in a recovering economy.
A renewed vision for the future
During the fiscal year, BDC embarked on an important strategic review of its activities. The review was an inclusive and collective effort, drawing on the viewpoints of entrepreneurs, employees and ecosystem players from across the country. It led to the conviction that BDC can and must do much more in its role as a development bank, especially when it comes to driving economic prosperity for all.
“I’m thrilled to see our entire team engaged in writing this new chapter in BDC’s history, I sincerely want to thank my 2,600 colleagues for their hard work during the past year. Despite a trying context, they have lived up to our purpose to empower a nation of dreamers and doers to build a better tomorrow for all”, Hudon said. “We are now in an excellent position to grow our support and further our evolution. I have the firm conviction that BDC has both the ability and the responsibility to empower entrepreneurs to contribute even more to our collective prosperity, especially when it comes to making our economy a more inclusive and sustainable one.”
As Canada’s bank for entrepreneurs, BDC is a partner of choice for all entrepreneurs looking to access the financing and advice they need to build their businesses and tackle the big challenges of our time. Our investment arm, BDC Capital, offers a wide range of risk capital solutions to help grow the country’s most innovative firms. We are one of Canada’s Top 100 Employers and Canada’s Best Diversity Employers. For more information on BDC’s products and services and to consult free tools, templates and articles, visit bdc.ca or join BDC on social media.