August 24, 2016, Montreal – Today the Business Development Bank of Canada (BDC) reported its fiscal 2016 results. The organization delivered its products and services to a record number of entrepreneurs, lifting its total number of loan acceptances and net income to an all-time high. In total, BDC committed $4.8 billion in loans to its financing clients for the period ending March 31, 2016, up from $4.7 billion last year. BDC’s total portfolio now stands at $26 billion committed to more than 42,000 direct and indirect clients.
The bank earned $537.7 million in net income, up from $490.7 million in fiscal 2015. As a result, it will pay a dividend of $68.6 million to the Government of Canada. Profits generated during fiscal 2016 will be reinvested in the bank’s operations, allowing the bank to support a greater number of entrepreneurs in the years to come.
“As Canada’s only bank devoted exclusively to entrepreneurs, we’re proud of our success in supporting entrepreneurs in building strong and competitive businesses,” says BDC President and CEO Michael Denham. “It is great to see that BDC’s unique combination of loans, investments and advisory services is making a tangible difference to the growth of small and medium-sized businesses across Canada. In fiscal 2016, we also continued to work closely with partners in the entrepreneurship ecosystem, to provide more capital and more relevant advice to Canada’s business owners.” For the period ending March 31, 2016, nearly 20% of all BDC financing transactions were completed in collaboration with private sector institutions and partners.
Investing in innovation
BDC maintained its commitment to investing in innovative, technology-driven companies and building world-class Canadian venture capital funds. BDC Capital, the investment arm of BDC, contributed to the organization’s strong results with $121.1 million in net income, $59.3 million higher than last year. It authorized venture capital investments totalling $253.1 million, compared to $185.4 million last year, and continues to be the country’s largest and most active venture capital firm. BDC Capital clients also accepted a total of $259.1 million in growth and transition financing in fiscal 2016, compared to $231.5 million last year.
Providing advice and guidance to entrepreneurs
In fiscal 2016, BDC created a line of business to group its existing consulting and other non-financial services. The bank also regrouped a team of highly experienced individuals to offer customized support to high-impact firms. This line of business continues to develop an enterprise-wide range of non-financial services to help small and medium-sized businesses grow, globalize and build management skills. It generated $16.7 million in total revenues for the year.
Key highlights for fiscal 2016
- As part of its effort to be closer to clients, BDC opened 12 new business centres across Canada, bringing its total number of locations to 112.
- The organization’s continued focus on client experience has yielded positive results. According to client survey results, 94% of entrepreneurs that dealt with the bank say that they are satisfied or very satisfied with the level of service provided.
- Despite low oil prices, BDC’s results show the financial health of entrepreneurs across the country is generally good. The bank allocated $500 million in financial and consulting services to support small and medium-sized businesses dealing with the impact of low oil prices, helping them diversify and become more efficient. Six months into the program, BDC has authorized more than 720 loans worth nearly $200 million. This represents an increase of 30% in value of loans to the sector since fiscal 2015.
- BDC continued to support women entrepreneurs and committed to increasing its term lending to majority women-owned businesses to at least $700 million over the next three years. BDC authorized a total of $247.4 million in loans to female entrepreneurs in fiscal 2016.
- BDC entered into agreements with partners to increase its reach and give small and medium-sized businesses more access to capital. It collaborated with the Laurentian Bank of Canada to help manufacturers across the country acquire equipment through more flexible financing options. BDC also entered into a partnership with Futurpreneur Canada and the Royal Bank of Canada that expands financing for aspiring young entrepreneurs.
For more information, read BDC’s fiscal 2016 Annual Report and fact sheet.
BDC is the only bank devoted exclusively to entrepreneurs. It promotes Canadian entrepreneurship with a focus on small and medium-sized businesses. With its 110+ business centres from coast to coast, BDC provides businesses in all industries with financing and advisory services. Its investment arm, BDC Capital, offers equity, venture capital, and flexible growth and transition capital solutions. To find out more, visit www.bdc.ca.
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