Business Development Bank posts $468.3 million profit in fiscal 2013
Loonies are shown in this file photo. (The Canadian PressJonathan Hayward)
Published Tuesday, August 27, 2013 1:27PM EDT
MONTREAL -- The Business Development Bank of Canada says its net income totalled $468.3 million in fiscal 2013, down 12.2 per cent from the prior year, mostly due higher losses on investments and loans.
The Crown corporation, set up primarily to provide financing and business expertise to Canadian companies, says it distributed $4.1 billion in loans to 9,195 companies over the 12 months ended March 31. That was up from $3.6 billion to nearly 7,000 recipients a year earlier.
BDC Financing generated $441.5 million, down from $504.7 million in fiscal 2012.
Another lending unit, BDC Subordinate Financing, provided $189.8 million in financing, up from $163.8 million a year earlier, but it earned $35.1 million, $1.1 million less than in fiscal 2012.
The bank distributed $145.3 million in venture capital, nearly 15 per cent more than the prior year. It lost $8.1 million on those activities, much less than the $42.7-million, year-earlier loss.
The improvement was a result of the divestiture of two companies with strong results as well as a decrease in net unrealized depreciation on the existing investment portfolio.
Its consulting services lost $11.6 million while BDC Securitization, which provides funds for small- and mid-sized equipment leasing companies, had reduced net income of $11.4 million -- down from $46.2 million a year earlier.
The corporation had provisions for $538.3 million of credit losses at the end of fiscal 2013, compared with $610.2 million a year earlier. There was also an improvement in impaired loans, which fell to $491.8 million from $550.8 million.
The portfolio, before allowance for credit losses, increased 6.9 per cent to $16.4 billion.
BDC paid the federal government, its sole shareholder, a $68.6- million dividend based on fiscal 2012 results and will pay $59.6 million based on the performance in fiscal 2013.