DBN Gross Loans Hit N439.2bn in 2024
The Development Bank of Nigeria (DBN) Plc’s gross loans and advances grew moderately by 6.5% to NGN439.2 billion (USD285.2 million) in 2024.
Development Bank of Nigeria (DBN’s) mandate is to address the funding needs of Micro, Small and Medium Enterprises (MSMEs) in Nigeria by providing access to cheaper and long-term loans/ financing through participating financial institutions (PFIs), which serves as intermediaries.
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Additionally, the Group incentivises PFIs to lend to MSMEs by providing partial guarantees through a wholly owned subsidiary, Impact Credit Guarantee Limited (ICGL), which covers up to 60% of loans to eligible MSMEs.
DBN’s NPL ratio registered at a low 0.2% in 2024 (2023: Nil), while the credit loss ratio was 0.3%.
Nonetheless, concentration risk remains high, with the top twenty obligors accounting for 98.0% of gross loans as of December 2024 (2023: 97.2%). However, this risk is mitigated by the good credit profile of these obligors, most of which are top tier banks in Nigeria.
The Development Bank of Nigeria has a stable funding structure which predominantly comprises concessionary financing from development financial institutions (DFIs).
This accounted for 95.6% of the funding base in 2024 (2023: 86.1%) and supported a decline in cost of funds to 3.7% compared to 4.2% in 2023.
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