MONTREAL – The Business Development Bank of Canada says its priorities changed this year due to the COVID-19 pandemic and it shifted to provide more liquidity during the economically challenging time.
The BDC says its clients accepted $ 7.4 billion in loans in its 2020 financial year — up 2.5 per cent from the previous year.
The bank’s portfolio stands at $ 36.5 billion in capital committed to small- and medium-sized businesses.
The BDC says it increased provisions on expected credit losses for loans due to the pandemic to $ 772.5 million, up $ 592.6 million from $ 179.9 million the previous year.
The bank says it incurred a consolidated net loss of $ 218 million for the year on higher net fair value depreciation on BDC capital investments due to uncertainty and volatility in the markets.
It says it remains confident in its ability to navigate through the current economic environment.
This report by The Canadian Press was first published July 24, 2020.