BDC releases fiscal 2016 results, reveals it made venture capital investments totalling $253.1 million CAD

The Business Development Bank of Canada revealed its fiscal 2016 results, boasting that it delivered its services to a “record number” of entrepreneurs.

In total, BDC committed $4.8 billion in loans to entrepreneurs 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 at least 42,000 direct and indirect clients. The bank earned $537.7 million in net income, up from $490.7 million in fiscal 2015. BDC will pay a dividend of $68.6 million to the Government of Canada. Profits earned will be reinvested in BDC’s financing operations.

“As Canada’s only bank devoted exclusively to entrepreneurs, we’re proud of our success in supporting entrepreneurs in building strong and competitive businesses,” said BDC President and CEO Michael Denham.

Nearly 20 percent of all BDC financing transactions were completed in collaboration with private sector institutions and partners.

BDC Capital, the investment arm of BDC, also reported favourable results with $121.1 million in net income, which was $59.3 million higher than last year. It authorized venture capital investments totalling $253.1 million, compared to $185.4 million last year, and accepted a total of $259.1 million in growth and transition financing in fiscal 2016, compared to $231.5 million last year.

“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,” said Denham.

BDC is also working on developing its non-financial services to help small and medium-sized businesses scale and build management skills — this year, this segment of the business generated $16.7 million in total revenues.

The report highlighted key initiatives of the bank in an effort to reach entrepreneurs, including dedicating $500 million to businesses struggling with declining oil prices, as well as a partnership with Futurpreneur Canada and the Royal Bank of Canada to expand financing for aspiring young entrepreneurs.