Balance sheet and income statement
Balance Sheet 2020
The balance sheet total increased by 39 million (+4%) from EUR 1,024 M to EUR 1,062 M. This increase is mainly due to the new capital and capital subsidies received from BIO’s shareholder. Financial fixed assets, consisting almost exclusively of the investment portfolio, grew by 1% in 2020. Cash and cash equivalents and investments grew from 42% to 44%. Shareholder equity increased by EUR 38 M under the cumulative effect of (i) new allocations to unavailable reserves of EUR 25 M and to net capital subsidies of EUR 31.04 M and (ii) the loss for the financial year of EUR 14.584 M. The provisions for liabilities and charges mainly include the amount set aside for a possible adjustment of VAT.
Income Statement 2020
The growth of the outstanding loan portfolio (+1.5%) over the financial year made it possible to generate 5% more interest and commission income. The average rate of return on the loan portfolio has remained stable at 5.6% over the past four years. The capital gains realised on the resale of participations were EUR 2.6 M lower than in 2019. This concerns only direct participations, given that the current structure of BIOs fund portfolio will only generate significant capital gains in the medium term. Capital gains on direct holdings are volatile by nature and depend on exit opportunities. BIO received EUR 0.415 M less in dividends from its participations. This concerns only dividends from direct holdings. After deducting direct costs linked to projects (various commissions, travel expenses, bank transfer costs etc.) which had lowered significantly because of – amongst others – restrictions on travel, the gross margin declined by 5%, in line with the evolution of income. Operating costs rose by EUR 0.752 M to EUR 10.221 M, representing a growth of 7.9% (7.2% excluding inflation). As a result, the net margin is down 12% to EUR 14.2 M, insufficient to offset the sharp rise in the cost of risk. The operating result shows a negative balance of EUR 13.023 M. Finally, the hedging instruments linked to the new loans underlying the increase in the cost of risk were unwound during the first quarter of 2020 with a net foreign exchange loss in excess of EUR 2 M. This amount was provisioned in the 2019 accounts. BIO has no debts with regards to taxes for the financial year and ends the year with a loss of EUR 14.584 M.