Cairo, 24 August 2020: – African Export-Import Bank (Afreximbank) today released its unaudited financial statements for the six months ended 30 June 2020. Despite the impact of the Covid-19 pandemic on socio-economic conditions globally, the Bank saw its Net Income rise by 10% from US$137.63 million in June 2019 to US$150.75 million in June 2020, mainly as a result of strong growth in net fee and commission income, which rose by 134%.
Net interest income for the period grew by 17% to US$285.71 million (2019: US$243.93 million). The Net Interest Margin improved from 3.3% to 3.7%, driven by lower costs of funds as interest rates declined globally. Total revenues were strong, rising by 4.4% compared to the first half of 2019, to amount to US$519.8million. Fees and commission income supported the growth in revenues, reflecting continuing progress towards achieving the Bank’s goal of diversifying its revenue sources.
Total assets increased by 34% from US$14.44 billion as at 31 December 2019 to US$19.35 billion as at 30 June 2020, largely driven by a 26% increase in loans to US$15.20 billion and a 76% increase in cash and cash equivalents to US$3.91 billion. The high liquidity level was in response to the uncertainties caused by the Covid-19 pandemic.
Liquidity sources were well diversified by geography and products, with African sources accounting for almost 40 %, an indication of progress being made under the Bank’s Africa Resource Mobilization Initiative.
Despite the growth in total assets, the Bank’s Capital Adequacy Ratio remained strong at 23% in line with the Bank’s Capital Management Policy targets. The capitalization level was supported by equity injection, internal capital generation and the nature of collateralization of some of the loan assets funded during the period.
Prof. Benedict Oramah, President of Afreximbank, said:
“Our financial performance in the first half of the year was pleasing and demonstrated that we remained focused on delivering value to Shareholders even as we pursued the Bank’s development agenda and intensified our support to our continent in its effort to contain the spread of the new coronavirus disease and its devastating economic consequences. The observed outcome reflected the wisdom of the COVID-19 response measures the Bank launched in mid-March which prioritized the health of its work force, support for the Bank’s member countries to manage the impact of the pandemic and the need to deliver an acceptable financial performance with minimal credit losses.
As with previous economic shocks, the Bank launched a key multibillion US dollar intervention tool known as the Pandemic Trade Impact Mitigation Facility (PATIMFA) which aimed at supporting sovereigns, financial institutions and corporates to deal with the economic and health impacts of COVID-19. Funding under the facility have been made available to ensure continued access to international trade finance, procurement of vital COVID-19 containment material, food and agricultural input as well as promoting manufacturing of medical and healthcare products in Africa. As at 30 June 2020, the Bank had disbursed more than US$3.5 billion under this PATIMFA. In addition, the Bank provided a grant of US$3 million towards the COVID-19 Special Fund set up by the African Union as well as to the African Center for Disease Control and other agencies.
Despite the adverse effects of the pandemic, the Bank remains well prepared to continue to support the continent while delivering development impact and value to shareholders.”
Highlights of the results are shown below:
| Financial Metric | 30 June 2020
(US$ million) |
30 June 2019
(US$ million) |
31 December 2019
(US$ million) |
| Total Revenue | 519.79 | 497.83 | 1,053.11 |
| Net Income | 150.75 | 137.63 | 315.32 |
| Net Interest & similar Income | 285.71 | 243.93 | 524.91 |
| Net fee and commission Income | 47.37 | 20.26 | 91.84 |
| Total Assets | 19,350.29 | 15,370.46 | 14,439.56 |
| Loans and advances | 15,196.38 | 11,395.03 | 12,029.55 |
| 30 June 2020 | 30 June 2019 | 31 December 2019 | |
| Profitability
Return on average assets (ROAA) Return on average equity (ROAE) |
1.8%
10.4% |
1.9% 10.9% |
2.26% 11.76% |
| Operating Efficiency
Net interest margin Cost -to -income ratio |
3.7% 16% |
3.3% 19% |
3.7% 17% |
| Asset Quality
Non-performing loans ratio (NPL)
Loan loss coverage ratio |
3.47%
121% |
2.96%
127% |
2.78%
118% |
| Liquidity and capital adequacy
Cash/Total assets Capital Adequacy ratio (Basel II) |
20% 23% |
23% 22% |
15% 23%C |
Click here to read the financial report.
About Afreximbank: The African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution with the mandate of financing and promoting intra-and extra-African trade. Afreximbank was established in October 1993 and owned by African governments, the African Development Bank and other African multilateral financial institutions as well as African and non-African public and private investors. The Bank was established under two constitutive documents, an Agreement signed by member states, which confers on the Bank the status of an international organization, and a Charter signed by all Shareholders, which governs its corporate structure and operations. Afreximbank deploys innovative structures to deliver financing solutions that are supporting the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby sustaining economic expansion in Africa. At the end of 2019, the Bank’s total assets and guarantees stood at USD$15.5 billion and its shareholders funds amounted to US$2.8 billion. Voted “African Bank of the Year” in 2019, the Bank disbursed more than US$31billion between 2016 and 2019. Afreximbank has ratings assigned by GCR (international scale) (A-), Moody’s (Baa1) and Fitch (BBB-). The Bank is headquartered in Cairo, Egypt.
For more information, visit: www.afreximbank.com.
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Media Contact: Tito Alai, talai@afreximbank.com