Cairo, 19 April 2021: – African Export-Import Bank (Afreximbank) on 31 March 2020 released its audited financial statements for the year ended 31 December 2020, showing strong and resilient growth, with total comprehensive income of US$357.8 million and operating income higher than expectations.
The results reflected a net income of US$351.7 million, representing an 11.5% increase over the 2019 performance of US$315.3 million.
The strong overall performance achieved during the period was largely driven by the 35.5% growth in loan book, an increase in non-interest income and higher net interest income, accompanied by a 13% decline in interest expense.
Afreximbank’s total assets grew by 33.7% from US$14.44 billion as at 31 December 2019 to US$19.31 billion as of 31 December 2020, primarily attributable to the solid growth in net loans and advances which grew by 35.5% on the back of the new Pandemic Trade Impact Mitigation Facility (PATIMFA), under which the Bank disbursed more than US$6.5 billion during the year.
The Bank’s Shareholders’ Funds increased by 20.2% from the prior year position to reach US$3.37 billion in 2020, primarily on account of new equity injection and internal capital generation arising from higher profitability.
Prof. Benedict Oramah, President of Afreximbank, commented:
“Notwithstanding the economic disruption caused by the COVID-19 pandemic, I am delighted with the Bank’s performance in generating year-on-year profitable growth, closing the year in a healthy financial position with strong capital levels.
The Bank has made substantial progress on its strategic initiatives and remains committed to promoting intra-African trade and export development, whilst championing continental strategic efforts including the African Continental Free Trade Area Agreement (AfCFTA), the African Collaborative Transit Guarantee Scheme (ACTGS), the Pan-African Payments and Settlement System (PAPSS), among others.
The Bank’s proactive response to Africa’s business and economic realities epitomized its relevance, leveraging on our experience to support member countries and customers in the fight against the COVID-19 pandemic in Africa. Through the Pandemic Trade Impact Mitigation Facility (PATIMFA), Afreximbank disbursed over US$6.5 billion to alleviate the health and economic consequences of the pandemic. Working through the Africa Vaccine Acquisition Task Team (AVATT), we have committed US$2 billion towards providing payment guarantees to vaccine manufacturers in order to secure sufficient COVID-19 vaccines for Africa.
We are confident that the Bank’s solid financial position, alongside the robust strategic measures put in place to proactively manage the effects of the pandemic, provide a strong foundation for the continued implementation of our mandate.”
Highlights of the results are shown below:
|Net Interest Income||575.2||524.9|
|Profit for the Year||351.7||315.5|
|Loans and advances||16,302.1||12,029.5|
|December 2020||December 2019|
Return on average assets (ROAA)
Return on average equity (ROAE)
Net interest margin
Cost -to -income ratio
Non-performing loans ratio (NPL)
Loan loss coverage ratio
|Liquidity and capital adequacy
Capital Adequacy ratio (Basel II)
– Ends –
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. Afreximbank deploys innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. The Bank has a rich history of intervening in support of African countries in times of crisis. Through the Pandemic Trade Impact Mitigation Facility (PATIMFA) launched in April 2020, Afreximbank has disbursed more than US$6.5 billion in 2020 to help member countries manage the adverse impact of financial, economic, and health shocks caused by the COVID-19 pandemic. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has completed the development of a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Afreximbank is working with the AU and the AfCFTA Secretariat to develop an Adjustment Facility to support countries in managing the impact of tariff revenue losses arising from the implementation of the Continental Free Trade Area. At the end of 2020, the Bank’s total assets and guarantees stood at US$21.5 billion, and its shareholder funds amounted to US$3.4 billion. Afreximbank disbursed more than US$42 billion between 2016 and 2020. The Bank 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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