Cairo, 02 September 2021: – African Export-Import Bank (Afreximbank) has released its audited financial statements for the six months ended 30 June 2021, showing a solid performance, in line with expectations.
The results, which reflected a net income of $168.9 million for the period a 12% increase over $150.75 million recorded in 2020, were achieved largely due to the growth in interest income and a 13% decrease in interest expense arising from a cost-effective funding mix.
Afreximbank’s total assets grew by 5.5% to $20.37 billion as at 30 June 2021 from $19.31 billion as at 31 December 2020. This was driven predominantly by increases in loans and advances and cash and cash equivalents.
The Bank’s shareholders’ funds increased by 5.1% to $3.54 billion from the position at 31 December 2020 of US$3.37 billion, reflecting support from existing shareholders and strong internal capital generation capacity.
Mr. Denys Denya, Afreximbank’s Executive Vice President in charge of Finance, Administration and Banking Services, commented:
“The first six months of the year witnessed some positive momentum as the African economy has rebounded from the challenges faced in the previous year. Notwithstanding the continued Covid 19 challenges, we are delighted to have posted year-on-year growth of 12% in profitability and closed the period in a strong financial position.
“Afreximbank continues to play an important role in leading the fight against COVID-19 in Africa. Having disbursed over $6.5 billion through the Pandemic Trade Impact Mitigation Facility (PATIMFA), the Bank is also supporting the procurement and deployment of 400 million vaccine doses to the African Union (AU) Member States through the African Vaccine Acquisition Trust (AVAT), of which we are one of the principal partners. The acquisition of the vaccines by AVAT was made possible through a $2 billion Guarantee facility provided by the Bank. The Bank also acted as the Financial and Transaction Adviser, Guarantor, Instalment Payment Facility Provider and Payment Agent on this facility.
“To enable and strengthen Afreximbank’s growth ambitions, shareholders’ approval was received to enable the Bank to launch a $2.6 billion paid-in equity capital raise, expected to be fully implemented by 31 December 2023. In addition, Afreximbank successfully closed a $1.3 billion dual maturity bond issuance, in the second quarter, which is the Bank’s longest maturity and largest ever transaction in the debt capital markets.
“We are confident that Afreximbank’s solid financial position and growth trajectory, provide a strong foundation for us to support the Continent sustain its economic rebound in the second half of 2021.”
Highlights of the results are shown below:
| Financial Metrics | H1 2021
($ million) |
H1 2020
($ million) |
| Gross Income | 534.6 | 520.4 |
| Net Interest Income | 329.9 | 285.7 |
| Fee, Commission and Other Income | 47.3 | 53.6 |
| Operating Expenses | 70.4 | 55.0 |
| Profit for the Year | 168.9 | 150.7 |
| June 2021 | December 2020 | |
| Total Assets | 20,368.4 | 19,306.9 |
| Loans and advances | 16,474.5 | 16,302.1 |
| H1 2021 | H1 2020 | |
| Profitability
Return on average assets (ROAA) Return on average equity (ROAE) |
1.7% 9.8% |
1.8% 10.2% |
| Operating Efficiency
Net interest margin Cost -to -income ratio |
3.4% 19% |
3.7% 16% |
| June 2021 | December 2020 | |
| Asset Quality
Non-performing loans ratio (NPL) |
3.3% |
3.2% |
| Liquidity and capital adequacy
Cash/Total assets Capital Adequacy ratio (Basel II) |
17% 21% |
14% 23% |
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About Afreximbank
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 effectively participating in the AfCFTA. 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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Media Contact: Amadou Labba Sall, asall@afreximbank.com