Cairo, 27 May 2021: – African Export-Import Bank (Afreximbank) today, in Cairo, released its unaudited financial statements for the three months ended 31 March 2021, showing strong and resilient growth, ahead of prior year results and in line with expectations.
The Bank reported a net income of US$87.3 million, a 4% increase over the 2020 performance of US$84.2 million, achieved largely due to a 23% growth in net interest income. The increase in net interest income arose from a 41% growth in net loans and advances and a 11% decline in interest expense.
Total assets grew year-on-year by 30% to US$19.25 billion as at 31 March 2021, primarily due to the implementation of the Pandemic Trade Impact Mitigation Facility (PATIMFA), with most of the facilities having been disbursed in the second half of 2020. Total assets decreased marginally from the balance of US$19.31 billion as at 31 December 2020 primarily driven by slight decreases in Loans and Advances and Cash and cash equivalents.
The Bank’s shareholders’ funds increased by 2.64% to US$3.46 billion from the position of US$3.37 billion recorded in December 2020, reflecting the support from existing investors and strong internal capital generation capacity.
Prof. Benedict Oramah, President of Afreximbank, commented:
“In the context of a global economy which has improved since the last quarter of 2020 with the successful roll-out of COVID-19 vaccines, we are pleased to have reported year-on-year growth in the first quarter of 2021 and closed the period in a healthy financial position with strong capital levels.
Afreximbank has made significant progress in the implementation of its strategic initiatives and remains committed to promoting intra-African trade under the African Continental Free Trade Agreement (AfCFTA), on the basis of which trading commenced on 1 January 2021.
Regarding the Bank’s interventions in tackling the pandemic, we are proactively and aggressively supporting the fight against COVID-19 in Africa to accelerate the return to normalcy. We are supporting vaccine procurement by African economies with a US$2 billion guarantee and financing facility. Through PATIMFA, Afreximbank disbursed over US$6.5 billion in support of African sovereigns, central and commercial banks, as well as corporations and SMEs.
Overall, we are confident that the Bank’s solid financial position, alongside the robust strategic measures put in place to proactively manage the effects of the pandemic, provide a strong foundation for a resilient and growing business going forward and are confident that Africa will see a strong economic rebound in 2021.”
Highlights of the results are shown below:
| Financial Metrics | Q1 2021
($ million) |
Q1 2020
($ million) |
| Gross Income | 262.7 | 229.3 |
| Net Interest Income | 163.6 | 133.1 |
| Fee and Commission Income | 19.6 | 6.6 |
| Operating Expenses | 33.5 | 26.0 |
| Profit for the Year | 87.3 | 84.2 |
| March 2021
($ million) |
December 2020
($ million) |
|
| Total Assets | 19,250.2 | 19,306.9 |
| Loans and advances | 16,235.9 | 16,302.1 |
| Shareholders’ Funds | 3,456.1 | 3,367.0 |
| Q1 2021 | Q1 2020 | |
| Profitability
Return on average assets (ROAA) Return on average equity (ROAE) |
1.81% 10.23% |
2.31% 11.84% |
| Operating Efficiency
Net interest margin Cost -to -income ratio |
3.39% 18.00% |
3.84% 19.00% |
| March 2021 | December 2020 | |
| Asset Quality
Non-performing loans ratio (NPL) |
3.22% |
3.18% |
| Liquidity and capital adequacy
Cash/Total assets Capital Adequacy ratio (Basel II) |
14% 23% |
14% 23% |
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