The African Export-Import Bank (Afreximbank) has released its audited financial statements for the six months ended 30 June 2021, revealing a solid performance that met expectations.
The results, which showed a net income of $168.9 million for the period, a 12% increase over the $150.75 million recorded in 2020, were largely due to an increase in interest income and a 13% decrease in interest expense due to a cost-effective funding mix.
The total assets of Afreximbank increased by 5.5% to $20.37 billion as of 30 June 2021, up from $19.31 billion as of 31 December 2020. This was primarily due to increases in loans and advances, as well as cash and cash equivalents.
The Bank’s shareholders’ funds increased by 5.1 per cent to $3.54 billion at the end of 2020, up from $3.37 billion. This reflects strong internal capital generation capacity and existing shareholder support.
Mr Denys Denya, Afreximbank’s executive vice president for Finance, Administration, and Banking Services, stated:
“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 per cent 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) the 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”.