Afreximbank Records USD168.9m Net Income in H1 2021
Recently, the African Export-Import Bank (Afreximbank) published its audited financial statements for the six months ended 30 June 2021. The results showed that net income grew by 12% y/y to USD168.9 million (from USD150.75 million recorded in H1 2020). This was largely due to impressive growth in interest income and a 13% decrease in interest expense arising from a cost-effective funding mix.
Over the same period, the bank’s total assets grew by 5.5% to USD20.37 billion, compared to USD19.31 billion at the end of 2020. The increase in total assets preceded notable increases in loans and advances and cash and cash equivalents. Also, the bank’s shareholders’ fund climbed by 5.1% to USD3.54 billion (from USD3.37billion as of 31 December 2020), on the back of the impressive net income growth.
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The African Export–Import Bank, headquartered in Egypt is also referred to as Afreximbank. The bank is a pan-African multilateral trade finance institution created in 1993 by the African Development Bank. The bank’s vision is to be the trade finance bank for Africa.
Speaking on the results, Mr. Denys Denya, Afreximbank’s Executive Vice President in charge of Finance, Administration and Banking Services, noted that “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.
The statement further noted that the “Afreximbank continues to play an important role in leading the fight against COVID-19 in Africa. Having disbursed over USD6.5 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. The acquisition of the vaccines was made possible through a USD2 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.
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“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.”