Afreximbank passes $1 billion Income Mark: 2019 Financial results show continued strong performance - Trends and Politics

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Wednesday, 8 April 2020

Afreximbank passes $1 billion Income Mark: 2019 Financial results show continued strong performance

Benedict Oramah, Afreximbank President

The African Export-Import Bank (Afreximbank) today in Cairo released its audited financial statements for the year ended 31 December 2019, showing strong and consistent growth, with total comprehensive income of $324.2 million.
The results, which reflected a net income of $313.3 million, 14.3 per cent increase over the 2018 performance of $275.9 million, were achieved mainly due to higher operating income of $622.5 million compared to $489.8 million in 2018.
Afreximbank’s total assets grew by 7.6 per cent from $13.42 billion on 31 December 2018 to $14.44 billion as at 31 December 2019, explained mainly by the solid growth in net loans and advances.
The financial statements show a 29.7 per cent growth in gross income, which reached $1.1 billion in 2019 compared to $813.9 million 2018, putting the Bank above the $1 billion mark for the first time.
Bank President, Prof. Benedict Oramah, expressed satisfaction with the results, noting that the performance exceeded strategic plan targets despite a global operating environment characterized by economic uncertainties.
He said that the Bank had “continued to deliver the objectives of its current five-year strategic plan, dubbed IMPACT 2021, by prioritizing initiatives aimed at promoting and financing intra-African trade”.
Addressing concerns about COVID-19, whose emergence early in 2020 has raised concerns about a global recession, he said that Afreximbank was taking necessary steps to manage the impact, particularly on the loans and advances from customers that may be impacted, adding, “Afreximbank is making arrangements to support its member countries in need”.
Highlights of the results are shown below:
Financial Metrics
2019
($ million)
2018
($ million)
Gross Income
1,059
816.2
Net Interest & similar Income
524.9
403.8
Operating Income
622.5
489.8
Operating Expenses
108.1
87.6
Profit for the Year
315.3
275.9
Total Assets
14,439.6
13,419.4
Loans and advances
12,029.5
11,134.4


Dec. 2019
Dec. 2018
Profitability
Return on average assets (ROAA)
Return on average equity (ROAE)
2.3%
11.8%
2.2%
11.8%
Operating Efficiency
Net interest margin
Cost -to -income ratio
3.7%
17.4%
3.7%
17.9%
Asset Quality
Non-performing loans ratio (NPL)
Loan loss coverage ratio
2.8%
118%
2.9%
132%
Liquidity and capital adequacy
Cash/Total assets
Capital Adequacy ratio (Basel II)
15.4%
23%
14.3%
25%



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