African Export-Import Bank (Afreximbank), today (Thursday), announced a 12% increase in its net income of $168.9 million in the half year ended June 2021 (H1 ‘21), against the $150.75 million recorded in the corresponding period of 2020.
The Bank attributed the “solid financial performance” largely to the growth in interest income and a 13% decrease in interest expense arising from a cost-effective funding mix.
In a statement posted on its website, Afreximbank said the impressive performance is indicative of the significant progress made in its strategic initiatives during the first half of 2021 amid the continuing negative impact of COVID-19 pandemic. in line with expectations.
Other highlights of the result, showed total assets grew by 5.5% to $20.37 billion in H1 ‘21 from $19.31 billion as at December 31 2020, 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 against the $3.37 billion achieved by the end of 2020, reflecting support from existing shareholders and strong internal capital generation capacity.
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.
Commenting, the Executive Vice President, Finance, Administration and Banking Services, Afreximbank, Mr. Denys Denya, was quoted as saying: “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.”
He expressed optimism that the Bank’s solid financial position and growth trajectory will provide a strong foundation for it to support Africa’s sustained economic rebound for the rest of 2021.