Afreximbank total assets grew by 13% to $13.42 billion

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The African Export-Import Bank (Afreximbank) has released its abridged audited financial statements for the year ended 31 December 2018, showing strong financial and operational performance, with total comprehensive income for the year amounting to $285.4 million.

The total comprehensive income reflects a solid growth of 24 per cent compared to the prior year performance of $229.8 million and was achieved mainly due to higher net income in 2018 amounting to $ 275.9 million compared to $220.5 million in 2017.

The results, released in Cairo, show that the Bank’s total assets grew by 13 per cent from $11.91 billion as at 31 December 2017 to $13.42 billion as at 31 December 2018, with that result explained mainly by the solid growth in net loans and advances which went up 30.3 per cent.

Commenting on the results, Bank President Prof. Benedict Oramah said that the performance was a reflection of the strength of Afreximbank’s underlying business and restated commitment to “driving our strategic objectives, to strong orderly growth in assets and earnings.”

The result highlights include:

Financial Metrics 2018 ($ million) 2017 ($ million)
Net Interest & similar Income 403.8 338.3
Net Fee & Commission Income 83.7 30.3
Operating Income 489.8 372.1
Operating Expenses 87.6 66.5
Operating Profit Before Impairment & Provisions  

394.8

285.7
Profit for the Year 275.9 220.5
Total Assets 13,419.4 11,913.4

  Dec 2018 Dec 2017
Profitability

Return on average assets (ROAA)

Return on average equity (ROAE)

 

2.18%

11.78%

 

1.87%

11.76%

Operating Efficiency

Cost -to -income ratio

 

18%

 

18%

Asset Quality

Non-performing loans ratio (NPL)

Loan loss coverage ratio

 

14%

25%

 

27%

26%

Liquidity

Cash/Total assets

 

2.95%

 

2.50%

Capital Adequacy

Capital Adequacy ratio (Basel II)

 

132%

 

141%

 

Afreximbank, which implements its programmes and facilities through five-year strategic plans, began implementing its fifth strategic plan, dubbed “Impact 2021, Africa Transformed”, in 2018.

That strategy is anchored on four pillars:

  • Improving Intra- Africa Trade
  • Facilitating Industrialization and Export Development
  • Strengthening Trade Finance Leadership
  • Improving Financial Soundness and Performance.

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Bontle Moeng is the Founder and Managing Director of BizNis Africa. Moeng has spent 15 years working in the digital and online media industry across Africa. She applied her trade at True Love magazine prior to discovering her passion for Investment news in key sectors across Africa. Moeng previously worked for ITWeb, Starfish Mobile Technologies, ITNewsAfrica, AVATAR Agency, eNitiate, Global Interface Consulting and Havas Johannesburg. Her primary focus is to provide solid and valuable content on investment opportunities for the ICT, Energy and Mining sectors across Africa. In addition, the online news publication assists global companies to expand their presence in Africa. Email: news@biznisafrica.co.za

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