Economy
Afreximbank records solid financial performance, in first half of 2021
African Export-Import Bank (Afreximbank) has released its audited financial statements for the six months ended 30 June 2021, showinga solid performance, in line with expectations. The results, which reflected a net income of $168.9 million for the period a 12% increase over $150.75 million recorded in 2020, were achieved largely due to the growth in interest income and a 13% decrease in interest expense arising from a cost-effective funding mix. Afreximbank’s total assets grew by 5.5% to $20.37 billion as at 30 June 2021 from $19.31 billion as at 31 December 2020. This was 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 from the position at 31 December 2020 of US$3.37 billion, reflecting support from existing shareholders and strong internal capital generation capacity. Mr. Denys Denya, Afreximbank’s Executive Vice President in charge of Finance, Administration and Banking Services, commented “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 $1.3 billion dual maturity bond issuance, in the second quarter, which is the Bank’s longest maturity and largest ever transaction in the debt capital markets. We are confident that Afreximbank’s solid financial position and growth trajectory, provide a strong foundation for us to support the Continent sustain its economic rebound in the second half of 2021.”
Highlights of the results are shown below:
| Financial Metrics | H1 2021 ($ million) | H1 2020 ($ million) |
| Gross Income | 534.6 | 520.4 |
| Net Interest Income | 329.9 | 285.7 |
| Fee, Commission and Other Income | 47.3 | 53.6 |
| Operating Expenses | 70.4 | 55.0 |
| Profit for the Year | 168.9 | 150.7 |
| June 2021 | December 2020 | |
| Total Assets | 20,368.4 | 19,306.9 |
| Loans and advances | 16,474.5 | 16,302.1 |
| H1 2021 | H1 2020 | |
| Profitability Return on average assets (ROAA) Return on average equity (ROAE) | 1.7% 9.8% | 1.8% 10.2% |
| Operating Efficiency Net interest margin Cost -to -income ratio | 3.4% 19% | 3.7% 16% |
| June 2021 | December 2020 | |
| Asset Quality Non-performing loans ratio (NPL) | 3.3% | 3.2% |
| Liquidity and capital adequacy Cash/Total assets Capital Adequacy ratio (Basel II) | 17% 21% | 14% 23% |
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