Prof. Benedict Oramah, President, Afreximbank.
Prof. Benedict Oramah, President, Afreximbank.

Cairo, 23 Nov. 2018: – The African Export-Import Bank (Afreximbank) has released its unaudited financial statements for the nine months ended 30 September 2018, showing strong financial and operational performance, with gross income of $546.6 million (a 14.3 per cent increase from the same period last year) and net income of $172.4 million (a growth of 11.9 per cent from the same period last year).

The financial statements, released in Cairo today, showed that the Bank’s total assets stood at $12 billion; Loans and advances at $9.5 billion (+14.2% from FY17); return on average assets at 1.9 per cent; return on average equity at 10.3 per cent; and capital adequacy ratio at 23 per cent.). The balance sheet remained solid with shareholder funds growing by 11 per cent since 31 December 2017 to reach $2.36 billion.

Other highlights of the results include: non-performing loans (NPL) coverage ratio of 145 per cent (compared to 141 per cent for the same period in 2017); NPL ratio of 2.5 per cent (versus 2.4 per cent in 2017); Proportion of non-interest/gross income of 11 per cent (versus 4 per cent in 2017); and net interest margin of 3.1 per cent (versus 2.8 per cent in 2017).

In a presentation on the results, Bank President Prof. Benedict Oramah said that the results reflected the continuing successful implementation of the Bank’s five-year strategic plan, “Impact 2021”, which emphasized: Improving Intra-Africa Trade; Facilitating Industrialisation and Export Development; Strengthening Trade Finance Leadership; and Improving Financial Soundness and Performance.

The results reaffirmed the Bank’s transition to normal operations, with growing loan book and improving interest margins, he said, noting that the pursuit of the medium-term strategy had led to higher operating expenses driven by staff costs and one-off general expenses relating to ongoing initiatives.

The Bank’s Intra-African Trade Strategy, including the Intra-African Trade Fair being held in collaboration with the African Union, underpinned the expected growth in trade finance, project finance and advisory services in the short to medium-term, he said.

Prof. Oramah announced that the Bank was planning a secondary listing of its depositary receipts in order to improve liquidity and access to diversified investor base. It had also explored alternative sources of funding the balance sheet and deployed excess cash holdings to finance loans with better interest margins.

It was developing an African payment platform to facilitate intra-African trade and to help mitigate the challenge posed by low access to international foreign exchange, added President Oramah.

Further details about the financial statements can be found on the Bank’s website at: https://afreximbank.com/wp-content/uploads/2017/11/Financial-Statment-A4.pdf

 

Media Contact: Obi Emekekwue (oemekekwue@afreximbank.com; Tel. +202-2456-4238)

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About Afreximbank: The African Export-Import Bank (Afreximbank) is the foremost pan-African multilateral financial institution devoted to financing and promoting intra- and extra-African trade. The Bank was established in October 1993 by African governments, African private and institutional investors, and non-African investors. Its two basic constitutive documents are the Establishment Agreement, which gives it the status of an international organization, and the Charter, which governs its corporate structure and operations. Since 1994, it has approved about $60 billion in credit facilities for African businesses, including about $8.5 billion in 2017. Afreximbank had total assets of $11.9 billion as at 31 December 2017 and is rated BBB+ (GCR), Baa1 (Moody’s), and BBB- (Fitch). The Bank is headquartered in Cairo. For more information, visit: www.afreximbank.com

  • Publishing Date : November 23, 2018

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