Businesses & Financial News

Afreximbank records US$217.06m net income in 9 Months

- Advertisement -

9

 7 total views,  1 views today

African Export-Import Bank (Afreximbank) in Cairo released its unaudited financial statements for the nine months ended 30 September 2020.

Notwithstanding the impact of the pandemic, the Bank recorded net income amounting to US$217.06 million (2019: US$225.36 million) for the period, showing a slight decrease on the comparable period last year.

Net interest income for the nine months grew by 16% to US$421.77 million (2019: US$362.83 million) mainly due to 18% decline in Interest expense to US$272.44 million in 9M, 2020 compared to US$331.36 million in the corresponding period of 2019.

Net Interest Margin as a result rose to 3.37% (2019: 3.32%) reflective of cost-effective management of interest expense coupled with the relatively higher average yields sustained on the Bank’s interest-bearing assets.

The Bank’s total assets increased by 34% to US$19.33 billion as at 30 September 2020 (31 December 2019: US$14.44 billion) primarily as a result of increases in loans and advances and cash and cash equivalents.

Loans and advances increased on a net basis by 33% underpinned by disbursements under the Bank’s Pandemic Trade Impact Mitigation Facility (PATIMFA), a facility launched in March 2020 in response to the COVID-19 pandemic.

Cash and cash equivalents were up by 41% to US$3.13 billion resulting in the Bank ending the period with a strong Liquid Asset to Total Assets ratio of 16% (31 December 2019: 15%). The higher liquidity level was considered necessary to contend with the uncertainties arising from the pandemic.

Despite the Bank’s interventions in support of entities in its member countries to enable them to better contend with the challenges of the COVID-19, its Capital Adequacy Ratio remained strong at 22% in line with the Bank’s Capital Management Policy targets.

Credit ratings agency, Fitch, recently affirmed the Bank’s long-term Issuer Default Ratings (IDR) at ‘BBB-‘ with a stable outlook. The rating was driven by the Bank’s intrinsic features, including solvency and liquidity, assessed at ‘a-‘ with a downward adjustment to reflect the current business environment.

Prof. Benedict Oramah, President of Afreximbank, said:

“Despite the ravages of the COVID-19 pandemic, the Bank remains financially solid across all metrics. The Bank solidified its policy relevance by rising strongly in support of its member countries.

It entered the pandemic in a strong financial position, with a solid capital base, high operating efficiency, diversified and high-quality loan portfolio and a strong liquidity position.

This has enabled us to record a sound financial performance for the nine-month period and continue to deliver on the Bank’s strategic initiatives while fulfilling its obligations to its member countries under conditions of market failure.

In March, the Bank launched a Pandemic Trade Impact Mitigation Facility (PATIMFA), aimed at helping African sovereigns, commercial banks and corporates to weather the impact of the crisis.

In addition, in September, we launched a US$100 million overdraft facility to enable African states to procure Covid-19 related medical resources through the Africa Medical Supplies Platform, an online marketplace for the sale and purchase of medical supplies and equipment.

Comments
Loading...

Subscribe to our Newsletter

Signup for more information




Social Media Auto Publish Powered By : XYZScripts.com