Afreximbank posts $168.9 million net income for H1 2021
Pan-African multilateral trade finance institution, African Export-Import Bank (Afreximbank), for the first half of the year, posted a net income of $168.9 million.
This is per the institution’s audited financial statements for the first six months of 2021.
The recorded net income marks a 12% increase over the $150.75 million net income recorded in 2020.
The posted net income is on the back of growth in interest income and a 13% decrease in interest expense arising from a cost-effective funding mix.
With regards total assets, Afreximbank’s assets grew by 5.5% to $20.37 billion in June 2021 from $19.31 billion in 31 December 2020. The institution’s total assets value was driven predominantly by increases in loans and advances and cash and cash equivalents.
Also, the Bank’s shareholders’ funds increased by 5.1% to $3.54 billion from the position at 31 December 2020 of $3.37 billion, reflecting support from existing shareholders and strong internal capital generation capacity.
Speaking on the Bank’s performance for the first half of the year, Denys Denya, Afreximbank’s Executive Vice President in charge of Finance, Administration and Banking Services, stated that 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.
According to him, Afreximbank continues to play an important role in leading the fight against COVID-19 in Africa, having disbursed over US$6.5billion 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 Afreximbank is one of the principal partners.
The acquisition of vaccines by AVAT was made possible through a US$2billion 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.
He disclosed that to enable and strengthen Afreximbank’s growth ambitions, shareholders’ approval was received to enable the Bank to launch a US$2.6billion paid-in equity capital raise, expected to be fully implemented by 31 December 2023.
“We are confident that Afreximbank’s solid financial position and growth trajectory, provide a strong foundation for us to support the continent in sustaining its economic rebound in the second half of 2021,” he said.