Afreximbank grosses $547m in nine months
The African Export-Import Bank (Afreximbank) has released its unaudited financial statements for the nine months ended September 30, 2018, showing strong financial and operational performance, with gross income of $546.6 million.
This represents 14.3 per cent increase from the same period last year, while it recorded a net income of $172.4 million, representing a growth of 11.9 per cent from the corresponding period of last year.
An analysis of the financial statements released at the weekend, showed that the bank’s total assets stood at $12 billion; loans and advances at $9.5 billion (14.2 per cent increase from full year 2017); 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 cen).
The balance sheet, according to the region’s largest trade bank, 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).
The bank’s President, Prof. Benedict Oramah, said that the results reflected the continuing successful implementation of the lender’s five-year strategic plan- “Impact 2021”, which emphasised 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.
Oramah noted 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.