African Export-Import Bank (Afreximbank), yesterday in Cairo, Egypt, 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 $217.06 million compared to the $225.36 million it earned in the corresponding period for last year.
Net interest income for the nine months grew by 16 percent to $421.77 million (2019: US$362.83 million) mainly due to 18 percent decline in Interest expense to $272.44 million in nine months this year compared to $331.36 million in the corresponding period of 2019. Net Interest Margin as a result rose to 3.37 percent (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 percent to $19.33 billion as at 30 September 2020 (31 December 2019: $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 percent underpinned by disbursements under the Bank’s Pandemic Trade Impact Mitigation Facility (PATIMFA), a facility launched earlier in March in response to the COVID-19 pandemic.
Cash and cash equivalents were up by 41 percent to $3.13 billion resulting in the Bank ending the period with a strong Liquid Asset to Total Assets ratio of 16 percent (31 December 2019: 15 percent). The higher liquidity level was considered necessary to contend with the uncertainties arising from the pandemic.
President of Afreximbank, Prof. Benedict Oramah, 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.”