Afreximbank Records Double-Digit Growth in Profitability Amid Impact of Pandemic

African Export-Import Bank (Afreximbank) on 31 March 2020 released its audited financial statements for the year ended 31 December 2020, showing strong and resilient growth, with total comprehensive income of US$357.8 million and operating income higher than expectations.

The results reflected a net income of US$351.7 million, representing an 11.5% increase over the 2019 performance of US$315.3 million.

The strong overall performance achieved during the period was largely driven by the 35.5% growth in loan book, an increase in non-interest income and higher net interest income, accompanied by a 13% decline in interest expense. 

Afreximbank’s total assets grew by 33.7% from US$14.44 billion as at 31 December 2019 to US$19.31 billion as of 31 December 2020, primarily attributable to the solid growth in net loans and advances which grew by 35.5% on the back of the new Pandemic Trade Impact Mitigation Facility (PATIMFA), under which the Bank disbursed more than US$6.5 billion during the year.

The Bank’s Shareholders’ Funds increased by 20.2% from the prior year position to reach US$3.37 billion in 2020, primarily on account of new equity injection and internal capital generation arising from higher profitability.

Prof. Benedict Oramah, President of Afreximbank, commented:

“Notwithstanding the economic disruption caused by the COVID-19 pandemic, I am delighted with the Bank’s performance in generating year-on-year profitable growth, closing the year in a healthy financial position with strong capital levels.

The Bank has made substantial progress on its strategic initiatives and remains committed to promoting intra-African trade and export development, whilst championing continental strategic efforts including the African Continental Free Trade Area Agreement (AfCFTA), the African Collaborative Transit Guarantee Scheme (ACTGS), the Pan-African Payments and Settlement System (PAPSS), among others.

The Bank’s proactive response to Africa’s business and economic realities epitomized its relevance, leveraging on our experience to support member countries and customers in the fight against the COVID-19 pandemic in Africa. Through the Pandemic Trade Impact Mitigation Facility (PATIMFA), Afreximbank disbursed over US$6.5 billion to alleviate the health and economic consequences of the pandemic.  Working through the Africa Vaccine Acquisition Task Team (AVATT), we have committed US$2 billion towards providing payment guarantees to vaccine manufacturers in order to secure sufficient COVID-19 vaccines for Africa.

We are confident that the Bank’s solid financial position, alongside the robust strategic measures put in place to proactively manage the effects of the pandemic, provide a strong foundation for the continued implementation of our mandate.”

Highlights of the results are shown below: