Afreximbank Rakes Over $1bn First Time in 27 Years

Afreximbank

By Adedapo Adesanya

The African Export-Import Bank (Afreximbank) recorded a 29.7 percent increase in its gross income for the year 2019 to exceed the $1 billion mark for the first time in its 27 years of existence.

This was disclosed by the lender in a press statement on Wednesday, where it indicated that in its audited financial statements for the year ended December 31, 2019, the income rose to $1.1 billion from $813.9 million in the previous year.

The Cairo-based institution showed strong and consistent growth during the period under review with a total comprehensive income of $324.2 million.

The results reflected a 14.3 percent increase in net income to $315.3 million over the 2018 performance of $275.9 million. The bank noted that this was achieved mainly due to higher operating income of $622.5 million, 27 percent higher when compared to $489.8 million in 2018.

Total assets growth of 7.6 percent to $14.44 billion was recorded during the year, as against $13.42 billion declared in the corresponding period of 2018, which Afrieximbank attributed to the solid growth in net loans and advances. A total of $12.0 billion was published as loans and advances during the year compared to $11.1 billion in 2018.

The lender recorded a higher operating expense of $108.1 million during the year, 23.4 percent higher than $87.6 million on record in 2018.

Commenting on the bank’s performance for the year, the President, Mr Benedict Oramah, expressed satisfaction with the results, noting that the performance exceeded strategic plan targets despite a global operating environment characterized by economic uncertainties.

He said that the bank had “continued to deliver the objectives of its current five-year strategic plan, dubbed IMPACT 2021, by prioritizing initiatives aimed at promoting and financing intra-African trade”.

Also, addressing concerns about COVID-19, whose emergence early in 2020 has raised concerns about a global recession, Mr Oramah said that Afreximbank was taking necessary steps to manage the impact, particularly on the loans and advances from customers that may be impacted, adding, “Afreximbank is making arrangements to support its member countries in need.”

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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