The African Import-Export Bank (Afreximbank) announced a 12% increase in its net profit of $ 168.9 million in the six-month period ended June 2021 (H1 ’21), from $ 150.75 million registered during the corresponding period of 2020.
This was revealed in a statement posted on its website.
The bank attributed the “strong financial performance” in large part to the growth in interest income and a 13% decrease in interest costs resulting from a profitable funding mix.
According to Afreximbank, this impressive performance is indicative of the significant progress made in its strategic initiatives during the first half of 2021 amid the lingering negative impact of the COVID-19 pandemic. in line with expectations.
Other highlights of the result showed that total assets rose 5.5% to $ 20.37 billion in the first half of 21, from $ 19.31 billion as of Dec.31, 2020, mainly due to the ” increased loans and advances and cash and cash equivalents.
The bank’s equity rose 5.1% to $ 3.54 billion from $ 3.37 billion achieved at the end of 2020, reflecting the support of existing shareholders and a strong capacity for internal capital generation.
According to the Executive Vice President, Finance, Administration and Banking Services, Afreximbank, Mr. Denys Denya, said: “The first six months of the year were marked by positive momentum as the African economy rebounded from the challenges encountered the previous year.
“Despite the continued challenges associated with COVID-19, we are delighted to have achieved 12% year-over-year profitability growth and ended the period in a strong financial position.
“Afreximbank continues to play an important role in the fight against COVID-19 in Africa.
“Having disbursed over $ 6.5 billion through the Pandemic Trade Impact Mitigation Facility (PATIMFA), the bank is also supporting the purchase and deployment of 400 million doses of vaccines. in African Union (AU) Member States through the African Vaccine Acquisition Trust (AVAT), of which we are a major partner.
“The acquisition of vaccines by AVAT was made possible thanks to a $ 2 billion guarantee facility provided by the Bank.
“The bank has also acted as financial and transactional advisor, guarantor, provider of the installment payment facility and payment agent on this facility.
“To enable and strengthen Afreximbank’s growth ambitions, shareholder approval has been received to enable the Bank to launch a $ 2.6 billion paid-up capital increase, which is expected to be fully implemented from by December 31, 2023.
In addition, Afreximbank successfully completed a US $ 1.3 billion double-maturity bond issue in the second quarter, which is the Bank’s longest maturity and the largest ever transaction in the capital markets of the Bank. ‘loan.
He noted that the bank’s strong financial position and growth trajectory will provide it with a solid foundation to support Africa’s sustained economic rebound for the remainder of 2021.