Afreximbank posts $ 83.7m profit in Q1 2021

The African Import-Export Bank (Afreximbank) reported a net profit of $ 87.3 million in the first quarter (Q1, 2021) of the year compared to the 2020 performance of $ 84.2 million.

The bank disclosed this in a statement on Thursday in Cairo on the release of its unaudited financial statements for the three months ended March 31.

The bank said the 4% increase was achieved largely through 23% growth in net interest income, showing strong and resilient growth ahead of 2020 results and in line with expectations.

He added that the increase in net interest income resulted from a 41% growth in net loans and advances and an 11% decrease in interest expense.

“Total assets increased 30% year over year to reach $ 19.25 billion as of March 31, mainly due to the implementation of the Pandemic Impact Mitigation Mechanism on trade (PATIMFA), most of the installations having been disbursed in the second half of the year. from 2020.

“Total assets decreased slightly from the balance of $ 19.31 billion as of December 31, mainly due to small declines in loans and advances and cash and cash equivalents. ”

The bank added that its shareholders’ funds rose 2.64% to $ 3.46 billion from $ 3.37 billion recorded in December 2020, reflecting support from existing investors and strong capital generation capacity. internal.

Prof Benedict Oramah, chairman of the bank, said the bank was pleased to have reported year-over-year growth in the first quarter of 2021 and ended the period in a healthy financial position with capital levels solid.

“Afreximbank has made significant progress in the implementation of its strategic initiatives and remains committed to promoting intra-African trade within the framework of the African Continental Free Trade Agreement (AfCFTA) based on which trade began January 1st.

“Regarding the bank’s interventions in the fight against the pandemic, we are proactively and aggressively supporting the fight against COVID-19 in Africa to accelerate the return to normalcy.

“We are supporting the purchase of vaccines by African economies with a two billion dollar guarantee and financing facility.

“Through PATIMFA, Afreximbank has disbursed more than $ 6.5 billion to support African sovereigns, central and commercial banks, as well as enterprises and small and medium enterprises (SMEs).”

Oramah added that overall, the bank is confident in its strong financial position, alongside strong policy measures in place to proactively manage the effects of the pandemic.

He said he was also determined to provide a solid foundation for a resilient and growing business in the future and that he was confident Africa would experience a strong economic rebound in 2021.

The Nigerian News Agency (NAN) reports that Afreximbank is a pan-African multilateral financial institution mandated to finance and promote intra/extra-African trade.