Business Development

Afreximbank Releases Abridged Audited 2018 Financial Statements

Prof Bennedict Oramah

The African Export-Import Bank (Afreximbank) has released its abridged audited financial statements for the year ended 31 December 2018, showing strong financial and operational performance, with total comprehensive income for the year amounting to $285.4 million. The total comprehensive income reflects a solid growth of 24 per cent compared to the prior year performance of $229.8 million and […]

The African Export-Import Bank (Afreximbank) has released its abridged audited financial statements for the year ended 31 December 2018, showing strong financial and operational performance, with total comprehensive income for the year amounting to $285.4 million.

The total comprehensive income reflects a solid growth of 24 per cent compared to the prior year performance of $229.8 million and was achieved mainly due to higher net income in 2018 amounting to $ 275.9 million compared to $220.5 million in 2017.

The results, released in Cairo, show that the Bank’s total assets grew by 13 per cent from $11.91 billion as at 31 December 2017 to $13.42 billion as at 31 December 2018, with that result explained mainly by the solid growth in net loans and advances which went up 30.3 per cent.

Commenting on the results, Bank President Prof. Benedict Oramah said that the performance was a reflection of the strength of Afreximbank’s underlying business and restated commitment to “driving our strategic objectives, to strong orderly growth in assets and earnings.”

The result highlights include:

Financial Metrics2018 ($ million)2017 ($ million)
Net Interest & similar Income403.8338.3
Net Fee & Commission Income83.730.3
Operating Income489.8372.1
Operating Expenses87.666.5
Operating Profit Before Impairment & Provisions 394.8285.7
Profit for the Year275.9220.5
Total Assets13,419.411,913.4
Dec 2018Dec 2017
ProfitabilityReturn on average assets (ROAA)Return on average equity (ROAE) 2.18%11.78% 1.87%11.76%
Operating EfficiencyCost -to -income ratio 18% 18%
Asset QualityNon-performing loans ratio (NPL)Loan loss coverage ratio 14%25% 27%26%
LiquidityCash/Total assets 2.95% 2.50%
Capital AdequacyCapital Adequacy ratio (Basel II) 132% 141%

Afreximbank, which implements its programmes and facilities through five-year strategic plans, began implementing its fifth strategic plan, dubbed “Impact 2021, Africa Transformed”, in 2018. That strategy is anchored on four pillars: Improving Intra- Africa Trade; Facilitating Industrialisation and Export Development; Strengthening Trade Finance Leadership; and Improving Financial Soundness and Performance.

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Byron Adonis Mutingwende