Home Banking Afreximbank Group’s assets grosses $22b

Afreximbank Group’s assets grosses $22b

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African Export-Import Bank (“Afreximbank” or the “Bank”) on Tuesday released the consolidated financial statements of the Bank and its wholly-owned subsidiaries, collectively referred to as the Afreximbank Group (the “Group”), for the year ended 31 December 2021, showing that the Group’s total assets grew by 13.4% from $19.3 billion as at 31 December 2020 to about $22 billion as at 31 December 2021.

The bank reported that the progress was primarily due to the 11.5% growth in net loans and advances and a 12.1% increase in cash and cash equivalents to $18.2 billion and $3.1 billion respectively. With significant growth in guarantees and letters of credit, in line with strategy, total assets and guarantees of the Group rose from US$21.7 billion in 2020n to US$25 billion as of 31 December 2021.

Professor Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank in a statement added that the regional financial institution achieved a 10.1% increase in the Bank’s net income from $351.7 million in 2020 to $387.3 million in 2021 largely due to solid growth in operating income in 2021.

He revealed that the Group’s net income of US$375.8 million was slightly lower than the net income reported by the Bank ($387.3 million) mainly because of the pre-establishment expenses incurred by the subsidiaries

‘The Group’s gross income profile improved, having recorded $1.13 billion (2020: $1.08 billion) on the back of strong interest income, which crossed US$1 billion in 2021. The increase in funded income was driven by healthy interest margins and higher loan volumes. The Group’s shareholders’ funds rose by 17.4% to $4 billion from the prior year’s position of US$3.4 billion, primarily on account of the progress made in the ongoing US$6.5 billion General Capital Increase (GCI, US$2.6 billion expected as paid-in amount). Overall, the Group maintained a healthy, liquid, and robust balance sheet position with respective NPL, liquidity coverage, and capital adequacy ratios of 3.4%, 169%, and 25% in 2021.

‘The Group results demonstrated strong and resilient growth, with interest income crossing the US$1 billion mark once again.

The Sun

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