Afreximbank posts 24% increase in profits to $286m in 2018
Motolani Oseni
The African Export-Import Bank (Afreximbank) has reported a total comprehensive income that reflected a 24 per cent, to $285.9 million in its abridged audited financial statements for the year ended 31 December 2018 compared to $229.8 million declared in 2017.
The lender latest financial statement also, showed a strong financial and operational performance, which was achieved mainly due to higher net income in 2018 amounting to $ 275.9 million compared to $220.5 million in 2017.
The lender thus reported an increase in its Operating Profit Before Impairment & Provisions to $394.8 million compared to $285.7 million in 2017.
Meanwhile, Afreximbank’s Non-Performing Loan (NPL) Ratio down to 14 per cent from 27 per cent as of December 2017, while Loan loss coverage ratio stood at 25 per cent slightly lower than 26 per cent posted the previous year.
The breakdown of the detail published on the Afreximbank’s website showed that Net Interest & similar Income stood at $403.8 million in 2018 as against $338.3 in 2017.
While Its Net Fee & Commission Income steady at $83.7million at the end of 2018, compared to $30.3 in 2017.
Commenting on the results, Afreximbank President, Prof. Benedict Oramah said 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.
He stated 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.
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 Industrialization and Export Development; Strengthening Trade Finance Leadership; and Improving Financial Soundness and Performance.
