Business

First Half 2023: Afreximbank’s Total Asset Grows to $30bn

The African Export-Import Bank (Afreximbank) has released its consolidated financial statements of the bank and its subsidiaries for the half year ended 30 June 2023, which demonstrated strong and resilient performance.

According to a statement from the multilateral institution on Tuesday, Afreximbank Group’s total balance sheet assets grew by eight per cent, from $27.9 billion as of December 31, 2022 (FY-2022) to approximately $30.1 billion as of 30 June 2023.

It explained that the growth was driven by the increase in loans and advances to customers, which grew by 13 per cent to close the period at $26 billion.

The liquidity position remained strong at $3 billion, representing 11 per cent of total assets and achieving a liquidity coverage ratio of 310 per cent.

“Due to increased volume of interest-earning assets, particularly loans and advances and higher interest rates, total interest income recorded a strong growth of 107.1 per cent to reach $1.1 billion for the half-year (H1-2023) period compared to $540.8 million for the same period in 2022.

“Net interest income amounted to $663.6 million, up 76 per cent, from the prior year, mainly due to continuous effective management of interest expenses.

“Net Interest Margin as a result increased to 4.77 per cent, compared to 3.47 per cent last year,” it stated.

The Group’s shareholders’ funds rose by 7.63 per cent to $5.6 billion as of 30 June 2023, compared to FY-2022. The growth was largely attributable to the $261 million fresh equity contributions from existing and new shareholders who have supported the ongoing general capital increase exercise which aimed to raise $2.6 billion paid-in equity by 2026.  “In addition, the growth in shareholders’ funds was also underpinned by $125.5 million internally generated net earnings after taking into account the approved dividend and other appropriations which amounted to $209 million,” it added.

Afreximbank’s Executive Vice President, Finance, Administration and Banking Services, Mr. Denys Denya said: “During the period in which the Bank celebrated its 30th Anniversary, we have delivered a strong set of results, driven largely by a focused execution of our mandate as a countercyclical lender which generated increased volume of interest-earning assets, particularly loans and advances and benefited from a rising interest rate environment. “The bank continued to make progress on its strategy implementation, carefully balancing the need to be profitable and sustainable, while maintaining sufficient liquidity, capital, and a quality portfolio of assets. “

He further highlighted that despite the continued challenges caused by the Ukraine crisis, ongoing geo-political tensions and persistently high inflation, the half-year period saw some headwinds receding, including relatively lower energy and food prices, reduced supply bottlenecks and the re-opening of China, Africa’s biggest trading partner.

Denya pointed out that Global Credit Rating (GCR) and Japanese Credit Rating (JCR) respectively affirmed Afreximbank’s international scale long and short-term issuer ratings of A/A2 and A-, with a “Stable” Outlook, while Moody’s maintained the Bank’s credit rating at Baa1.

In addition, African Banker recently bestowed on Afreximbank, the 2023 African Bank of the Year and the DFI of the Year awards in recognition of the Bank’s contributions to the continent’s Trade and Development, Denya added.

“Significant progress was made during the first half of the year with the Bank’s subsidiary FEDA generating profit after only two years of operation and AfrexInsure generated premium income on assets valued at over $2 billion.

“We began the second half of 2023 well and are confident that Afreximbank’s strong financial position will provide a solid base for the Group to continue assisting its clients and African countries in expanding trade and investments, meet trade finance obligations, boost production especially of food and export value added products, as well as alleviate supply chain constraints and enable the continent to adapt sustainably to the challenging effects of climate change.”

Follow us on:

AriseNews

View Comments

  • O91 5608 9111 }Golf 1 #300, 000
    Golf 2 #350, 000
    Golf 3 #400, 000
    Golf 4 #450, 000
    Golf 5 #550,000
    CALL OR WHATSAPP ME ON THIS NUMBER CUSTOM OFFICER
    Toyota Camry 2.2 #450,000
    Toyota Camry 2.4 #750,000
    Toyota Corolla #650,000
    Toyota Spider #850,000
    Toyota Muscle #850,000
    Toyota Matrix #450,000
    Toyota Avalon #850,000
    Toyota Avensis #750,000
    Toyota Picnic #550,000
    Toyota Sienna #950,000
    Toyota Rav4 #850,000
    Toyota Sequoia #950,000
    Toyota Tacoma #2.5M
    Toyota 4Runner #950,000
    Lexus Ex300 #750,000
    Lexus Ex330 #950,000
    Lexus Ex350 #1.3M
    Lexus Rx300 #950,000
    Lexus Rx330 #1.2M
    Lexus Rx350 #1.5M
    Lexus Gx470 #2.5M
    Mercedes Benz ML350 #1.9M
    Mercedes Benz GLK #3.5M
    Bags of Rice #11,500 Per Bag
    Groundnut Oil 25litres #12,500 Per Gallon...O91 5608 9111 }

Recent Posts

Okpebholo: Obaseki Frustrating Handing Over Power To Me

Senator Okpebholo has accused Obaseki of attempting to frustrate a peaceful power transfer and making…

9 hours ago

Tens of Thousands Protest In Valencia Over Floods, Demand Resignation Of Regional Leader Carlos Mazón

Valencia’s citizens are protesting and demanding accountability after the deadly floods, criticising regional head Carlos…

14 hours ago

Qatar Suspends Mediation Efforts in Israel-Hamas Talks Amid Escalating Tensions, Diplomatic Frustrations

Qatar has suspended its mediation role in Israel-Hamas talks, citing lack of willingness from both…

14 hours ago

Ukrainian War: Varsity Don Asks UN, Others to Stop Russia from Alleged Recruitment of Nigerian Women

A Nasarawa professor Akyala has urged the UN to condemn Russia’s alleged illegal human labour…

15 hours ago

Trump Wins All Swing States, With Arizona Win Projected In 2024 US Election Victory

Trump has been projected to win Arizona, completing a sweep of all seven swing states

16 hours ago

Equatorial Guinea’s Baltasar Remanded in Prison over 400 Sex Tapes Scandal

Equatorial Guinea’s former anti-graft chief Engonga has been jailed in for allegedly recording over 400…

16 hours ago