The African Export-Import Bank has announced that the total assets of the group grew by 13.4 per cent from $19.3 billion as at 31 December 2020 to about $22 billion as at 31 December 2021.
In the report of the consolidated financial statements of the bank and its wholly owned subsidiaries released yesterday, the bank said the growth in assets is primarily due to the 11.5 per cent growth in net loans and advances and a 12.1 per cent 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 2020 to US$25 billion as at 31 December 2021, Afreximbank said.
The bank noted that the group results demonstrated strong and resilient growth, with interest income crossing the US$1 billion mark once again.
Two non-bank subsidiaries, Fund for Export Development in Africa (“FEDA”) and Afreximbank Insurance Management Company (“AfrexInsure”) commenced operations during the 2021 financial year.
This resulted in the reporting of consolidated financial statements for the first time. The consolidated financial statements showed a separate performance of the bank and an aggregate performance of the bank and the subsidiaries. The contribution of these subsidiaries to group results was not significant, as they only operated for a few months, towards the end of the 2021 financial year.
The bank achieved a 10.1 per cent increase in net income from $351.7 million in 2020 to $387.3 million in 2021 largely due to a solid growth in operating income in 2021. However, 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 $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 per cent to $4 billion from the prior year position of $3.4 billion, primarily on account of the progress made in the ongoing US$6.5 billion General Capital Increase (GCI, $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 per cent, 169 per cent and 25 per cent in 2021.