African Export-Import Bank (Afreximbank) has released the consolidated financial statements of the Bank and its wholly owned subsidiaries, altogether referred to as the Afreximbank Group, for the year ended 31 December 2021.
The Group results demonstratedstrong and resilient growth, with interest income crossing the $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.
Afreximbank 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, 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 $21.7 billion in 2020n to $25 billion as at 31 December 2021.
The Bank 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 a solid growth in operating income in 2021. However, the Group’s net income of $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.
President and Chairman of the Board of Directors of Afreximbank, reflected, Professor Benedict Oramah, said “2021 was, again, a challenging year with continued economic and business disruptions caused by the pandemic, including continued supply chain disruptions, delayed access to the COVID-19 vaccines and rising global prices.
“Throughout 2021, the Bank remained focused on proactively and aggressively supporting the fight against Covid-19 in Africa by acting as a financial and transaction advisor, guarantor, payment agent and instalment payment facility provider under the $2 billion Advance Procurement Commitment (APC) Guarantee Facility which supported Africa Vaccine Acquisition Trust (“AVAT”) to secure 400 million doses of Covid-19 vaccines for the continent with 220 million doses committed in parallel, we maintained strong support for financial institutions, corporates and our member states in other areas.”
