Afreximbank awards self credit, says it remains profitable

Posted by News Express | 28 September 2015 | 3,617 times

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The African Export-Import Bank (Afreximbank) says it has remained highly profitable since its establishment in 1993.

It said its Return on Equity (RoE) had been above 10 per cent in the last 10 years, while its cost-income ratio had always been below 30 per cent over the period.

A profile of the bank made available to the News Agency of Nigeria (NAN) in Lagos on Sunday showed that the bank had been highly efficient and profitable since its establishment.

The bank, with its headquarters in Cairo said that it had a strong Tier One capital of about 20 per cent and ‘callable capital’ of 278.4 million dollars as at the end of December 2014.

It said its loan portfolio had an average tenor of one year, adding that it had maintained highly liquid balance sheet and good assets quality.

“Most of the loans are linked to actual export trades with about 60 per cent secured collateral outside of the obligor's country, domiciled mainly in OECD countries.”

The bank listed some of its special initiatives to include ‘Africorrbanking’ ‘Contour,’ ‘Health and Medical Tourism,’ ‘Africoin,’ ‘Non-Equity Mode’ and ‘Intrafrap.’

It said that under the Contour initiative, the bank was supporting the development of tourism infrastructure by financing the construction of first class hotels across the continent.

Afreximbank said it was also providing correspondent banking services to African banks to enable them to make payments and collections around the world under its ‘Africorrbanking.’

The bank said it had strong relationship with African Development Bank with a wide array of instruments aimed at financing intra-African trade.

Afreximbank also added that that under its ‘Africoin,’ it was providing term funding for the creation of local processing capacity and provision of working capital for procurement of cocoa beans. (NAN)

•Photo shows Afreximbank


Source: News Express

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