Afreximbank Remains Profitable Since Inception In 1993

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The African Export-Import Bank (Afreximbank) with its headquarters in Cairo said it has remained highly profitable since its inception in 1993.

A profile of the bank sighted by Footprint to Africa showed that the bank had been highly efficient and profitable since its inception as the bank 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.

According to the bank  profile, 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, adding that its loan portfolio had an average tenor of one year while it also 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,” it said.

 Afreximbank listed some of its special initiatives to include “Africorrbanking’’, “Contour”, “Health and Medical Tourism’’, “Africoin”, “Non-Equity Mode” and “Intrafrap”.

The bank revealed that under the Contour initiative, it was supporting the development of tourism infrastructure by financing the construction of first class hotels across the continent as well as 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 (ADB) with a wide range of instruments aimed at financing intra-African trade.

 Footprint to Africa learnt that Afreximbank  under its “Africoin”,  was providing term funding for the creation of local processing capacity and provision of working capital for procurement of cocoa beans.

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