AFC defiant amid tough trading period
From OKORO CHINEDU in Lagos, Nigeria
LAGOS, (CAJ News) – AFRICA Finance Corporation (AFC) has announced defying a difficult operating environment to deliver strong underlying operating results for the past year.
In a statement accompanying its results from Lagos, the finance group said it achieved a 25 percent growth in its balance sheet, with total assets in excess of US$3,2 billion, net interest income increased by 39 percent to US$108, 4 million with net interest margins growing to 4,4 percent, a 7 percent improvement over the prior year, as the Corporation continues to
lower its borrowing costs.
Fees, commissions and other income however declined by 85 percent, largely due to one-off revenues of US$46 million recorded in 2014.
As expected, as a result of the challenging 2015 economic environment there was the need to maintain a tight rein on costs. Management had strong oversight on operating costs resulting in a 22 percent year-on-year decline to US$30 million delivering a cost to income ratio of 22 percent, down from 26 percent recorded in 2014.
During the period under review, the decline in Chinese and broader emerging market demand and tepid economic expansion in Europe and the United States has negatively impacted African economies and their foreign exchange reserves, resulting in currency deterioration across major African markets.
This, along with a rise in interest rates in the USA has led to currency devaluations in many African countries, tighter credit markets and a slowdown in international investment on the continent.
“We are pleased to report that despite the economic headwinds we have seen our total assets grow by 25 percent,” said Andrew Alli, President and CEO of AFC.
Headquartered in Lagos, the corporation has invested US$3,2 billion in projects across 22 African countries and in its core sectors including power, telecommunications, transport and logistics, natural resources and heavy industries.
“As global economic uncertainty persists, the AFC is well placed to continue to deliver returns to shareholders and new infrastructure that will bolster economic growth and have real social impact across Africa,” concluded Alli.
– CAJ News
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