The African Export-Import Bank (Afreximbank) has released its consolidated financial statements for the six months ending June 30, 2024. The statements demonstrate resilience and growth despite challenging macroeconomic conditions.
The group reported substantial year-on-year improvements across key performance metrics and increased shareholder value.
Net Interest Income for the first half of 2024 rose by 24.5% to $826.2 million, up from $663.6 million during the same period in 2023.
This growth was primarily driven by a 31.42% increase in interest income, which reached $1.5 billion, fueled by an expansion in the bank’s portfolio of loans and advances.
The group’s performance reflects the strong showing of the bank itself, as subsidiary entities are still in the early stages of development.
The Funds for Export Development in Africa (FEDA) contributed $11 million to the group’s Net Interest Income, compared to $9.1 million in the first half of 2023.
Total fees and commission income for H1 2024 increased by 20.07% to $71.2 million, up from $59.2 million in H1 2023.
Despite a 30.38% rise in operating expenses to $152.8 million, attributed to higher personnel and administrative costs, the group’s cost-to-income ratio remained low at 16.98%, well within the strategic upper limit of 30%.
The winding down of the Ukraine Crisis Adjustment Trade Financing Programme for Africa (UKAFPA) led to a slight decline in loans and advances, from $26.7 billion to $26 billion, as African economies adapted to the crisis.
Cash and cash equivalents ended the period at $3.9 billion, down from $5.6 billion at the end of 2023, while the Liquid Assets to Total Assets ratio stayed high at 12.50%.
Shareholders’ funds increased by 1.64% to $6.2 billion, up from $6.1 billion at the end of 2023, reflecting growth in internally generated net income of $407.7 million. The bank’s Capital Adequacy Ratio remained robust at 25%.
At the Afreximbank Annual General Meeting in Nassau, The Bahamas, in June 2024, shareholders approved a dividend of $264.6 million and allocated $50 million for concessionary funding.
Denys Denya, Afreximbank’s Senior Executive Vice President, highlighted the bank’s strong performance and progress in its 6th Strategic Plan, “Extending the Frontiers.”
He emphasized the bank’s commitment to enhancing Africa’s economic resilience, advocating for the continent on the global stage, and connecting Africa with its global diaspora through strategic initiatives.
Denya noted that the bank’s impressive results were achieved amidst a challenging macroeconomic environment, reflecting the effectiveness of its strategy and commitment to operational excellence.
Looking ahead, the group aims to continue supporting the African Continental Free Trade Area (AfCFTA) by promoting economic integration, industrialization, and trade across the continent while maintaining a solid liquidity position and high asset quality.
