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By Chinwendu Obienyi
The African Export-Import Bank (Afreximbank or the “Group”) has unveiled its consolidated financial statements for the first half of 2024, showcasing an impressive performance that underscores the Group’s resilience in the face of persistent macroeconomic headwinds. These results reflect Afreximbank’s sound execution of its strategic initiatives, highlighting robust growth across key financial metrics and an increase in shareholder value.
During the first six months of 2024, Afreximbank achieved significant year-on-year growth, reinforcing its status as a steadfast pillar for Africa’s economic development.
The Group’s Net Interest Income surged by 24.5%, reaching $826.2 million, compared to $663.6 million during the same period in 2023. This increase was driven by a notable 31.42% rise in Interest Income, which climbed to $1.5 billion on the back of the expansion in the Bank’s portfolio of loans and advances.
Notably, the bank’s performance remains the principal driver of the Group’s results, as subsidiary entities are still in nascent stages of development.
However, the Funds for Export Development in Africa (FEDA) made a meaningful contribution to the Group’s Net Interest Income, adding $11 million in H1 2024, up from $9.1 million in H1 2023.
The Group also recorded a commendable 20.07% growth in total fees and commission income, reaching $71.2 million, compared to $59.2 million in the corresponding period last year. These positive results are a testament to Afreximbank’s ongoing strategic initiatives aimed at fostering African trade, particularly by strengthening ties with Caribbean nations and the broader diaspora.
Meanwhile, operating expenses rose by 30.38% to $152.8 million, compared to $117.2 million in H1 2023.
This increase is attributed to higher personnel and administrative costs required to support the bank’s ambitious initiatives amidst an inflationary external environment.
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Despite these challenges, the Group maintained a healthy Cost-to-Income Ratio of 16.98%, well below its strategic ceiling of 30%.
As African economies demonstrated resilience and adapted to the global shocks, the winding down of the Ukraine Crisis Adjustment Trade Financing Programme for Africa (UKAFPA) resulted in a marginal decline in Loans and Advances, which decreased from $26.7 billion to $26 billion. The Group’s Cash and Cash Equivalents closed at $3.9 billion (down from $5.6 billion at FY 2023), while the liquid assets to total assets ratio remained high at 12.50%, underscoring the Bank’s prudent liquidity management.
The Group’s shareholders’ funds rose by 1.64% to $6.2 billion, reflecting growth in internally generated net income of $407.7 million Afreximbank’s capital adequacy ratio remained robust at 25%, further solidifying its financial strength and stability.
At the Afreximbank Annual General Meeting held in Nassau, The Bahamas in June 2024, shareholders approved a $264.6 million dividend alongside $50 million allocated for concessionary funding, reflecting the Bank’s continued commitment to rewarding shareholders while supporting strategic initiatives.
Commenting on the results, Mr. Denys Denya, Afreximbank’s Senior Executive Vice President, stated:
“Afreximbank Group delivered a strong performance in the first half of 2024, achieving remarkable financial results while advancing the goals of our 6th Strategic Plan – Extending the Frontiers. Amidst a persistently challenging and evolving macroeconomic environment, the Group’s strategy has proven effective, and our commitment to operational excellence remains unwavering. Our continued focus on supporting Africa’s economic resilience is demonstrated through our efforts to mitigate external challenges, advocate for the continent’s interests on the global stage, and connect Africa with its diaspora through strategic interventions.”
“Leveraging its solid financial foundation, Afreximbank will continue to play a pivotal role in the implementation of the African Continental Free Trade Area (AfCFTA), accelerating economic integration, industrialization, and trade across the continent. The Group’s management remains committed to maintaining a strong liquidity position, preserving asset quality, and further enhancing the Bank’s institutional capacity to support Africa’s growth and development aspirations.”
With its impressive performance and strategic resilience, Afreximbank continues to reaffirm its role as a key driver of Africa’s economic transformation, navigating the complexities of the global landscape while fostering growth and prosperity across the continent.
