African Export-Import Bank (Afreximbank ) has released its consolidated financial statements for the six months (H1) ended June 30, 2024. Its Gross Income increased to $1.47 billion in H1’2024 from $ 1.12billion in H1’2023.
Net Interest Income for H1’2024 grew by 24.5 percent to $826.2 million, compared to $663.6 million for the same period last year (H1’2023).
The increase was driven by a 31.42 percent increase in interest income to $1.5 billion, on the back of growth in the Bank’s portfolio of Loans and advances.
The Group’s results for the six months period once again demonstrate resilience amid challenging macroeconomic conditions.
The Group delivered solid year-on-year growth across key performance metrics and an increase in shareholder value.
The Group’s performance for the period reflects that of the Bank as subsidiary entities are still in their early stages of development, with the notable exception of the Funds for Export Development in Africa (FEDA) which contributed $11 million to the Net Interest Income of the Group, compared to $9.1 million at H1’2023.
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The Group’s total fees and commission income for H1’2024 increased by 20.07 percent to $71.2 million, compared to $59.2 in H1’2023.
During the period, the Group continued to make strategic progress in its mission to develop African trade, including deepening ties with Caribbean countries and the broader diaspora.
Operating expenses increased by 30.38 percent, to $152.8 million, compared to $117.2 million at H1’2023 reflecting higher personnel and administrative costs to support the initiatives of the Bank and subsidiaries amid a high inflationary external environment. The Cost to Income Ratio remained low at 16.98 percent, well within the strategic upper limit of 30 percent.
The winding down of the Ukraine Crisis Adjustment Trade Financing Programme for Africa (UKAFPA) facilities as African economies demonstrated resilience, and adapted to the crisis, resulted in a marginal decline in Loans and advances from $26.7 billion to $ 26 billion.
Cash and cash equivalents closed the period at $3.9 billion (FY 2023: $5.6 billion), while the Liquid Assets to Total Assets ratio remained high, at 12.50 percent.
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The Group’s Shareholders’ Funds rose by 1.64 percent to $6.2 billion compared to $6.1 billion at FY 2023, reflecting growth in internally generated Net Income of $407.7 million. The Bank’s Capital Adequacy Ratio remained strong at 25 percent.
At the Afreximbank Annual General Meeting held in Nassau, The Bahamas in June 2024, shareholders approved a dividend of $264.6 million and other appropriations amounting to $50 million to support concessionary funding.
Denys Denya, Afreximbank’s Senior Executive Vice President, commented: “Afreximbank Group reported a strong performance in the first half of 2024, delivering robust financial results and making significant strides in its implementation of the 6th Strategic Plan – Extending the Frontiers. The Bank continued to demonstrate its commitment to enhancing Africa’s economic resilience, by helping countries mitigate the negative effects emanating from external challenges, advocating for the Continent’s interests on the global stage, and contributing to “Global Africa” by connecting the continent with its global diaspora through strategic interventions.
The strong results achieved during this period were delivered against a backdrop of a continuously challenging and evolving macro environment, reflecting the effectiveness of the Group’s strategy and its commitment to operational excellence. Leveraging its healthy financial position, the Group will continue to play a central role in the implementation of the African Continental Free Trade Area (AfCFTA) by fostering accelerating economic integration, industrialisation and trade across the continent.”
He indicated that Group Management remained focused on “maintaining healthy and strong liquidity position, sound asset quality while strengthening Afreximbank’s institutional capacity to support Africa’s growth and development aspirations.”
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