Afreximbank’s total assets rise 20% in one year

The total assets of the African Export-Import Bank (Afreximbank) grew by 20.12 percent to $33.5 billion last year from $27.9 billion in 2022.

According to the group’s latest financial statement, the growth in assets was a result of increases in net loans and advances to customers and cash and cash equivalents.

“The Group shareholders’ funds, which largely mirrored the bank’s shareholders’ funds, recorded a solid growth of 17.55 percent to reach $6.1 billion as of December 31, 2023, compared to the 2022 position of $5.2 billion,” the statement said.

It said accounting for this growth were the $546.8 million retained income (which is net of appropriated 2022 dividends) and the $349.8 million fresh equity raised during the year as shareholders supported the GCI II programme, which aims to raise $2.6 billion paid-in-capital ($3.9 billion callable capital) by 2026.

“Largely propelled by the Bank’s and its subsidiaries’ growth, the Group’s results for the financial year ended 31 December 2023 demonstrate a strong and resilient performance, surpassing prior year results and well ahead of expectations, the bank said, adding that it remained steadfast in implementing its sixth strategic plan and delivering value to stakeholders, and this resulted in the Group ending the year, once again, achieving a solid performance and attaining an exceptional financial position.”

It is noteworthy that this performance has been enhanced by the Group’s ability to successfully execute its four strategic pillars focused on “Promoting Intra-African Trade,” “Facilitating Industrialization and Export Development,” “Strengthening Trade Finance Leadership” and “Improving Financial Performance and Soundness”.

Net interest income reached $1.4 billion at the end of the 2023 financial year, compared to $910.3 million in 2022. The 58.67 percent increase was driven by the growth in interest income, which in turn was driven primarily by the growth in the Bank’s portfolio of loans and advances. Net Interest Margin grew to 4.96 percent compared to the prior year’s level of 3.83 percent.

Due to global inflationary pressures and investment in human capital to support increased business activities, the Group’s total operating expenses were $304.5 million, 34.93 percent higher than in 2022. The capacity expansion and rise in expenditures were envisaged in the five-year Sixth Strategic Plan, which is currently under implementation until December 2026.