African Export-Import Bank (Afreximbank) has announced robust financial results for the nine months ended 30 September 2024, with a significant 22.05 percent increase in Net Interest Income, reaching US$1.3 billion compared to US$1 billion in the corresponding period of 2023.
This performance underscores the bank’s resilience and strategic efficiency amidst challenging economic conditions.
According to the bank, the growth in net interest income was primarily driven by a 24.62 percent increase in interest income, which rose to US$2.2 billion during the period. Afreximbank attributed this improvement to the growth in its earning assets and the effective management of borrowing costs. Remarkably, the bank maintained its net interest spread despite a backdrop of declining interest rates in various markets.
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Operating efficiency remained a hallmark of the bank’s performance, with its Cost-to-Income ratio at 17.16 percent in 9M 2024, slightly higher than 16.79 percent recorded in the prior period. This achievement is noteworthy, given the inflationary pressures, increased business activities, and the expansion of staff numbers to support the growing business and strategic initiatives.
Afreximbank’s consolidated financial statements for 9 months in 2024 reflects its commitment to delivering strong financial results while navigating a complex economic landscape. The bank’s ability to sustain profitability and efficiency highlights its strategic focus and operational resilience, positioning it as a leading player in supporting trade and economic development across Africa.
The Group delivered a solid performance, closing the third quarter in a strong financial position, evidenced by its healthy liquidity levels, better asset quality, and robust capital adequacy levels. The Group’s profitability for the nine-month (“9M”) reporting period met expectations and showed significant improvement over the previous year, underscoring its resilience and operational efficiency.
The Group’s total on-balance sheet assets and Contingent liabilities closed 9M’2024 at US$36.3 billion (FY’2023: US$37.3 billion). Cash and Cash Equivalents’ balances closed 9M’2024 at US$3.9 billion (FY’2023: US$5.6 billion). The decrease in Cash and Cash Equivalents arose from the Bank’s deliberate strategy to meet maturing obligations using internal resources while also controlling the costs associated with holding excess liquidity.
The Group’s Shareholders’ Funds rose by 7.96 percent to reach US$6.6 billion as at 9M’2024, compared to the FY’2023 position of US$6.1 billion due to a combination of retained profits and fresh equity contributions.
Denys Denya, Afreximbank’s senior executive vice president, said, “Afreximbank delivered a strong set of results for the first nine months of 2024, despite challenging macroeconomic conditions, particularly across Africa. The Group’s gross revenue grew by 24 percent year-on-year to reach US$2.3 billion while Net income also saw a 23 percent increase compared to the same period in 2023, totalling US$642 million. This solid performance was underpinned by growth in business volumes and healthy spreads, while maintaining a low cost-to-income ratio. Additionally, we maintained a healthy and strong balance sheet with a robust liquidity position to drive the expected growth in the fourth quarter.
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Our subsidiaries continued to grow and expand, with FEDA achieving a 26 percent increase in funds under management, rising from US$770 million in FY2023 to US$970 million as of September 2024 while also expanding its member countries with five new members joining this year. Afrexisure doubled the value of its insured portfolio to over US$4 billion, with premium insurance volume growing more than fourfold. Likewise, PAPSS saw an increase in the number of banks connected to the platform, and with the launch of the African currency marketplace, the outlook is increasingly promising.
Looking ahead, the Group remains committed to achieving its strategic goals set out in its 6th Strategic Plan, which were reaffirmed during our recent mid-term strategy review.”
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