Business
Afreximbank Posts Strong $1.5bn Net Interest Income for H1 2024, Showcases Robust Financial Growth
The African Export-Import Bank (Afreximbank) has reported a robust financial performance for the first half of 2024, reflecting the Group’s resilience and effective execution of its strategic initiatives amidst challenging macroeconomic conditions.
Afreximbank’s net interest income surged by 24.5% to $826.2 million, compared to $663.6 million in H1 2023. This growth was fueled by a 31.42% increase in interest income, which reached $1.5 billion, driven by the expansion of the Bank’s loan and advances portfolio.
While the bank’s subsidiaries 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, marking an increase from $9.1 million in the previous year. Additionally, total fees and commission income grew by 20.07% to $71.2 million, up from $59.2 million in H1 2023, highlighting the success of Afreximbank’s initiatives to bolster African trade.
Operating expenses rose by 30.38% to $152.8 million due to higher personnel and administrative costs amid inflationary pressures. However, the Group maintained a healthy cost-to-income ratio of 16.98%, well below its strategic ceiling of 30%.
Despite a marginal decline in loans and advances, and a decrease in cash and cash equivalents to $3.9 billion, the Group’s shareholders’ funds increased by 1.64% to $6.2 billion. Afreximbank’s capital adequacy ratio remained strong at 25%, underscoring its financial stability.
At its Annual General Meeting in June 2024, shareholders approved a $264.6 million dividend alongside $50 million for concessionary funding, reflecting the Bank’s commitment to rewarding shareholders while advancing strategic initiatives.
Denys Denya, Afreximbank’s Senior Executive Vice President, praised the Bank’s performance, emphasizing its role in supporting Africa’s economic resilience and its pivotal role in the African Continental Free Trade Area (AfCFTA).
Afreximbank’s impressive first-half results reaffirm its position as a key driver of Africa’s economic transformation, demonstrating its ability to navigate global complexities while fostering growth and prosperity across the continent.
Former Kaduna Central Senator Shehu Sani has criticized the World Bank for worsening Nigeria’s economic difficulties. In a post shared on X, Sani accused the institution of projecting that Nigeria’s hardship would extend for another 15 years before the country could reach a better economic future. He questioned how many Nigerians would be left to enjoy that future, and how many African nations the World Bank has successfully helped to prosperity.
Sani’s remarks follow the World Bank’s latest *Africa’s Pulse* report, which forecasts that the Nigerian Naira will be among the worst-performing currencies in Sub-Saharan Africa by August 2024. The report placed the Naira’s decline alongside that of the Ethiopian Birr and South Sudanese Pound.
Heirs Insurance Group (HIG) recently announced impressive financial results for the 2023 fiscal year, marking significant growth across all key metrics. The Group’s Gross Written Premium (GWP) surged by 59.3%, from N19.9 billion in 2022 to N31.7 billion in 2023. This remarkable performance underscores HIG’s resilience and operational efficiency, further solidifying its position as one of Nigeria’s fastest-growing insurance firms.
Heirs General Insurance (HGI) saw a 77% increase in GWP, reaching N12 billion in 2023. HGI’s profit before tax (PBT) also rose by 203%, reflecting the company’s effective cost management. Similarly, Heirs Life Assurance (HLA) reported a 71% GWP increase and a staggering 395% rise in PBT. Both companies have demonstrated a strong commitment to customer satisfaction, disbursing billions in claims.
Beyond financial success, HIG actively engages in corporate social responsibility (CSR) projects, contributing over N100 million to education, community development, and financial literacy. With plans for future expansion and innovation, HIG is poised to remain a key player in Nigeria’s evolving insurance market.
Federal Capital Territory (FCT) Minister, Nyesom Wike, has called on Nigerians to fulfill their tax obligations, emphasizing that government revenue is essential for delivering social services. Wike made this appeal during the inaugural Abuja Business and Investment Summit, held in Abuja on Wednesday.
Speaking on the summit’s theme, “Optimising Investment Through Partnerships,” Wike stressed the importance of collaboration to generate investment opportunities. He dismissed the misconception that the government does not need revenue, explaining that taxes are crucial for funding public services.
Wike reiterated that both investors and the government must benefit from such partnerships, ensuring that both parties “go home smiling” through a fair exchange of services and taxes.
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