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.
