Afreximbank Reports Strong Growth H1 2024, Showcasing Efficient Strategy Execution Amidst Macroeconomic Adversities

The Net Interest Income experienced a substantial increase of 24.5% during the first half of 2024, reaching US$826.2 million compared to the US$663.6 million recorded in the corresponding period of the previous year (H1 2023).

Mr. Denys Denya, Senior Executive Vice President, Afreximbank

The African Export-Import Bank (“Afreximbank” or the “Group”) () has published its consolidated financial statements for the six-month period ending 30 June 2024.

The Group's results for this period highlight its resilience in the face of challenging macroeconomic conditions. There was notable year-on-year growth across key performance indicators, contributing to an increase in shareholder value.

For the first half of 2024, Net Interest Income rose by 24.5% to US$826.2 million, up from US$663.6 million in the same period last year (H1’2023). This growth was fueled by a 31.42% increase in interest income, reaching US$1.5 billion, driven by an expansion in the Bank’s loan and advance portfolio. The Group's performance reflects the Bank's results, as its subsidiary entities are still developing, with the exception of the Funds for Export Development in Africa (FEDA), which contributed US$11 million to the Group's Net Interest Income, compared to US$9.1 million in H1’2023.

Total fees and commission income for H1’2024 rose by 20.07% to US$71.2 million, compared to US$59.2 million in H1’2023.

Throughout this period, the Group made significant strides in its mission to enhance African trade, including strengthening relationships with Caribbean nations and the wider diaspora. Operating expenses increased by 30.38% to US$152.8 million, up from US$117.2 million in H1’2023, reflecting higher personnel and administrative costs to support the Bank's initiatives and those of its subsidiaries amid a high-inflation environment. The Cost to Income Ratio remained low at 16.98%, well within the strategic upper limit of 30%.

The gradual conclusion of the Ukraine Crisis Adjustment Trade Financing Programme for Africa (UKAFPA) facilities, as African economies showed resilience and adapted to the crisis, led to a slight decrease in Loans and advances from US$26.7 billion to US$26 billion.

The period concluded with cash and cash equivalents totaling US$3.9 billion, a decrease from US$5.6 billion in FY 2023, while the ratio of Liquid Assets to Total Assets remained robust at 12.50 percent.

The Group’s Shareholders’ Funds increased by 1.64%, reaching US$6.2 billion, up from US$6.1 billion in FY 2023, which is indicative of a rise in internally generated Net Income amounting to US$407.7 million. The Bank’s Capital Adequacy Ratio continued to demonstrate strength at 25%.

During the Afreximbank Annual General Meeting held in Nassau, The Bahamas, in June 2024, shareholders sanctioned a dividend of US$264.6 million along with an additional appropriation of US$50 million to facilitate concessionary funding.

Mr. Denys Denya, Senior Executive Vice President of Afreximbank, remarked: Afreximbank Group has reported impressive results for the first half of 2024, showcasing strong financial performance and making notable progress in executing its 6th Strategic Plan - Extending the Frontiers. The Bank has reaffirmed its dedication to bolstering Africa’s economic resilience by assisting nations in alleviating the adverse impacts of external challenges, advocating for the continent’s interests on the international stage, and contributing to "Global Africa" by linking the continent with its global diaspora through strategic initiatives.

The robust outcomes achieved during this period occurred within a persistently challenging and dynamic macroeconomic landscape, underscoring the effectiveness of the Group’s strategic approach and its commitment to operational excellence. Capitalizing on its solid financial standing, the Group is poised to continue playing a pivotal role in advancing the African Continental Free Trade Area (AfCFTA) by promoting accelerated economic integration, industrialization, and trade throughout the continent.

He emphasized that Group Management remains dedicated to sustaining a healthy and robust liquidity position, ensuring sound asset quality, and enhancing Afreximbank’s institutional capacity to support Africa’s growth and development objectives.