The African Export-Import Bank (Afreximbank) has published its consolidated financial statements for the six months ended 30 June 2024.
The Group’s results for the six-month period again demonstrate its resilience in challenging macroeconomic conditions. The Group delivered solid year-on-year increases in key performance indicators and an increase in shareholder value.
Net interest income increased by 24.5% to $826.2 million in the first half of 2024, compared to $663.6 million in the same period last year (first half of 2023). The increase was due to a 31.42% increase in interest income to $1.5 billion, driven by the growth of the Bank’s loan and advance portfolio.
The Group’s performance for the period reflects that of the Bank as the subsidiaries are still in the early stages of development, with the exception of the Fund 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 the first half of 2023.
The Group’s total fee and commission income increased 20.07 percent to $71.2 million in the first half of 2024, compared to $59.2 million in the first half of 2023.
During this period, the Group continued to make strategic progress in its mission to develop African trade, including deepening relations with Caribbean countries and the wider diaspora.
Operating expenses increased by 30.38 percent to $152.8 million compared to $117.2 million in the first half of 2023, reflecting higher personnel and administrative costs to support the Bank and its subsidiaries’ initiatives in a high inflationary external environment. The cost-income ratio remained low at 16.98 percent, well within the strategic ceiling of 30 percent.
The winding down of the Ukraine Crisis Adjustment Africa Trade Finance Programme (UKAFPA), given the resilience of African economies and their adjustment to the crisis, resulted in a marginal decrease in loans and advances from $26.7 billion to $26 billion.
Cash and cash equivalents amounted to $3.9 billion at the end of the period (FY 2023: $5.6 billion), while the ratio of cash to total assets remained high at 12.50 percent.
The Group’s equity increased by 1.64% to $6.2 billion compared to $6.1 billion in FY2023, driven by growth in internally generated net profit of $407.7 million. The bank’s capital adequacy ratio remained strong at 25%.
At Afreximbank’s Annual General Meeting held in Nassau, Bahamas in June 2024, shareholders approved a dividend of US$264.6 million and additional allocations of US$50 million to support low-interest financing.
Mr. Denys Denya, Senior Executive Vice President of Afreximbank, commented: “The Afreximbank Group recorded a strong performance in the first half of 2024, delivering robust financial results and making significant progress in the implementation of the 6th Strategic Plan – Expanding the Boundaries.
“The Bank has continued to demonstrate its commitment to strengthening Africa’s economic resilience by helping countries mitigate the negative impacts of external challenges, by representing the continent’s interests on the world stage and by contributing to ‘Global Africa’ through strategic interventions that connect the continent with its global diaspora.”
“The strong results achieved during this period were achieved against the backdrop of a continuously challenging and evolving macro environment and reflect the effectiveness of the Group’s strategy and its commitment to operational excellence. The Group will leverage its healthy financial position to continue to play a central role in the implementation of the African Continental Free Trade Area (AfCFTA) by promoting the acceleration of economic integration, industrialisation and trade across the continent.”
In the report distributed by APO Group on behalf of Afreximbank, Mr Denya is quoted as saying: “The Group’s management has remained focused on maintaining a healthy and strong liquidity position and solid asset quality, while strengthening Afreximbank’s institutional capacity to support Africa’s growth and development aspirations.”
