Afreximbank first half, 2024 result soars amid sound strategy execution, others

African Export-Import Bank (Afreximbank) financial performqnce for the six months period once again demonstrate  resilience amid challenging macro-economic conditions.

The Group delivered solid year-on-year growth across key performance metrics and an increase in shareholder value.

For instance, its net interest income for the first half year (H1) 2024 grew by 24.5 per cent to $826.2 million, compared to $663.6 million for the same period last year (H1’2023).

According to the group,  the increase was driven by a 31.42 pee cent increase in interest income to $1.5 billion. This is on the back of  growth in the bank’s portfolio of loans and advances.

The group’s performance for the period reflects that of the bank as subsidiary entities are still in their early stages of development, with the notable exception of the Funds for Export Development in Africa (FEDA) which contributed $11 million to the net interest income of the Group, compared to $9.1 million at H1’2023.

The Group’s total fees and commission income for H1’2024 increased by 20.07 percent to $71.2 million, compared to $59.2 in H1’2023.

During the period, the Group continued to make strategic progress in its mission to develop African trade, including deepening ties with Caribbean countries and the broader diaspora.

In addition, operating expenses increased by 30.38 percent, to $152.8 million, compared to $117.2 million at H1’2023 reflecting higher personnel and administrative costs to support the initiatives of the bank and subsidiaries amid high inflationary external environment.

The CIR remained low at 16.98 percent,  well within the strategic upper limit of 30 percent. Afreximbank said the winding down of the Ukraine Crisis Adjustment Trade Financing Programme for Africa (UKAFPA) facilities as African economies demonstrated resilience, and adapted to the crisis, resulted in a marginal decline in loans and advances from $ 26.7 billion to $26 billion.

The bank’s cash and cash equivalents closed the period at $3.9 billion from $5.6 billion while the liquid assets to total assets ratio remained high, at 12.50 percent.

The Group’s shareholders’ funds also rose by 1.6 to $6.2 billion compared to $6.1 billion at FY 2023, reflecting growth in internally generated net income of $407.7 million.

The bank’s capital adequacy ratio remained strong at 25 per cent. At the Afreximbank Annual General Meeting held in Nassau, The Bahamas in June 2024, shareholders approved a dividend of $264.6 million and other appropriation amounting to US$50 million to support concessionary funding.

Afreximbank’s Senior Executive Vice President,  Denys Denya said:””Afreximbank Group reported a strong performance in the first half of 2024, delivering robust financial results and making significant strides in its implementation of the 6th Strategic Plan – Extending the Frontiers.

“The bank continued to demonstrate its commitment to enhancing Africa’s economic resilience, by helping countries mitigate the negative effects emanating from the external challenges, advocating for the Continent’s interests on the global stage, and contributing to ‘Global Africa’ by connecting the continent with its global diaspora through strategic interventions.

“The strong results achieved during this period were delivered against a backdrop of a continuously challenging and evolving macro environment, reflecting the effectiveness of the Group’s strategy and its commitment to operational excellence.

“Leveraging its healthy financial position, the Group will continue to play a central role in the implementation of the African Continental Free Trade Area (AfCFTA) by fostering accelerating economic integration, industrialisation and trade across the continent.”

He added that the group management remained focused on maintaining healthy and strong liquidity position, sound asset quality while strengthening Afreximbank’s institutional capacity to support Africa’s growth and development.