African Export-Import Bank (Afreximbank) Group has announced total balance sheet assets growth of eight per cent in its half-year (H1) operations from $27.9 billion as of 31 December 2022 to approximately $30.1 billion as of 30 June 2023.
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According to the bank, the growth was driven by the increase in loans and advances to customers, which grew by 13 per cent to close the period at $26 billion.

It stated that the liquidity position remained strong at $3 billion, representing 11 per cent of total assets with a liquidity coverage ratio of 310 per cent.

The bank stated that total interest income recorded a strong growth of 107.1 per cent to $1.1 billion compared to $540.8 million achieved in the corresponding period in 2022 due to an increased volume of interest-earning assets, particularly loans and advances and higher interest rates.

Net interest income also rose $663.6 million, 76 per cent growth from the prior year while net interest margin increased by 4.77 per cent, compared to 3.47 per cent recorded in the previous year.
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The group’s shareholders’ funds rose by 7.63 per cent to $5.6 billion largely attributable to the $261 million fresh equity contributions from existing and new shareholders that supported the ongoing general capital increase exercise which aimed at raising to $2.6 billion paid-in equity by 2026.

In addition, the bank also hinged the growth in shareholders’ funds to $125.5 million internally generated net earnings after considering the approved dividend and other appropriations which amounted to $209 million.

Reacting to the performance, Afreximbank’s Executive Vice President, Finance, Administration and Banking Services, Denys Denya, said: “During the period in which the bank celebrated its 30th Anniversary, we have delivered a strong set of results, driven largely by a focused execution of our mandate as a countercyclical lender which generated increased volume of interest-earning assets, particularly loans and advances and benefited from a rising interest rate environment.

“The bank continued to make progress on its strategy implementation, carefully balancing the need to be profitable and sustainable while maintaining sufficient liquidity, capital, and a quality portfolio of assets.”
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