The African Export-Import Bank (Afreximbank) has reported impressive financial results for the first half of 2024, underscoring the successful execution of its strategy amid significant macroeconomic challenges. For the six months ending June 30, 2024, the Group demonstrated remarkable resilience, achieving notable year-on-year growth across key financial metrics and enhancing shareholder value.
Net interest income rose by 24.5% to US$826.2 million, up from US$663.6 million during the same period last year. This increase was primarily driven by a 31.42% rise in interest income to US$1.5 billion, largely attributed to the expansion of the Bank’s portfolio of loans and advances. Contributions from the Group’s subsidiaries remained modest, with the Funds for Export Development in Africa (FEDA) notably contributing US$11 million to net interest income, compared to US$9.1 million in the first half of 2023.
In addition to strong net interest income, total fees and commission income experienced significant growth, increasing by 20.07% to US$71.2 million, up from US$59.2 million in the first half of 2023. These gains reflect Afreximbank’s strategic focus on diversifying its revenue streams while supporting its core mission.
Afreximbank also made substantial progress in advancing its mission to bolster African trade during this period. Key among these efforts was the strengthening of relationships with Caribbean nations and the African diaspora.
Despite these strategic advancements, operating expenses rose by 30.38% to US$152.8 million, driven by higher personnel and administrative costs required to support the Bank’s initiatives in a high-inflation environment. Nevertheless, the cost-to-income ratio remained low at 16.98%, well within the Group’s strategic limit of 30%.
The winding down of the Ukraine Crisis Adjustment Trade Financing Programme for Africa (UKAFPA) led to a slight decrease in loans and advances, from US$26.7 billion to US$26 billion. Despite this reduction, the Group’s liquidity remained strong, with cash and cash equivalents standing at US$3.9 billion, albeit down from US$5.6 billion at the end of 2023. The liquid assets to total assets ratio remained high at 12.50%.
Shareholders’ funds increased by 1.64% to US$6.2 billion, supported by net income growth of US$407.7 million. The Bank’s capital adequacy ratio also remained robust at 25%, reflecting its strong financial position. At its Annual General Meeting held in June 2024 in Nassau, The Bahamas, shareholders approved a dividend of US$264.6 million, along with other appropriations totaling US$50 million to support concessionary funding.
Mr. Denys Denya, Afreximbank’s Senior Executive Vice President, noted that the results “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.”
