The African Export-Import Bank (Afreximbank) has announced its financial results for the nine months ending 30 September 2024, showcasing robust growth and resilience despite a difficult global economic environment.
Afreximbank and its subsidiaries delivered impressive results, highlighting improved profitability, strong liquidity, and enhanced asset quality. The Group reported a 22.05% increase in Net Interest Income, reaching $1.3 billion compared to $1 billion in the same period last year. The growth was fueled by a 24.62% rise in interest income to $2.2 billion, attributed to higher revenue generation and effective cost management.
The Bank also maintained operational efficiency, with its Cost-to-Income ratio at 17.16% for the period, a slight increase from 16.79% in 2023, despite inflationary pressures and expanded operations. The results underline Afreximbank's commitment to strategic growth and financial stability in a challenging operating landscape.
The Group’s total on-balance sheet assets and Contingent liabilities closed 9M’2024 at US$36.3 billion (FY’2023: US$37.3 billion). Cash and Cash Equivalents’ balances closed 9M’2024 at US$3.9 billion (FY’2023: US$5.6 billion). The decrease in Cash and Cash Equivalents arose from the Bank’s deliberate strategy to meet maturing obligations using internal resources while also controlling the costs associated with holding excess liquidity.
The Group’s Shareholders’ Funds rose by 7.96% to reach US$6.6 billion as at 9M’2024, compared to the FY’2023 position of US$6.1 billion due to a combination of retained profits and fresh equity contributions.
Mr. Denys Denya, Afreximbank's Senior Executive Vice President, commented: "Afreximbank delivered a strong set of results for the first nine months of 2024, despite challenging macroeconomic conditions, particularly across Africa. The Group’s gross revenue grew by 24% year-on-year to reach US$2.3 billion while Net income also saw a 23% increase compared to the same period in 2023, totalling US$642 million. This solid performance was underpinned by growth in business volumes and healthy spreads, while maintaining a low cost-to-income ratio. Additionally, we maintained a healthy and strong balance sheet with robust liquidity position to drive the expected growth in the fourth quarter.
Our subsidiaries continued to grow and expand, with FEDA achieving a 26% increase in funds under management, rising from US$770 million in FY2023 to US$970 million as of September 2024 while also expanding its member countries with five new members joining this year. AfrexInsure doubled the value of its insured portfolio to over US$4 billion, with premium insurance volume growing more than fourfold. Likewise, PAPSS saw an increase in the number of banks connected to the platform, and with the launch of the African currency marketplace, the outlook is increasingly promising.
Looking ahead, the Group remains committed to achieving its strategic goals set out in its 6th Strategic Plan, which were reaffirmed during our recent mid-term strategy review.”
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