The African Export-Import Bank (Afreximbank) has released its financial statements for the six months ending 30 June 2024, which show resilience even in the face of very challenging macroeconomic conditions.
The bank’s net interest income for H1 2024 grew by 24.5% to $826.2 million, driven by a 31.42% increase in interest income to US$1.5 billion. The bank’s performance was reflected in the development of subsidiary entities, with the exception of the Funds for Export Development in Africa (FEDA), which contributed $11 million to the net interest income.
The total fees and commission income for H1 2024 increased by 20.07% to $71.2 million, compared to $59.2 million in H1 2023. The bank continued to make strategic progress in its mission to develop African trade, including deepening ties with Caribbean countries and the broader diaspora.
Operating expenses increased by 30.38% to $152.8 million, reflecting higher personnel and administrative costs to support the bank and subsidiaries’ initiatives amid a high inflationary external environment.
The Cost-to-Income Ratio remained low at 16.98%, well within the strategic upper limit of 30%.
The winding down of the Ukraine Crisis Adjustment Trade Financing Programme for Africa (UKAFPA) facilities resulted in a marginal decline in Loans and advances from $26.7 billion to $26 billion. Cash and cash equivalents closed the period at $3.9 billion, while the Liquid Assets to Total Assets ratio remained high at 12.50%.
Strategic Progress and Shareholder Support
The bank’s Shareholders’ Funds rose by 1.64% to $6.2 billion, reflecting internally generated Net Income growth of $407.7 million. However, the bank’s Capital Adequacy Ratio remained strong at 25%.
At the Afreximbank Annual General Meeting held in Nassau, The Bahamas, in June 2024, shareholders approved a dividend of $264.6 million and another appropriation amounting to $50 million to support concessionary funding.
Mr. Denys Denya, Afreximbank’s Senior Executive Vice President, commented, “Leveraging its healthy financial position, the Group will continue to play a central role in implementing the African Continental Free Trade Area (AfCFTA) by fostering accelerating economic integration, industrialization, and trade across the continent.“
Afreximbank, a pan-African multilateral financial institution, was established in 1993 under the African Development Bank’s auspices. It is headquartered in Cairo and provides financial support to African governments and private businesses.
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