Afreximbank Delivers Strong Q1 2024 Results, Surpasses Prior Year’s Performance

The African Export-Import Bank (Afreximbank) has released the consolidated financial statements of the Bank and its subsidiaries for the three months ended 31 March 2024.
The Group’s results for the period demonstrated yet again great resilience in the face of challenging geopolitical and macroeconomic conditions, according to a statement yesterday.
The results showed year-on-year growth and an increase in shareholder value.
It revealed that the Bank’s Net Interest Income for Q1 2024 grew by 31.73 per cent to $393.4 million, compared to $298.6 million for the prior year’s comparative period (Q1 2023).
The increase was largely driven by a 40.07 per cent increase in interest income to $721.8 million, on the back of the growth in the bank’s portfolio of loans and advances.
Its net interest margin improved to 4.82 per cent compared to 4.40 per cent in the corresponding period due to a combination of higher benchmark rates and effective management of borrowing costs.
The Group demonstrated an improvement in operating efficiency with a lower cost to income ratio of 14.50 per cent in the review period, compared to 16.82 per cent in the first quarter of 2023. This was achieved despite a 10.63 per cent increase in operating expenses to $61.4 million (Q1 2023: US$55.5 million).
“Staff costs rose by 28.55 per cent year-on-year following an increase in staff headcount to support the growth of group business and other initiatives, in line with the bank’s Sixth Strategic Plan, constituting 52.93 per cent of Group’s expenses.

“Group Total assets closed Q1 2024 at $ 32.8 billion compared to $33.5 billion as at December 31, 2023 Cash and cash equivalents closed the period at $4.9 billion (FY 2023: US$5.6 billion) with the Liquidity ratio remaining strong at 14.9 per cent.

“The Group’s Shareholders’ Funds rose by 2.89 per cent to $6.3 billion as of 31 March 2024 (FY 2023: US$6.1 billion) on the back of growth in Group Net income of US$178.7 million. Callable capital, a significant proportion of which was credit enhanced as part of the Bank’s Capital Management Strategy, was maintained at US$3.7 billion as of 31 March 2024 (FY 2023: US$3.7 billion),” it added.

Commenting on the results, Afreximbank’s Senior Executive Vice President, Mr. Denys Denya, said: “During the first quarter of the financial year 2024, Afreximbank Group delivered a strong performance even as we expanded our subsidiary companies’ operations and our activities in the Caribbean.

“Looking ahead, we will continue to prioritise revenue and quality assets growth, operational efficiency, while ensuring capital adequacy and adequate liquidity levels are maintained. Focusing on these key areas will enhance the Group’s ability to execute its strategy and initiatives as outlined in its Sixth Strategic Plan.”

He added, “The implementation of the African Continental Free Trade Area (AfCFTA) , strongly supported by a robust payments and settlement system like PAPSS, is poised to strengthen the continent’s economic resilience by providing a shield against volatility on the international scene. Consequently, Africa is projected to sustain its resilience in 2024 and attain a growth rate of approximately 4 per cent. We look forward to the rest of the year with confidence.”