The African Export-Import Bank (Afreximbank) has reported a robust increase in its financial performance for the first quarter of 2024, demonstrating resilience amidst challenging geopolitical and macroeconomic conditions.
According to the bank’s consolidated financial statements, Afreximbank’s net interest income rose by 31.73percent year-on-year to $393.4 million, up from $298.6 million in Q1 2023.
This significant growth was driven by a 40.07 percent increase in interest income, which reached $721.8 million due to the expansion of the bank’s portfolio of loans and advances. The bank also reported an improvement in its Net Interest Margin, which increased to 4.82 percent from 4.40 percent in the same period last year, attributed to higher benchmark rates and effective management of borrowing costs.
Operating efficiency at Afreximbank improved, as evidenced by a reduced cost-to-income ratio of 14.50 percent in Q1 2024, down from 16.82 percent in Q1 2023. This improvement occurred despite a 10.63 percent rise in operating expenses to $61.4 million, with staff costs increasing by 28.55 percent year-on-year due to higher headcount supporting business growth and other strategic initiatives.
The bank’s total assets slightly decreased to $32.8 billion at the end of Q1 2024 from $33.5 billion as of December 31, 2023. However, shareholders’ funds grew by 2.89 percent to $6.3 billion, driven by a net income of $178.7 million. The liquidity ratio remained strong at 14.9 percent, with cash and cash equivalents closing the period at $4.9 billion.
Afreximbank’s Senior Executive Vice President, Mr. Denys Denya, highlighted the bank’s strong performance and strategic expansion into the Caribbean. He emphasised the bank’s focus on revenue growth, asset quality, operational efficiency, and maintaining capital adequacy and liquidity. He also noted that the implementation of the African Continental Free Trade Area (AfCFTA), supported by robust payment systems like PAPSS, would bolster Africa’s economic resilience and contribute to a projected growth rate of approximately four percent in 2024.
