Afreximbank has demonstrated remarkable resilience and growth during the first half of 2024, despite challenging global economic conditions. The Group’s performance over the six-month period highlights solid year-on-year improvements across key financial metrics, leading to an increase in shareholder value.
The bank’s Net Interest Income for H1 2024 surged by 24.5% to $826.2 million, up from $663.6 million during the same period in 2023. This growth was largely driven by a 31.42% rise in interest income, which reached $1.5 billion, fueled by an expansion in the bank’s loans and advances portfolio. While the performance of the Group reflected that of the Bank, most subsidiary entities are still in their early stages of development. However, the Funds for Export Development in Africa (FEDA) contributed $11 million to the Group’s Net Interest Income, up from $9.1 million in H1 2023.
Total fees and commission income also saw a significant increase, growing by 20.07% to $71.2 million in H1 2024, compared to $59.2 million in H1 2023. Throughout this period, Afreximbank made strategic progress in advancing African trade, including strengthening its relationships with Caribbean nations and the broader African diaspora. However, operating expenses rose by 30.38% to $152.8 million, up from $117.2 million in the same period last year, due to higher personnel and administrative costs, reflecting the bank’s efforts to support its initiatives amidst a high inflationary environment.
Despite these rising costs, the bank maintained a low Cost to Income Ratio of 16.98%, well within its strategic target of 30%. The winding down of the Ukraine Crisis Adjustment Trade Financing Programme for Africa (UKAFPA) led to a slight reduction in loans and advances, decreasing from $26.7 billion to $26 billion. Cash and cash equivalents stood at $3.9 billion, down from $5.6 billion at the end of FY 2023, while the Liquid Assets to Total Assets ratio remained strong at 12.50%.
Shareholders’ Funds saw a modest increase of 1.64%, reaching $6.2 billion, compared to $6.1 billion at the end of FY 2023, driven by internally generated Net Income of $407.7 million. The bank’s Capital Adequacy Ratio remained robust at 25%, ensuring a solid financial footing.
During the Afreximbank Annual General Meeting in Nassau, The Bahamas, held in June 2024, shareholders approved a dividend of $264.6 million, along with an additional $50 million earmarked for concessionary funding.
Commenting on the performance, Mr. Denys Denya, Afreximbank’s Senior Executive Vice President, stated, “Afreximbank Group delivered a strong performance in the first half of 2024, showcasing robust financial results and making significant progress in implementing our 6th Strategic Plan – Extending the Frontiers. The bank remains committed to enhancing Africa’s economic resilience by supporting countries in mitigating the impact of external challenges, advocating for the continent’s interests on the global stage, and connecting Africa with its global diaspora through strategic initiatives.”
He further emphasized the bank’s ongoing role in implementing the African Continental Free Trade Area (AfCFTA) by promoting economic integration, industrialization, and trade across the continent.
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