African Export-Import Bank (Afreximbank) has reported robust first-quarter financial results for 2024, demonstrating resilience amid challenging geopolitical and macroeconomic conditions.
The bank’s consolidated financial statements for the three months ending March 31, 2024, according to an APO Group statement, indicate significant year-on-year growth, surpassing prior-year performance and meeting expectations.
Afreximbank’s Net Interest Income soared by 31.73% to $393.4 million, up from $298.6 million in Q1 2023. This increase was driven by a 40.07% rise in interest income, which reached $721.8 million, bolstered by the expansion of the bank’s loan portfolio. Consequently, the Net Interest Margin improved to 4.82%, compared to 4.40% in the same period last year, reflecting higher benchmark rates and effective borrowing cost management.
The bank also showcased improved operational efficiency, reducing its cost-to-income ratio to 14.50% from 16.82% in Q1 2023, despite a 10.63% rise in operating expenses to $61.4 million. The increase in expenses was primarily due to a 28.55% rise in staff costs, attributable to an expanded workforce supporting the bank’s growth and strategic initiatives under its Sixth Strategic Plan.
Total assets for the group closed at $32.8 billion, slightly down from $33.5 billion as of December 31, 2023. However, cash and cash equivalents decreased to $4.9 billion from $5.6 billion, with the liquidity ratio remaining robust at 14.9%. Shareholders’ funds increased by 2.89% to $6.3 billion, driven by a net income growth of $178.7 million.
Mr. Denys Denya, Afreximbank’s Senior Executive Vice President, commented on the results: “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 prioritize revenue and quality assets growth, operational efficiency, while ensuring capital adequacy and adequate liquidity levels are maintained.”
Denya also highlighted the role of the African Continental Free Trade Area (AfCFTA) and the Pan-African Payment and Settlement System (PAPSS) in bolstering Africa’s economic resilience against global market volatility. He projected that Africa could sustain a growth rate of approximately 4% in 2024.
Financial Highlights:
-Gross Income: $753.80 million (Q1 2024) vs. $547.92 million (Q1 2023)
-Operating Income: $423.52 million (Q1 2024) vs. $329.91 million (Q1 2023)
-Net Income: $178.65 million (Q1 2024) vs. $171.13 million (Q1 2023)
-Return on Average Equity (ROAE): 11.51% (Q1 2024) vs. 12.89% (Q1 2023)
-Return on Average Assets (ROAA): 2.19% (Q1 2024) vs. 2.54% (Q1 2023)
-Net Interest Margin: 4.82% (Q1 2024) vs. 4.40% (Q1 2023)
-Cost-to-Income Ratio: 14.50% (Q1 2024) vs. 16.82% (Q1 2023)
Financial Position Metrics:
-Total Assets: $32.82 billion (Q1 2024) vs. $33.47 billion (FY2023)
-Total Liabilities: $26.52 billion (Q1 2024) vs. $27.35 billion (FY2023)
-Shareholders’ Funds: $6.30 billion (Q1 2024) vs. $6.12 billion (FY2023)
-Non-Performing Loans Ratio (NPL): 2.72% (Q1 2024) vs. 2.47% (FY2023)
-Capital Adequacy Ratio (Basel II): 22.94% (Q1 2024) vs. 23.77% (FY2023)
Afreximbank remains committed to enhancing intra- and extra-African trade, supporting economic transformation, and fostering industrialization and regional trade. The bank’s strategic initiatives, coupled with the anticipated positive impact of the AfCFTA, underscore its optimism for sustained growth and resilience throughout 2024.