African Export-Import Bank (Afreximbank) has released the consolidated financial statements of the Bank and its subsidiaries, for the nine months ended 30 September 2024 (9M’2024).
The Group said despite a challenging operating environment, its Net Interest Income for 9M’2024 grew by 22.05% to US$1.3 billion, compared to US$1 billion for 30 September 2023.
It said, the increase was largely driven by a 24.62% increase in interest income to US$2.2 billion, on the back of the growth in the Bank’s interest income and effective management of borrowing costs. Adding that the Net Interest Spread was maintained despite declining interest rates.
Despite inflationary pressures, increased business activities and increased staff numbers to support the growing business and implement strategic initiatives, the Group demonstrated resilience by sustaining its operating efficiency with a Cost-to-Income ratio of 17.16% in 9M’2024, compared to 16.79% in 9M’2023.
The Group’s total on-balance sheet assets and Contingent liabilities closed 9M’2024 at US$36.3 billion (FY’2023: US$37.3 billion). Cash and Cash Equivalents’ balances closed 9M’2024 at US$3.9 billion (FY’2023: US$5.6 billion). The decrease in Cash and Cash Equivalents arose from the Bank’s deliberate strategy to meet maturing obligations using internal resources while also controlling the costs associated with holding excess liquidity.
The Group’s Shareholders’ Funds rose by 7.96% to reach US$6.6 billion as at 9M’2024, compared to the FY’2023 position of US$6.1 billion due to a combination of retained profits and fresh equity contributions.
Commenting on the achievement, the Afreximbank’s Senior Executive Vice President, Mr. Denys Denya said: “Afreximbank delivered a strong set of results for the first nine months of 2024, despite challenging macroeconomic conditions, particularly across Africa. The Group’s gross revenue grew by 24% year-on-year to reach US$2.3 billion while Net income also saw a 23% increase compared to the same period in 2023, totalling US$642 million. This solid performance was underpinned by growth in business volumes and healthy spreads, while maintaining a low cost-to-income ratio. Additionally, we maintained a healthy and strong balance sheet with robust liquidity position to drive the expected growth in the fourth quarter.
“Our subsidiaries continued to grow and expand, with FEDA achieving a 26% increase in funds under management, rising from US$770 million in FY2023 to US$970 million as of September 2024 while also expanding its member countries with five new members joining this year. Afrexisure doubled the value of its insured portfolio to over US$4 billion, with premium insurance volume growing more than fourfold. Likewise, PAPSS saw an increase in the number of banks connected to the platform, and with the launch of the African currency marketplace, the outlook is increasingly promising,” he said.
