Afreximbank delivers strong financial results for the nine months ended 30 September 2024, surpassing prior year’s performance despite a challenging operating environment

Categories: Press Releases

Cairo, Egypt, 18 November 2024: – African Export-Import Bank (“Afreximbank” or the “Group”) has released the consolidated financial statements of the Bank and its subsidiaries, for the nine months ended 30 September 2024 (9M’2024).

The Group delivered a solid performance, closing the third quarter in a strong financial position, evidenced by its healthy liquidity levels, better asset quality, and robust capital adequacy levels. The Group’s profitability for the nine-month (“9M”) reporting period met expectations and showed significant improvement over the previous year, underscoring its resilience and operational efficiency.

Net Interest Income for 9M’2024 grew by 22.05% to US$1.3 billion, compared to US$1 billion for 30 September 2023 (prior period or 9M’2023). 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. 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.

Mr. Denys Denya, Afreximbank’s Senior Executive Vice President, commented:

“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. Afrexinsure 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.

Looking ahead, the Group remains committed to achieving its strategic goals set out in its 6th Strategic Plan, which were reaffirmed during our recent mid-term strategy review.”

Highlights of the results for the Group are shown below:

Financial Performance Metrics9M-20249M-2023
Gross Income (US$ billion)2.321.88
Operating Income (US$ billion)1.371.13
Net Income (US$ million)642.2522.5
Return on average assets (ROAA)2.64%2.34%
Return on average equity (ROAE)13%12%
Net interest margin4.10%4.06%
Cost-to-income ratio17.12%16.79%
   
Financial Position Metrics9M-2024FY’2024
Total Assets (US$ billion)32.2033.47
Total Liabilities (US$ billion)25.5927.3
Shareholders’ Funds (US$ billion)6.66.1
Net asset value per share – US$66,88163,683
Non-performing loans ratio (NPL)2.42%2.47%
Cash/Total assets12%17%
Capital Adequacy ratio (Basel II)25%24%

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About Afreximbank

African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance, facilitate and promote intra and extra-African trade. For over 30 years, the Bank has been deploying innovative instruments to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the AfCFTA, Afreximbank has in partnership with the African Union Commission and AFCFTA Secretariat launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the Free Trade Agreement. The AFCFTA Secretariat and the Bank have created a USD 10 billion Adjustment Fund to support countries to effectively participate in the AfCFTA. 

At the end of December 2023, Afreximbank’s total assets and guarantees stood at US$ 37.3 billion, and its shareholder funds amounted to US$ 6.1 billion. The Bank disbursed more than US$ 104 billion between 2016 and 2023 through various interventions for the advancement of the continent. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure, (together, “the Group”). For more information, visit: www.afreximbank.com

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Media Contact:

Vincent Musumba

Manager, Communications and Events (Media Relations)

Email: press@afreximbank.com