African Export-Import Bank (Afreximbank) says it posted a net income of 973.5 million dollars for Financial Year (FY) 2024.
According to the bank, this represents a 29 per cent increase from 2023.
This is contained in a statement issued by Vincent Musumba, Afreximbank Communications and Events Manager on the consolidated financial statements of the Bank and its subsidiaries for the year ended Dec. 31, 2024.
Musumba said the bank showed strong financial performance in spite of a complex global economic landscape marked by geo-political tensions, inflationary pressures, and elevated interest rates.
He said subsidiaries of Afreximbank were also beginning to make meaningful contributions to the Group’s financial results
Mysumba quoted Mr Denys Denya, Afreximbank’s Senior Executive Vice- President, as saying : “in a challenging and rapidly evolving global geo-political and economic environment, the Group delivered robust financial performance exceeding expectations and outperforming prior years”.
“ This achievement highlights management’s commitment to executing the 6th Strategic Plan, ensuring operational efficiency, and enhancing value.
“The Bank’s strong financial position is underpinned by solid liquidity, a well-capitalised balance sheet, and a high-quality asset portfolio. “
Denya said the management remained confident in the Group’s ability to navigate ongoing economic headwinds and sustain a growth trajectory.
Musumba said the bank’s total income increased by 23 per cent to reach 3.3 billion dollars, driven by growth in business volumes and supported by higher market interest rates.
“As a result, net interest income for FY2024 amounted to 1.8 billion dollars, a 25 per cent increase compared to FY2023, reflecting the effective and efficient management of borrowing costs.
“ In spite of rising operating expenses, Cost-to-Income ratio improved to 18 per cent in FY2024, down from 19 per cent in 2023, demonstrating enhanced operational efficiency.
“This was achieved even as total operating expenses rose by 21 per cent amounting to 367.7 million dollars compared to 304.5 million dollars in FY2023.
Musumba said the Group’s total assets, including contingencies, grew by 7.55 per cent, reaching 40.1 billion dollars as at Dec. 31, 2024, compared to 37.3 billion dollars at the close of FY2023.
He said the growth was largely driven by increases in net loans and advances to customers, guarantees and letters of credit, as well as investments at fair value, property and equipment.
“The carrying value of property and equipment increased by 33 per cent, rising from 328.1 million dollars to 436.4 million dollars.
“This was primarily driven by the accelerated construction of the state-of-the-art Afreximbank African Trade Centre (AATC) facilities in Abuja, Nigeria, and Harare, Zimbabwe.”
Musumba said the Group’s shareholders’ funds grew by 17 per cent in 2024, reaching 7.2 billion dollars as against 6.1 billion dollars recorded for FY2023.
“ This growth was largely driven by the Net income of 973.5 million dollars generated in 2024 which contributed to the increase in equity.
“While FY2023 dividends of 314.5 million dollars were appropriated following the shareholders’ approval in June 2024.”
Given the bank’s operational performance highlights, Musumba said in 2024, Afreximbank was ranked number one in all three categories in the Bloomberg Capital Markets League Tables Report for African Capital Markets.
He added that Afreximbank was the top Sub-Saharan Africa bookrunner, administrative agent and mandated lead arranger.
Musumba noted that Afreximbank expanded its membership with Libya and Somalia joining the Establishment Agreement, bringing the total number of African member states to 54.
“On the Caribbean front, membership momentum remained strong, with 12 of the 15 CARICOM countries having signed the Bank’s Participating Agreement, paving the way for Afreximbank to expand its operations into the region.”
He said The Fund for Export Development (FEDA), the equity investment subsidiary of the Bank, expanded its impact portfolio to more than 0.5 billion dollars targeting key sectors such as industrial platforms, financial services, agribusiness, and healthcare.
Musumba said AfrexInsure, the Bank’s specialty insurance subsidiary, successfully deployed its solutions to an expanding customer base across multiple sectors and geo-graphies.
“By year-end, AfrexInsure had completed transactions in 17 countries, up from seven the previous year, covering 3.54 billion dollars in assets.
“The Pan African Payment and Settlement System (PAPSS) saw growth in 2024, with three more Central Banks and 50 commercial banks joining, totalling 16 Central Banks and 144 commercial banks on the platform.”
“In addition, PAPSS inaugurated the African Currency Marketplace (PACM) in 2024, which successfully handled 12 currencies during its pilot phase and became a useful platform for large corporates encountering difficulties in repatriating funds across the continent.”
He said in the last quarter of 2024, the bank priced UNits debut Samurai bond, securing a regular 5-tranche JPY 67.2 billion.
