Afreximbank's Profit Surges by 31.73% to US$393.4m in Q1 2024

African Export-Import Bank (Afreximbank) has reported impressive financial results for the first quarter of 2024, showcasing a significant 31.73 per cent increase in Net Interest Income, reaching US$393.4 million compared to US$298.6 million in Q1 2023.

This remarkable growth underscores the Bank’s robust profit performance amidst challenging geopolitical and macroeconomic conditions.

The 40.07 per cent rise in interest income to US$721.8 million, driven by an expanding portfolio of loans and advances, contributed significantly to the profit surge. Improved Net Interest Margin, which rose to 4.82 per cent from 4.40 per cent in the previous year, further bolstered profitability by effectively managing borrowing costs alongside higher benchmark rates.

Afreximbank also enhanced operational efficiency, reducing the cost-to-income ratio to 14.50 per cent in Q1 2024 from 16.82 per cent in Q1 2023. Despite a 10.63 per cent increase in operating expenses to US$61.4 million from US$55.5 million in the previous year, the Group maintained strong cost management. Staff costs, which rose by 28.55 per cent year-on-year to support business growth and strategic initiatives, constituted 52.93 per cent of total expenses.

Total assets at the end of Q1 2024 were US$32.8 billion, slightly down from US$33.5 billion at the end of FY 2023. Cash and cash equivalents closed at US$4.9 billion, ensuring a solid liquidity ratio of 14.9 per cent.

The Group’s Shareholders’ Funds increased by 2.89 per cent to US$6.3 billion, up from US$6.1 billion at the end of FY 2023, driven by a growth in Group Net income to US$178.7 million.

Commenting on the strong performance, Afreximbank’s Senior Executive Vice President, Mr Denys Denya stated, “Our Q1 2024 results reflect significant profit growth and operational efficiency. As we expand our operations and activities, including in the Caribbean, we remain committed to revenue growth, quality asset acquisition, and maintaining robust capital adequacy and liquidity levels.

“The implementation of the African Continental Free Trade Area (AfCFTA), supported by systems like PAPSS, is poised to strengthen Africa’s economic resilience. We expect Africa to achieve a growth rate of approximately four per cent in 2024, and we approach the rest of the year with confidence”, he added,

Afreximbank’s robust Q1 performance highlights its ability to navigate challenging environments, driving profitability and aligning with its strategic objectives to foster economic growth across Africa.