Afreximbank Defies Macroeconomic Headwinds, posts $407.7m Net Income in H1 2024

Samuel Mobolaji

In a remarkable display of resilience, Afreximbank has reported a 24.5 per cent increase in its net interest income to US$826.2 million, a 31.42 per cent rise in interest income to US$1.5 billion, and a 20.07 per cent growth in total fees and commission income to US$71.2 million.

Afreximbank in its consolidated financial statements for the six months ended 30 June 2024, which was released to the newsmen yesterday, showcases solid growth and sound execution of its strategy amid challenging macroeconomic conditions.

For instance, Afreximbank’s H1 2024 financial results, showed that its operating expenses rose by 30.38 per cent to US$152.8 million, the Cost to Income Ratio remained low at 16.98 per cent, while shareholders’ Funds grew by 1.64 per cent to US$6.2 billion.

The Group’s Net Interest Income for H1’2024 grew by 24.5 per cent to US$826.2 million, compared to US$663.6 million for the same period last year. This increase was driven by a 31.42% rise in interest income to US$1.5 billion, resulting from growth in the Bank’s portfolio of Loans and advances.

The Group’s total fees and commission income for H1’2024 increased by 20.07 per cent to US$71.2 million, compared to US$59.2 million in H1’2023. Operating expenses rose by 30.38 per cent to US$152.8 million, reflecting higher personnel and administrative costs to support the initiatives of the Bank and subsidiaries amid high inflationary external environment.

Despite these challenges, the Cost to Income Ratio remained low at 16.98 per cent, well within the strategic upper limit of 30 per cent. The winding down of the Ukraine Crisis Adjustment Trade Financing Programme for Africa (UKAFPA) facilities resulted in a marginal decline in Loans and advances from US$26.7 billion to US$26 billion.

Cash and cash equivalents closed the period at US$3.9 billion (FY 2023: US$5.6 billion), while the Liquid Assets to Total Assets ratio remained high at 12.50 per cent. The Group’s Shareholders’ Funds rose by 1.64 per cent to US$6.2 billion, reflecting growth in internally generated Net Income of US$407.7 million.

The Bank’s Capital Adequacy Ratio remained strong at 25 per cent. At the Afreximbank Annual General Meeting held in Nassau, The Bahamas in June 2024, shareholders approved a dividend of US$264.6 million and other appropriations amounting to US$50 million to support concessionary funding.

Mr Denys Denya, Afreximbank’s Senior Executive Vice President, commented: “Afreximbank Group reported a strong performance in the first half of 2024, delivering robust financial results and making significant strides in its implementation of the 6th Strategic Plan – Extending the Frontiers.”

He noted that the Bank continued to demonstrate its commitment to enhancing Africa’s economic resilience, helping countries mitigate the negative effects of external challenges, advocating for the Continent’s interests on the global stage, and contributing to “Global Africa” by connecting the continent with its global diaspora through strategic interventions.

“The strong results achieved during this period were delivered against a backdrop of a continuously challenging and evolving macro environment, reflecting the effectiveness of the Group’s strategy and its commitment to operational excellence,” Mr Denya added.

Leveraging its healthy financial position, the Group will continue to play a central role in the implementation of the African Continental Free Trade Area (AfCFTA) by fostering accelerating economic integration, industrialization, and trade across the continent. Group Management remains focused on maintaining a healthy and strong liquidity position, sound asset quality, and strengthening Afreximbank’s institutional capacity to support Africa’s growth and development aspirations.