Afreximbank posts record profits amidst global economic strain
Against a backdrop of global economic turbulence, the African Export-Import Bank (Afreximbank) has delivered a stellar financial performance for the year ending December 31, 2024, firmly establishing its pivotal role as a systemic pan-African trade finance institution.
The Bank’s consolidated financial statements, released yesterday, showcase remarkable resilience and a commitment to its mandate, with net income surging by an impressive 29 percent to US$973.5 million.
This robust performance underscores Afreximbank’s ability to navigate complex global headwinds, including geopolitical tensions, inflationary pressures, and elevated interest rates. The significant increase in net income, up from the previous year, was bolstered by meaningful contributions from its subsidiaries, highlighting the growing strength and synergy within the Group.
The Group’s total income also saw substantial growth, climbing by 23 percent to reach US$3.3 billion. This expansion was fuelled by increased business volumes and supported by the prevailing higher market interest rates. Consequently, net interest income for FY2024 reached US$1.8 billion, a 25 percent increase year-on-year, demonstrating the Bank’s effective management of its borrowing costs.
A notable achievement was the improvement in the Cost-to-Income ratio, which fell to 18 percent in FY 2024 from 19 percent in the preceding year. This enhanced operational efficiency was realised even as total operating expenses rose by 21 percent to US$367.7 million (FY2023: US$304.5 million), primarily due to global inflationary pressures and strategic investments in human capital to support the Bank’s expanding activities.
Afreximbank’s total assets, including contingencies, experienced a healthy growth of 7.55 percent, reaching US$40.1 billion by the end of 2024, compared to US$37.3 billion in FY’2023. This expansion was largely driven by increases in net loans and advances to customers, guarantees and letters of credit, as well as strategic investments in fair value assets and property and equipment.
The Bank’s commitment to infrastructure development across the continent was evident in the 33 percent increase in the carrying value of property and equipment, rising to US$436.4 million. This significant growth was primarily attributed to the accelerated construction of the state-of-the-art Afreximbank African Trade Centre (AATC) facilities in Abuja, Nigeria, and Harare, Zimbabwe.
Furthermore, Afreximbank’s financial strength was reinforced by a 17 percent growth in shareholders’ funds, reaching US$7.2 billion in 2024 (FY’2023: US$6.1 billion). This increase was largely driven by the substantial net income generated during the year, alongside successful capital-raising efforts under the second general capital increase (GCI II) programme, which secured fresh equity contributions totalling US$412.8 million.
Operating highlights
Afreximbank’s exceptional financial performance was mirrored by significant operating achievements in 2024. The Bank was ranked number one across all three categories in the Bloomberg Capital Markets League Tables Report for African Capital Markets, affirming its position as the top Sub-Saharan Africa bookrunner, administrative agent, and mandated lead arranger.
The Bank also continued to expand its continental and diaspora reach, with Libya and Somalia joining as the 53rd and 54th African member states, respectively. Membership momentum remained strong in the Caribbean, with 12 out of 15 CARICOM countries having signed the Bank’s Participating Agreement.
Afreximbank’s subsidiaries also delivered robust growth and impact. FEDA, the Bank’s equity investment arm, expanded its impact portfolio to over US$0.5 billion, targeting key sectors. AfrexInsure, the specialty insurance subsidiary, significantly expanded its reach, completing transactions in seventeen countries and placing 97 percent of its premiums with pan-African players.
The Pan African Payment and Settlement System (PAPSS) continued its impressive growth trajectory, with more Central Banks and commercial banks joining the platform. The launch of the African Currency Marketplace (PACM) further enhanced its capabilities in facilitating seamless financial transactions across the continent.
In a significant move to diversify its funding sources, Afreximbank successfully priced its debut Samurai bond and launched its inaugural Retail Samurai bond in the last quarter of 2024. These efforts were further validated by the AAA/Stable rating awarded by China Chengxin International Credit Rating Co., Ltd (CCXI), the highest rating ever granted to an African multilateral financial institution.
Looking ahead, Afreximbank is set to host the Intra-African Trade Fair 2025 (IATF2025) in Algiers, Algeria, in collaboration with the African Union and the AfCFTA Secretariat, underscoring its commitment to promoting intra-African trade and continental integration.
Commenting on the results, Mr Denys Denya, Afreximbank’s Senior Executive Vice President, stated, “In a challenging and rapidly evolving global geopolitical 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.
“Management remains confident in the Group’s ability to navigate ongoing economic headwinds and sustain growth trajectory, while continuing to play its role as a systemically relevant institution.”
Afreximbank’s exceptional 2024 performance not only underscores its financial strength and operational efficiency but also reaffirms its critical role in fostering trade and economic development across the African continent. As it navigates future global uncertainties, the Bank remains poised to drive sustainable expansion and deliver on its pan-African mandate.
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