Afreximbank records a 24.5% surge in profit to $826.2million

ANALYSIS | THE INDEPENDENT | Africa’s multilateral lender, African Export Import Bank, has recorded a significant 24.5% increase in net interest income for the first half of 2024, reaching $826.2 million driven by increase in loans and advances.

The Bank also recorded a surge in fees and commission income that increased by 20.07% to reach $71.2 million during the same period under review.

Operating expenses during the period rose by 30.38% to $152.8 million driven by higher personnel and administrative costs to support the Bank’s initiatives and subsidiaries amidst a high inflationary external environment.

Nevertheless, the Cost to Income Ratio remained low at 16.98%, well within the strategic upper limit of 30%. The lender said in a statement that its liquidity position remained robust, with cash and cash equivalents closing at $3.9 billion, down from $5.6 billion at the end of 2023, while the Liquid Assets to Total Assets ratio stood at 12.50%.

Shareholders’ funds rose by 1.64% to $6.2 billion, reflecting internally generated net income of $407.7 million. The Bank’s Capital Adequacy Ratio remained strong at 25%.

Denys Denya, Afreximbank’s Senior Executive Vice President, said the Bank’s strong performance in H1 2024 underscores the effectiveness of the Group’s strategy and its commitment to operational excellence.

He said the Bank remains focused on maintaining a healthy liquidity position, sound asset quality, and strengthening its institutional capacity to support Africa’s growth and development aspirations.

Denya also highlighted Afreximbank’s ongoing role in implementing the African Continental Free Trade Area by promoting economic integration, industrialization, and trade across the continent, further contributing to the continent’s economic resilience in the face of global challenges.

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