Summary:
- The African Export-Import Bank (Afreximbank) reported a 31.73% income increase to $393.4 million in Q1 2024, driven by loan growth. Interest income surged 40.07% to $721.8 million, with improved net interest margins. The bank achieved greater operational efficiency, despite higher staff costs. Total assets were $32.8 billion, with a strong liquidity ratio of 14.9%.
KAMPALA, (Examiner) – The African Export-Import Bank (Afreximbank) and its subsidiaries have reported a 31.73% increase in income, reaching $393.4 million for the quarter ending March 31, 2024, driven by significant growth in loans and advances.
The Group’s interest income surged by 40.07% to $721.8 million, as the net interest margin improved from 4.4% to 4.82% during this period. This growth was attributed to higher benchmark rates and effective management of borrowing costs.
Afreximbank also demonstrated enhanced operational efficiency, achieving a lower cost-to-income ratio of 14.50% in Q1 2024, compared to 16.82% in Q1 2023. However, staff costs increased by 28.55% year-on-year due to a rise in headcount to support business growth and initiatives aligned with the Bank’s Sixth Strategic Plan. Staff costs constituted 52.93% of the Group’s expenses.
The financial institution’s total assets stood at $32.8 billion as of March 31, 2024, compared to $33.5 billion as of December 31, 2023. Cash and cash equivalents closed the period at $4.9 billion, down from $5.6 billion, with the liquidity ratio remaining strong at 14.9%.
Denys Denya, Afreximbank’s Senior Executive Vice President, highlighted the Group’s robust performance amidst the expansion of its subsidiaries and activities in the Caribbean.
“Looking ahead, we will continue to prioritize revenue and quality asset growth, operational efficiency, while ensuring capital adequacy and maintaining adequate liquidity levels,” he said. “Focusing on these key areas will enhance the Group’s ability to execute its strategy and initiatives as outlined in its Sixth Strategic Plan.”
Denya also emphasized the importance of the African Continental Free Trade Area (AfCFTA), supported by a robust payments and settlement system like PAPSS, in bolstering the continent’s economic resilience. This, he noted, is projected to sustain Africa’s resilience in 2024, with an anticipated growth rate of approximately 4%.
