Afreximbank posts net income of $973.5m for 2024
The African Export-Import Bank (Afreximbank) has reported a net income of 973.5 million US dollars for the 2024 financial year, representing a 29 per cent rise from its 2023 earnings. The development underscores the bank’s resilience and strategic performance despite a volatile global economic environment.
The figures were announced in a statement released by Vincent Musumba, Communications and Events Manager for Afreximbank, following the release of the bank’s consolidated financial results for the year ending 31 December 2024.
Musumba noted that the bank delivered a strong financial performance in the face of geopolitical tensions, high inflation, and sustained global interest rate hikes. He added that Afreximbank’s subsidiaries are beginning to play a more significant role in bolstering the Group’s overall financial standing.
Quoted in the statement, Denys Denya, Afreximbank’s Senior Executive Vice-President, said: “In a climate marked by rapid shifts in global geopolitics and economic uncertainty, the Group achieved a performance that not only met but exceeded expectations, surpassing previous records.”
He credited this outcome to the bank’s steadfast execution of its Sixth Strategic Plan, operational efficiency, and its commitment to delivering long-term value. Denya pointed to the institution’s strong liquidity position, robust capital base, and a high-quality asset portfolio as key strengths driving its performance.
The bank’s total income rose by 23 per cent to 3.3 billion dollars in 2024, attributed to increased business activity and the favourable impact of higher market interest rates. Net interest income climbed to 1.8 billion dollars, marking a 25 per cent rise over 2023, reflecting effective management of funding costs.
Despite a 21 per cent jump in total operating expenses, which reached 367.7 million dollars compared to 304.5 million dollars the previous year, the bank still improved its cost-to-income ratio. The figure dropped to 18 per cent from 19 per cent, indicating enhanced efficiency in operations.
Afreximbank’s total assets, including contingencies, grew by 7.55 per cent to hit 40.1 billion dollars at year-end, up from 37.3 billion dollars in 2023. Musumba attributed this increase to higher volumes in net loans and customer advances, as well as gains in guarantees, letters of credit, and investments.
The value of the bank’s property and equipment rose sharply by 33 per cent, from 328.1 million dollars to 436.4 million dollars. This growth was driven by accelerated construction work on the Afreximbank African Trade Centre (AATC) facilities in Abuja, Nigeria, and Harare, Zimbabwe.
Shareholders’ funds also saw a substantial increase, rising by 17 per cent to reach 7.2 billion dollars in 2024, up from 6.1 billion dollars in 2023. Musumba explained that this was largely fuelled by the year’s net income of 973.5 million dollars, as well as retained earnings following the distribution of 314.5 million dollars in dividends approved by shareholders in June 2024.
Afreximbank also secured notable recognition during the year, ranking first in all three African Capital Markets categories in Bloomberg’s Capital Markets League Tables Report. The bank emerged as the top Sub-Saharan Africa bookrunner, administrative agent, and mandated lead arranger.
Membership of the bank also expanded, with Libya and Somalia joining the Establishment Agreement. This brought the total number of African member states to 54. Meanwhile, in the Caribbean, momentum remained strong, with 12 out of 15 CARICOM nations signing the bank’s Participating Agreement, laying the groundwork for expansion into the region.
Musumba highlighted further strategic growth through the bank’s equity investment arm, the Fund for Export Development in Africa (FEDA). FEDA grew its impact portfolio to over 500 million dollars, with investments spanning key sectors such as industrial platforms, financial services, agribusiness, and healthcare.
AfrexInsure, the bank’s specialty insurance subsidiary, also extended its reach significantly in 2024. It completed transactions across 17 countries, compared to just seven in 2023, and provided cover for assets valued at 3.54 billion dollars across multiple sectors and regions.
The Pan African Payment and Settlement System (PAPSS), a key initiative for facilitating intra-African trade, welcomed three additional central banks and 50 commercial banks in 2024. The system now counts 16 central banks and 144 commercial banks among its users.
PAPSS also launched the African Currency Marketplace (PACM) during the year. This new platform successfully processed transactions in 12 different currencies during its pilot phase, helping large corporations manage difficulties in fund repatriation across the continent.
In the final quarter of 2024, Afreximbank priced its inaugural Samurai bond, raising JPY 67.2 billion across five tranches, further diversifying its funding sources and reinforcing its position in global capital markets.
