The African Export-Import Bank (Afreximbank) recently released its consolidated financial statements and those of its subsidiaries for the year ended 31 December 2024.
These financials indicate that Afreximbank reported strong financial performance despite a complex global economic landscape marked by geopolitical tensions, inflationary pressures and elevated interest rates, posting a net income of US$973.5 million for the financial year 2024.
This is a 29% increase from the previous year, with subsidiaries beginning to make meaningful contributions to the group’s financial results.
These impressive results highlight Afreximbank’s resilience, systemic relevance and its commitment to deliver on its mandate and the objectives set under its sixth strategic plan. The group’s total income increased by 23% to reach US$3.3 billion, driven by growth in business volumes, and supported by higher market interest rates.
As a result, net interest income for financial year 2024 amounted to US$1.8 billion, a 25% increase compared to 2023, reflecting the effective and efficient management of borrowing costs.
“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,” said Afreximbank’s senior executive vice president, Denys Denya.
Meanwhile, Afreximbank management remains confident in the group’s ability to navigate ongoing economic headwinds and sustain growth trajectory.
“Strategic initiatives to mitigate risks and optimise operations have reinforced the foundation for long-term success. Looking ahead, global economic conditions are expected to remain volatile, with inflationary pressures, tighter financial conditions and geopolitical uncertainties posing potential risks. The bank will continue to play its role as a systemically-relevant institution, balancing growth, liquidity, profitability and risk management while pursuing sustainable expansion,” Denya added.
Despite rising operating expenses, the cost-to-income ratio improved to 18% in 2024, down from 19% in the previous year, demonstrating enhanced operational efficiency. This was achieved even as total operating expenses rose by 21% to US$367.7 million, primarily due to global inflationary pressures and increased investment in human capital to support expanded business activities.
Group’s total assets, including contingencies, grew by 7.55%, reaching US$40.1 billion as of 31 December 2024, compared to US$37.3 billion at the close of financial year 2023.
The growth was largely driven by increases in net loans and advances to customers, guarantees and letters of credit, as well as investments at fair value, property and equipment.
The carrying value of property and equipment increased by 33%, rising from US$328.1 million to US$436.4 million, primarily driven by the accelerated construction of the state-of-the-art Afreximbank African Trade Centre (AATC) facilities in Abuja, Nigeria and in Harare, Zimbabwe.