The African Export-Import Bank has recently published its consolidated financial statements for the three months ending on March 31, 2024.
During this period, the group noted that it exhibited strong resilience in the face of challenging geopolitical and macroeconomic conditions.
There was year-on-year growth and an increase in shareholder value.
The statement published on the bank’s website and accessed by PUNCH online on Saturday showed that in the first quarter of 2024, the Net Interest Income grew by 31.73 per cent to US$393.4m compared to US$298.6m in Q1 2023.
It noted that this growth was mainly driven by a 40.07 per cent increase in interest income to US$721.8m, due to the growth in the Bank’s portfolio of loans and advances.
The Net Interest Margin also improved to 4.82 per cent compared to 4.40 per cent in the corresponding period, attributed to higher benchmark rates and effective management of borrowing costs.
The group also improved its operating efficiency, achieving a lower cost-to-income ratio of 14.50 per cent in first quarter of 2024, compared to 16.82 per cent in Q1 2023.
AFREXIM Bank stated that, this improvement was made despite a 10.63% increase in operating expenses to US$61.4m (Q1 2023: US$55.5m).
“Staff costs rose by 28.55 per cent year-on-year following an increase in staff headcount to support the growth of group business and other initiatives, in line with the bank’s Sixth Strategic Plan, constituting 52.93 per cent of Group’s expenses.
“Group Total assets closed Q1 2024 at $ 32.8 bn compared to $33.5bn as at December 31, 2023 Cash and cash equivalents closed the period at $4.9bn (FY 2023: US$5.6 bn) with the Liquidity ratio remaining strong at 14.9 per cent.
“The group’s Shareholders’ Funds rose by 2.89 per cent to $6.3 bn as of 31 March 2024 (FY 2023: US$6.1 bn) on the back of growth in Group Net income of US$178.7m. Callable capital, a significant proportion of which was credit enhanced as part of the Bank’s Capital Management Strategy, was maintained at US$3.7bn as of 31 March 2024 (FY 2023: US$3.7bn),” it added.
Afreximbank’s Senior Executive Vice President, Denys Denya, said, “During the first quarter of the financial year 2024, Afreximbank Group delivered a strong performance even as we expanded our subsidiary companies’ operations and our activities in the Caribbean.
“Looking ahead, we will continue to prioritise revenue and quality assets growth, operational efficiency, while ensuring capital adequacy and adequate liquidity levels are maintained. Focusing on these key areas will enhance the Group’s ability to execute its strategy and initiatives as outlined in its Sixth Strategic Plan.”
“The implementation of the African Continental Free Trade Area , strongly supported by a robust payments and settlement system like PAPSS, is poised to strengthen the continent’s economic resilience by providing a shield against volatility on the international scene.”
He added, “Consequently, Africa is projected to sustain its resilience in 2024 and attain a growth rate of approximately 4 per cent. We look forward to the rest of the year with confidence.”
