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Afreximbank records improvement in operational efficiency in the first quarter of 2024

By Adedapo Adesanya

The African Export-Import Bank (Afreximbank) has published its consolidated financial statements for the first three months of 2024, recording growth despite challenging geopolitical and macroeconomic conditions.

According to a statement, the Cairo-based lender showed year-on-year growth and improvement in operational efficiency, with a lower cost-to-income ratio of 14.5 percent in the first quarter of 2024, compared to the 16.8 percent recorded in the same period was recorded. of 2023, achieved despite a 10.6 percent increase in operating expenses to $61.4 million, compared to $55.5 million in the first quarter of 2023.

During the reporting period, the company’s net interest income grew by 31.7 percent from $298.6 million to $393.4 million due to a 40.1 percent increase in interest income to $721.8 million driven by the growth of the portfolio of loans and borrowings. claims.

Net interest margin improved to 4.8 percent from 4.4 percent in the corresponding period, thanks to a combination of higher interest rates and effective financing cost management.

Personnel costs increased by 28.6 percent year-on-year due to an increase in headcount to support the growth of the group’s activities and other initiatives, in line with the Bank’s Sixth Strategic Plan, and represented 52.9 percent of expenditure from the group.

The Group’s total assets ended the first quarter of 2024 at $32.8 billion, compared to $33.5 billion at December 31, 2023 (full year 2023).

Cash and cash equivalents ended the period at $4.9 billion (vs. $5.6 billion in 2023), with the liquidity ratio remaining strong at 14.9 percent.

The Group’s Shareholder Fund increased by 2.9 percent to $6.3 billion as at March 31, 2024 (financial year 2023: $6.1 billion) driven by growth in the Group’s net income of $178.7 million.

Also, callable capital, a significant portion of which was provided through credit enhancement as part of the bank’s Capital Management Strategy, was maintained at $3.7 billion as of March 31, 2024 (fiscal year 2023: $3.7 billion).

Speaking on the results, Mr. Denys Denya, Senior Executive Vice President of Afreximbank said: “During the first quarter of fiscal year 2024, the Afreximbank Group delivered strong performance even as we expanded the operations of our subsidiaries and our operations in the Caribbean .

“Looking ahead, we will continue to prioritize revenue and asset quality growth, and operational efficiencies, while ensuring capital adequacy and adequate liquidity levels are maintained. By focusing on these key areas, the Group will be better able to execute its strategy and initiatives as set out in its Sixth Strategic Plan.”

“The implementation of the African Continental Free Trade Area (AfCFTA), strongly supported by a robust payment and settlement system such as PAPSS, is poised to strengthen the continent’s economic resilience by providing a shield against volatility on the international stage.

“Therefore, Africa is expected to maintain its resilience and achieve a growth rate of around 4 percent by 2024. We look forward to the rest of the year with confidence,” he added.