Afreximbank grows 2024 net income 29% to $973.5m amid tough economic climate

Onome Amuge

African Export-Import Bank (Afreximbank) has reported a 29 per cent increase in net income to $973.5 million for the financial year ended 31 December 2024.  The pan-African lender’s strong performance comes despite prevailing geopolitical tensions, inflationary pressures, and elevated interest rates, according to its latest consolidated financial statements.

According to the financials, total income for the year rose by 23 per cent to $3.3 billion, driven by increased business volumes and supported by higher market interest rates. This translated to a 25 per cent increase in net interest income to $1.8 billion, reflecting effective management of borrowing costs.

Afreximbank also demonstrated improved operational efficiency, with its cost-to-income ratio falling to 18 per cent from 19 per cent in the previous year, despite a 21 per cent rise in total operating expenses to $367.7 million. The increase in expenses was primarily attributed to global inflationary pressures and strategic investments in human capital to support its expanding operations.

The group’s total assets, including contingencies, expanded by 7.55 per cent to $40.1 billion. This growth was largely fuelled by increases in net loans and advances to customers, guarantees and letters of credit, as well as fair value investments and property and equipment. 

Notably, the carrying value of property and equipment saw a significant 33 per cent increase to $436.4 million, driven by the accelerated construction of the Afreximbank African Trade Centre (AATC) facilities in Abuja and Harare.

Shareholders’ funds also saw substantial growth, increasing by 17 per cent to $7.2 billion. This was primarily driven by the strong net income generated during the year and further bolstered by successful capital-raising efforts under the second general capital increase (GCI II) programme, which secured $412.8 million in fresh equity contributions. This offset the appropriation of $314.5 million in FY2023 dividends. The bank’s callable capital stood at $4.3 billion at year-end.

Market leadership and expansion

In 2024, Afreximbank cemented its position as a market leader in African capital markets, securing the top ranking in all three categories of the Bloomberg Capital Markets League Tables Report for Sub-Saharan Africa bookrunner, administrative agent, and mandated lead arranger. 

The bank continued to expand its continental and diaspora reach, with Libya and Somalia joining as the 53rd and 54th African member states, respectively. Membership momentum also remained strong within the Caribbean Community (CARICOM), with 12 of the 15 member states having signed the Bank’s Participating Agreement, paving the way for operational expansion into the region.

Subsidiary growth and innovation

Afreximbank’s subsidiaries also delivered robust growth and impact. The Fund for Export Development (FEDA), its equity investment arm, expanded its portfolio to over $0.5 billion, targeting key sectors. 

AfrexInsure, the bank’s specialty insurance subsidiary, significantly expanded its reach, completing transactions in 17 countries and placing 97 per cent of its premiums with pan-African players.

The Pan African Payment and Settlement System (PAPSS) continued its strong growth trajectory, with more central banks and commercial banks joining the platform. The launch of the African Currency Marketplace (PACM) further enhanced its capabilities in facilitating cross-border payments. Progress is also underway for the launch of the PAPSS card.

Denys Denya, Afreximbank’s senior executive vice president, commented that the Group’s robust financial performance in a challenging global environment highlights management’s commitment to its strategic plan, operational efficiency, and value enhancement. 

Denya emphasised the Bank’s strong financial position, underpinned by solid liquidity and a well-capitalised balance sheet, and expressed confidence in its ability to navigate ongoing economic headwinds while pursuing sustainable growth.