African Export-Import Bank (Afreximbank) has released the consolidated financial statements of the Bank and its subsidiaries for the three months ended 31 March 2024.
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The Group’s results for the period demonstrates yet again great resilience in the face of challenging geopolitical and macro-economic conditions.
The results show year-on-year growth and an increase in shareholder value.
Net Interest Income for Q1 2024 grew by 31.73% to US$393.4 million, compared to US$298.6 million for the prior year’s comparative period (Q1 2023). The increase was largely driven by a 40.07% increase in interest income to US$721.8 million, on the back of the growth in the Bank’s portfolio of Loans and advances.
Net Interest Margin improved to 4.82% compared to 4.40% in the corresponding period due to a combination of higher benchmark rates and effective management of borrowing costs.
The Group demonstrated an improvement in operating efficiency with a lower cost to income ratio of 14.50% in Q1’2024, compared to 16.82% in Q1’2023.
This was achieved despite a 10.63% increase in operating expenses to US$61.4 million (Q1 2023: US$55.5 million). Staff costs rose by 28.55% year-on-year following an increase in staff headcount to support the growth of group business and other initiatives, in line with the Bank’s Sixth Strategic Plan, constituting 52.93% of Group’s expenses.
Group Total assets closed 1Q’2024 at US$ 32.8 billion compared to US$33.5 billion as at 31 December 2023 (FY’2023).
Cash and cash equivalents closed the period at US$4.9 billion (FY 2023: US$5.6 billion) with the Liquidity ratio remaining strong at 14.9%.
The Group’s Shareholders’ Funds rose by 2.89% to US$6.3 billion as of 31 March 2024 (FY 2023: US$6.1 billion) on the back of growth in Group Net income of US$178.7 million.
Callable capital, a significant proportion of which was credit enhanced as part of the Bank’s Capital Management Strategy was maintained at US$3.7 billion as of 31 March 2024 (FY 2023: US$3.7 billion). ■