The African Export-Import Bank (Afreximbank) has published the consolidated financial statements for the period ended September 30, 2024 (9M’2024).
The Group delivered a strong performance, closing the third quarter in a strong financial position, as evidenced by its healthy liquidity levels, improving asset quality and high levels of capital adequacy. The Group’s profitability for the nine-month reporting period (“9M”) met expectations and improved significantly compared to the previous year, highlighting its resilience and operational efficiency.
The bank says net interest income for the nine-month period increased by 22.05% to US$1.3 billion, compared to US$1 billion for the period ended September 30, 2023 (previous period or period 9 M’2023). A press release from the bank indicates that this increase is largely explained by a 24.62% increase in interest income, due to the growth of the Bank’s interest income and the effective management of costs. loan. The net interest margin was maintained despite the drop in interest rates.
According to him, despite inflationary pressures, the increase in commercial activities and headcount to support business growth and implement strategic initiatives, the Group has demonstrated resilience by maintaining its operational efficiency with a cost/income ratio of 17.16% for the 9M’2024 period, compared to 16.79% for the 9M’2023 period.
The press release highlights that the group’s total balance sheet assets and contingent liabilities closed the 9M’2024 period at US$36.3 billion (fiscal year 2023: US$37.3 billion). Cash and cash equivalent balances closed 9M’2024 at US$3.9 billion (FY2023: US$5.6 billion). The same source confides that the decline in cash and cash equivalents results from the bank’s deliberate strategy to meet maturing obligations using internal resources while controlling the costs associated with holding excess cash.
Group shareholder funds increased 7.96% to US$6.6 billion in 2024 from US$6.1 billion due to a combination of retained earnings and fresh capital infusions .
Mr. Denys Denya, First Executive Vice President of Afreximbank, said: “Afreximbank posted a strong set of results for the first nine months of 2024, despite challenging macroeconomic conditions, particularly across Africa.” It maintains that the Group’s gross income increased by 24% year-on-year to reach US$2.3 billion, while net income also saw an increase of 23% compared to the same period in 2023, totaling 642 million US dollars.
For him, this solid performance was supported by growth in business volumes and healthy margins, while maintaining a low cost/revenue ratio. Furthermore, he said, we have maintained a healthy and strong balance sheet with a robust liquidity position to drive the expected growth in the fourth quarter.
Bassirou MBAYE
Senegal
