Afreximbank’s net income rose to $973m in 2024 — up by 29%

The African Export-Import Bank (Afreximbank) says it recorded a net income of $973.5 million in 2024, marking a 29 percent increase from the previous year.

Afreximbank published its consolidated financial statements and those of its subsidiaries on Monday.

According to Vincent Musumba, the bank’s communications and events manager, Afreximbank delivered strong financial results despite pressures from inflation, high interest rates, and global geopolitical tensions.

Musumba said that Afreximbank’s total income increased by 23 percent to $3.3 billion, while net interest income rose by 25 percent to $1.8 billion.

He added that the bank’s total assets also grew by 7.55 percent, reaching $40.1 billion.

“These impressive results highlight Afreximbank’s resilience, systemic relevance and its commitment to delivering on its mandate and the objectives set under its Sixth Strategic Plan,” the communications manager said.

“The Group’s total income increased by 23% to reach US$3.3 billion, driven by growth in business volumes and supported by higher market interest rates.

“As a result, net interest income for FY2024 amounted to US$1.8 billion, a 25% increase compared to FY2023, reflecting the effective and efficient management of borrowing costs.

“Despite rising operating expenses, Cost-to-Income ratio improved to 18% in FY 2024, down from 19% in the previous year – demonstrating enhanced operational efficiency.

“This was achieved even as total operating expenses rose by 21% to US$367.7 million (FY2023: US$304.5 million), primarily due to global inflationary pressures and increased investment in human capital to support expanded business activities.

“Group’s total assets, including contingencies, grew by 7.55%, reaching US$40.1 billion as of 31 December 2024, compared to US$37.3 billion at the close of FY’2023.

“The growth was largely driven by increases in net loans and advances to customers, guarantees and letters of credit, as well as investments at fair value, property and equipment.”

‘CARRYING VALUE OF PROPERTIES INCREASED BY 33%’

On capital projects, Musumba noted that the carrying value of the bank’s property and equipment rose by 33 percent — from $328.1 million in 2023 to $436.4 million in 2024.

He said the growth was fuelled by the fast-paced construction of Afreximbank’s flagship African Trade Centre facilities in Abuja, Nigeria, and Harare, Zimbabwe.

“The Group’s Shareholders’ funds grew by 17% in 2024, reaching US$7.2 billion (FY’2023: US$6.1 billion),” he said.

“This growth was largely driven by the Net income of US$973.5 million generated in 2024 which contributed to the increase in equity, while FY’2023 dividends of US$314.5 million were appropriated following the Shareholders’ approval in June 2024.

“Additionally, the successful capital-raising efforts under the second general capital increase (GCI II) programme, which secured fresh equity contributions totalling US$412.8 million during the year also contributed to the increase in Group shareholders’s funds.

“The Bank’s callable capital, a significant proportion of which was credit enhanced as part of the Bank’s Capital Management Strategy, amounted to US$4.3 billion as at 31 December 2024 (FY’2023: US$3.7 billion).”

Across its operations, Musumba said that Afreximbank was ranked first in all three categories in the Bloomberg Capital Markets League Tables Report for African Capital Markets.

He said Afreximbank emerged as the top sub-Saharan Africa bookrunner, administrative agent, and mandated lead arranger.

AFREXIMBANK EXPANDS MEMBERSHIP BASE

The spokesperson also disclosed that the bank expanded its membership base by admitting Libya and Somalia, raising the number of African member states to 54.

According to Musumba, Afreximbank also strengthened its Caribbean presence, with 12 out of 15 Caribbean community (CARICOM) countries signing the participating agreement.

He further said that Afreximbank’s subsidiaries, such as the Pan African Payment and Settlement System (PAPSS), continued to deliver significant growth.

“The Fund for Export Development (FEDA), the equity investment subsidiary of the Bank, expanded its impact portfolio to over US$0.5 billion, targeting key sectors such as industrial platforms, financial services, agribusiness, and healthcare,” he said.

“AfrexInsure, the Bank’s specialty insurance subsidiary, successfully deployed its solutions to an expanding customer base across multiple sectors and geographies.

“By year-end, AfrexInsure had completed transactions in seventeen countries, up from seven the previous year, covering US$3.54 billion in assets.

“Notably, AfrexInsure was able to place 97% of its premiums with pan-African players, in line with its mandate to keep premiums on the continent.

“The Pan African Payment and Settlement System (PAPSS) continued its upward trajectory in 2024, with 3 additional Central Banks and 50 commercial banks joining the platform, bringing the total number of Central Banks to 16 and commercial banks to 144.

“In addition, PAPSS launched the African Currency Marketplace (PACM) in 2024, which successfully handled 12 currencies during its pilot phase and becoming a useful platform for large corporates encountering difficulties in repatriating funds across the continent.

“Work is also progressing towar the launch of the PAPSS card, further enhancing the platform’s capacity to facilitate seamless financial transactions across the continent.”

‘AFREXIMBANK HAD A SUCCESSFUL DEBUT IN SAMURAI BOND MARKET’

Musumba said that in the fourth quarter of 2024, Afreximbank had a successful debut in the Samurai bond market.

“In the last quarter of 2024, the Bank priced its debut Samurai bond, securing a regular 5 tranche JPY 67.2 billion,” he said.

“Concurrently, the Bank launched its inaugural Retail Samurai bond with a 3-year fixed-rated tranche valued at JPY 14.1 billion. The bonds are rated ‘A-’ by Japan Credit Rating Agency, Ltd and helped with diversifying the Bank’s funding sources.

“The fundraising opportunities were further validated by the AAA/Stable rating awarded to the Bank by China Chengxin International Credit Rating Co., Ltd (CCXI), the highest rating ever granted to an African multilateral financial institution.

“This prestigious rating not only affirms the Bank’s developmental impact and operational strength but also enhances our ability to diversify funding sources and strengthen our partnership with China, Africa’s largest trading partner.”

He added that the bank, in collaboration with the African Union and the Algerian government, would host the 2025 edition of the Intra-African Trade Fair in Algiers, Algeria.

Denys Denya, Afreximbank’s senior executive vice-president, attributed the bank’s strong results to management’s successful execution of its sixth strategic plan.

Afreximbank’s sixth strategic plan, ‘Extending the Frontiers,’ seeks to deepen its support for African trade finance, especially intra-African trade, industrialisation and financial performance between 2022 and 2026.