{"id":8597,"date":"2024-05-19T00:13:32","date_gmt":"2024-05-19T00:13:32","guid":{"rendered":"https:\/\/sotnews.agency\/?p=8597"},"modified":"2024-05-19T00:13:32","modified_gmt":"2024-05-19T00:13:32","slug":"afreximbank-delivers-strong-first-quarter-2024-results-surpassing-prior-years-performance-and-in-line-with-expectations","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=8597","title":{"rendered":"Afreximbank delivers strong first quarter 2024 results, surpassing prior year\u2019s performance and in line with expectations"},"content":{"rendered":"
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\n \t<\/i> Read Time:<\/span>6 Minute, 18 Second <\/div>\n\n <\/div>

African Export-Import Bank (\u201cAfreximbank\u201d or the \u201cGroup\u201d) (www.Afreximbank.com<\/a>) has released the consolidated financial statements of the Bank and its subsidiaries for the three months ended 31 March 2024.<\/p>\n

The Group\u2019s 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.<\/p>\n

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\u2019s 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\u2019s 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.<\/p>\n

The Group demonstrated an improvement in operating efficiency with a lower cost to income ratio of 14.50% in Q1\u20192024, compared to 16.82% in Q1\u20192023. 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\u2019s Sixth Strategic Plan, constituting 52.93% of Group\u2019s expenses.<\/p>\n

Group Total assets closed 1Q\u20192024 at US$ 32.8 billion compared to US$33.5 billion as at 31 December 2023 (FY\u20192023).<\/p>\n

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%.<\/p>\n

The Group\u2019s Shareholders\u2019 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\u2019s Capital Management Strategy was maintained at US$3.7 billion as of 31 March 2024 (FY 2023: US$3.7 billion).<\/p>\n

Mr. Denys Denya, Afreximbank\u2019s Senior Executive Vice President, commented:<\/strong><\/p>\n

\u201cDuring the first quarter of the financial year 2024, Afreximbank Group delivered a strong performance even as we expanded our subsidiary companies\u2019 operations and our activities in the Caribbean. Looking ahead, we will continue to prioritise revenue and quality assets growth, operational efficiency, while ensuring capital adequacy and adequate liquidity levels are maintained. Focusing on these key areas will enhance the Group\u2019s ability to execute its strategy and initiatives as outlined in its Sixth Strategic Plan.\u201d<\/p>\n

He added, \u201cThe implementation of the African Continental Free Trade Area (AfCFTA) strongly supported by a robust payments and settlement system like PAPSS, is poised to strengthen the continent\u2019s economic resilience by providing a shield against volatility on the international scene. Consequently, Africa is projected to sustain its resilience in 2024 and attain a growth rate of approximately 4 percent. We look forward to the rest of the year with confidence.\u201d<\/p>\n

Highlights of the results for the Group are shown below:<\/p>\n

Financial Performance Metrics<\/strong><\/p>\n

Q1-2024 <\/strong><\/p>\n

Q1-2023<\/strong><\/p>\n

Gross Income (US$ billion)<\/p>\n

753.80<\/p>\n

547.92<\/p>\n

Operating Income (US$ billion)<\/p>\n

423.52<\/p>\n

329.91<\/p>\n

Net Income (US$ million)<\/p>\n

178.65<\/p>\n

171.13<\/p>\n

Return on average equity (ROAE)<\/p>\n

11.51%<\/p>\n

12.89%<\/p>\n

Return on average assets (ROAA)<\/p>\n

2.19%<\/p>\n

2.54%<\/p>\n

Net interest margin<\/p>\n

4.82%<\/p>\n

4.40%<\/p>\n

Cost-to-income ratio<\/p>\n

14.50%<\/p>\n

16.82%<\/p>\n

Financial Position Metrics<\/strong><\/p>\n

Q1-2024 <\/strong><\/p>\n

FY2023<\/strong><\/p>\n

Total Assets (US$ billion)<\/p>\n

32.82<\/p>\n

33.47<\/p>\n

Total Liabilities (US$ billion)<\/p>\n

26.52<\/p>\n

27.35<\/p>\n

Shareholders\u2019 Funds (US$ billion)<\/p>\n

6.30<\/p>\n

6.12<\/p>\n

Net asset value per share (Bank)<\/p>\n

US$ 65,495<\/p>\n

US$63,858<\/p>\n

Non-performing loans ratio (NPL)<\/p>\n

2.72%<\/p>\n

2.47%<\/p>\n

Cash\/Total assets<\/p>\n

14.89%<\/p>\n

16.80%<\/p>\n

Capital Adequacy ratio (Basel II)<\/p>\n

22.94%<\/p>\n

23.77%<\/p>\n

Distributed by APO Group on behalf of Afreximbank.<\/p>\n

Media Contact:<\/strong>
\nVincent Musumba
\nManager, Media Relations
\nEmail: press@afreximbank.com<\/a>
\nTel: +20 2 24564100 \/1\/2\/3<\/p>\n

About Afreximbank:<\/strong>
\nAfrican Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. For 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa\u2019s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Working with the AfCFTA Secretariat and the AU, the Bank is setting up a US$10 billion Adjustment Fund to support countries effectively participating in the AfCFTA. At the end of December 2023, Afreximbank\u2019s total assets and guarantees stood at over US$37.3 billion, and its shareholder funds amounted to US$6.1 billion. The Bank disbursed more than US$104 billion between 2016 and 2023. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody\u2019s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure (together, \u201cthe Group\u201d). The Bank is headquartered in Cairo, Egypt.<\/p>\n

For more information, visit: www.Afreximbank.com<\/a><\/p>\n

\n

Forward-looking statements:<\/strong>
\nThe Afreximbank Group (the \u201cBank\u201d or \u201cGroup\u201d) makes written and\/or oral forward-looking statements, as shown in this release and other communications, from time to time. Likewise, officers of the Bank may make forward-looking statements either in writing or during verbal conversations with investors, analysts, the media, and other members of the investment community. Statements regarding the Bank\u2019s strategies, objectives, priorities, and anticipated financial performance for the period constitute forward-looking statements. They are often described with words like \u201cshould\u201d, \u201cwould\u201d, \u201cmay\u201d, \u201ccould\u201d, \u201cexpect\u201d, \u201canticipate\u201d, \u201cestimate\u201d, \u201cproject\u201d, \u201cintend\u201d, and \u201cbelieve\u201d.<\/p>\n

By their very nature, these statements require the Bank to make assumptions subject to risks and uncertainties, especially uncertainties related to the financial, economic, regulatory, and social environment within which the Bank operates. Some of these risks are beyond the control of the Bank and may result in materially different results from the expectations inferred from the forward-looking statements. Risk factors that could cause such differences include regulatory pronouncements, credit, market (including equity, commodity, foreign exchange, and interest rate), liquidity, operational, reputational, insurance, strategic, legal, environmental, and other known and unknown risks. As a result, when making decisions with respect to the Bank, we recommend that readers apply further assessment and should not unduly rely on the Bank\u2019s forward-looking statements.<\/p>\n

Any forward-looking statement contained in this presentation represents the views of management only as of the date hereof. They are presented to assist the Bank\u2019s investors and analysts to understand the Bank\u2019s financial position, strategies, objectives, priorities, and anticipated financial performance in relation to the current period, and, as such, may not be appropriate for other purposes. The Bank does not undertake to update any forward-looking statement, whether written or verbal, that may be made from time to time by it or on its behalf, except as required under applicable relevant regulatory provisions or requirements.\u2003<\/p>\n<\/div>

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African Export-Import Bank (\u201cAfreximbank\u201d or the \u201cGroup\u201d) (www.Afreximbank.com) has released the consolidated financial statements of the Bank and its subsidiaries for the three months ended 31 March 2024. The Group\u2019s… <\/p>\n","protected":false},"author":1,"featured_media":8598,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_2277560469115098_106292521332774":"","twitter_aToxNzczMzI3Njk4OTg4ODUxMjAxOw==_1773327698988851200":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[13],"tags":[],"class_list":["post-8597","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-world"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/8597","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8597"}],"version-history":[{"count":0,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/8597\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/media\/8598"}],"wp:attachment":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8597"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8597"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8597"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}