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Kampala, Uganda | THE INDEPENDENT | African Export-Import Bank (Afreximbank) and its subsidiaries have reported a 31.73% increase in income to US$393.4 million for the quarter ending March 31, 2024, driven by significant growth in loans and advances.
The Group’s interest income surged by 40.07% to US$721.8 million, as the net interest margin improved from 4.4% to 4.82% during the period under review. This growth was attributed to a combination of higher benchmark rates and effective management of borrowing costs.
Afreximbank also demonstrated enhanced operational efficiency, achieving a lower cost-to-income ratio of 14.50% in Q1 2024, compared to 16.82% in Q1 2023. However, staff costs increased by 28.55% year-on-year due to a rise in headcount aimed at supporting business growth and other initiatives aligned with the Bank’s Sixth Strategic Plan. Staff costs constituted 52.93% of the Group’s expenses.
The financial institution’s total assets stood at US$32.8 billion as of March 31, 2024, compared to US$33.5 billion as of December 31, 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%.
Denys Denya, Afreximbank’s Senior Executive Vice President, said the Group reported robust performance amidst the expansion of its subsidiary companies and activities in the Caribbean.
“Looking ahead, we will continue to prioritize revenue and quality asset growth, operational efficiency, while ensuring capital adequacy and maintaining adequate liquidity levels,” he said. “Focusing on these key areas will enhance the Group’s ability to execute its strategy and initiatives as outlined in its Sixth Strategic Plan.”
Denya also emphasized the importance of the African Continental Free Trade Area (AfCFTA), supported by a robust payments and settlement system like PAPSS, in bolstering the continent’s economic resilience. This, he noted, is projected to sustain Africa’s resilience in 2024, with an anticipated growth rate of approximately 4%
