AGS NEWS – The African Export-Import Bank has released its financial statements for the first quarter ending March 31, 2024, showing strong performance despite challenging geopolitical and economic conditions.

The bank experienced year-on-year growth and an increase in shareholder value.

According to the statement accessed by AGS the bank’s Net Interest Income rose by 31.73% to $393.4 million, compared to $298.6 million in Q1 2023.

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This growth was mainly due to a 40.07% increase in interest income, attributed to the expansion of the bank’s loan portfolio.

The Net Interest Margin improved to 4.82% from 4.40%, thanks to higher benchmark rates and effective borrowing cost management.

The bank also improved its operating efficiency, reducing its cost-to-income ratio to 14.50% from 16.82% in Q1 2023, despite a 10.63% rise in operating expenses to $61.4 million.

Staff costs increased by 28.55% due to higher headcount supporting business growth and other initiatives.

Total assets stood at $32.8 billion at the end of Q1 2024, down from $33.5 billion at the end of December 2023. Cash and cash equivalents were $4.9 billion, with a strong liquidity ratio of 14.9%.

Shareholders’ Funds increased by 2.89% to $6.3 billion, driven by a net income of $178.7 million. Callable capital remained steady at $3.7 billion.

Afreximbank’s Senior Executive Vice President, Denys Denya, highlighted the bank’s strong performance and expansion of operations in the Caribbean.

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He emphasized the focus on revenue growth, asset quality, operational efficiency, capital adequacy, and liquidity maintenance as part of the bank’s Sixth Strategic Plan.

Denya also noted that the implementation of the African Continental Free Trade Area, supported by robust systems like PAPSS, will enhance Africa’s economic resilience, projecting a 4% growth rate for the continent in 2024.