Africa  Business with Seth Krampah: Afreximbank posts impressive net income of US$973.5 million in 2024

The Group's total income rose by 23% to US$3.3 billion. This growth was driven by increased business volumes and higher market interest rates. Consequently, net interest income for FY2024 reached US$1.8 billion, a 25% increase from FY2023.

Despite rising operating expenses, the Cost-to-Income ratio improved to 18%. This is down from 19% in the previous year, showing better operational efficiency. Total operating expenses increased by 21% to US$367.7 million, up from US$304.5 million in FY2023.

This rise in expenses was mainly due to global inflation and investments in human capital. The Group's total assets grew by 7.55%, reaching US$40.1 billion as of December 31, 2024. This compares to US$37.3 billion at the end of FY2023.

The asset growth was driven by increases in net loans and advances to customers, guarantees, letters of credit, and investments at fair value. The carrying value of property and equipment rose by 33%, from US$328.1 million to US$436.4 million.

This increase was largely due to the construction of the Afreximbank African Trade Centre facilities in Abuja and Harare. Shareholders' funds grew by 17% in 2024, reaching US$7.2 billion compared to US$6.1 billion in FY2023.

This growth stemmed from a net income of US$973.5 million generated in 2024 and dividends of US$314.5 million approved in June 2024 for FY2023 shareholders. Additionally, successful capital-raising efforts under GCI II secured fresh equity contributions totaling US$412.8 million during the year.

The Bank's callable capital amounted to US$4.3 billion as of December 31, 2024, up from US$3.7 billion in FY2023.

Operating Highlights

In 2024, Afreximbank ranked number one across three categories in Bloomberg's Capital Markets League Tables Report for Africa’s Capital Markets. The Bank was recognized as the top Sub-Saharan Africa bookrunner, administrative agent, and mandated lead arranger.

These rankings confirm Afreximbank's leadership role in facilitating capital for African member states and organizations from diverse investors worldwide.

Afreximbank expanded its membership base significantly this year with Libya joining as the 53rd member state by year-end; Somalia followed shortly after as the 54th state participating.

In the Caribbean region, membership momentum remained strong with twelve out of fifteen CARICOM countries signing the Bank’s Participating Agreement.

The Fund for Export Development (FEDA), Afreximbank’s equity investment subsidiary, expanded its impact portfolio beyond $0.5 billion targeting key sectors like industrial platforms and healthcare.

AfrexInsure also made significant strides this year by deploying solutions across multiple sectors globally.
By year-end, it completed transactions covering assets worth $3.54 billion across seventeen countries—up from seven last year—placing most premiums with pan-African players.

The Pan African Payment and Settlement System (PAPSS) continued growing with three additional Central Banks joining this year.
Now there are sixteen Central Banks and one hundred forty-four commercial banks on board PAPSS.

PAPSS launched the African Currency Marketplace (PACM) which handled twelve currencies during its pilot phase.
Work is ongoing towards launching a PAPSS card for seamless financial transactions across Africa.

In late 2024, Afreximbank priced its debut Samurai bond at JPY67.2 billion while launching a Retail Samurai bond valued at JPY14.1 billion.
These bonds received an ‘A-’ rating from Japan Credit Rating Agency Ltd., diversifying funding sources effectively.

Additionally, China Chengxin International Credit Rating Co., Ltd awarded Afreximbank a AAA/Stable rating—the highest ever granted to an African multilateral financial institution.
This prestigious rating enhances funding diversification opportunities while strengthening partnerships with China.

Afreximbank will collaborate with partners including the African Union for IATF2025.
This event will take place in Algiers from September 4-10, aiming to promote intra-African trade and integration initiatives aligned with AfCFTA goals.

Mr Denys Denya commented on their robust performance amid global challenges.
He emphasized management’s commitment to operational efficiency through strategic planning despite economic headwinds ahead.
Prof Benedict Oramah also highlighted their strong financial position supported by solid liquidity and a high-quality asset portfolio while navigating risks effectively moving forward.