Afreximbank, Pan-African multilateral financial institution, has posted a 29 percent growth in its profit after tax to 973.5 million dollars in the 2024 financial year, rising from 756.1 million dollars in the corresponding period of 2023, with subsidiaries beginning to make meaningful contributions to the Group’s financial results.
The Bank’s gross income increased by 23 percent to 3.3 billion in the financial year (FY) 2024.
According to Afreximbank financial performance was stronger despite a complex global economic landscape marked by geopolitical tensions, inflationary pressures, and elevated interest rate.
The results highlight Afreximbank’s resilience, systemic relevance and its commitment to delivering on its mandate and the objectives set under its Sixth Strategic Plan.
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The Group’s total income increased by 23 percent to reach $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 $1.8 billion, a 25 percent increase compared to FY2023, reflecting the effective and efficient management of borrowing costs.
Despite rising operating expenses, Cost-to-Income ratio improved to 18 percent in FY 2024, down from 19 percent in the previous year – demonstrating enhanced operational efficiency.
This was achieved even as total operating expenses rose by 21 percent to $367.7 million (FY2023: $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 percent, reaching $40.1 billion as of December 31, 2024, compared to $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.
The carrying value of property and equipment increased by 33 percent, rising from $328.1 million to $436.4 million, primarily driven by the accelerated construction of the state-of-the-art Afreximbank African Trade Centre (AATC) facilities in Abuja, Nigeria, and Harare, Zimbabwe.
The Group’s Shareholders’ funds grew by 17 percent in 2024, reaching $7.2 billion (FY’2023: $6.1 billion). This growth was largely driven by the Net income of $973.5 million generated in 2024 which contributed to the increase in equity, while FY’2023 dividends of $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 $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 $4.3 billion as at 31 December 2024 (FY’2023: $3.7 billion).
In 2024, Afreximbank was ranked number one in all three categories in the Bloomberg Capital Markets League Tables Report for African Capital Markets. The Bank was the top Sub-Saharan Africa bookrunner, administrative agent and mandated lead arranger. These rankings affirm the Bank’s role as a market leader in facilitating capital from within and outside of the continent from a diverse range of investors and stakeholders for financing needs for African member states and organizations.
Afreximbank continued to expand its membership, further deepening its continental and diaspora reach. Libya’s accession to the Establishment Agreement brought the number of African member states to 53 by year-end, and just weeks later, Somalia became the 54th participating state. On the Caribbean front, membership momentum remained strong, with 12 of the 15 CARICOM countries having signed the Bank’s Participating Agreement, paving way for Afreximbank to expand its operations into the region.
The Bank’s subsidiaries also delivered robust growth and made a significant impact throughout the year. The Fund for Export Development (FEDA), the equity investment subsidiary of the Bank, expanded its impact portfolio to over $0.5 billion, targeting key sectors such as industrial platforms, financial services, agribusiness, and healthcare. 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 $3.54 billion in assets. Notably, AfrexInsure was able to place 97 percent 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 three 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 became a useful platform for large corporates encountering difficulties in repatriating funds across the continent. Work is also progressing toward the launch of the PAPSS card, further enhancing the platform’s capacity to facilitate seamless financial transactions across the continent.
In the last quarter of 2024, the Bank priced its debut Samurai bond, securing a regular 5 tranche JPY 67.2 billion. 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.
