PERFORMANCE : Afreximbank achieves strong results in 2023
[abelainfo] - The African Export-Import Bank (Afreximbank) has reported remarkable financial results for the year 2023, surpassing expectations despite a challenging operating environment. Net interest income has significantly increased, demonstrating the bank’s strong performance.
The African Export-Import Bank (Afreximbank) has achieved exceptional financial results in 2023, far exceeding expectations despite the challenges of the operating context. Net interest income reached $1.4 billion at the end of the 2023 fiscal year, surpassing the previous year’s $910.3 million.
The outstanding performance of the group, supported by the growth of the Bank and its subsidiaries, demonstrates solid resilience, surpassing the previous year’s results and exceeding expectations. The implementation of the Bank’s 6th strategic plan and its commitment to creating value for stakeholders have contributed to this exceptional performance and the achievement of a strong financial position.
The growth of the Bank’s loan and advances portfolio played a key role in these results. Net interest income increased by 58.67 % to reach $1.4 billion, compared to $910.3 million in 2022. This increase is mainly attributable to the growth of the loan and advances portfolio. The net interest margin has also increased, from 3.83% to 4.96 %.
Despite global inflationary pressures and investments in human capital to support business growth, the group’s total operating expenses increased by 34.93 % to reach $304.5 million in 2023. These increases were anticipated as part of the ongoing implementation of the sixth five-year strategic plan until December 2026.
The group’s total assets also increased, from $27.9 billion in 2022 to $33.5 billion in 2023, representing a 20.12 % increase. This increase is primarily due to the growth in net loans and advances to customers as well as cash and cash equivalents.
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Shareholders’ funds of the group experienced a solid growth of 17.55 %, reaching $6.1 billion at the end of the 2023 fiscal year. This growth is attributed to the undistributed profits of $546.8 million (net of dividends allocated to 2022) and fresh capital raised of $349.8 million during the year. Shareholders have supported the GCI II program, which aims to raise $2.6 billion of paid-up capital by 2026.
Denys Denya, Executive Vice President of Afreximbank, emphasized that the achievements of the Bank and its subsidiaries have contributed to these exceptional results. He also expressed the Bank’s commitment to supporting industrial growth, boosting intra-African trade, and promoting value-added exports to ensure the prosperity of the continent. Afreximbank focuses on maintaining a prudent balance between profitability, liquidity, and security to ensure profitable and sustainable growth.
In 2023, Afreximbank was ranked number one in the categories of Mandated Lead Arranger, Bookrunner, and Administrative Agent for loans to sub-Saharan borrowers, according to the Bloomberg Capital Markets League Tables Report for African Capital Markets. This recognition reflects the leading role played by the Bank in facilitating trade finance in Africa.
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