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The African Export-Import Bank (Afreximbank) has reported a 24.5 percent increase in net interest income, reaching US$826.2 million for the first half of 2024, compared to US$663.6 million during the same period last year.
This growth was primarily driven by a 31.42 percent rise in interest income, which totaled US$1.5 billion, fueled by an expansion in the Bank’s loan portfolio.
Read more: Afreximbank reports 74.2% rise in gross revenue, as 2023 figures hit $2.6 billion
Despite the winding down of the Ukraine Crisis Adjustment Trade Financing Programme for Africa (UKAFPA), which coincided with African economies showing resilience and adaptation, the Bank’s loans and advances slightly declined from $26.7 billion to $26 billion.
In its consolidated financial statements for the six months ending June 30, 2024, made available to Zambia Monitor in a statement on Monday, the Bank highlighted continued strategic progress in its mission to develop African trade, including deepening ties with Caribbean countries and the broader diaspora.
It further stated that the operating expenses rose by 30.38 percent to US$152.8 million, up from US$117.2 million in first half of 2023, largely due to higher personnel and administrative costs needed to support the Bank’s initiatives and subsidiaries in a challenging inflationary environment.
Despite this, the Bank maintained a low Cost to Income Ratio of 16.98 percent, well within the strategic upper limit of 30 percent.
It indicated that the Group’s Shareholders’ Funds also grew by 1.64 percent to US$6.2 billion, up from US$6.1 billion at the end of 2023, reflecting the internally generated net income of US$407.7 million.
The Bank’s Capital Adequacy Ratio remained strong at 25 percent.
Additionally, the Funds for Export Development in Africa (FEDA), a key subsidiary, contributed US$11 million to the Group’s net interest income, an increase from US$9.1 million in the previous year, underscoring its growing importance within the Bank’s operations.
Denys Denya, Afreximbank’s Senior Executive Vice President, commented: “Afreximbank Group reported a strong performance in the first half of 2024, delivering robust financial results and making significant strides in the implementation of the 6th Strategic Plan,
‘Extending the Frontiers.’ Denya stated that the Bank demonstrated its commitment to enhancing Africa’s economic resilience by helping countries mitigate the negative effects of external challenges, advocating for the continent’s interests on the global stage and contributing to ‘Global Africa’ by connecting the continent with key international stakeholders.”
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