Afreximbank posts record earnings, strengthens position in African trade finance - Trade Treasury Payments

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Afreximbank posts record earnings, strengthens position in African trade finance

The African Export-Import Bank (Afreximbank) has reported its strongest financial performance to date, with 2024 net income rising 29% year-on-year to $973.5 million. 

Total income reached $3.3 billion, up 23%, while net interest income climbed 25% to $1.8 billion. The Bank’s cost-to-income ratio improved to 18%, down from 19% in 2023, despite a 21% increase in operating expenses linked to inflation and investment in headcount.

Group assets, including contingencies, rose to $40.1 billion, marking a 7.6% annual increase. The expansion was largely driven by higher volumes in loans, guarantees, and trade-related instruments. Shareholders’ equity reached $7.2 billion, supported by retained earnings and $412.8 million in fresh capital under the Bank’s ongoing general capital increase programme.

Afreximbank’s subsidiaries also expanded their footprint. FEDA’s impact investment portfolio exceeded $500 million, while AfrexInsure extended its underwriting reach to 17 countries, covering $3.54 billion in assets, 97% of which were placed with African reinsurers.

The Pan-African Payment and Settlement System (PAPSS) added three central banks and 50 commercial banks in 2024. The pilot phase of the African Currency Marketplace processed transactions in 12 currencies, addressing persistent intra-African repatriation challenges.

In capital markets, Afreximbank issued JPY 81.3 billion in Samurai and Retail Samurai bonds and the group secured a AAA rating from China Chengxin International Credit Rating Co., Ltd, the highest assigned to an African multilateral institution to date.

By year-end, 54 African Union member states had joined the Bank’s membership base, following new accessions by Libya and Somalia. In the Caribbean, 12 of 15 CARICOM countries have now signed the Bank’s Participating Agreement.

Afreximbank will co-host the Intra-African Trade Fair 2025 alongside the African Union and AfCFTA Secretariat in Algiers from 4-10 September, advancing its role in supporting cross-border trade under the AfCFTA framework.

Denys Denya, Senior Executive Vice President at Afreximbank, said, “The Group delivered robust financial performance, exceeding expectations and outperforming prior years. … The Bank’s strong financial position is underpinned by solid liquidity, a well-capitalised balance sheet, and a high-quality asset portfolio. … Looking ahead, global economic conditions are expected to remain volatile, with inflationary pressures, tighter financial conditions, and geopolitical uncertainties posing potential risks. The Bank will continue to play its role as a systemically relevant institution, balancing growth, liquidity, profitability, and risk management while pursuing sustainable expansion.”