Africa: Afreximbank Posts $973.5 Million Profit

The lender also continued to expand its continental footprint, with Libya and Somalia joining its list of African member states, bringing the total to 54

Africa’s multilateral lender, Afreximbank, reported a 29% surge in net income to $973.5 million for the full year 2024, defying global economic headwinds marked by rising inflation, geopolitical tensions, and elevated interest rates.

The Cairo-based lender cited higher business volumes, effective cost management, and growing contributions from subsidiaries as key drivers of the performance.

Total income rose 23% to $3.3 billion, bolstered by higher market interest rates and increased lending activity. Net interest income climbed to $1.8 billion, up from $1.44 billion the previous year, reflecting improved asset yields and efficient borrowing cost management.

“Despite a complex and uncertain global environment, the Group delivered robust financial results and continued to strengthen its systemic relevance across the continent,” said Denys Denya, Senior Executive Vice President of Afreximbank.

Efficiency gains and asset growth

The lender’s operating expenses rose 21% to $367.7 million, largely due to inflationary pressures and expanded investment in human capital. However, the bank’s cost-to-income ratio improved to 18% from 19% in 2023, indicating better operational efficiency.

Total assets, including contingencies, increased 7.55% to $40.1 billion as of December 31, up from $37.3 billion in the previous year. The rise was driven by growth in net loans, guarantees, letters of credit, and fair-value investments. Property and equipment rose sharply by 33% to $436.4 million, reflecting progress on the construction of flagship African Trade Centre facilities in Abuja, Nigeria and Harare, Zimbabwe.

Shareholders’ funds climbed 17% to $7.2 billion, supported by strong earnings and $412.8 million in fresh equity from the Bank’s ongoing second General Capital Increase (GCI II) programme. Dividends of $314.5 million were paid for FY2023. Callable capital rose to $4.3 billion, up from $3.7 billion in 2023.

Capital market recognition

In 2024, Afreximbank topped all three categories in Bloomberg’s Capital Markets League Tables for African transactions–leading as bookrunner, administrative agent, and mandated lead arranger. The rankings underscore the Bank’s growing role in channelling capital to African markets.

The lender also continued to expand its continental footprint, with Libya and Somalia joining its list of African member states, bringing the total to 54. In the Caribbean, 12 of 15 CARICOM nations signed on to its Participating Agreement, signaling momentum for cross-regional expansion.

Subsidiaries delivered strong growth. The Fund for Export Development in Africa (FEDA) grew its impact portfolio to over $500 million, targeting sectors including agribusiness and healthcare. AfrexInsure expanded its footprint to 17 countries and covered $3.54 billion in assets, placing 97% of premiums with African insurers.

The Pan-African Payment and Settlement System (PAPSS) added three central banks and 50 commercial banks, bringing totals to 16 and 144 respectively. In a key innovation, the African Currency Marketplace (PACM) launched with 12 currencies in its pilot phase. A PAPSS card is in development to further ease cross-border payments.

Diversified funding strategy