The lender additionally continued to develop its continental footprint, with Libya and Somalia becoming a member of its record of African member states, bringing the entire to 54
Africa’s multilateral lender, Afreximbank, reported a 29% surge in web revenue to $973.5 million for the complete 12 months 2024, defying world financial headwinds marked by rising inflation, geopolitical tensions, and elevated rates of interest.
The Cairo-based lender cited larger enterprise volumes, efficient value administration, and rising contributions from subsidiaries as key drivers of the efficiency.
Whole revenue rose 23% to $3.3 billion, bolstered by larger market rates of interest and elevated lending exercise. Web curiosity revenue climbed to $1.8 billion, up from $1.44 billion the earlier 12 months, reflecting improved asset yields and environment friendly borrowing value administration.
“Regardless of a fancy and unsure world setting, the Group delivered strong monetary outcomes and continued to strengthen its systemic relevance throughout the continent,” mentioned Denys Denya, Senior Govt Vice President of Afreximbank.
Effectivity beneficial properties and asset progress
The lender’s working bills rose 21% to $367.7 million, largely as a result of inflationary pressures and expanded funding in human capital. Nevertheless, the financial institution’s cost-to-income ratio improved to 18% from 19% in 2023, indicating higher operational effectivity.
Whole belongings, together with contingencies, elevated 7.55% to $40.1 billion as of December 31, up from $37.3 billion within the earlier 12 months. The rise was pushed by progress in web loans, ensures, letters of credit score, and fair-value investments. Property and gear rose sharply by 33% to $436.4 million, reflecting progress on the development of flagship African Commerce Centre services in Abuja, Nigeria and Harare, Zimbabwe.
Shareholders’ funds climbed 17% to $7.2 billion, supported by robust earnings and $412.8 million in recent fairness from the Financial institution’s ongoing second Common Capital Improve (GCI II) programme. Dividends of $314.5 million have been 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 classes in Bloomberg’s Capital Markets League Tables for African transactions–leading as bookrunner, administrative agent, and mandated lead arranger. The rankings underscore the Financial institution’s rising position in channelling capital to African markets.
The lender additionally continued to develop its continental footprint, with Libya and Somalia becoming a member of its record of African member states, bringing the entire to 54. Within the Caribbean, 12 of 15 CARICOM nations signed on to its Taking part Settlement, signaling momentum for cross-regional enlargement.
Subsidiaries delivered robust progress. The Fund for Export Improvement in Africa (FEDA) grew its affect portfolio to over $500 million, focusing on sectors together with agribusiness and healthcare. AfrexInsure expanded its footprint to 17 international locations and lined $3.54 billion in belongings, inserting 97% of premiums with African insurers.
The Pan-African Cost and Settlement System (PAPSS) added three central banks and 50 industrial banks, bringing totals to 16 and 144 respectively. In a key innovation, the African Foreign money Market (PACM) launched with 12 currencies in its pilot part. A PAPSS card is in improvement to additional ease cross-border funds.
Diversified funding technique
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The lender tapped Japan’s capital markets in late 2024, pricing its debut Samurai bond in 5 tranches totalling JPY 67.2 billion and launching a JPY 14.1 billion retail tranche. The bonds are rated ‘A-‘ by Japan Credit score Ranking Company. In the meantime, China Chengxin Worldwide Credit score Ranking Co. (CCXI) assigned Afreximbank a AAA/Secure rating–the highest ever awarded to an African multilateral–enhancing its capability to diversify funding.
Trying forward, the lender will co-host the Intra-African Commerce Honest (IATF2025) in Algiers, Algeria, from September 4-10, alongside the African Union and AfCFTA Secretariat. The occasion goals to deepen intra-African commerce and speed up the continent’s financial integration.
“Whereas world situations stay unstable, we’re assured in our capability to keep up progress, handle dangers and ship sustainable worth,” Denya mentioned. “Our robust stability sheet, liquidity, and execution of the Sixth Strategic Plan place us properly for the longer term.
