African Export-Import Bank has released the consolidated financial statements of the Bank and its subsidiaries for the year ended 31 December 2023.
Net interest income reached $1.4 billion at the end of the 2023 financial year, compared to $910.3 million in 2022.
The 58.67 percent increase was driven by the growth in interest income, which in turn was driven primarily by the growth in the Bank’s portfolio of loans and advances.
Net Interest Margin grew to 4.96 percent compared to the prior year’s level of 3.83 percent.
Due to global inflationary pressures and investment in human capital to support increased business activities, the Group’s total operating expenses were $304.5 million, 34.93 percent higher than in 2022.
The capacity expansion and rise in expenditures were envisaged in the five-year Sixth Strategic Plan, which is currently under implementation until December 2026.
The Group’s total assets grew by 20.12 percent to $33.5 billion (FY2022: US$27.9 billion), largely on account of increases in net loans and advances to customers and cash and cash equivalents.
The Group Shareholders’ funds, which largely mirrored the Bank’s Shareholders’ funds, recorded a solid growth of 17.55 percent to reach $6.1 billion as of December 31, 2023, compared to the FY’2022 position of $5.2 billion.
Accounting for this growth were the $546.8 million retained income (which is net of appropriated 2022 dividends) and the $349.8 million fresh equity raised during the year as shareholders supported the GCI II programme, which aims to raise $2.6 billion paid-in-capital ($3.9 billion callable capital) by 2026.
“Largely propelled by the Bank’s and its subsidiaries’ growth, the Group’s results for the financial year ended 31 December 2023 demonstrate a strong and resilient performance, surpassing prior year results and well ahead of expectations. The Bank remained steadfast in implementing its 6th Strategic Plan and delivering value to stakeholders, and this resulted in the Group ending the year, once again, achieving a solid performance and attaining an exceptional financial position,” Afreximbank explained.
The Bank further noted, “It is noteworthy that this performance has been enhanced by the Group’s ability to successfully execute its four strategic pillars focused on “Promoting Intra-African Trade,” “Facilitating Industrialization and Export Development,” “Strengthening Trade Finance Leadership” and “Improving Financial Performance and Soundness,”
Denys Denya, Afreximbank’s Senior Executive Vice President, commented: “During the 2023 financial year, the Afreximbank Group exceeded the budget and significantly surpassed its 2022 performance. This outcome was mainly driven by the Bank’s and its subsidiaries’ achievements. Our focus is steadfast on fueling industrial growth, boosting trade within Africa, and promoting exports with added value, which are crucial for the continent’s prosperity.
“We will continue to maintain a cautious balance between profitability, liquidity, and safety to ensure a decent net interest margin and deliver profitable and sustainable growth and quality assets. We are delighted to report results well above forecasts for the financial year ended 31 December 2023, and look forward to delivering stronger financial outcomes in 2024.”
In 2023, the Bank was ranked number one in all three categories in the Bloomberg Capital Markets League Tables Report for African Capital Markets – number one Mandated Lead Arranger, Bookrunner and Administrative Agent for Sub-Saharan Borrower Loans. This is a testament to the Bank’s leadership role in facilitating capital from within and outside the continent.
Additionally, its subsidiary, the Fund for Export Development in Africa, received multilateral support from Zimbabwe, Kenya, Congo, Chad, Gabon, Sierra Leone, and São Tomé and Príncipe, who officially signed the FEDA Establishment Agreement. This collective support is pivotal in the Bank’s mission to provide lasting financial support to African economies.
