Afreximbank posts 28.7% PAT growth in FY'24

Afreximbank, the Pan-African multilateral financial institution, has reported a significant 28.7 per cent growth in its profit after tax (PAT) to $973.5 million in the 2024 financial year. The Gross Income also saw a notable increase of 23 percent, reaching $3.3 billion in the same period. Denys Denya, the Senior Executive Vice President at Afreximbank, highlighted that despite facing geopolitical tensions and other headwinds, the positive results were primarily driven by the performance of the bank's subsidiaries. Reflecting on the challenges faced in 2024, Denya acknowledged the high debt levels of sovereigns across the African continent, along with several countries being downgraded by rating agencies. Insecurity in regions such as the Sahel also contributed to project delays. However, he emphasized that despite these adversities, the African Export-Import Bank group delivered impressive results. The institution's net income saw a robust growth of 29 percent compared to the previous year. Non-interest income, consisting of advisory fees, guarantees, and LCs, recorded a 26 percent increase. Additionally, loans and advances grew by almost nine percent, while guarantees and letters of credit saw a substantial 26 percent growth. A key factor contributing to Afreximbank's success was its geographical expansion. With operations in six regions across the African continent and extending to Barbados to cover the Karikom, the bank witnessed significant growth in new areas. The Fund for Export Development and the AFRIC SURE also performed exceptionally well, generating net incomes of $35 million and $12 million, respectively. While the GDP growth of the continent fell below expectations at 3.5 percent, slightly below the global average of four percent, Afreximbank's operations thrived. The bank had activities in 47 African countries and expanded into 10 Caribbean nations for the first time, compensating for the lower GDP growth. A notable aspect of the bank's performance was the improvement in the quality of its loan book. Non-performing loans dropped to 2.33 percent in 2024, reflecting a positive trend in the portfolio quality across all stages. Looking ahead to 2025, Afreximbank remains focused on driving the implementation of the African Continental Free Trade Area (AfCFTA). Emphasizing the importance of intra-African trade, the institution aims to boost trade among African nations to mitigate external economic challenges. By promoting intra-African investment and enhancing regional economic communities' operations, Afreximbank aims to strengthen infrastructure development including roads, rail, and shipping. In line with its agenda of value addition and job creation, Afreximbank plans to establish industrial parks and export processing zones in countries like Togo, Chad, Malawi, DRC, and Zimbabwe. This strategic move aims to process agricultural products and minerals locally, creating employment opportunities and retaining foreign currency on the continent. Despite the existing challenges such as trade wars and tariffs affecting African countries like South Africa and Nigeria, Afreximbank remains committed to overcoming obstacles. By modernizing border posts and streamlining customs processes, the institution aims to facilitate smoother trade flows across the continent. In conclusion, Afreximbank's remarkable performance in 2024 underscores its resilience in the face of adversity and its commitment to fostering economic growth and development across Africa.