The African Export-Import Bank (Afreximbank) has released its financial results for the first quarter of 2024. Net Interest Income increased by 31.73% to $393.4 million, compared to $298.6 million in the same period last year. This growth was primarily driven by a 40.07% rise in interest income, reaching $721.8 million due to an expanding loan portfolio.
Afreximbank’s Net Interest Margin also improved, rising to 4.82% from 4.40% in the previous year, thanks to higher benchmark rates and effective cost management. Despite challenging economic conditions, the bank maintained strong performance, demonstrated by a lower cost-to-income ratio of 14.50%, down from 16.82% in Q1 2023.
This improvement in efficiency was achieved even though operating expenses increased by 10.63% to $61.4 million. Staff costs saw a 28.55% year-on-year increase, reflecting the bank’s efforts to support its growing business and strategic initiatives under its sixth strategic plan.
Source: Daily Trust