Afreximbank Group posts strong half-year financial growth
Afreximbank Group recorded strong financial performance for the first half of the year, with impressive growth in the Group’s balance sheet.
The Afreximbank Group in a statement on its half year 2023 results copied to the Ghanaian Times in Accra yesterday said the Group’s total balance sheet assets grew by 8 per cent from $27.9 billion to $30.1 billion by the first half of the year.
“The growth was driven by
the increase in loans and advances to customers, which grew by 13 per cent to close the period at $26 billion. The liquidity position remained strong at $3 billion, representing 11 per cent of total assets and achieving a Liquidity Coverage ratio of 310 per cent,” the statement said.
The Group said interest on income recorded strong growth of 107.1 per cent to reach $1.1 billion for the half-year 2023 compared with $540.8 million for the same period in 2022.
“Net interest income amounted to $663.6 million, up 76 per cent from the prior year, mainly due to continuous effective management of interest expenses. Net Interest Margin as a result increased to 4.77 per cent, compared with 3.47 per cent last year,” Afreximbank stated.
It said the Group’s shareholders’ funds rose by 7.63 per cent to $5.6 billion as of June 30 2023, compared with full year 2022, indicating that the growth was largely attributable to the $261 million fresh equity contributions from existing and new shareholders who had supported the ongoing general capital increase exercise which aimed to raise US$2.6 billion paid-in equity by 2026.
In addition, the Group said the growth in shareholders’ funds was also underpinned by $125.5 million internally generated net earnings after taking into account the approved dividend and other appropriations which amounted to US$209 million.
Mr Denys Denya, Afreximbank Executive Vice President in charge of Finance, Administration and Banking Services, said the Group had delivered a strong set of results, driven largely by a focused execution of its mandate as a countercyclical lender which generated increased volume of interest-earning assets, particularly loans and advances, and benefitted from a rising interest rate environment.
“The bank continued to make progress on its strategy implementation, carefully balancing the need to be profitable and sustainable, while maintaining sufficient liquidity, capital, and a quality portfolio of assets,” he stated.
BY TIMES REPORTER
