The government is set to receive its share from the US$300 million dividend declared by Afreximbank after the pan African banked recorded a stllar performance last year.
In its financial year ended December 31, 2024, Afreximbank declared a profit of US$973,53 million, up from US$756,1 million in the prior year.
The rise was driven by increases in net interest income and net fee and commission income of 25,4% and 32,45%, respectively, to US$1,81 billion and US$172,87 million from the prior year
As of 2023, Zimbabwe was the bank’s fifth-largest shareholder with a stake of 5,71%.
“Due to the higher net income achieved during the year under review and in line with historical trends, Directors recommended a dividend payout of US$300 million (FY’2023: US$264,6 million) to shareholders, representing a payout ratio of 31% (FY’2023: 35%),” Afreximbank said in a statement accompanying its financial year results for 2024.
According to the bank, total interest income reached US$3,1 billion for the period under review, compared to US$2,5 billion in the prior year.
The 23% increase in interest income was driven by higher market interest rates and a larger average volume of interest-earning assets.
“Additionally, by the resolution passed at the 2023 annual general meeting, a special dividend of US$50 million for the concessionary financing window was proposed for FY’2024 (FY’2023: US$50 million),” Afreximbank said.
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“In determining the dividend level, the board of directors considered various factors, including the bank’s business needs, the objective of maintaining steady dividend growth, profit performance, inflation, capital adequacy and the necessity of retaining earnings to support ongoing business expansion.”
The bank noted that this approach ensured a balance between internal and external financing sources.
“Furthermore, as part of the General Capital Increase II (GCI-II) initiative to raise capital for business growth, shareholders will have the option to acquire additional ordinary shares of the bank out of their dividends,” the bank said.
The pan African bank reported that the carrying value of property and equipment increased by 33%, rising to US$436,4 million during the period, from the prior year’s US$328,1 million.
This, the bank said, was primarily driven by the accelerated construction of the Afreximbank African Trade Centre facilities in Abuja, Nigeria, and Harare, Zimbabwe.
