AAIB delivers strong financial results End of Year 2024

The Arab African International Bank (AAIB) has announced robust financial results for the year ending 2024, driven by a strategic shift towards a liabilities-focused market approach. This strategy has proven effective in enhancing financial performance and ensuring sustainable growth.

Tamer Waheed, Vice Chairman and Managing Director of AAIB, stated:“Despite significant headwinds, including a major currency devaluation in the first quarter, the bank successfully recorded solid growth across key financial metrics. Net Interest Income reached USD 580 million, up by 14.7%, while Net Banking Income rose to USD 702 million, reflecting an 18.4% increase. Net profit for the year stood at USD 301 million, with elevated provisioning levels maintained, boosting our return on average equity by 200 basis points to reach 12.3%.”

AAIB’s balance sheet also witnessed remarkable growth, supported by a strong expansion in its deposit base. Total assets exceeded USD 18 billion, while liquidity and risk indicators remained comfortably above regulatory requirements, including a capital adequacy ratio exceeding 21%.

In a pioneering move, AAIB issued Egypt’s first USD-denominated Sustainability Bond worth USD 500 million, underwritten by leading international financial institutions. This milestone affirms market confidence in the bank’s strong financial position and its commitment to the environmental, social, and governance (ESG) agenda.

Looking ahead, Waheed added:“We remain cautiously optimistic, recognizing that the current high global interest rate environment has contributed positively to banking sector performance. However, we are mindful not to overestimate its impact, particularly given its limited benefit to us compared to EGP-capital-based peers. With the initiation of monetary easing cycles and the stabilization of local FX markets throughout 2024 — coupled with growing trade market competitiveness — we anticipate mounting pressure on net banking income, while operating costs remain high due to persistent global inflation. Still, we continue to monitor market shifts and geopolitical developments closely, confident in our ability to maintain a leading position and deliver strong performance.”

AAIB’s 2024 results underscore its resilience amid economic and geopolitical turbulence, driven by a clear strategic vision and prudent risk management, reinforcing its stature as one of the region’s most prominent financial institutions.