Afreximbank Posts 21% Profit Surge in Q1 2025.

Wednesday 21st May 2025

Por inAfrika Reporter

African Export-Import Bank (Afreximbank) has posted strong results for the first quarter of 2025, with net income reaching US$215 million a 21% increase from US$178 million in the same period last year. The Group attributed the performance to improved profitability, higher liquidity, and a resilient capital base.

The Group’s total assets and contingent liabilities rose by 6.4%, hitting US$42.7 billion as of March 31, 2025, up from US$40.1 billion at FY 2024. On-balance sheet assets climbed 4.85% to US$37 billion, largely due to a 58% jump in cash balances to US$7.4 billion. Off-balance sheet assets like letters of credit and guarantees increased 19% to US$5.7 billion.

Net interest income increased by 4.53% to US$411.2 million, benefiting from growth in interest-earning assets and well-managed borrowing costs. Income from Guarantees and Letters of Credit rose 47% and 36% respectively, though lower advisory fees slightly reduced total unfunded income to US$26.9 million.

Loans and advances stood at US$27.8 billion, reflecting early repayments from some sovereign clients with improved foreign currency reserves. Despite this, the loan book maintained strong quality, with a Non-Performing Loan (NPL) ratio of 2.44%, slightly above 2.33% at FY 2024 but still well under the Group’s 4% ceiling.

Operating expenses rose 23% to US$75.4 million, driven by inflation and personnel costs. Nevertheless, the cost-to-income ratio remained healthy at 16%, below the Group’s target range of 17–30%.

Liquidity was a major highlight, with liquid assets rising to 20% of total assets, up from 13% at the end of 2024. This was attributed to effective fundraising and client loan repayments. Shareholders’ funds grew by 3.4% to US$7.5 billion, bolstered by internal capital generation and new investments under the General Capital Increase (GCI II) programme.

On the operational front, Afreximbank signed multiple initiatives with the Government of Kenya to support industrial parks and special economic zones under its US$3 billion country programme. These include key projects like Dongo Kundu Industrial Park in Mombasa and Naivasha SEZ II in Mai Mahiu—both central to Kenya’s Vision 2030 goals.

The Pan-African Payments and Settlement System (PAPSS) also advanced, with Kenya Commercial Bank and Bank of Kigali becoming the first in their countries to launch the platform for instant local currency cross-border payments.

Expanding its Global Africa mandate, Afreximbank began construction of its first African Trade Centre outside Africa in Bridgetown, Barbados. The centre, which will also serve as the Caribbean regional office, symbolizes the growing integration of the African Diaspora into the continent’s economic ecosystem.

Senior Executive Vice President Denys Denya commented, “Our Q1 results reflect strong and resilient performance, despite macroeconomic challenges. We remain committed to advancing Africa and the Caribbean’s vision for transformation and sustainable development.”