Published: 22 May 2025

The African Export-Import Bank (Afreximbank) has reported a strong financial performance for the first quarter of 2025, demonstrating resilience and profitability amid global economic headwinds. The pan-African multilateral lender's results met expectations, reinforcing its role as a key driver of economic transformation and sustainable development across Africa and the Caribbean.

According to the financial results released Wednesday, Afreximbank's net interest income rose by 4.53% year-on-year to US$411.2 million. This growth was underpinned by an expansion in interest-earning assets and prudent cost management on borrowings, which helped offset the effects of softening global benchmark interest rates.

"Our first quarter of 2025 results, which were in line with expectations, reflected a strong and resilient financial performance, notwithstanding continued macroeconomic challenges," said Denys Denya, Afreximbank's Senior Executive Vice President.

"With solid profitability growth, a strengthened liquidity position, and a well-capitalised balance sheet, the group is firmly positioned to continue playing a pivotal role in advancing the aspirations of Africa and the Caribbean for economic transformation and sustainable development," he added.

Afreximbank reported a 21% jump in net income, which reached US$215 million, up from US$178 million in the first quarter of 2024. This was bolstered by strong growth in fee income, with revenue from guarantees and letters of credit rising 47% and 36% respectively. Total unfunded income came in at US$26.9 million, a slight decline of 7.41% from the prior period, attributed to lower advisory fees.

The bank's total assets and contingent liabilities grew by 6.4% to reach US$42.7 billion as of March 31, 2025. On-balance sheet assets increased to US$37 billion, representing a 4.85% rise, driven largely by a 58% jump in cash holdings, which stood at US$7.4 billion at the end of the quarter.

While net loans and advances dipped to US$27.8 billion — reflecting early repayments from sovereign borrowers with improved foreign currency positions — asset quality remained solid. The non-performing loan (NPL) ratio edged up slightly to 2.44% from 2.33% at the end of 2024, well within acceptable risk parameters.

Operating expenses rose by 23% to US$75.4 million, largely due to inflationary pressures and increased personnel costs. Nevertheless, the Group maintained a cost-to-income ratio of 16%, outperforming its strategic target range of 17–30%.

Afreximbank also significantly boosted its liquidity profile. Liquid assets now account for 20% of total assets, up from 13% at the end of 2024, aided by successful fundraising efforts and loan repayments during the quarter.

Shareholders' equity rose by 3.4% to US$7.5 billion, supported by strong internal capital generation of US$215.4 million and additional capital inflows under the bank's ongoing general capital increase programme.

The promising Q1 performance sets the stage for Afreximbank to deepen its developmental impact and expand its strategic initiatives across Africa and the Caribbean in 2025 and beyond.
- the independent

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