Afreximbank Grows Q1 Net Income to $215m, Assets Hit $42.7bn

Samuel Mobolaji

African Export-Import Bank (Afreximbank) reported a strong first-quarter performance for 2025, growing its net income by 21 per cent to US$215.4 million from US$178.7 million in the same period last year, while total assets and contingent liabilities climbed 6.4 per cent to US$42.7 billion.

According to the Group’s unaudited financial statements for the three months ended 31 March 2025, net interest income rose 4.53 per cent year-on-year to US$411.2 million, supported by the growth of interest-earning assets and effective cost management, even as benchmark rates softened.

Operating income rose to US$474.2 million, up from US$423.5 million in Q1 2024, while gross income increased to US$784.9 million from US$753.8 million. The Group also maintained a strong return on average assets (ROAA) of 2.38 per cent and a return on average equity (ROAE) of 12 per cent.

On-balance sheet assets stood at US$37 billion, up 4.85 per cent from US$35.3 billion at the end of 2024, driven largely by a 58 per cent rise in cash balances to US$7.4 billion. Off-balance sheet assets—comprising letters of credit and guarantees—increased by 19 per cent to US$5.7 billion.

Unfunded income totalled US$26.9 million, reflecting a 7.41 per cent dip from the previous year, though fee income from guarantees and letters of credit grew by 47 per cent and 36 per cent respectively, offsetting lower advisory fees.

Net loans and advances closed the quarter at US$27.8 billion, slightly down from the previous year due to early repayments from sovereign borrowers with improved foreign currency liquidity. Despite this, the Group’s asset quality remained strong, with its non-performing loan (NPL) ratio at 2.44 per cent, slightly above the 2.33 per cent recorded at year-end 2024 but well below its 4 per cent internal ceiling.

Operating expenses rose 23 per cent to US$75.4 million, driven by inflationary pressures and rising personnel costs. Nevertheless, the Group maintained an efficient cost-to-income ratio of 16 per cent—bel, with its strategic range of 17–30 per cent.

The Bank’s liquidity position strengthened, with liquid assets now accounting for 20 per cent of total assets, up from 13 per cent at the close of FY 2024. Shareholders’ funds rose to US$7.5 billion, a 3.4 per cent increase, underpinned by retained earnings and fresh equity under the General Capital Increase II (GCI II) programme.

Operationally, Afreximbank advanced key strategic initiatives. In East Africa, it partnered with the Government of Kenya to progress infrastructure and industrialisation projects worth US$3 billion under the Kenya Country Programme. This includes the Dongo Kundu Industrial Park in Mombasa and Naivasha SEZ II, both crucial to Kenya’s Vision 2030 agenda.

The Bank also extended its continental reach through the Pan-African Payments and Settlement System (PAPSS), with KCB Group (Kenya) and Bank of Kigali (Rwanda) becoming the first to launch the platform in their respective countries.

Beyond Africa, Afreximbank broke ground on its first African Trade Centre outside the continent in Bridgetown, Barbados. The centre, which will also house the Bank’s Caribbean regional office, aims to bolster intra-African and Global South trade ties.

Mr. Denys Denya, Senior Executive Vice President, said: “Our Q1 2025 results reflected strong and resilient financial performance, with robust profitability, enhanced liquidity, and a solid capital base. The Group remains well-positioned to support Africa and the Caribbean in their drive for economic transformation.”