The African Export-Import Bank (Afreximbank) has released its consolidated financial statements for the first quarter of 2025, revealing a strong performance.
Afreximbank Group recorded a net income of US$215 million, marking a 21% year-on-year increase from US$178 million in the previous period. This growth was driven by a 4.53% rise in net interest income to US$411.2 million, driven by expanding interest-earning assets and effective management of borrowing costs.
The Bank also saw strong growth in fee income from guarantees and letters of credit, up 47% and 36% respectively. While advisory fees were slightly lower, total unfunded income for Q1-2025 stood at US$26.9 million, a strategic move by the Bank to grow its off-balance sheet business.
The Group’s total assets and contingent liabilities expanded by 6.4% to US$42.7 billion as of March 31, 2025, up from US$40.1 billion at year-end 2024. On-balance sheet assets grew by 4.85% to US$37.0 billion, largely due to a 58% surge in cash balances, reaching US$7.4 billion. Off-balance sheet assets, including letters of credit and guarantee volumes, increased by 19% to US$5.7 billion.
Despite early loan repayments from some sovereign borrowers, net loans and advances closed at US$27.8 billion. The loan asset quality remained strong, with the Non-Performing Loans (NPL) ratio at 2.44%, well below the Bank’s strategic NPL ceiling of 4%.
Operating expenses rose by 23% to US$75.4 million, mainly due to inflationary pressures and increased personnel costs. However, Afreximbank Group maintained a healthy Cost-to-Income Ratio of 16%, remaining below its strategic range of 17-30%.
The Bank’s liquidity profile strengthened considerably, with liquid assets now comprising 20% of total assets, up from 13% at FY’2024, a result of successful fundraising and loan repayments. Shareholders’ funds also increased by 3.4% to US$7.5 billion, boosted by strong internally generated capital and new equity investments under the second General Capital Increase (GCI II) programme.
In line with its objective to drive industrialization and export development, Afreximbank and the Government of Kenya ratified several initiatives. These are designed to support the development of Industrial Parks (IPs) and Special Economic Zones (SEZs) under Kenya’s US$3 billion country programme. Projects like the Dongo Kundu Industrial Park in Mombasa and Naivasha SEZ II in Mai Mahiu are key to Kenya’s Vision 2030, aiming to boost export manufacturing and industrialization. Afreximbank’s support will enhance infrastructure, attract investment, and position Kenya as a hub for African and global commerce.
The rollout of the Pan-African Payments and Settlement System (PAPSS) continues to gain momentum. KCB Group in Kenya and Bank of Kigali in Rwanda became the first banks in their respective countries to launch the platform.
The Bank broke ground on the first-ever Afreximbank African Trade Centre (AATC) outside of Africa in Bridgetown, Barbados. AATC Barbados, which will also host Afreximbank’s regional office, is envisioned as a symbol of trade ambition, fostering regional and global trade connections and enhancing intra- and extra-African trade, particularly with countries of the Global South.
Mr. Denys Denya, Afreximbank’s Senior Executive Vice President, commented: “Our Q1 2025 results, which were in line with expectations, reflected a strong and resilient financial performance, notwithstanding continued macroeconomic challenges. 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.”