AFRICAN Export-Import Bank (Afreximbank) has delivered satisfactory financial performance for the first quarter of 2025, meeting expectations with solid profitability, strengthened liquidity and a resilient capital base.
This performance provides a springboard for the bank to continue playing its pivotal role of advancing the aspirations of Africa and the Caribbean for economic transformation and sustainable development in the months and years ahead.
Net interest income grew by 4,53% to US$411,2 million compared to prior year, driven by growth in interest earning assets, complemented by effective management of borrowing costs, helping the bank to cushion the marginal decline in total interest income due to softening benchmark rates.
“Our first quarter of 2025 results, which were in line with expectations, reflected a strong and resilient financial performance, notwithstanding continued macroeconomic challenges,” Denys Denya, Afreximbank’s senior executive vice president, said in a statement Wednesday.
“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."
Fee income from guarantees and letters of credit saw robust growth of 47% and 36% respectively, partially offsetting lower advisory fees to contribute to total unfunded income of US$26,9 million for the quarter.
While this represented a 7,41% decrease from US$29 million in the comparable quarter, the strong performance in off-balance sheet assets is in line with the bank’s strategy to grow unfunded business.
The group posted strong net income of US$215 million, a 21% increase year-on-year from US$178 million in the prior period.
- Open letter to President Mnangagwa
- Feature: ‘It’s worse right now than under Mugabe’: Sikhala pays the price of opposition in solitary cell
- Masvingo turns down fire tender deal
- Human-wildlife conflict drive African wild dogs to extinction
Keep Reading
Total assets and contingent liabilities increased by 6,4%, reaching US$42,7 billion as of March 31, 2025. On-balance sheet assets grew by 4,85% to US$37 billion, driven primarily by a 58% surge in cash balances to US$7.4 billion.
Net loans and advances closed the quarter at US$27,8 billion, down from the financial year 2024 closing position reflecting early repayments from certain customers on account of improved foreign currency balances position of some sovereign borrowers.
Importantly, the loan asset quality remained strong, with the non-performing loans (NPL) ratio at 2,44%, a modest increase from 2,33% recorded at FY2024.
Driven by inflationary pressures and growing personnel costs, operating expenses in the review quarter rose by 23% to reach US$75,4 million. Despite this, Afreximbank Group maintained a healthy cost-to-income ratio of 16%, below its strategic range of 17-30%.
Afreximbank’s liquidity profile strengthened considerably, with liquid assets now comprising 20% of total assets, up from 13% at the close of FY24.
This higher liquidity position was as a result of successful fund-raising, coupled with loan repayments received during the quarter.
Shareholders’ funds increased by 3,4%, reaching US$7,5 billion, driven by strong internally generated capital of US$215,4 million in addition to new equity investments under the second general capital increase programme.
