Afreximbank first quarter 2025 net profit up 21% to $215M

• Afreximbank posts strong net earnings of $215 million, a 21% increase year-on-year from $178 million in the prior period.
• Net interest income increased by 4.53% to $411.2 million compared to Q1 2024, attributable to growth in interest earning assets.
• Fee income from guarantees and letters of credit growth by 47% and 36% respectively during the quarter.

The African Export-Import Bank, widely referred as Afreximbank has reported a 21 per cent increase in its net earnings to $215 million for the first three months of 2025. According to an update on May 22, the lender said its performance for the period ended March 31, 2025, met expectations with solid profitability, strengthened liquidity and a resilient capital base.

“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,” stated Mr. Denys Denya, Afreximbank’s Senior Executive Vice President.

Afreximbank advancing the aspirations of Africa

Afreximbank said its first quarter performance provides a springboard for it 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.

During the period, net interest income increased by 4.53 per cent to $411.2 million compared to the comparable quarter in 2024, attributable to 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.

Additionally, fee income from guarantees and letters of credit saw robust growth of 47 per cent and 36 per cent respectively, partially offsetting lower advisory fees to contribute to total unfunded income of $26.9 million for the quarter under focus.

While this represented a 7.41 per cent decrease from $29.0 million reported in Q1 2024, the strong performance in off-balance sheet assets is in line with the bank’s strategy to grow unfunded business.

The Group’s total assets and contingent liabilities increased by 6.4 per cent, reaching $42.7 billion as of 31 March 2025, up from $40.1 billion at FY’2024. On-balance sheet assets grew by 4.85 per cent to $37.0 billion, driven primarily by a 58 per cent surge in cash balances to $7.4 billion, while off-balance sheet assets, that is, letters of credit and guarantee volumes increased by a 19 per cent to $5.7 billion.

Net loans and advances closed the period at $27.8 billion, down from the FY2024 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 per cent, a modest increase from 2.33 per cent at FY’2024, well below the Bank’s strategic NPL ceiling of 4 per cent.

Driven by inflationary pressures and growing personnel costs, operating expenses rose by 23 per cent to reach $75.4 million by 31 March 2025. Despite this, Afreximbank Group maintained a healthy cost-to-income ratio of 16 per cent, below its strategic range of 17-30 per cent.

Afreximbank’s liquidity profile strengthened considerably, with liquid assets now comprising 20 per cent of total assets, up from 13 per cent at the close of FY’2024. 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 per cent, reaching $7.5 billion, driven by strong internally generated capital of $215.4 million in addition to new equity investments under the second General Capital Increase (GCI II) programme.

Operating highlights – Key projects in Kenya and in the Carribean

In line with the Afreximbank strategic objective of driving Industrialisation and export development, the Bank and the Government of Kenya ratified a number of initiatives designed to support the development Industrial Parks (IPs) and Special Economic Zones (SEZs) in Kenya under the $3 billion Kenya country programme.

These projects which include Dongo Kundu Industrial Park in Mombasa and Naivasha SEZ II in Mai Mahiu, are key components of Kenya’s Vision 2030 plan to boost export manufacturing and industrialisation. Afreximbank‘s support for these initiatives will specifically enhance infrastructure development, attract investment, and strategically position Kenya as a key hub for African and global commerce.

The rollout of the Pan-African Payments and Settlement System (PAPSS) continues to gain momentum with KCB Group in Kenya and Bank of Kigali in Rwanda launching the platform, becoming the first banks in their respective countries to offer seamless, instant, and affordable cross-border payments in local currencies across Africa.

Aligned with its mandate to promote Global Africa following the recognition of the African Diaspora as the 6th region of Africa, the Bank further cemented its expansion and presence in the Caribbean with the historic groundbreaking ceremony to kick off the construction of the first ever Afreximbank African Trade Centre (AATC) outside of Africa in Bridgetown, Barbados.

AATC Barbados will also host its regional office. The Barbados AATC is an authentic icon of trade embodying the ambition, resilience, and influence of leading commercial cities in Africa and the Caribbean that serve as dynamic focal points for commerce, fostering regional and global trade connections, and is expected to enhance intra-and extra-African trade, with a focus on countries of the Global South.

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