African Export-Import Bank, Afreximbank posted a 21% rise in net income for the first quarter of 2025, driven by higher interest income and a stronger liquidity position, despite continued macroeconomic pressures.
Net income reached $215 million, up from $178 million a year earlier, the bank said in its consolidated financial statements for the period ending March 31. The Group’s total assets and contingent liabilities rose 6.4% year-on-year to $42.7 billion, supported by a 58% surge in cash balances and a 19% increase in off-balance sheet assets including letters of credit and guarantees.
“Our Q1 2025 results, which were in line with expectations, reflected a strong and resilient financial performance, notwithstanding continued macroeconomic challenges,” said Denys Denya, 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.”
Net interest income rose 4.5% to $411.2 million, buoyed by growth in interest-earning assets and lower borrowing costs. This helped offset a slight drop in total interest income linked to declining benchmark rates.
Fee income from guarantees and letters of credit increased 47% and 36%, respectively, though total unfunded income fell 7.4% year-on-year to $26.9 million due to lower advisory fees. Loan quality remained sound, with the non-performing loan ratio at 2.44%, still well below the bank’s 4% threshold.
The Group’s on-balance sheet assets climbed 4.85% to $37 billion. Net loans and advances dropped slightly to $27.8 billion, following early repayments by some sovereign borrowers whose foreign currency positions had improved.
Afreximbank’s liquidity improved markedly, with liquid assets accounting for 20% of total assets, up from 13% at the end of 2024. Shareholders’ equity rose 3.4% to $7.5 billion, supported by retained earnings and capital injections under the bank’s second General Capital Increase (GCI II) programme.
Operating expenses rose 23% to $75.4 million, reflecting higher inflation and personnel costs. Despite this, the cost-to-income ratio remained low at 16%, below the bank’s target range.
Operationally, the bank advanced its regional development agenda by supporting industrial parks and special economic zones in Kenya as part of a $3 billion country programme. These include projects under Kenya’s Vision 2030 plan, such as the Dongo Kundu Industrial Park and Naivasha SEZ II.
The Pan-African Payments and Settlement System (PAPSS) continued its rollout, with KCB Group and Bank of Kigali becoming the first to launch the platform in Kenya and Rwanda, enabling instant cross-border payments in local currencies.
The bank also broke ground on its first African Trade Centre outside the continent, in Bridgetown, Barbados. The project will host Afreximbank’s Caribbean regional office and serve as a hub for promoting trade between Africa and the Global South.
