African Export-Import Bank (Afreximbank) on Wednesday announced that its on and off- balance sheet assets increased to $42.7 billion at the end of the first quarter of the year (Q1 2025).
While on-balance sheet assets grew by 4.85 per cent to $37 billion, driven primarily by a 58 per cent surge in cash balances, off-balance sheet assets, including letters of credit and guarantee volumes, also increased by a 19 per cent to $5.7 billion.
According to the bank’s consolidated financial statements and its subsidiaries, for the first quarter of the year (Q1 2025), net loans and advances closed at $27.8 billion, down from the 2024 closing position, reflecting early repayments from certain customers on account of improved foreign currency balances position of some sovereign borrowers.
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 in 2024 – and well below the bank’s strategic NPL ceiling of four per cent.
The bank said net interest income grew by 4.53 per cent to $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.
Similarly, fee income from guarantees and letters of credit increased by 47 per cent and 36 per cent, respectively, partially offsetting lower advisory fees to contribute to total unfunded income of $26.9 million in Q1. While this represented a 7.41 per cent decrease from $29 million in Q1 2024, the strong performance in off-balance sheet assets was in line with the bank’s strategy to grow unfunded business.
Group’s total assets and contingent liabilities increased by 6.4 per cent to $42.7 billion, up from $40.1 billion in 2024.
Reacting to the performance in a statement, Afreximbank’s Senior Executive Vice President, Mr. Denys Denya, said, “Our QI 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.”
The group posted strong net income of $215 million, a 21 per cent increase year-on-year from $178 million in the prior period.
However, driven by inflationary pressures and growing personnel costs, operating expenses rose by 23 per cent to $75.4 million.
The Afreximbank group maintained a healthy Cost-to-Income Ratio of 16 per cent below its strategic range of 17-30 per cent.
The bank’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 2024.
The 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 to $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.
The 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.
In line with the bank’s 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 of Industrial Parks (IPs) and Special Economic Zones (SEZs) in Kenya under the $3 billion Kenya country programme.
These projects, which included 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 sixth region of Africa, the bank further cemented its expansion and presence in the Caribbean with the historic ground-breaking 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.
James Emejo
Follow us on:
