Afreximbank reports performance for Q1 2025

…Posts strong net income of US$215m

The African Export-Import Bank (Afreximbank) has posted a strong net income of US$215 million, a 21% year-on-year increase from US$178 million in the prior period.

Afreximbank disclosed this in the consolidated financial statements of the Bank and its subsidiaries for the three months ended 31 March 2025.

The bank’s Group delivered satisfactory financial performance for the first quarter of 2025, meeting expectations with solid profitability, strengthened liquidity, and a resilient capital base.

Afreximbank performance provides a springboard for the Bank to continue playing its pivotal role in advancing the aspirations of Africa and the Caribbean for economic transformation and sustainable development in the months and years ahead.

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Net interest income grew by 4.53% to US$411.2 million compared to the prior year, driven by growth in interest-earning assets, complemented by effective management of borrowing costs, which helped the Bank cushion the marginal decline in total interest income due to softening benchmark rates.

Fee income from guarantees and letters of credit saw robust growth of 47% and 36% respectively, partially offsetting lower advisory fees, contributing to a total unfunded income of US$26.9 million for Q1 2025.

While this represented a 7.41% decrease from US$29.0 million in Q1 2024, the strong performance in off-balance sheet assets aligns with the Bank’s strategy to grow unfunded business.

The Group posted a strong net income of US$215 million, a 21% year-on-year increase from US$178 million in the prior period.

The Group’s total assets and contingent liabilities increased by 6.4%, reaching US$42.7 billion as of 31 March 2025, up from US$40.1 billion at FY 2024.

On-balance sheet assets grew by 4.85% to US$37.0 billion, driven primarily by a 58% surge in cash balances to US$7.4 billion, while off-balance sheet assets—i.e., letters of credit and guarantee volumes—increased by 19% to reach US$5.7 billion at the end of Q1 2025.

Net loans and advances closed Q1 2025 at US$27.8 billion, down from the FY 2024 closing position, reflecting early repayments from certain customers due to improved foreign currency balance positions of some sovereign borrowers.

Importantly, loan asset quality remained strong, with the Non-Performing Loans (NPL) ratio at 2.44%, a modest increase from 2.33% at FY 2024—well below the Bank’s strategic NPL ceiling of 4%.

Driven by inflationary pressures and growing personnel costs, operating expenses rose by 23% to reach US$75.4 million by 31 March 2025.

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 FY 2024.

This higher liquidity position was the 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 (GCI II) programme.

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.”

NIGERIAN TRIBUNE