Here’s how Afreximbank performed for Q1’25

African Export-Import Bank (Afreximbank) recently released its consolidated financial statements and that of its subsidiaries for the first quarter Q1 ended March 31, 2025.

The bank’s net interest income (NII) grew by 4.53 percent to $411.2 million compared to prior year, driven by growth in interest earning assets, complemented by effective management of borrowing costs, helping Afreximbank to cushion the marginal decline in total interest income due to softening benchmark rates.

The group posted strong net income of $215 million, a 21 percent increase year-on-year from $178 million in the prior period.
Net loans and advances closed Q1-2025 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 2.44percent, a modest increase from 2.33percent at FY’2024 – well below the bank’s strategic NPL ceiling of 4 percent.

Shareholders’ funds increased by 3.4 percent, 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.

Fee income from Guarantees and Letters of Credit saw robust growth of 47 percent and 36 percent respectively, partially offsetting lower advisory fees to contribute to total unfunded income of $26.9 million for Q1-2025. While this represented a 7.41 percent decrease from $29.0 million in Q1 2024, the strong performance in off-balance sheet assets is in line with the Bank’s strategy to grow unfunded business.

Read also: Afreximbank launches US$ 1bn Africa Film Fund to transform continent’s creative industry

The Group’s total assets and contingent liabilities increased by 6.4percent, reaching $42.7 billion as of March 31, 2025, up from $40.1 billion at FY’2024. On-balance sheet assets grew by 4.85 percent to $37billion, driven primarily by a 58 percent 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 percent to reach $5.7 billion at the end of Q1-2025.

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

Afreximbank’s liquidity profile strengthened considerably, with liquid assets now comprising 20 percent of total assets, up from 13 percent 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.

Denys Denya, senior executive vice president, Afreximbank said, “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.”