The African Export-Import Bank Group says it recorded a 4.53 percent growth in its net interest to about $411.2 million during the first quarter ended March 31, 2025, as per its consolidated financial statements released on Wednesday.
Highlights of the financial performance showed that the new income was higher than what the bank realised in the corresponding period of last year.
The bank said the performance was driven by growth in interest earning assets, complemented by effective management of borrowing costs that helped the Bank to cushion the marginal decline in total interest income due to softening benchmark rates.
Describing the performance as satisfactory, the Bank Group said the performance met the expectations with solid profitability, strengthened liquidity and a resilient capital base.
The performance, it noted, 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.
Details showed that fee income from Guarantees and Letters of Credit grew by 47 percent and 36 percent respectively, partially offsetting lower advisory fees to contribute to total unfunded income of $26.9 million for the period.
Representing a 7.41 percent decrease from $29.0 million in Q1 2024, the Bank said the strong performance in Off-balance sheet assets was in line with the Bank’s strategy to grow unfunded business.
Also, the Group posted strong Net Income of $215 million, about 21 percent increase year-on-year from $178 million in the prior period.
Besides, the Group’s total assets and contingent liabilities increased by 6.4 percent, reaching $42.7 billion over the period, up from $40.1 billion during the 2024 financial year, while on-balance sheet assets grew by 4.85 percent to $37.0 billion, driven primarily by a 58 percent surge in cash balances to $7.4 billion.
Similarly, off-balance sheet assets made up of letters of credit and guarantee volumes increased by a 19 percent to reach $5.7 billion during the period.
In addition, net loans and advances closed at $27.8 billion, down from the 2024 financial year closing position, reflecting early repayments from certain customers on account of improved foreign currency balances position of some sovereign borrowers.
“The Loan Asset Quality remained strong, with the Non-Performing Loans (NPL) ratio at 2.44 percent, a modest increase from 2.33 percent at FY’2024 – well below the Bank’s strategic NPL ceiling of 4 percent,” the Bnak said.
Operating expenses rose by 23 percent to reach $75.4 million for the period, driven by inflationary pressures and growing personnel costs.
Despite the rising operating expenses, the Group said it maintained a healthy Cost-to-Income Ratio of 16 percent, below its strategic range of 17-30 percent.
The Group said its liquidity profile strengthened considerably, with liquid assets now comprising 20 percent of total assets, up from 13 percent at the close of 2024 financial year.
The higher liquidity position, the Group said, was as a result of successful fund-raising, coupled with loan repayments received during the quarter.
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.
Operating Highlights
In line with its 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 US$3 billion Kenya country programme.
These projects, it disclosed, include Dongo Kundu Industrial Park in Mombasa and Naivasha SEZ II in Mai Mahiu, as 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,” the Bank said.
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.
“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,” Afreximbank’s Senior Executive Vice President, Mr. Denys Denya, said.
