Afreximbank Grows Net Interest Income To $411.2m In Q12025

• Says robust financial books meet stakeholders’ expectations

BY COBHAM NSA – The African Export-Import Bank (“Afreximbank” or the “Group”) is upbeat that its net interest income grew by 4.53 percent, hitting the US$411.2 million mark in the first quarter of 2025.

The Bank said the impressive showing was driven by growth in interest-earning assets, complemented by effective management of borrowing costs that helped it to cushion the marginal decline in total interest income due to softening benchmark rates.

According to the Bank, the consolidated financial statements and those of its subsidiaries delivered satisfactory performance for the quarter under review, adding the financial highlights for the three months ended 31 March 2025 also met expectations with solid profitability, strengthened liquidity, and a resilient capital base.

Additionally, this outstanding 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.

A statement released by the Group’s management indicated that their net interest income grew by 4.53% to US$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.

Also, 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 US$26.9 million for Q1-2025. While this represented a 7.41 percent decrease from US$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.

This is as the Group posted strong Net Income of US$215 million, a 21 percent increase year-on-year from US$178 million in the prior period.

The Group’s total assets and contingent liabilities increased by 6.4 percent, 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 percent to US$37.0 billion, driven primarily by a 58 percent surge in cash balances to US$7.4 billion, while Off-balance sheet assets i.e. letters of credit and guarantee volumes increased by a 19 percent 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 FY2024 closing position, reflecting early repayments from certain customers on account of improved foreign currency balances of some sovereign borrowers. Importantly, 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 four (4) percent.

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

Similarly, the Bank’s liquidity profile strengthened considerably, with liquid assets now comprising 20% of total assets, up from 13 percent at the close of FY’2024. This higher liquidity position was as a result of successful fundraising, coupled with loan repayments received during the quarter.Shareholders’ funds increased by 3.4 percent, 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.

To promote industrialization and export development, the Bank and the Government of Kenya have approved initiatives to establish Industrial Parks (IPs) and Special Economic Zones (SEZs) under the US$3 billion Kenya country program.

These projects, which include 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.

In alignment with its mission to promote Global Africa and following the recognition of the African Diaspora as the 6th region of Africa, the Bank has begun construction of the first Afreximbank African Trade Centre (AATC) outside of Africa in Bridgetown, Barbados. This location will also serve as the 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.

Mr. Denys Denya, Afreximbank’s Senior Executive Vice President, commented: “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.”