Afreximbank Reports Strong Q1 2025 Financial Performance
The African Export-Import Bank (Afreximbank) has reported impressive financial results for the first quarter of 2025, with net interest income rising 4.53% to $411.2 million compared to the same period last year.
Vincent Musumba, Afreximbank’s Communications and Events Manager, announced the results Wednesday in an official statement detailing the bank’s consolidated financial performance, including its subsidiaries, for the opening quarter of 2025.
According to Musumba, the increase in net interest income was driven by an expansion in interest-generating assets and strategic management of borrowing costs. These factors helped offset a slight decline in overall interest income resulting from falling benchmark interest rates.
Fee-based revenues also demonstrated strong momentum, with guarantee-related income soaring 47% and fees from letters of credit climbing 36%. “This partially offset lower advisory fees, contributing to total unfunded income of $26.9 million for Q1 2025,” Musumba noted.
Although this marked a 7.41% decrease from the $29.0 million recorded in Q1 2024, the solid performance in off-balance sheet activities aligned with the bank’s strategic focus on expanding its unfunded business operations, he added.
The bank posted net income of $215 million—a 21% year-over-year increase from the $178 million recorded in the corresponding period of 2024—underscoring Afreximbank’s continued profitability.
Total assets and contingent liabilities for the group rose 6.4% to $42.7 billion as of March 31, up from $40.1 billion at the end of fiscal year 2024.
On-balance sheet assets grew 4.85% to $37.0 billion, primarily driven by a sharp 58% increase in cash holdings, which reached $7.4 billion.
“Off-balance sheet assets, namely letters of credit and guarantee volumes, increased by 19% to $5.7 billion at the end of Q1 2025,” Musumba reported.
Net loans and advances closed the quarter at $27.8 billion, reflecting a decline from the end of FY2024. “This is due to early repayments by certain customers, enabled by improved foreign currency balances of some sovereign borrowers,” he explained.
Asset quality remained strong, with the non-performing loan (NPL) ratio rising slightly to 2.44% from 2.33% in FY2024. “This remains well below the bank’s strategic NPL ceiling of four percent,” Musumba emphasized.
Operating expenses increased 23% to $75.4 million by March 31, driven by inflationary pressures and higher personnel costs. “Despite this, Afreximbank Group maintained a healthy cost-to-income ratio of 16%, below its strategic range of 17–30%,” he stated.
The bank’s liquidity position strengthened significantly, with liquid assets accounting for 20% of total assets, up from 13% at the close of FY2024. This improvement was attributed to successful fundraising activities and loan repayments during the review period.
Shareholders’ equity grew by 3.4% to $7.5 billion, supported by strong internal capital generation of $215.4 million and new equity investments under the Second General Capital Increase (GCI II) program.
In terms of operational developments, Musumba highlighted multiple initiatives ratified between Afreximbank and the Government of Kenya to support industrial parks and special economic zones under the $3 billion Kenya Country Programme.
“These projects—including 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,” he said.
“Afreximbank’s support for these initiatives will enhance infrastructure development, attract investment, and strategically position Kenya as a key hub for African and global commerce,” he added.
The Pan-African Payments and Settlement System (PAPSS) continued its expansion, with KCB Group in Kenya and Bank of Kigali in Rwanda becoming the first institutions to implement the platform. PAPSS enables seamless, instant, and cost-effective cross-border payments in local currencies.
The bank also marked a milestone in its Caribbean expansion with the groundbreaking ceremony for its first Afreximbank African Trade Centre outside Africa, located in Bridgetown, Barbados.
Denys Denya, Afreximbank’s Senior Executive Vice President, described the Q1 2025 results as in line with expectations, reflecting the group’s resilience despite macroeconomic headwinds.
“With solid profitability growth, improved liquidity, and a well-capitalised balance sheet, the Group is well-positioned to support economic transformation and sustainable development in Africa and the Caribbean,” Denya concluded.
