The African Export-Import Bank (Afreximbank) has released its consolidated financial statements for the first quarter of 2025, showcasing a robust performance in line with expectations.
The Group reported a 21% increase in net income, reaching US$215 million, up from US$178 million in the same period last year.
Financial Highlights: Strong Profitability and Liquidity Growth
Afreximbank’s Q1 2025 results reflect solid profitability, strengthened liquidity, and a resilient capital base, positioning the Bank to continue supporting Africa and the Caribbean in their economic transformation and sustainable development efforts.
– Net interest income grew by 4.53% to US$411.2 million, driven by an increase in interest-earning assets and effective borrowing cost management.
– Fee income from Guarantees and Letters of Credit saw strong growth of 47% and 36%, respectively, contributing to total unfunded income of US$26.9 million.
– Total assets and contingent liabilities rose by 6.4% to US$42.7 billion, with on-balance sheet assets growing by 4.85% to US$37.0 billion.
– Liquid assets now represent 20% of total assets, up from 13% at the end of 2024, reflecting improved liquidity due to successful fundraising and loan repayments.
-Shareholders’ funds increased by 3.4% to US$7.5 billion, supported by internally generated capital and new equity investments under the General Capital Increase (GCI II) program.
Despite inflationary pressures leading to a 23% rise in operating expenses (US$75.4 million), Afreximbank maintained a healthy Cost-to-Income Ratio of 16%, well below its strategic target range of 17-30%.
Operational Achievements: Driving Industrialization and Trade Expansion
Afreximbank continues to advance key strategic initiatives across Africa and the Caribbean:
Supporting Kenya’s Industrialization Agenda
The Bank, in partnership with the Government of Kenya, ratified initiatives to develop Industrial Parks (IPs) and Special Economic Zones (SEZs) under a US$3 billion country program. Key projects include:
– Dongo Kundu Industrial Park (Mombasa)
– Naivasha SEZ II (Mai Mahiu)
These projects align with Kenya’s Vision 2030, aiming to boost export manufacturing and industrialization while enhancing infrastructure and attracting investment.
Expanding Pan-African Payment Systems
The Pan-African Payments and Settlement System (PAPSS) gained further traction, with KCB Group (Kenya) and Bank of Kigali (Rwanda) becoming the first banks in their respective countries to adopt the platform. PAPSS enables seamless, instant, and affordable cross-border payments in local currencies.
Strengthening Global Africa Trade Ties
Afreximbank marked a historic milestone with the groundbreaking of its first African Trade Centre (AATC) outside Africa in Bridgetown, Barbados. The AATC will serve as a hub for trade and investment, reinforcing intra-African and Global South trade connections.
Leadership Perspective
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-capitalized 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.”.
