African Export-Import Bank (Afreximbank) has released the consolidated financial statements of the Bank and its subsidiaries for the first quarter (Q1) ended March 31, 2025.
Net loans and advances closed Q1 2025 at $27.8 billion, down from the 2024 2024 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 2.44per cent, a modest increase from 2.33per cent at 2024 – well below the Bank’s strategic NPL ceiling of four per cent.
The Group’s total assets and contingent liabilities increased by 6.4per cent, reaching $42.7 billion as of March 31, 2025, up from $40.1 billion at 2024.
On-balance sheet assets grew by 4.85per cent to $37.0 billion, driven primarily by a 58per cent surge in cash balances to $7.4 billion, while Off-balance sheet assets i.e. letters of credit and guarantee volumes increased by a 19per cent to reach $5.7 billion at the end of Q1 2025.
The Group delivered satisfactory financial performance for the first quarter of 2025, meeting expectations with solid profitability, strengthened liquidity and a resilient capital base.
According to the bank, the 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.
Net interest income grew by 4.53per cent to $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.
Fee income from Guarantees and Letters of Credit saw robust growth of 47per cent and 36per cent respectively, partially offsetting lower advisory fees to contribute to total unfunded income of $26.9 million for Q1-2025. While this represented a 7.41per cent 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.
The Group posted strong Net Income of $215 million, a 21per cent increase year-on-year from $178 million in the prior period.
Driven by inflationary pressures and growing personnel costs, operating expenses rose by 23per cent to reach US$75.4 million by Q1 2025. Despite this, Afreximbank Group maintained a healthy Cost-to-Income Ratio of 16per cent, below its strategic range of 17-30per cent.
It explained that liquidity profile strengthened considerably, with liquid assets now comprising 20% of total assets, up from 13per cent 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.
Shareholders’ funds increased by 3.4per cent, 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.
In line with the Afreximbank 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 $3 billion Kenya’s country programme.
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.
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 ground breaking 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.
The Senior Executive Vice President, Afreximbank, Mr. Denys Denya in a statement said “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.”