Afreximbank reports strong performance for Q1 2025 in line with expectations
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
KAMPALA, May 22, 2025 — African Export-Import Bank [ Afreximbank ] which operates an affiliate in Kampala has released the consolidated financial statements of the Bank and its subsidiaries for the three months ended 31 March 2025.
According to financial statements seen by this reporter, the Bank delivered satisfactory financial performance for the first quarter of 2025, meeting expectations with solid profitability, strengthened liquidity and a resilient capital base.
This 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 4.53 percent 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.
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.
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 March 31, 2025, up from US$ 40.1 billion at financial year [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 FY 2024 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.
Driven by inflationary pressures and growing personnel costs, operating expenses rose by 23 percent to reach US$ 75.4 million by March 31, 2025. Despite this, Afreximbank Group maintained a healthy Cost-to-Income Ratio of 16 percent, below its strategic range of 17-30 percent.
Afreximbank’s liquidity profile strengthened considerably, with liquid assets now comprising 20 percent of total assets, up from 13 percent 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 3.4 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.
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.”
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