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On the payments front, the Pan-African Payments and Settlement System (PAPSS) continues to gain traction, with KCB Group in Kenya and Bank of Kigali in Rwanda integrating the platform
ANALYSIS | THE INDEPENDENT | Africa’s multilateral lender, African Export-Import Bank has posted a net income of US$215 million for the first quarter of 2025, representing a 21% year-on-year increase, buoyed by higher net interest income, improved liquidity and a resilient capital base. The Group’s results signal a solid start to the year as it deepens its dual mandate of promoting African trade and expanding its reach into the Caribbean.
Net interest income rose 4.5% to US$411.2 million, supported by growth in interest-earning assets and effective cost of funds management, helping mitigate a marginal decline in total interest income caused by softening benchmark rates.
Fee-based income saw mixed performance. Guarantees and letters of credit registered a robust 47% and 36% rise respectively, though a reduction in advisory fees weighed on overall non-funded income, which declined 7.4% to US$26.9 million. Nonetheless, the uptick in off-balance sheet business aligns with Afreximbank’s strategic push to scale unfunded operations.
The Group’s total assets and contingent liabilities expanded 6.4% to US$42.7 billion as of 31 March 2025, up from US$40.1 billion at the close of 2024. On-balance sheet assets advanced 4.85% to US$37 billion, driven largely by a 58% surge in cash balances to US$7.4 billion. Off-balance sheet assets, including guarantees and letters of credit, rose by 19% to US$5.7 billion.
Despite early repayments from sovereign borrowers with improving foreign currency positions, net loans and advances stood at US$27.8 billion. The non-performing loan (NPL) ratio edged up slightly to 2.44%, from 2.33% at year-end 2024, remaining well below the Bank’s 4% internal ceiling.
Operating expenses climbed 23% to $75.4 million, reflecting inflationary pressures and higher personnel costs. Still, the Group maintained a cost-to-income ratio of 16%, well under its strategic target range of 17–30%.
Afreximbank’s liquidity profile strengthened markedly, with liquid assets making up 20% of the balance sheet compared to 13% at year-end. The improvement follows successful fundraising activities and loan repayments received during the quarter.
Shareholders’ equity grew 3.4% to US$7.5 billion, supported by internally generated capital and fresh contributions under the bank’s ongoing second General Capital Increase (GCI II) programme.
Strategic developments in Africa and the Caribbean
Operationally, the Group pressed ahead with its Africa-Caribbean growth strategy. In East Africa, Afreximbank partnered with the Kenyan government on initiatives to develop industrial parks and special economic zones under a US$3 billion Kenya Country Programme. Projects such as the Dongo Kundu Industrial Park in Mombasa and Naivasha SEZ II in Mai Mahiu are key to the country’s Vision 2030 economic transformation agenda.
On the payments front, the Pan-African Payments and Settlement System (PAPSS) continues to gain traction, with KCB Group in Kenya and Bank of Kigali in Rwanda integrating the platform. The initiative enables real-time, local-currency cross-border transactions within the continent, aiming to lower transaction costs and enhance intra-African trade.
Beyond the continent, Afreximbank deepened its footprint in the Caribbean with the groundbreaking of the African Trade Centre (AATC) in Bridgetown, Barbados. The development will host the Bank’s regional office and serve as a strategic hub to foster trade between Africa and the Global South. The project underscores the institution’s ambition to consolidate economic ties with the African diaspora, now recognised as the “sixth region” of the African Union.
Commenting on the performance, Denys Denya, Afreximbank’s Senior Executive Vice President, said the Q1 2025 results, which were in line with their 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,” he said.
Afreximbank, with regional offices strategically located across the continent—including in Uganda—operates a diversified shareholding structure comprising both public and private entities. The Bank’s shareholders are grouped into four distinct classes, reflecting its pan-African and international investor base.
