By zainab.joaque@awokonewspapersl.com
Freetown, SIERRA LEONE — The African Export-Import Bank (Afreximbank) has reported a solid first-quarter performance for 2025, signalling sustained operational strength and growing strategic relevance across Africa and the Caribbean. In an economic environment still grappling with post-pandemic dislocations, inflationary pressures, and global financial tightening, Afreximbank’s Q1 results highlight a rare blend of resilience, liquidity management, and regionally focused growth.
Net income for the quarter surged 21% year-on-year to US$215 million, driven by enhanced operational efficiency and robust portfolio management. Total assets, including contingent liabilities, climbed by 6.4% to US$42.7 billion, bolstered by a significant 58% jump in cash balances to US$7.4 billion—a reflection of both improved liquidity conditions and timely repayments from sovereign borrowers with stronger foreign exchange positions.
Net interest income edged up 4.53% to US$411.2 million, sustained by an increase in interest-earning assets and tighter control of borrowing costs. While softer benchmark rates led to a slight dip in total interest income, the bank strategically compensated with strong fee-based growth, particularly in guarantees (+47%) and letters of credit (+36%). Total unfunded income stood at US$26.9 million, a 7.4% decline, though in line with Afreximbank’s long-term pivot towards expanding its unfunded business portfolio—a key pillar in its risk diversification agenda.
Net loans and advances closed at US$27.8 billion, marginally down from the end of 2024, largely due to early repayments. However, the non-performing loan (NPL) ratio held steady at 2.44%, well below the bank’s 4% strategic threshold—reaffirming Afreximbank’s commitment to maintaining asset quality amid its expanding balance sheet.
Operating expenses rose 23% to US$75.4 million, reflecting inflation-linked cost pressures and investments in human capital. Despite this, the cost-to-income ratio remained a disciplined 16%, underscoring strong revenue performance and prudent expense control. Meanwhile, shareholders’ funds grew by 3.4% to US$7.5 billion, supported by retained earnings and fresh equity under the ongoing General Capital Increase programme.
Beyond the numbers, Afreximbank’s strategic initiatives continue to reinforce its dual mandate: accelerating intra-African trade and deepening South-South cooperation.
In Kenya, the Bank advanced a US$3 billion country programme focused on industrial parks and Special Economic Zones (SEZs), including the Dongo Kundu Industrial Park and Naivasha SEZ II—key assets aligned with Kenya’s Vision 2030 to drive manufacturing-led exports.
On the fintech front, the Pan-African Payments and Settlement System (PAPSS) saw important progress, with KCB Group (Kenya) and Bank of Kigali (Rwanda) integrating the platform. PAPSS enables real-time, cross-border payments in local currencies—potentially a game-changer for African trade integration by reducing transaction costs and FX risks.
In a bold geopolitical move, Afreximbank broke ground on the first African Trade Centre outside the continent, located in Bridgetown, Barbados. The facility aims to strengthen trade and investment ties between Africa and the Caribbean, under the “Global Africa” vision. It also marks a strategic extension of the bank’s footprint into the Caribbean, aligning economic interests across the Atlantic in support of South-South development.
As Afreximbank navigates the rest of 2025, its performance in Q1 sets a confident tone. Strong fundamentals—anchored by healthy liquidity, disciplined lending, and scalable trade facilitation—position the Bank as a key player in financing Africa and the Caribbean’s economic transformation.
According to Denys Denya, Senior Executive Vice President, “Our Q1 2025 performance, in line with expectations, demonstrates Afreximbank’s financial strength and resilience amid macroeconomic challenges. With solid profitability, enhanced liquidity, and a strong capital base, we are well-positioned to continue advancing Africa and the Caribbean’s economic transformation and sustainable development.”
For development finance stakeholders, sovereign partners, and trade-oriented institutions, Afreximbank’s Q1 2025 results offer a compelling case for the Bank’s growing influence—not just as a financial institution, but as a strategic architect of regional integration and industrialization in the Global South. ZIJ/9/6/2025
 has reported a solid first-quarter performance for 2025, signalling sustained operational strength and growing strategic relevance across Africa and the Caribbean. In an economic environment still grappling with post-pandemic dislocations, inflationary pressures, and global financial tightening, Afreximbank’s Q1 results highlight a rare blend of resilience, liquidity management, and regionally focused growth.){kind=link}