Afreximbank Q1 profit jumps 21pc as Assets, Liquidity Rise

Pan-African multilateral lender African Export-Import Bank (Afreximbank) reported a 21 percent jump in first-quarter profit, driven by higher net interest income and improved liquidity, even as loan volumes dipped on early sovereign repayments.

The Cairo-based bank posted a net income of $215 million for the three months to March 31, up from $178 million a year earlier.

Net interest income rose 4.5 percent to $411.2 million, supported by growth in interest-earning assets and lower borrowing costs, despite pressure from declining benchmark rates.

Total assets and contingent liabilities grew by 6.4 percent to $42.7 billion, from $40.1 billion at the end of 2024.

On-balance sheet assets climbed 4.85 percent to $37 billion, lifted by a 58 percent surge in cash holdings. Off-balance sheet assets, comprising guarantees and letters of credit, rose 19 percent to $5.7 billion.

The lender’s net loan book stood at $27.8 billion at the end of the quarter, down from December levels following early repayments from some sovereign clients.

The non-performing loan ratio edged up to 2.4 percent from 2.33 percent at year-end, remaining well below its four percent ceiling.

Operating expenses increased 23 percent to $75.4 million, driven by inflation and higher personnel costs, though the cost-to-income ratio remained low at 16 percent.

Liquidity improved, with liquid assets accounting for 20 percent of total assets, up from 13 percent at the close of 2024, boosted by loan repayments and successful fundraising.

Shareholders’ equity rose 3.4 percent to $7.5 billion, supported by retained earnings and new capital under the bank’s General Capital Increase programme.

In Kenya, Afreximbank advanced plans to support the government’s $3 billion industrialisation drive, including the development of special economic zones and industrial parks in Mombasa and Naivasha.

The bank also extended its Pan-African Payments and Settlement System (PAPSS) to Kenya and Rwanda, with KCB Group and Bank of Kigali becoming the first banks in their respective countries to adopt the platform.

Outside the continent, Afreximbank broke ground on a trade centre in Bridgetown, Barbados – its first such facility in the Caribbean – as part of its wider strategy to integrate African and diaspora markets.

gandae@businessdayafrica.org