Afreximbank’s assets have increased to $42.7 billion in Q1 2025, driven by strong liquidity and increased cash balances.
African Export-Import Bank (Afreximbank) on Wednesday announced that its on and off- balance sheet assets increased to $42.7 billion at the end of the first quarter of the year (Q1 2025).
While on-balance sheet assets grew by 4.85 per cent to $37 billion, driven primarily by a 58 per cent surge in cash balances, off-balance sheet assets, including letters of credit and guarantee volumes, also increased by a 19 per cent to $5.7 billion.
According to the bank’s consolidated financial statements and its subsidiaries, for the first quarter of the year (Q1 2025), net loans and advances closed at $27.8 billion, down from the 2024 closing position, reflecting early repayments from certain customers on account of improved foreign currency balances position of some sovereign borrowers.
Loan Asset Quality remained strong, with the Non-Performing Loans (NPL) ratio at 2.44 per cent, a modest increase from 2.33 per cent in 2024 – and well below the bank’s strategic NPL ceiling of four per cent.
The bank said net interest income grew by 4.53 per 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.
Similarly, fee income from guarantees and letters of credit increased by 47 per cent and 36 per cent, respectively, partially offsetting lower advisory fees to contribute to total unfunded income of $26.9 million in Q1. While this represented a 7.41 per cent decrease from $29 million in Q1 2024, the strong performance in off-balance sheet assets was in line with the bank’s strategy to grow unfunded business.
Group’s total assets and contingent liabilities increased by 6.4 per cent to $42.7 billion, up from $40.1 billion in 2024.
Reacting to the performance in a statement, Afreximbank’s Senior Executive Vice President, Mr. Denys Denya, 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.”
The group posted strong net income of $215 million, a 21 per cent increase year-on-year from $178 million in the prior period.
However, driven by inflationary pressures and growing personnel costs, operating expenses rose by 23 per cent to $75.4 million
The Afreximbank group maintained a healthy Cost-to-Income Ratio of 16 per cent below its strategic range of 17-30 per cent.
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