The African Export-Import Bank (Afreximbank) has reported a slight increase in earnings for the half year ended June 2025, with internally generated net profit rising slightly to US$ 412.7 million, from US$ 407.7 million in H1 2024.
- •The performance reflects sufficient liquidity management, steady interest income, and robust capitalisation, despite early loan repayments, rising operating costs, and persistent geopolitical and economic challenges.
- •Once associated mainly with loan growth-driven profitability, the Group’s earnings profile in H1 2025 showed greater balance, with contributions from fundraising initiatives, recoveries on written-off facilities, and borrowing cost management.
- •Total assets and contingent liabilities rose 6% to US$ 42.5 billion, up from US$ 40.1 billion as at December 2024, while on-balance sheet assets grew 6.8% to US$ 37.7 billion, driven largely by a 78.29% jump in cash balances to US$ 8.3 billion.
Net loans and advances declined to US$ 27.7 billion from US$ 29.0 billion, as several sovereign borrowers repaid early amid improved foreign currency inflows. Asset quality remained sound, with the non-performing loans (NPL) ratio at 2.48%, slightly above FY 2024’s 2.33%.
Key Highlights- H1 2025 vs H1 2024
| Metric | June 30, 2025 | June 30, 2024 | YoY Change |
| Net Interest Income | US$ 835.89 Mn | US$ 826.22 Mn | 1.17% |
| Operating Expenses | US$ 184.2 Mn | US$ 152.2 | 21% |
| Profit After Tax (PAT) | US$ 412.71 Mn | US$ 407.66 Mn | 1.24% |
| Total Assets | US$ 37.73 Bn | US$ 31.10 Bn | 21.32% |
| Retained Earnings | US$ 1.81 Bn | US$ 1.48 Bn | 22.29% |
| Customer Deposits | US$ 7.52 Bn | US$ 8.02 Bn | -6.23% |
| Loans & Advances (Net) | US$ 27.74 Bn | US$ 26.00 Bn | 6.69% |
| Cash and Cash Equivalents | US$ 8.29 Bn | US$ 3.89 Bn | 113.11% |
| Earnings per Share (EPS) | US$ 7.01 | US$ 6.97 | 0.57% |
Profitability and Income Mix
Afreximbank’s interest income was stable at US$ 1.46 billion, while interest expense declined marginally to US$ 636.6 million, despite a 7% rise in borrowings. This underlined effective cost-of-funds management, aided by diversification of funding sources, including the April 2025 Panda Bond issuance.
Fee and commission income fell to US$ 60.5 million from US$ 68.6 million, reflecting softer demand for unfunded facilities such as guarantees and letters of credit. However, other income surged to US$ 54.0 million (H1 2024: US$5.1 million), driven by recoveries on previously written-off facilities.
Operating expenses rose 21% to US$184.2 million, reflecting inflationary pressures and expanded staffing. Still, the cost-to-income ratio was contained at 19%, well below the Bank’s 30% ceiling.
Capitalization and Shareholder Returns
Shareholders’ funds grew to US$ 7.3 billion, supported by retained earnings and US$66.6 million in new equity inflows under the ongoing General Capital Increase II (GCI II) programme. The Group appropriated a US$ 350 million dividend from FY 2024 profits in June 2025.
Afreximbank’s capital adequacy ratio stood at a healthy 24%, consistent with policy targets. Net Asset Value (NAV) per share edged up to US$ 7.01, from US$ 6.97 as at December 2024.
While global uncertainties persist- marked by geopolitical conflicts, currency swings, and rising sovereign debt- the Group’s H1 performance underscores resilience. Elevated liquidity, prudent cost management, and a strong capital base position Afreximbank to sustain profitability and deliver on its developmental mandate.
