Trade finance push drives Afreximbank profit to $1.2bn

African Export-Import Bank (Afreximbank) reported a strong financial performance for the year ended December 31, 2025, with net income rising 19 percent to $1.2 billion, driven by expanded trade finance activities and continued support for industrialisation across Africa and the Caribbean.

The lender’s results underscore sustained financial resilience and growing market confidence, as it scaled up disbursements across key sectors including manufacturing, infrastructure, food security and climate adaptation.

Total assets and contingencies grew by 21 percent to $48.5 billion in 2025, up from $40.1 billion a year earlier, reflecting the bank’s steady expansion and increasing role in financing trade and development across its markets. Net loans and advances rose by 16 percent to $33.5 billion from $29.0 billion in 2024, supported by a broad range of financing and advisory offerings tailored to member countries.

Despite a challenging global environment marked by geopolitical tensions and tighter financial conditions, the bank maintained strong asset quality, with its non-performing loan ratio remaining relatively low at 2.43 percent compared to 2.33 percent in the previous year.

Liquidity levels strengthened significantly, with cash and cash equivalents rising to $6.0 billion from $4.6 billion in 2024. Liquid assets accounted for 14 percent of total assets, comfortably above the bank’s internal minimum threshold of 10 percent, providing a solid buffer to support ongoing lending activities.

Shareholders’ funds increased by 17 percent to $8.4 billion, supported by net earnings and fresh equity inflows of $299.4 million raised under the General Capital Increase II programme. Gross income rose modestly by 6.06 percent to $3.5 billion, compared with $3.3 billion in the prior year.

Operating expenses climbed to $459.2 million from $367.7 million, reflecting staff expansion and inflationary pressures. However, the bank maintained cost discipline, with a cost-to-income ratio of 21 percent, well below its strategic ceiling of 30 percent.

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In a sign of continued investor confidence, Afreximbank successfully accessed international capital markets during the year, raising over $800 million through Samurai and Panda bond issuances in Japan and China, despite concerns raised by some rating agencies.

Denys Denya, senior executive vice president of the bank, said the performance reflects a decade of strategic execution and strong leadership, noting that the institution is ahead of most of its targets under its sixth strategic plan, which runs through the end of 2026.

“Despite continuing global geopolitical challenges and disruptions caused by some rating actions, the Group delivered excellent financial performance in 2025,” he said. “The balance sheet is at its strongest level ever, with liquidity levels and capitalisation well above target and good asset quality.”

He added that newly established subsidiaries, including FEDA and AfrexInsure, have become profitable, contributing to earnings growth and reinforcing the bank’s diversification strategy.

Denya said the bank entered the 2026 financial year with strong momentum, positioning it to scale its impact, deepen trade integration and support value addition across Africa and the broader Global Africa region.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.