African Export-Import Bank Group (Afreximbank Group) has netted a US$412.7 million profit in a financial performance the institution says positions it to deliver on its mandate to Barbados and other Caribbean countries.
On September 2, the group, which is based in Cairo, Egypt and has a CARICOM office here, announced in its consolidated financial statements for the six months ended June 30 that “amid heightened geopolitical tensions, persistent inflationary pressures, currency volatility, and tighter global financing conditions, the Afreximbank Group delivered, once again, satisfactory results”.
“This performance, which surpassed that of the 2024 comparative period, reflected higher net income, a robust liquidity position, and strengthened capital buffers, positioning the Group to better fulfil its mandate across its member states in Africa and the Caribbean Community,” it said.
The group’s US$412.7 million half-year net profit is an increase over the US$407.7 million earned in the same period last year. Gross income was US$1.58 billion, up from US$1.55 billion in the same time.
Total assets increased from US$35.3 billion to US$37.7 billion, while total liabilities grew from US$28.1 billion to US$30.4 billion. Nonperforming loans in the January to June period were at 2.48 per cent – up from 2.33 per cent in the same six months last year.
Denys Denya, Afreximbank’s senior executive vice president, said: “Afreximbank Group reported satisfactory performance in the first half of 2025, demonstrating agility and resilience despite operating in a challenging environment.
Financial solutions
“The group continued to support member states with innovative financial solutions, leveraging on a robust capital base, access to capital markets as reflected in the healthy liquidity position and management’s excellent knowledge of the African and Caribbean markets.
“Management’s unwavering commitment to its developmental mandate, advancing Africa’s and the Caribbean region’s development through trade, industrialisation and economic integration, remain the cornerstone of the group’s success,” Denya stated.
The senior executive vice president added: “The group’s fundamentals remain strong, and management continues to focused on delivering long-term value to all stakeholders, while safeguarding Africa’s financial sovereignty.”
The group said that the “modest growth” of 2.04 per cent in its gross income and 1.17 per cent increase in net interest income its net interest income “was achieved despite the decline in global benchmark rates, largely reflecting the group’s efficient management of funding costs”.
“Gross fee and commission income arising from unfunded activities, including issuance of guarantees, letters of credit (contingent liabilities) and provision of advisory services amounted to US$61.9 million,” it noted. “Notwithstanding the 21 per cent increase in operating expenses, the Group maintained a very favourable costto- income ratio of 19 per cent, broadly in line with the historical levels, and well below the strategic ceiling of 30 per cent.
“The increase in expenses was mainly driven by the implementation of strategic initiatives, and the recruitment of additional staff to support the group’s growing activities and inflationary pressures.”
Afreximbank said that loans and advances were US$27.7 billion in the first half of the year – down from US$29 billion in the same period in 2024.
“This reported decrease in the loans and advances portfolio was on account of early repayments by some sovereign borrowers, who benefited from stronger commodity prices and improved foreign currency positions,” it said.
“With non-performing loans at 2.48 per cent, the quality of the portfolio remained sound and well within prudent levels. The bank’s liquidity ratio improved significantly to close the period at 22 per cent as cash and cash equivalents held amounted to US$8.3 billion.”
On June 4 and July 1, Afreximbank received credit rating downgrades from Fitch to BBB- and from Moody’s to Baa2, respectively. Both cited concerns about the bank’s increased exposure to distressed Government debt.
The bank reported a credit rating affirmation of AAA from China Chengxin International Credit Rating Co., Ltd on August 29 and two days earlier said Japan Credit Rating Agency had also maintained its A- credit rating. (SC)
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