African Export-Import Bank (Afreximbank) reported a record net profit of US$1.157 billion in 2025, surpassing the US$1 billion milestone for the first time in its 31-year history, driven by balance-sheet growth and a maturing trade finance franchise.
The Cairo-based multilateral development finance institution said net income rose 19 percent from US$973.5 million in 2024. The bank’s loan portfolio grew 16 percent to US$33.5 billion, while net interest income the difference between earnings on loans and funding costs increased 5.6 percent to US$1.91 billion. Overall revenues climbed 6 percent to US$3.5 billion, and total assets expanded 20 percent to US$42.3 billion.
Afreximbank, which operates across Africa and Caribbean countries (CARICOM), highlighted that the results reflect a broadening of income sources and a strengthened role in financing trade amid challenging global conditions. “Global conditions remained challenging, with geopolitical tensions, elevated inflation, currency volatility, and tighter financing conditions, all affecting emerging and developing economies,” the bank said in its audited financial statements published March 31.
Strategic investment, higher costs
The bank is undergoing a strategic transformation with its sixth strategic plan concluding in 2026. Investments in key subsidiaries, including FEDA Holdings, a $1.3 billion investment platform, and the African Medical Centre of Excellence in Abuja, valued at US$249 million, are long-term initiatives that did not generate significant revenue in 2025 but reflect the bank’s industrial development strategy.
The transformation has driven up operating expenses 25 percent to US$459 million. Personnel costs rose 17 percent to US$159 million, administrative expenses grew 25 percent to US$261 million, and depreciation surged 80 percent to US$38 million. The cost-to-income ratio increased to 21 percent from 18 percent in 2024, still below the bank’s 30 percent internal ceiling, but marking a trend that will require monitoring.
Earnings quality and asset performance
Some of the record profit included US$75 million recovered from previously written-off loans and US$52 million from investment revaluations tied to FEDA Holdings. Core business performance remained solid, with income from advisory services, letters of credit, and guarantees up 40 percent to US$276 million, demonstrating diversification beyond traditional lending.
Asset quality remained strong despite a difficult environment. Non-performing loans increased slightly to 2.43 percent from 2.33 percent, well below the 5 percent threshold that typically raises concern. Total provisions to cover potential losses reached US$1.9 billion, while Stage 3 high-risk loans rose 22 percent to US$880 million, reflecting economic pressures in member countries.
Capital position and shareholder returns
Shareholders’ equity rose 17 percent to US$8.4 billion, aided by US$300 million in new capital and retained earnings. The board proposed a dividend of US$347 million plus a US$50 million special payout, reflecting a 30 percent payout ratio. The capital adequacy ratio stood at 23 percent, comfortably above regulatory requirements, supporting continued expansion. Short-term market borrowings surged 62 percent to US$4.55 billion, a funding shift management will likely manage carefully.
As the sixth strategic plan enters its final year, Afreximbank’s 2026 priorities are clear: maintain cost discipline, begin generating returns from recent investments, and develop a new strategy to translate the record profit into sustainable long-term performance.
