Afreximbank posts profit gain, liquidity boost as leadership change looms
The Cairo-based trade finance institution announced on Sept.2 that its net income for the six months to June 30 rose to $412.7 million
Kampala, Uganda | THE INDEPENDENT | African Export-Import Bank Group (Afreximbank) has reported a rise in first-half net income, supported by stronger income and higher liquidity buffers, even as operating expenses increased amid global economic headwinds.
The Cairo-based trade finance institution announced on Sept.2 that its net income for the six months to June 30 rose to $412.7 million, compared with $407.7 million in the same period last year. Gross income grew 2.04% year-on-year to $1.6 billion, while net interest income increased 1.17% to $835.9 million, helped by the bank’s efforts to manage funding costs despite declining global benchmark rates.
Fee and commission income from unfunded activities, including guarantees, letters of credit and advisory services, added $61.9 million to the top line.
Afreximbank said the results reflected “satisfactory performance” in a difficult environment characterised by geopolitical tensions, persistent inflation, currency volatility and tighter global financing conditions.
Costs climb but remain under control
Operating expenses increased by 21% in the period, driven by the rollout of strategic initiatives, recruitment of staff to support growing activities and inflationary pressures. Despite the jump in costs, the Group maintained a cost-to-income ratio of 19%, broadly in line with historical levels and well below its 30% ceiling.
Return on average equity slipped to 11% from 13% in the year-ago period, while return on average assets edged down to 2.22% from 2.52%.
Afreximbank’s total assets and contingent items reached $42.5 billion at the end of June, up 6% from December 2024. Loans and advances stood at $27.7 billion, down from $29 billion six months earlier, as some sovereign borrowers made early repayments amid stronger commodity prices and improved foreign currency positions.
The bank’s liquidity ratio improved sharply to 22% from 13% at the end of 2024, with cash and cash equivalents more than doubling to $8.3 billion. Non-performing loans stood at 2.48%, little changed from 2.33% at year-end, which the bank said reflected sound portfolio quality.
Shareholders’ funds rose to $7.3 billion from $7.2 billion, driven by retained earnings and fresh equity inflows under its ongoing General Capital Increase II programme. Afreximbank declared a dividend of $350 million in respect of 2024, approved at its annual general meeting in June.
Leadership transition
This development comes barely three months since the shareholders unanimously appointed Dr. George Elombi as its next president and chairman of the board. Elombi, currently executive vice president for governance, legal and corporate services, will succeed long-serving president Benedict Oramah when his second term ends in October 2025.
Elombi has been with Afreximbank for nearly three decades, and his appointment comes at a time when the bank is expanding its role in supporting trade, industrialisation and economic integration across Africa and the Caribbean Community.
Resilience in a challenging environment
Denys Denya, senior executive vice president at Afreximbank, said the bank’s fundamentals remained strong.
“The Group continued to support member states with innovative financial solutions, leveraging a robust capital base, access to capital markets and management’s excellent knowledge of the African and Caribbean markets,” he said.
He added that the institution remained committed to delivering long-term value for stakeholders while safeguarding Africa’s financial sovereignty.
Founded in 1993, Afreximbank provides trade finance and supports development projects across its African and Caribbean member states.
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