Solid earnings, disciplined risk management, and rising lending activity have pushed the African Export-Import Bank (Afreximbank) to a stronger financial position in the first quarter of 2026, even amid a challenging global economic backdrop.
The results, covering the three months ended March 31, 2026, were disclosed in a statement issued over the weekend by Vincent Musumba, Communications and Events Manager of the bank.
According to the update, the institution continued to demonstrate resilience, supported by steady deal execution and a stable operating model in an environment marked by geopolitical tensions and tight financial conditions.
Lending Expansion Pushes Credit Exposure Higher
The bank recorded further growth in its core development finance operations, with total credit exposure rising by 2 per cent to $42 billion, up from $41 billion as of December 31, 2025.
This expansion reflects Afreximbank’s continued role as a key Development Finance Institution (DFI) supporting trade and trade-enabling infrastructure across Africa and the Caribbean.
Average loans and advances also increased significantly, climbing to $32 billion in Q1 2026, an 8 per cent rise compared to the same period in 2025. The growth helped strengthen interest income during the quarter.
Strong Income Growth Despite Rate Pressures
The bank reported improved earnings performance even in a declining interest rate environment. Total interest income rose by 14 per cent year-on-year to $813.6 million.
“Net interest income increased by 24 per cent to 510.0 million dollars, compared with 411.2 million dollars recorded in the first quarter of 2025.”
This performance helped drive overall profitability for the period.
“Consequently, profit for the period rose to 268.9 million dollars, compared with 215.4 million dollars posted in the corresponding period of 2025.”
The result represents a 25 per cent increase in net income, underscoring stronger operational efficiency and revenue generation.
Liquidity, Capital, and Asset Quality Remain Strong
The institution maintained a solid liquidity position, with cash and cash equivalents standing at $5.6 billion, representing 14 per cent of total assets—unchanged from its FY2025 position and above its internal threshold.
Asset quality remained stable, with the non-performing loan (NPL) ratio recorded at 2.40 per cent as of March 31, 2026, slightly improved from 2.43 per cent at the end of 2025 and still below industry averages.
Shareholders’ funds also rose to $8.6 billion, up from $8.4 billion at the end of the 2025 financial year. The increase was driven by internally generated capital of $268.9 million alongside fresh equity inflows during the quarter.
Capital Strength and Operational Efficiency
The bank’s capital adequacy ratio remained at 23 per cent, consistent with its long-term capital management strategy and regulatory expectations.
Efficiency indicators also remained strong, with a cost-to-income ratio of 19 per cent—well below its 30 per cent strategic ceiling.
Management Highlights Resilience and Strategy
Commenting on the results, Afreximbank’s Senior Executive Vice-President, Denys Denya, emphasized the institution’s stability despite global headwinds.
“Against a backdrop of continued global uncertainty, heightened geopolitical risks and tight financial conditions, the Group delivered a resilient first-quarter performance.
“This was underpinned by disciplined balance sheet management, sound asset quality and strong capital and liquidity buffers.
“The growth in net interest income and profitability demonstrates the strength of our operating model and the continued relevance of our mandate.”
Overall, the Q1 2026 performance reflects a combination of expanded lending activity, strong risk controls, and sustained profitability, reinforcing the bank’s position as a leading trade finance institution across emerging markets.