Business
THE African Export-Import Bank, Afreximbank has announced a 25 per cent growth in net income for the first quarter of 2026, driven by strong lending activities, disciplined balance sheet management and improved profitability.
A statement issued by Vincent Musumba, Communications and Events Manager, Afreximbank, on Friday stated that the financial result was for the three months, which ended March 31, 2026.
According to the statement, the performance underscores its resilience and strong deal execution in a challenging global operating environment.
It stated that the Group expanded its lending activities in Q1 2026, resulting in total credit exposure increasing by two per cent to reach a portfolio of 42 billion dollars, compared to 41 billion dollars recorded as of Dec. 31, 2025.
The bank attributed the growth to its continued role as a leading Development Finance Institution (DFI) supporting trade and trade-enabling infrastructure across Africa and the Caribbean.
It said highlights of the results showed that in Q1 2026, average loans and advances rose to 32 billion dollars, representing an 8.00 per cent increase compared to the same period in 2025, which increased the recorded growth in interest income.
It said the bank’s liquidity position remained strong, with cash and cash equivalents valued at 5.6 billion dollars, representing 14 per cent of total assets, consistent with its 2025 financial year(FY2025) position and above its strategic minimum threshold.
The statement added that asset quality remained strong, with the non-performing loan (NPL) ratio at 2.40 per cent as at March 31, 2026, broadly in line with 2.43 per cent recorded at the end of the 2025 financial year and below the industry average.
It said shareholders’ funds increased to 8.6 billion dollars at the end of Q1 2026, up from 8.4 billion dollars at the end of the 2025 financial year.
The increase, it noted, was driven by internally generated capital of 268.9 million dollars and new equity investments received during the quarter.
It said the Group delivered strong profitability during the quarter, notwithstanding declining benchmark rates, total interest income rose by 14 per cent year-on-year to 813.6 million dollars.
“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.”
The statement said the bank also maintained a strong capital position, with a capital adequacy ratio of 23 per cent as at March 31, 2026, in line with its long-term capital management targets.
On operational efficiency, it stated that the Group’s cost-to-income ratio remained at 19 per cent, well within its strategic ceiling of 30 per cent.
“Consequently, profit for the period rose to 268.9 million dollars, compared with 215.4 million dollars posted in the corresponding period of 2025.”
It said as part of its interventions during the quarter, Afreximbank unveiled a 10 billion dollar Gulf Crisis Response Programme in March 2026 to help member countries mitigate adverse spillover effects arising from the Gulf crisis.
According to the statement, the facility is designed to support liquidity, stabilise trade and payment systems, and address supply-side disruptions affecting sectors such as energy, tourism, aviation, fertilisers and food and other imports.
It said the bank also continued to provide targeted financing and advisory support aimed at strengthening trade flows, industrial capacity and economic resilience across Africa and the Caribbean Community (CARICOM).
The statement said regional integration efforts received a boost following South Africa’s ratification of the Afreximbank Establishment Agreement in February 2026, giving the bank full continental coverage.
Commenting on the performance, the statement quoted Denys Denya, Afreximbank’s Senior Executive Vice-President, as saying:
“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.
Denya said the swift unveiling of the 10 billion dollar Gulf Crisis Response Programme further underscored Afreximbank’s counter-cyclical role in supporting member countries during periods of disruption.
“We remain focused on stabilising trade flows, easing liquidity pressures and advancing the industrial and economic transformation of Africa and the Caribbean,” he said.(NAN)
A.I
May 23, 2026
Tags: Afreximbank African Export-Import Bank Vincent Musumba