Afreximbank nine-month profit rises 24% to US$813.5m

The African Export-Import Bank (Afreximbank) has reported a 24% increase in net income to US$813.5 million for the nine months ended September 30, 2026, reflecting growth in lending activities, higher interest income and disciplined cost management.

The bank’s net income rose from US$654.3 million recorded during the corresponding period in 2025, as the Group maintained its support for trade, investment and economic development across Africa and the Caribbean Community (CARICOM).

According to its financial results, the Group also recorded growth in total assets and contingencies, lending, interest income and high-impact investments, despite challenging global economic conditions.

Afreximbank’s total assets and contingencies increased by 12% to US$54.1 billion, compared with US$48.5 billion at the end of 2025.

The expansion was supported by growth in the bank’s lending portfolio, with net loans and advances rising by 8% to US$36.2 billion from US$33.5 billion at the end of the previous year.

Gross income increased by 11% to US$2.7 billion during the first nine months of 2026, reflecting continued balance-sheet growth and stronger earnings generation.

Interest income rose by 9.1% to US$2.4 billion, up from US$2.2 billion in the same period of 2025.

The bank attributed the increase partly to higher average loan balances, which grew from US$28.9 billion in the first nine months of 2025 to US$34.8 billion during the corresponding period in 2026.

The growth reflects continued demand for trade and project financing across the bank’s member countries.

Net interest income also increased by 15% to US$1.5 billion, further contributing to the Group’s overall earnings performance.

Afreximbank recorded an increase in fees and commission income from unfunded business activities, including guarantees, letters of credit and advisory services.

Income from these activities rose to US$136.9 million from US$117.2 million in the corresponding period of 2025.

The Group also improved its operational efficiency, with its cost-to-income ratio declining to 20% from 21% in the first nine months of 2025.

The ratio remained below the bank’s strategic ceiling of 30%, indicating that operating costs accounted for a smaller proportion of income during the reporting period.

Return on average shareholders’ equity remained at 12%, while return on average assets improved to 2.48% from 2.34% a year earlier.

These indicators provide additional insight into the Group’s profitability and its ability to generate returns from shareholders’ funds and assets.

Afreximbank’s non-performing loans (NPL) ratio stood at 2.48% as of September 30, 2026, compared with 2.43% at the end of December 2025.

The increase of 0.05 percentage points suggests a slight rise in the proportion of loans classified as non-performing.

Although the ratio remained relatively close to its end-2025 level, it will remain an important indicator to monitor as the bank expands lending and finances trade and development projects across its member countries.

During the reporting period, Afreximbank strengthened its access to international debt capital markets through a US$1.5 billion dual-tranche bond issuance completed in July 2026.

The transaction comprised US$750 million in 5.5-year notes and another US$750 million in 10-year notes.

The issuance was approximately two times oversubscribed, indicating investor demand that was about twice the amount offered.

Following the transaction, debt securities in issue increased to US$4.4 billion from US$3.4 billion at the end of 2025.

The bank said the issuance further supported diversification of its funding base, providing additional resources to finance its operations and lending activities.

Afreximbank also highlighted its countercyclical role in responding to geopolitical tensions and economic disruptions affecting its member countries.

The bank established a US$10 billion Gulf Crisis Response Programme to provide liquidity support, facilitate trade and payment flows, and help member countries maintain access to essential imports.

The programme is intended to support the continued availability of strategic commodities, including energy products, fertilisers, food and other essential goods.

Such interventions are designed to help countries manage external shocks that could disrupt supply chains, increase import costs or constrain access to trade financing.

Afreximbank’s high-impact investments increased by 23% to US$1.6 billion, compared with US$1.3 billion at the end of 2025.

The investments support strategic development projects aimed at advancing industrialisation, improving trade competitiveness and strengthening economic resilience.

The bank continues to position trade finance and development investment as key instruments for supporting economic transformation across Africa and CARICOM.

The latest results show growth in earnings, lending and investment activity during the first nine months of 2026, alongside improvements in operational efficiency and returns on assets.

The slight increase in the non-performing loans ratio, however, remains a factor to monitor as the Group continues to expand its financing activities.

Overall, the financial performance highlights Afreximbank’s continued role in financing trade and development projects while mobilising funding from international capital markets.