The African Export-Import Bank (Afreximbank) has reported robust financial results for the first quarter of 2026, underscoring its resilience and strategic importance in financing trade and development across Africa and the Caribbean.
Despite a challenging global environment marked by geopolitical tensions and tight financial conditions, the Bank delivered a 25 per cent increase in net income, improved profitability, and reinforced its counter‑cyclical role in supporting member countries.
For the three months ended 31 March 2026, Afreximbank and its subsidiaries recorded net income of US$268.9 million, up from US$215.4 million in the same period of 2025. Gross income rose to US$874.1 million compared to US$784.9 million a year earlier, while net interest income surged by 24 percent to US$510.0 million. The Bank’s cost‑to‑income ratio remained contained at 19 percent, well below its strategic ceiling of 30 percent, reflecting disciplined balance sheet management and operational efficiency.
Lending Growth and Asset Quality
The Bank continued to expand its lending activities during the quarter, with total credit exposure rising by 2 percent to US$42 billion, up from US$41 billion at the end of 2025. Average loans and advances stood at US$32 billion, representing an 8 percent increase year‑on‑year. This expansion drove higher interest income and reinforced Afreximbank’s role as a leading Development Finance Institution (DFI) financing trade and trade‑enabling infrastructure.
Asset quality remained strong, with the non‑performing loan (NPL) ratio at 2.40 percent, broadly in line with 2.43 percent at year‑end 2025 and below industry averages. Liquidity buffers were also healthy, with cash and cash equivalents of US$5.6 billion, representing 14 percent of total assets. Shareholders’ funds increased to US$8.6 billion, supported by internally generated capital and new equity investments, underscoring the Bank’s ability to mobilise resources in support of its growth mandate.
Profitability and Capital Strength
The Bank’s profitability was driven by rising interest income despite declining benchmark rates. Total interest income grew by 14 percent year‑on‑year to US$813.6 million. Return on average equity improved to 13 percent from 12 percent in Q1 2025, while return on average assets rose to 2.62 percent compared to 2.38 percent a year earlier. Afreximbank maintained a strong capital adequacy ratio of 23 percent, consistent with its long‑term capital management targets and well above regulatory requirements.
Senior Executive Vice President Denys Denya noted that the performance was achieved “against a backdrop of continued global uncertainty, heightened geopolitical risks and tight financial conditions.” He emphasised that disciplined balance sheet management, sound asset quality, and strong capital and liquidity buffers underpinned the results. He added that the growth in net interest income and profitability demonstrated the strength of the Bank’s operating model and the continued relevance of its mandate.
Gulf Crisis Response Programme
In addition to its financial performance, Afreximbank reinforced its counter‑cyclical role by launching a US$10 billion Gulf Crisis Response Programme in March 2026. The facility is designed to help member countries mitigate adverse spillover effects from the Gulf crisis, supporting liquidity, stabilising trade and payments, and addressing supply‑side disruptions in critical sectors such as energy, tourism, aviation, fertilisers, and food imports. The initiative highlights the Bank’s ability to respond swiftly to external shocks and provide stabilising support during periods of disruption.
Denya explained that the programme underscores Afreximbank’s commitment to “stabilising trade flows, easing liquidity pressures and advancing the industrial and economic transformation of Africa and the Caribbean.” The Bank’s proactive interventions are expected to cushion member economies against volatility and strengthen resilience in the face of global challenges.
Regional Integration and Membership Expansion
The quarter also marked a significant milestone in regional integration, with South Africa ratifying Afreximbank’s Establishment Agreement in February 2026. This brought one of Africa’s largest and most diversified economies into the Bank’s membership, giving Afreximbank full continental coverage. The expansion of membership enhances the Bank’s ability to mobilise resources and extend its mandate across Africa and the Caribbean Community (CARICOM).
The Bank continued to deploy targeted financing and advisory support to strengthen trade flows, industrial capacity, and economic resilience. Its initiatives align with broader continental goals, including the African Continental Free Trade Agreement (AfCFTA), which Afreximbank actively supports through the Pan‑African Payment and Settlement System (PAPSS) and a US$10 billion Adjustment Fund.
Strategic Role in Africa’s Transformation
For over three decades, Afreximbank has positioned itself as a key driver of Africa’s trade transformation, industrialisation, and economic expansion. Its innovative financing structures and strategic interventions have supported intra‑African trade, regional integration, and resilience against external shocks. The Bank’s investment‑grade ratings from agencies including Moody’s, GCR, JCR, and CCXI reflect its strong financial standing and credibility in global markets.
At the end of December 2025, Afreximbank’s total assets and contingencies stood at over US$48.5 billion, with shareholder funds amounting to US$8.4 billion. The Bank has evolved into a group
entity comprising the core Bank, its equity impact fund subsidiary Fund for Export Development Africa (FEDA), and its insurance management subsidiary AfrexInsure.
Outlook
Looking ahead, Afreximbank remains focused on advancing industrialisation, supporting trade flows, and strengthening economic resilience across Africa and the Caribbean. Its strong capital position, disciplined management, and ability to mobilise shareholder support provide a solid foundation for continued growth. The launch of the Gulf Crisis Response Programme and the expansion of membership signal the Bank’s readiness to address emerging challenges while driving long‑term transformation.
The Q1 2026 results reaffirm Afreximbank’s role as a stabilising force in African and Caribbean economies, combining financial strength with strategic interventions to promote sustainable development. As global uncertainties persist, the Bank’s resilience and proactive measures will remain critical in shaping the trajectory of trade and economic growth across the regions it serves.
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