Afreximbank posts strong Q1 2026 growth amid global headwinds

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The group delivered strong deal execution during the period, reinforcing its role as a leading development finance institution. Despite external pressures, Afreximbank maintained stable financial performance while continuing to support trade financing and economic growth across Africa and the Caribbean.

The group continued to expand its lending activities in Q1 2026, resulting in total credit exposure growing by 2% to reach a portfolio of $42bn, up from $41bn as of 31 December 2025. This performance reflects Afreximbank’s leading role as a Development Finance Institution (DFI) in financing trade and trade-enabling infrastructure, and its strategic contribution to economic resilience across Africa and the Caribbean.

Average loans and advances for Q1 2026 stood at $32bn, up 8% compared to the same period in the prior year, driving the recorded growth in interest income. The group’s liquidity position remained strong, with cash and cash equivalents of $5.6bn, representing 14% of total assets, consistent with FY2025 and above the Bank’s strategic minimum.

Asset quality also remained strong, with the non-performing loan (NPL) ratio at 2.40%, broadly in line with 2.43% at FY2025 and below industry average.

Shareholders’ funds increased to $8.6bn at 31 March 2026, up from $8.4bn at FY2025, supported by internally generated capital of $268.9m and new equity investments received during the quarter, underscoring the Bank’s continued ability to mobilise capital from its shareholders in support of its growth and development mandate.

Strong profit growth

The group delivered strong profitability during the quarter. Notwithstanding declining benchmark rates, total interest income rose by 14% year-on-year to reach $813.6m, while net interest income increased by 24% to $510.0m, compared with $411.2m in the first quarter of 2025. The group’s cost-to-income ratio remained contained at 19%, well within the group’s strategic ceiling of 30%. As a result, profit for the period increased to $268.9m, up from $215.4m in Q1 2025.

The group continued to maintain a strong capital position, with a capital adequacy ratio of 23% as at 31 March 2026, in line with the bank’s long-term capital-management targets.

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During the quarter, Afreximbank continued to demonstrate its counter-cyclical role in response to external shocks. In March 2026, the Bank launched a $10bn Gulf Crisis Response Programme to help member countries mitigate adverse spillover effects from the Gulf crisis. The facility is designed to support liquidity, stabilise trade and payments, and address supply-side disruptions, particularly in energy, tourism and aviation, fertilisers, food and other critical imports.

The Bank also continued to deploy targeted financing and advisory support to strengthen trade flows, industrial capacity and economic resilience across Africa and Caricom. Regional integration received further momentum following South Africa’s ratification of the Bank’s Establishment Agreement in February 2026, bringing one of Africa’s largest and most diversified economies into the Bank’s membership and giving the Bank full continental coverage.

Stable balance sheet

Key highlights of the Afreximbank group’s results are as follows: Afreximbank Group reported improved profitability and broadly stable financial fundamentals in Q1 2026, with gross income rising to $874.1m (Q1 2025: $784.9m) and net income increasing to $268.9m (Q1 2025: $215.4m). Return on average equity improved to 13% from 12%, while return on average assets rose to 2.62% from 2.38%, despite a higher cost-to-income ratio of 19% (Q1 2025: 16%).

Total assets stood at $41.7bn versus $42.3bn in FY2025, while shareholders’ funds strengthened to $8.6bn. Asset quality remained solid with an NPL ratio of 2.40%, liquidity held steady with cash at 14% of total assets, and the capital adequacy ratio remained stable at 23%.

Denys Denya, Afreximbank's senior executive vice president, commented: “Against a backdrop of continued global uncertainty, heightened geopolitical risks and tight financial conditions, the group delivered a resilient first-quarter performance, 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. Our swift launch of the $10bn Gulf Crisis Response Programme further underscores 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.”