African Export-Import Bank (Afreximbank) reported a 2025 profit of $1.15 billion (USD), equivalent to about N1.5 trillion, up from $973.5 million (USD) in 2024, reflecting stronger earnings performance.
This growth was supported by interest income of $3.16 billion, slightly higher than $3.05 billion in the prior year, reflecting steady lending expansion as loans and advances reached $34 billion.
Non-interest income also improved, with net fees and commissions rising to $188.2 million from $172.8 million, while contributions from other operating income of $75.4 million, exchange adjustments of $24.1 million, and fair value gains of $52.4 million helped offset higher expenses.
What the bank is saying
According to the bank, total assets rose to $42.2 billion, representing a 19.9% year-on-year increase, driven largely by expansion in loans and advances across its core operations.
Loans and advances increased to $34 billion from $29 billion in the prior year, reflecting continued lending growth and overall balance sheet expansion.
- Of this, Stage 1 loans, representing the bulk of performing assets, rose to $33.3 billion from $27.9 billion, indicating that most exposures remained in good standing.
- Stage 2 loans, which reflect higher-risk exposures, declined to about $747.1 million from $1.1 billion, suggesting some improvement in early-stage credit quality.
- Stage 3 loans increased to $57.2 million from $138,000, indicating a rise in impaired or defaulted exposures.
Management noted that the overall quality of the loan portfolio reflects disciplined risk management despite a challenging operating environment and structured trade finance lending practices.
- Total liabilities rose to about $33.8 billion from $28 billion, with borrowings at $16.3 billion supporting the expansion in loans and advances.
- Shareholders’ funds increased to about $8.3 billion from $7.1 billion, supported by capital raising and retained earnings growth.
On its outlook for 2026, the bank stated
“Despite geopolitical tensions, inflation, tighter financial conditions, and debt concerns, Africa and the Caribbean continue to offer growth opportunities through diversification, infrastructure expansion, and deepening trade. The Group is well-positioned to benefit from these opportunities through its strong financial capacity and partnerships.”
Get up to speed
Afreximbank raised over N1.07 trillion (about $800 million at N1,343/$1) from international markets in 2025, despite earlier concerns raised by global rating agencies over its credit profile and exposure risks.
- According to the bank, the funds were raised through Samurai and Panda bonds issued in Japan and China, strengthening its access to global capital markets.
The bank said the successful issuance demonstrates its resilience and strong fundraising capacity as a pan-African multilateral financial institution supporting regional growth.
The development comes amid a prolonged dispute with Fitch Ratings, which downgraded the bank in 2025 before Afreximbank terminated its rating relationship in January 2026.
Backstory
The road to downgrade began in June 2025 when Fitch lowered Afreximbank’s rating from BBB to BBB- and placed it on a negative outlook due to rising concerns over its sovereign loan book.
- Fitch highlighted risks associated with lending to countries like Ghana, Zambia, and South Sudan.
- Afreximbank insisted its operations are governed by a treaty with 53 African countries, giving its loans quasi-sovereign protection.
The situation worsened after Ghana restructured its loan, a move that Fitch saw as undermining the bank’s policy role.
These mounting tensions laid out the groundwork for Fitch’s final decision to downgrade the bank and exit as its rating agency.
What you should know
The bank’s dispute with Fitch left Moody’s as the only major rating agency still actively assessing the institution.
Fitch’s negative outlook, driven by concerns over the sovereign loan book, contrasts with the bank’s strong profitability and its loan structure, where low-risk Stage 1 exposures make up the bulk of the portfolio.
Dividend payout for the year stood at about N466 billion, alongside a special dividend of about N67 billion, reflecting steady shareholder returns despite prior-year distributions of about N403 billion.
