Afreximbank’s profit jumps 30% to $535m as lending hits $35.4bn

The African Export-Import Bank (Afreximbank) recorded a 30 per cent increase in net income to $534.7 million in the first half of 2026, driven by higher lending, interest income and improved asset quality.

The pan-African lender’s net income rose from $412.7 million recorded in the corresponding period of 2025, while net interest income increased by 22 per cent to $1 billion from $840 million.

According to its financial results for the six months ended June 30, 2026, released on Monday, net loans and advances grew by 5.7 per cent to $35.4 billion from $33.5 billion at the end of 2025.

The bank said the increase reflected continued expansion of financing for trade and economic development across Africa and the Caribbean.

Its total assets and contingencies also rose by 7.8 per cent to $52.3 billion, compared with $48.5 billion at the end of 2025.

Despite the expansion in lending, Afreximbank’s asset quality improved during the period, with its non-performing loan ratio falling to 2.20 per cent at the end of June from 2.43 per cent at the end of 2025.

The bank attributed the improvement to continued risk management.

Fee and commission income rose by 15 per cent to $71.1 million from $61.9 million in the first half of 2025, supported by higher fees from guarantees, letters of credit and advisory services.

Profitability also strengthened, with return on average shareholders’ equity rising to 13 per cent from 11 per cent, while return on average assets increased to 2.54 per cent from 2.22 per cent.

Shareholders’ funds increased to $8.5 billion from $8.4 billion at the end of 2025, helped by internally generated profits and $13.9 million in new equity raised during the period.

The bank’s cost-to-income ratio remained low at 20 per cent, although this was slightly higher than the 19 per cent recorded in the same period of 2025, amid higher personnel costs and inflationary pressures.

The strong half-year performance followed Afreximbank’s return to the US dollar public bond market in July, when it raised $1.5 billion in its largest-ever bond issuance.

The dual-tranche transaction comprised $750 million with a 5.5-year tenor and another $750 million with a 10-year tenor.

Investor demand pushed the order book to $3.8 billion, making the transaction about two times oversubscribed.

The strong demand enabled the bank to tighten pricing by 37.5 basis points on each tranche, with final yields of 6.25 per cent for the shorter-dated bond and 7.125 per cent for the 10-year bond.

It was Afreximbank’s first US dollar public bond issuance since 2021 and provides additional funding capacity as the bank expands its lending.

Afreximbank Senior Executive Vice President, Denys Denya, said the results showed the resilience of the group as member countries faced a challenging global environment.

“Our healthy balance sheet gives us the capacity to respond when markets are disrupted, while continuing to finance the trade, industrialisation and investment that underpin longer-term economic resilience,” Denya said.

Nigeria remains a major beneficiary of Afreximbank financing, with the Central Bank of Nigeria previously describing the country as a founding member and the bank’s largest single beneficiary. The CBN said in a 2025 update that Nigeria had received about $52 billion in trade and project financing from Afreximbank.

The bank has also partnered with the Nigerian Export-Import Bank and the Nigerian Export Promotion Council under the Nigeria-Africa Trade and Investment Promotion Programme to provide financing and guarantees for Nigerian businesses trading and investing across Africa.

With earnings rising, lending expanding, asset quality improving and access to international funding strengthening, Afreximbank enters the second half of 2026 with increased capacity to finance trade, industrialisation and cross-border investment across Africa and the Caribbean.

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