KEY POINTS

• Afreximbank reported a 24 per cent increase in net income to $813.5 million for the nine months ended September 30, 2026.
• Total assets and contingencies rose 12 per cent to $54.1 billion, while net loans and advances increased to $36.2 billion.
• The bank’s non-performing loan ratio edged up to 2.48 per cent, while its capital adequacy ratio declined to 22 per cent.
• Afreximbank raised $1.5 billion through a bond sale in July and established a $10 billion Gulf Crisis Response Programme.

MAIN STORY

The African Export-Import Bank (Afreximbank) has reported a 24 per cent increase in net income to $813.5 million for the nine months ended September 30, 2026, supported by increased lending, higher interest income and tighter cost management.

The bank disclosed this in a statement issued on Monday by Vincent Musumba, its Communication and Events Manager. Net income rose from $654.3 million recorded in the corresponding period of 2025.

Gross income increased by 11 per cent to $2.7 billion, while interest income rose by 9.1 per cent to $2.4 billion from $2.2 billion a year earlier. Musumba attributed the increase in interest income partly to growth in average loan balances, which rose from $28.9 billion to $34.8 billion.

Net interest income, representing the difference between interest earned on lending and interest paid on funding, increased by 15 per cent to $1.5 billion.

Fees and commissions from services that do not involve direct lending, including guarantees, letters of credit and advisory services, also increased to $136.9 million from $117.2 million.

The bank’s total assets and contingencies rose 12 per cent to $54.1 billion, compared with $48.5 billion at the end of 2025. Net loans and advances increased by eight per cent to $36.2 billion from $33.5 billion.

Afreximbank also reported improved cost efficiency. Its cost-to-income ratio fell to 20 per cent from 21 per cent a year earlier, remaining below its strategic ceiling of 30 per cent. The ratio measures how much of a bank’s income is consumed by operating expenses, so a lower figure generally indicates that the bank is keeping costs under control relative to income.

Return on average shareholders’ equity stood at 12 per cent, while return on average assets improved to 2.48 per cent from 2.34 per cent in the corresponding period of 2025.

However, the bank recorded some changes in its risk and financial buffers. Its non-performing loans ratio, which measures the share of loans that are not being repaid as agreed, edged up to 2.48 per cent from 2.43 per cent at the end of December 2025.

Provisions for expected credit losses increased to $537.6 million from $481.3 million a year earlier. These provisions are funds set aside to cover loans that may not be repaid.

Liquid assets stood at $6.1 billion, equivalent to 13 per cent of total assets, down from 15 per cent at the end of 2025. The capital adequacy ratio also moderated to 22 per cent from 23 per cent.

Shareholders’ funds increased to $9 billion from $8.4 billion at the end of 2025. The increase was supported by profits retained by the bank and $195.2 million in new equity contributions under its General Capital Increase programme.

The bank also raised $1.5 billion through a two-part bond issuance completed in July 2026. The sale comprised $750 million in notes repayable after five and a half years and another $750 million in notes repayable after 10 years. The transaction attracted orders worth about twice the amount offered, according to Musumba.

Following the issuance, Afreximbank’s outstanding debt securities increased to $4.4 billion from $3.4 billion at the end of 2025, giving it a broader range of funding sources.

The bank also established a $10 billion Gulf Crisis Response Programme to provide liquidity support and help maintain trade and payment flows. The programme is intended to help member countries continue accessing essential imports, including energy products, fertilisers, food and other strategic commodities.

Meanwhile, the group’s high-impact investments rose by 23 per cent to $1.6 billion from $1.3 billion at the end of 2025. The bank said these investments support projects intended to expand industrial production, improve trade competitiveness and strengthen economic resilience.

Afreximbank’s Senior Executive Vice-President, Denys Denya, said the results demonstrated the bank’s ability to remain profitable while carrying out its development work across Africa and the Caribbean.

He attributed the performance to growth in lending, stronger earnings and the bank’s capital position, adding that it would continue providing financing, trade services and strategic investments to support regional supply chains and industrial development.

THE ISSUES

Afreximbank’s higher profit and expanding loan portfolio point to increased lending activity and stronger income generation. For African businesses and governments seeking financing for trade, infrastructure and industrial projects, the bank’s ability to raise funds and lend can influence access to capital.

Its lower cost-to-income ratio also suggests that income grew faster than operating expenses. However, profitability alone does not show whether the bank’s lending is reaching businesses that need financing or how effectively funded projects are delivering economic benefits.

The slight increase in the non-performing loans ratio and the rise in provisions for expected credit losses are important to monitor. They suggest that the bank is setting aside more money against potential loan losses, although the reported figures alone do not establish the extent of any future repayment problems.

The decline in liquid assets as a share of total assets and the moderation in the capital adequacy ratio also warrant attention. Liquid assets help a bank meet payment obligations, while capital provides a financial cushion against losses. Both measures can change as a bank expands its lending and other activities.

The $1.5 billion bond issuance and the increase in shareholders’ funds provide additional funding capacity. At the same time, the bank’s $10 billion Gulf Crisis Response Programme signals an effort to help member countries manage disruptions affecting access to essential goods and trade payments.

WHAT’S BEING SAID

• “This reflects growth in average loan balances from 28.9 billion dollars to 34.8 billion dollars,” – Vincent Musumba, Communication and Events Manager, Afreximbank.
• “The transaction was approximately two times oversubscribed.” – Vincent Musumba, referring to the bank’s July 2026 bond issuance.
• “As global economic and geopolitical uncertainties persist, Afreximbank remains committed to providing the financing, trade facilitation and strategic investments needed to strengthen regional value chains, support industrialisation and accelerate the continent’s economic transformation,” – Denys Denya, Afreximbank’s Senior Executive Vice-President.

WHAT’S NEXT

Afreximbank is expected to continue financing trade, industrial development and strategic projects across Africa and the Caribbean while implementing its crisis response programme. Its ability to sustain lending will depend partly on access to funding, loan repayments and its capacity to manage financial risks.

Investors and other stakeholders will also watch whether the bank can maintain earnings growth while managing credit losses, liquidity and capital levels as its balance sheet expands.

BOTTOM LINE

Afreximbank’s net income rose to $813.5 million in the first nine months of 2026 as lending and interest income increased. The results show stronger earnings and a growing financing role, but the slight rise in problem loans and lower liquidity and capital ratios remain important measures to watch.

Source: NAN