Afreximbank (Afreximbank) has responded to the recently published report by Fitch Ratings on its financial and other performance indices, stressing that it operates under very high standards of financial transparency and that its financial report strictly adheres to International Financial Reporting Standards (IFRS), including IFRS 9.
In a news report from the African Press Organization (APO) Group, the bank states the standard governs the classification and staging of loan performance, including the treatment of non-performing loans, amongst other matters, and that its application of IFRS 9 is comprehensively detailed in its 2024 Financial Statements and further clarified in the external auditors’ report.
It clarified: “As cited in the ratings report, dated 4 June 2025, “Fitch’s definition of NPLs differs from the Bank’s approach, which makes use of forward-looking information”.
“It is important to note that Fitch acknowledges Afreximbank’s financial resilience, highlighting that “the bank operates with a high level of collateral and credit risk mitigants and has already taken relatively large provisions on some sovereign exposures, which would reduce any potential further negative financial impact for the bank”.
“Fitch also acknowledges the Bank’s strong capitalization including its “strong equity to assets and guarantees ratio” and “excellent internal capital generation”. Concentration risk is also reported as “low” and its liquidity assessment of “a” reflects the Bank’s “strong quality of treasury assets”. The Bank believes that these factors reinforce the overall soundness of the Bank’s risk management framework.
“Fitch’s ‘negative outlook’ decision, which it says reflects “the risk that the debt owed to Afreximbank by some of its sovereign borrowers may be restructured”, is hinged on the erroneous view, in some quarters, that the treaty establishing Afreximbank, executed by its 53 participating African states, can be violated by the Bank without consequences. For clarity, the Bank establishment agreement is a treaty entered into by, and among, all participating states and between the participating states and the Bank”, it added.
Based on the above clarifications, Afreximbank reaffirmed that it was not participating in debt restructuring negotiations related to any of its member countries, pointing out that doing so will be inconsistent with the Bank establishment treaty which governs its loans and other activities.
The Bank restated its commitment to supporting its member countries in navigating their economic challenges while promoting trade-led growth, economic development and general macroeconomic stability.
