Africa Finance Corporation (AFC) reported a 24.5% increase in first-half profit to $325.2 million, supported by higher net interest income and gains on financial assets, as the infrastructure financier expanded its balance sheet toward the $20 billion mark.
The results are reviewed but unaudited, according to a Half Year, 2026 presentation seen by MoneyCentral.
Total revenue rose 20.3% to $755 million in the six months through June, while operating income increased 11.5% to $371.6 million. Assets reached $19.7 billion, up 2.7% from the end of 2025, and shareholders’ equity climbed 6.8% to $5.4 billion.
The earnings improvement strengthens AFC’s ability to retain capital and finance projects across Africa. But the results also show a shift in the composition of growth: investment securities expanded while development assets contracted following scheduled repayments.
Rising borrowing costs and a narrower net interest margin temper the headline profit increase.
Earnings Grow, Funding Costs Rise
Interest income increased 17.6% to $603.3 million, but interest expense rose faster, up 25.2% to approximately $286 million. Net interest income nevertheless grew 11.5% to about $317 million. Non-interest income increased 8.4% to $71.5 million, with fair-value and asset-sale gains also contributing to total revenue growth.
Net gains on financial instruments measured at fair value through profit or loss rose to approximately $55 million from $49 million, while impairment charges declined to about $43 million from $46 million.
Those movements helped profit grow faster than operating income. Operating expenses, however, increased 21.8% to about $73 million, pushing the cost-to-income ratio slightly higher.
AFC’s net interest margin was 3.8%, compared with 4.3% for full-year 2025.
Bigger Balance Sheet, Smaller Development Portfolio
AFC’s assets rose to $19.7 billion from $19.2 billion at December 2025, led by investment securities, which increased to about $10 billion from $8.6 billion.
Development assets—comprising customer lending, debt securities at fair value through profit or loss and equity investments—fell to $6.8 billion from $7.3 billion.
AFC attributed the decline to scheduled repayments on a performing portfolio and said an advanced-stage pipeline keeps it on track for its full-year target.
Transport accounted for 24% of development assets, power 20%, mining 13% and heavy industry 10%. Nigeria represented 19% of the portfolio, followed by Egypt at 11%, with Senegal and Côte d’Ivoire each at 8%. AFC reported an investment footprint across 36 African countries and more than $20.8 billion in cumulative disbursements.
AFC reported approximately $3 billion in new funding during the period, including a $2 billion syndicated loan, a $500 million five-year Eurobond and a CHF350 million digital bond.
The syndicated facility was increased from an initial $1.6 billion launch, while the Eurobond carried a 5.375% coupon and attracted an order book roughly twice the deal size.
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