Bank of Abyssinia, one of the country’s oldest private banks, has announced a net profit of 4.2 billion birr for the past fiscal year.
According to the report presented during the bank’s general assembly held on November 15, 2024, the bank recorded a pre-tax profit of 5.28 billion birr for the 2024 fiscal year.
Its shareholders have also decided to raise its paid-up capital to 17.5 billion birr.
As the profit represents a moderate growth compared to the previous year, the dividend per share for the bank’s shareholders amounted to 33 percent, equivalent to 330 birr per share.
Among the key metrics reflecting the Bank’s performance is its annual revenue, which surpassed 27.75 billion birr. The figure represents an increase of 22.09 percent or 5.02 billion birr compared to the previous year.
According to the report, the bank’s revenue for the last fiscal year ranked as the second-highest among private banks in the industry.
Aemro Belete, deputy board chairperson, told the assembly that a significant portion of the total revenue came from interest income.
The report disclosed that the bank demonstrated strong growth in mobilizing deposits. According to the report, Bank of Abyssinia’s total deposits reached 192.5 billion birr, an increase of over 33.97 billion birr compared to the previous year.
It was further stated that the bank’s growth rate reached 21.43 percent.
Aemro noted that 66.4 percent of these deposits came from savings accounts, underscoring their critical role in stabilizing the bank’s overall deposits, with reports of loans to various economic sectors reaching 167.74 billion birr.
Compared to the previous fiscal year, the total loans and advances showed an increase of 14.49 percent, equivalent to 21.23 billion birr. Additionally, the report highlighted that 64.57 percent of the bank’s total loans were allocated to sectors such as import-export trade, industry, and domestic commerce.
Regarding interest-free banking services, it was disclosed that the number of customers benefiting from these services surpassed 2.1 million, reflecting a 36.99 percent increase compared to the previous fiscal year. This represents 15.32 percent of the bank’s total customer base.
Aemro noted that Bank of Abyssinia has been providing interest-free banking services for the past seven years, with available services across all branches and in 69 other dedicated branches exclusively offering interest-free banking services.
According to the report, the bank generated a total of USD 424 million in foreign currency during the fiscal year. This represents a decline compared to the previous year. Additionally, Aemro said that the bank recorded a lower performance in foreign currency acquisition compared to the previous year.
The report indicated that foreign currency earnings decreased by USD 30 million compared to the prior year.
“Our bank will continue its full-fledged efforts to enhance foreign currency income by strengthening relationships with international trade partners, increasing the number of customers using international cards, and improving service quality,” he said.
The report stated that the bank’s total foreign currency holdings were recorded at 22.47 billion birr at the end of the fiscal year. This represents a 4.97 billion birr or 28.41 percent increase compared to the previous fiscal year.
Bank of Abyssinia surpassed 200 billion birr in total assets during the year.
According to the report, the bank’s total assets had reached 222.30 billion birr by the end of the fiscal year, which marks an increase of 32.79 billion birr or 17.30 percent.
