Bank of Abyssinia, one of Ethiopia’s pioneering private banks, has announced a net profit of 4.2 billion birr for the 2024 fiscal year. The report, unveiled during the bank’s general assembly on November 15, 2024, also highlighted a pre-tax profit of 5.28 billion birr.
The shareholders approved an increase in the bank’s paid-up capital to 17.5 billion birr, while the dividend per share was set at 33 percent, translating to 330 birr per share.
Revenue Growth and Performance Metrics
The bank recorded annual revenue exceeding 27.75 billion birr, a 22.09 percent increase, or 5.02 billion birr more than the previous year. This achievement places Bank of Abyssinia’s revenue as the second-highest among private banks in Ethiopia. Interest income emerged as a significant contributor to total revenue.
Deposit Mobilization and Loan Advances
Bank of Abyssinia’s deposits reached 192.5 billion birr, marking an impressive growth of 33.97 billion birr or 21.43 percent compared to the previous year. Notably, 66.4 percent of these deposits originated from savings accounts, emphasizing their critical role in the bank’s stability.
The bank’s total loans and advances climbed to 167.74 billion birr, reflecting a 14.49 percent increase. Over 64.57 percent of the loans were allocated to vital sectors such as import-export trade, industry, and domestic commerce.
Expanding Interest-Free Banking Services
Interest-free banking services continued to expand, with over 2.1 million customers, a growth of 36.99 percent compared to the previous fiscal year. These services now represent 15.32 percent of the total customer base, offered across all branches and 69 dedicated branches.
Challenges in Foreign Currency Earnings
The bank generated USD 424 million in foreign currency during the fiscal year, a USD 30 million decline compared to the prior year. The reduction is attributed to lower performance in foreign currency acquisitions.
To address this, Bank of Abyssinia aims to strengthen relationships with international trade partners, increase the number of customers using international cards, and enhance service quality. Despite the decline, total foreign currency holdings increased by 28.41 percent, reaching 22.47 billion birr.
Total Assets and Future Outlook
Bank of Abyssinia’s total assets surpassed 222.30 billion birr, reflecting a growth of 17.30 percent or 32.79 billion birr. This milestone underlines the bank’s strong financial standing and continued focus on sustainable growth.
With these achievements, Bank of Abyssinia remains committed to improving profitability, enhancing customer experiences, and expanding its services across Ethiopia.
