Ahadu Bank S.C. reported a remarkable gross profit before tax of Birr 502.1 million for the 2024/25 fiscal year, demonstrating resilience through a period of significant national economic reforms, tightened monetary policies, and geopolitical instability.
The announcement came during the bank’s fourth annual General Shareholders’ Meeting, where officials highlighted strong growth across key financial metrics despite restrictive conditions. These included a 14% credit growth cap imposed by the National Bank of Ethiopia (NBE), a decrease in silver’s purchasing power due to a market-driven exchange rate shift, and mandatory use of the Fayda digital ID system for account opening.
The bank’s total assets surged 56.5% compared to the previous year, reaching 10.1 billion birr. This growth was supported by accumulated deposits totaling 7.88 billion birr, with new deposits amounting to 3.22 billion birr—an impressive annual increase of nearly 70%. The customer base expanded to over one million, reflecting rising public trust and service outreach.
Ahadu Bank’s loan and prepayment portfolio also grew healthily, hitting 4.43 billion birr. The bank showed a strong contribution to Ethiopia’s foreign exchange reserves, reporting $88.2 million in foreign exchange earnings—a 10.3% increase from the previous year—underlining its key role in supporting international trade and remittances. Total revenue for the fiscal year was Birr 2.16 billion.
Recent regulatory reforms by the NBE include the introduction of policy rates and open market operations aimed at controlling inflation, forecasted to fall to 13.9% by June 2025. The country’s GDP is projected to grow 6.6%, driven by robust private and public investment, while the global economy is expected to grow 3.0% in 2025.
A landmark regulatory update, Banking Commerce Proclamation No. 1360/2025, now allows Ethiopian banks to acquire shares in foreign competitor branches, subsidiaries, or local banks. Additionally, liberalized foreign exchange holding rules and the removal of mandatory export fund repatriation as of July 2024 have intensified competition and operational risks for banks, especially newer entrants.
In response, Ahadu Bank strategically diversified its revenue streams and accelerated digital transformation. About 60.6% of its revenue comes from non-interest income sources, including foreign exchange gains. Digital transactions, empowered by QR services and the proprietary School Pay system, accounted for more than 42% of total transactions.
Chairman Anteneh Sebsebie noted the bank’s adaptability amid shifting social, political, and economic conditions. “We have turned challenges into opportunities and laid a strong foundation for sustainable growth,” he said. CEO Mulugeta Beza credited the bank’s profitability to collective commitment and teamwork during tough times.
However, Ahadu Bank faces a critical regulatory hurdle: increasing its paid-up capital from the current 1.13 billion birr to meet the NBE’s new minimum of 5 billion birr. This capital expansion is vital to ensuring long-term stability and enhancing the bank’s capacity for inclusive financial intermediation and future growth.
