Rammis Bank, one of Ethiopia’s pioneering full-fledged interest-free financial institution, has announced its first-ever profit since inception, marking a historic milestone for the country’s Shariah-compliant banking industry.
The bank reported a pre-tax profit of Birr 16.7 million for the 2024/25 fiscal year, driven by robust growth across key financial performance indicators, including an exceptional 173% surge in customer deposits and a major leap in digital banking adoption. The result represents a 106% increase compared to the previous year, signaling strong momentum in Rammis Bank’s operations.
According to the bank’s annual report, total assets climbed to Birr 4.3 billion, an 85.1% year-on-year increase, while customer deposits reached Birr 2.74 billion, up from Birr 1 billion last year. The number of savings accounts nearly doubled, rising from 182,126 to 351,800, a 93% increase that underscores the bank’s growing acceptance among Ethiopian consumers seeking interest-free financial services.
The bank’s total financing portfolio expanded by 1,686% to Birr 1.29 billion as of June 30, 2025—up from Birr 72.2 million the previous year. This remarkable growth, the report noted, reflects Rammis’s strong commitment to supporting productive investments through Shariah-compliant financial products.
Emphasizing its prudent risk management, Rammis Bank maintained a non-performing financing (NPF) ratio of just 0.3%, one of the lowest in the industry. “Maintaining strong portfolio quality through effective monitoring and collaboration with clients has positioned Rammis as a trusted financial partner,” said Rabi ShekHussien, Chairman of the Board of Directors.
The bank’s total operating income soared by 3,726% to Birr 402 million, largely driven by income from Murabaha financing, which contributed Birr 220.3 million. Additionally, the bank generated USD 20 million in foreign currency, strengthening its trade facilitation role within the economy.
Rammis also made bold advancements in its digital transformation agenda. Within just one month of launch, the bank’s mobile application attracted 2,893 users, reflecting swift market adoption. To enhance its digital capabilities, Rammis invested in advanced IT infrastructure, including a new enterprise-level firewall and full implementation of its core banking and customer service management systems.
Chief Executive Officer Ali Ahmed attributed the bank’s success to disciplined strategy execution amid significant macroeconomic transitions, including Ethiopia’s shift toward a market-based exchange rate and gradual liberalization of the financial sector.
He added that the interest-free banking industry at large has benefited from recent policy measures, such as the National Bank of Ethiopia’s decision to lift lending limits for Islamic banks—a reform expected to further expand their financial inclusion role.
“This profit is not our destination, but rather a strong foundation for the path ahead,” the Board stated. “It’s the solid floor upon which we intend to build even greater successes and maximize value for our shareholders.”
