Oromia Bank posted a 49% surge in pre-tax profit to 3.82 billion Birr for the 2025/2026 fiscal year, weathering severe liquidity pressures that have constrained Ethiopia’s banking sector over the past year.
Speaking at the bank’s 17th Annual Regular and 6th Extraordinary General Meetings, Board Chairman Asfa Semee outlined how the institution navigated severe macroeconomic friction. Despite industry-wide liquidity constraints and broader sector challenges, the bank expanded its financial footprint while maintaining strict cost discipline.
Asfa stated that the lender generated 15.24 billion Birr in total revenue, fulfilling 99.9% of its annual target and marking a 23.3% jump year-over-year. Operating costs were capped at 11.42 billion Birr, allowing revenue growth to significantly outpace expenses.
According to the annual report, total assets crossed 105.7 billion Birr—a 24% annual gain—while total deposits rose identically by 24% to hit 88.1 billion Birr. Paid-up capital climbed 14% to 7.8 billion Birr, bringing overall equity capital to 14 billion Birr.
Despite an unstable economic backdrop, the lender managed to preserve asset quality. Its non-performing loan (NPL) ratio stood at 2.43%—well below the central bank’s 5% regulatory threshold—signaling disciplined risk management relative to industry peers.
The bank’s retail footprint also expanded, as deposit accounts grew 9.7% to reach 7.54 million, while digital banking adoption climbed to 5.7 million users. To diversify revenue streams, Oromia Bank launched the “Abbaa Ferda” remittance app and partnered with Visa and Premier Switch Solutions (PSS) to issue international payment cards (Oro Visa Classic, Gold, and Platinum).
