Abay Bank reports Birr 6.22 billion profit before tax

Betegbar Yaregal

#EBR_News Oct 8, 2026

Abay Bank posted a profit before tax of Birr 6.22 billion for the year ended 30 June 2026, up from Birr 4.22 billion a year earlier, according to its audited annual financial statements seen by EBR. That is an increase of about 47.6 percent.

After an income tax charge of Birr 1.68 billion, the bank’s profit for the year came to Birr 4.55 billion, the statements show.

Total operating income rose to Birr 13.12 billion from Birr 10.48 billion, a rise of roughly 25 percent. Interest income grew to Birr 12 billion from Birr 8.79 billion. After interest expense of Birr 3.39 billion, net interest income reached Birr 8.61 billion, compared with Birr 6.26 billion the previous year.

Net fee and commission income stood at Birr 2.59 billion, while net gain on foreign exchange valuation was Birr 1.51 billion, down from Birr 1.87 billion.

On costs, the statements show personnel expenses of Birr 3.71 billion, up from Birr 3.20 billion. Other operating expenses were Birr 2.09 billion, slightly below the Birr 2.13 billion recorded last year. The loan impairment charge increased to Birr 268.5 million from Birr 139 million. Basic and diluted earnings per share were both Birr 524.54, according to the report.

The statement of financial position shows total assets of Birr 119.69 billion at the end of June 2026, compared with Birr 91.35 billion a year earlier.

Deposits from customers reached Birr 92.74 billion, up from Birr 71.91 billion, while loans and advances, including interest-free banking financing, rose to Birr 61.15 billion from Birr 48.65 billion.

Total equity stood at Birr 17.58 billion, against Birr 12.21 billion.

The bank’s paid-up capital stood at Birr 9.66 billion as at 30 June 2026, the notes to the statements indicate. This is above the Birr 5 billion minimum that National Bank of Ethiopia Directive No. SBB/78/2021 required commercial banks to reach by that date.

The cash flow statement shows the bank raised Birr 2.64 billion from the issue of shares during the year and paid Birr 2.04 billion in dividends.

The notes also put the bank’s total capital to risk-weighted assets ratio at 17.04 percent, against 15.11 percent a year earlier and the regulatory minimum of 8 percent.

The statements further disclose that the bank’s shares were listed on the Ethiopian Securities Exchange main market on 25 June 2026 under the ticker ABAYB, with trading starting the same day.

The independent auditor, said in its report dated 21 September 2026 that the financial statements give a true and fair view of the bank’s position and performance in accordance with International Financial Reporting Standards. The bank’s board approved them on 18 September 2026.