Bank of Abyssinia’s pre-tax profit jumps 57 percent to Birr 15.8 billion

Betegbar Yaregal

#EBR_News October 7, 2026

Bank of Abyssinia (BoA) posted a profit before tax of Birr 15.85 billion for the year ended 30 June 2026, up 56.9 percent from Birr 10.10 billion a year earlier, according to its audited annual report seen by EBR. 

Profit after tax rose 58 percent to Birr 11.54 billion from Birr 7.30 billion, as the private lender grew its loan book, deposits and fee income at a fast pace.

The report shows total operating income rising 40.2 percent to Birr 40.29 billion from Birr 28.75 billion. 

Net interest income, the bank’s main earner, climbed to Birr 28.74 billion from Birr 22.40 billion, with interest income reaching Birr 43.69 billion against interest expense of Birr 14.95 billion. Net fees and commission income nearly doubled to Birr 9.52 billion from Birr 4.82 billion.

Foreign exchange operations swung to a net gain of Birr 1.68 billion, compared with a loss of Birr 149.6 million the previous year.

BoA’s balance sheet expanded by about a third. Total assets reached Birr 381.50 billion, up 33.3 percent from Birr 286.23 billion. 

Net loans and advances rose 28.7 percent to Birr 249.00 billion, while the report says gross lending grew by Birr 57 billion to Birr 256.49 billion, within the ceiling set by the National Bank of Ethiopia (NBE). 

Customer deposits grew to Birr 277.98 billion from Birr 211.65 billion, and interest-free deposits rose to Birr 40.80 billion from Birr 31.52 billion. Shareholders’ equity increased 37.1 percent to Birr 39.51 billion.

The bank also strengthened its capital base. According to the report, paid-up capital rose to Birr 17.48 billion from Birr 15 billion after a rights offer, which the Ethiopian Capital Market Authority approved for allotment. Shares worth Birr 3.97 billion were allotted at Birr 1,600 per share against a par value of Birr 1,000. 

Of that amount, Birr 2.66 billion came from shareholders’ dividends and Birr 1.31 billion from cash. Share premium rose to Birr 1.49 billion, and earnings per share stood at 77 percent, up from 50 percent.

Costs rose alongside income. Personnel expenses increased to Birr 12.63 billion from Birr 9.78 billion, and other operating expenses climbed to Birr 7.54 billion from Birr 4.30 billion. Income tax expense rose to Birr 4.31 billion from Birr 2.80 billion. The loan impairment charge fell to Birr 1.62 billion from Birr 2.12 billion. 

However, the report shows Stage 3 (non-performing) loans at Birr 15.64 billion, up from Birr 5.18 billion, and the loan loss allowance rose to Birr 7.49 billion from Birr 5.94 billion. 

The liquidity ratio improved to 25.84 percent from 22.10 percent, well above the NBE’s 15 percent minimum, while the capital adequacy ratio under the previous directive stood at 10.12 percent, up from 9.41 percent.

The board approved the statements on 9 September 2026, signed by Chairperson Mekonene Manyazewal and Chief Executive Officer Bekalu Zeleke Ewnetu.

BoA was officially listed on the Main Market of the Ethiopian Securities Exchange under the ticker “BOAX”, which it says improves access to capital and liquidity for shareholders.

The results show a bank growing profitably, but the sharp rise in non-performing loans and the faster growth in operating costs will draw investor attention now that BoA’s shares trade publicly.

The report notes the bank must fully comply with the NBE’s new risk-based capital directive by 31 December 2026 and adopt IFRS sustainability disclosure standards from July 2026, so asset quality and capital strength are likely to shape its next phase of growth.