Ethiopia’s Awash Bank Reports Remarkable ETB 14 Billion Profit Amid Credit Cap Challenges

Awash Bank, Ethiopia’s private commercial bank, has announced a substantial increase in its profits for the 2023/24 fiscal year. According to the bank’s financial statements, Awash Bank reported a pre-tax profit of ETB 14 billion, representing a 42.85% increase from the previous year’s figure of ETB 9.8 billion.

The bank’s total assets also reached a new high, growing to ETB 224 billion as of June 30, 2023, up from ETB 95.6 billion recorded at the end of June 2020. Additionally, Awash Bank’s paid-up capital saw a significant increase of 42.85%, rising from ETB 10.2 billion to ETB 14.6 billion during the same period.

Established in 1994, Awash Bank has grown to become the leading private commercial bank in Ethiopia, with over 875 branches across the country and with more than 20,055 employees . The bank’s impressive financial performance in the 2023/24 fiscal year can be attributed to its continued expansion and the growth of its customer base.

However, the bank’s management disclosed to EBR that its profitability could have been even higher if not for the credit cap imposed by the National Bank of Ethiopia. The central bank introduced a new rule that restricts banks’ yearly credit expansion to 14% in an effort to control inflation in the country.

Awash Bank’s strong financial results demonstrate its ability to adapt to the changing economic landscape and maintain its position as a dominant player in the Ethiopian banking sector.