Bank of Abyssinia Holds 29th Annual General Assembly for 2024/25 FY: Efficiency, Capital Growth, and Strategic Caution Mark the Year

Bank of Abyssinia held its 29th regular and 16th extraordinary annual general assembly today at Adwa Memorial Museum, presenting strong financial results alongside key strategic updates for shareholders.

Financial Performance

✅ Profit before tax surged to 10 billion birr, a 91.3% increase compared to last year.

✅ Total revenue reached 39.1 billion birr, up 41.1% year-on-year. Total assets expanded to 286 billion birr, reflecting strong balance sheet growth.

✅ Shareholders welcomed the announcement of earnings per share rising by 50%, signaling robust returns.

Efficiency and Human Capital

A recurring shareholder question focused on why employee numbers were not growing in line with the bank’s expansion. Management explained this is intentional, as the bank is transitioning to a paperless, digital-first system. The strategy aims to reduce expenses, improve operational efficiency, and position the bank competitively in the long term.

Capital Market Participation

On Ethiopia’s nascent capital market, the CEO clarified: while forming an investment bank or capital market service provider company is relatively easy only requiring only 100 million birr in minimum paid-up capital, operation is the real challenge.

“If all 32 banks in Ethiopia enter the investment banking space, there won’t be enough market to sustain them,” the CEO noted.

The bank is therefore consulting with advisors and will only enter the market once feasibility is proven and long-term profitability is clear.

Land Plot and Headquarters Project

Shareholders were updated on the land plot near Mexico Square, initially designated for the bank’s future headquarters, planned as one of the tallest skyscrapers in Ethiopia. The Addis Ababa Land Bureau has since reclaimed the land into the city’s land bank, and it is currently being used for other purposes. As a result, the skyscraper project is on hold until the issue is resolved.

Capital Increase

The assembly also approved a significant capital increase: Paid-up capital will rise from 15 billion birr to 20 billion birr. Shareholders are entitled to subscribe to one-third of their current holdings in the new issuance, expected to be completed in the coming months.

Branch Network Adjustments

The bank reported a net reduction of three branches during the year, six closures and three openings. Closures were largely tied to infrastructure and corridor projects, and management reiterated that the shift reflects its broader focus on digitalization and expense control.

📌 Bank of Abyssinia showcased a year of strong profit growth and disciplined strategy. Shareholders can expect near-term gains from efficiency improvements and the capital increase, while longer-term growth will hinge on digital transformation and a cautious, well-studied approach to entering Ethiopia’s emerging capital market.