Hibret Bank S.C. reported a pre-tax profit of 5.46 billion birr for the 2025/26 fiscal year, a sharp rise from about 750 million birr a year earlier. The 4.71 billion birr increase represents a 628.55 percent jump, according to the bank's annual report presented at Sheraton Addis in Addis Ababa on Thursday.
Board Chairperson Mesfin Tessema described the result as a landmark financial turnaround in the report. He said the bank had overcome foreign exchange transition headwinds from the previous year, helped by revenue diversification, better operational efficiency, and cost management.
Key financials
| Metric |
Value |
Change |
| Pre-tax profit |
5.46 billion birr |
+628.55% |
| Total revenue |
22.66 billion birr |
+35.38% |
| Total expenses |
17.20 billion birr |
+7.59% |
| Total deposits |
124 billion birr |
+33.78% |
| Total loans and advances |
99.49 billion birr |
+25.43% |
| Total assets |
150.63 billion birr |
+32.22% |
| Total equity |
16.95 billion birr |
+37.96% |
| Foreign currency earnings |
$433.25 million |
+44% |
Revenue and expenses
Total revenue rose 35.38 percent to 22.66 billion birr, while total expenses increased 7.59 percent to 17.20 billion birr. Chief Executive Officer Negusu Gebreegziabher said revenue growth outpacing cost growth marked a structural breakthrough in the bank's operational leverage.
Interest expenses rose 42.76 percent and personnel expenses rose 22.08 percent. Other operating expenses fell 34.62 percent, which the bank mainly attributed to a net foreign exchange gain compared with a significant loss the year before.
Interest income from loans made up 74.23 percent of revenue, while non-funded income contributed 25.77 percent.
Balance sheet growth
The bank's balance sheet expanded broadly during the year. Total deposits rose 31.3 billion birr, or 33.78 percent, to 124 billion birr. Total loans and advances, including interest-free financing, rose 25.43 percent to 99.49 billion birr. Total assets increased 32.22 percent to 150.63 billion birr, and total equity grew 37.96 percent to 16.95 billion birr.
Foreign currency earnings rose 44 percent, or $133.24 million, to $433.25 million. The report said the non-performing loan ratio remained below the regulatory ceiling.
Interest-free banking deposits reached 6.81 billion birr, up 22.37 percent. Savings accounted for 40.16 percent of total deposits, demand deposits 30.88 percent, and time deposits 28.96 percent.
Deposit mix
| Deposit category |
Share of total deposits |
| Savings |
40.16% |
| Demand deposits |
30.88% |
| Time deposits |
28.96% |
Loan portfolio mix
| Loan category |
Share of loan book |
| Import |
17.99% |
| Export |
15.20% |
| Transport |
14.51% |
| Manufacturing |
13.97% |
| Domestic trade and services |
12.52% |
| Construction |
11.02% |
Dividend and network
The Board recommended a pro rata dividend of 25 percent on fully paid-up shares for the year ended June 30, 2026. The bank operates 499 outlets, including 13 sub-branches, organised under 10 districts and one area office, after opening a Dire Dawa Area Office during the year. It maintains correspondent banking relationships with 12 international banks and exchange arrangements with more than 650 banks worldwide.
The result places Hibret Bank among the Ethiopian private banks reporting stronger earnings for the latest fiscal year. Aksion.ET data shows Hibret Bank's total assets stood at 113.93 billion birr in the prior published year, indicating the reported 150.63 billion birr figure reflects a significant expansion of the balance sheet over the period covered by the new annual report.
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