Hijra Bank has recorded significant growth for the 2025/2026 fiscal year, attributing its performance to a regulatory policy shift by the National Bank of Ethiopia (NBE). The central bank granted an exemption to fully interest-free institutions from its credit ceiling, a move that leadership at Hijra Bank credits for unlocking their operational potential.
The credit cap, originally implemented to manage inflation and credit expansion, had previously limited the amount of financing banks could deploy relative to their deposits. Because Sharia-compliant institutions cannot invest in interest-bearing government securities or treasury bills, the cap had a disproportionate impact on their ability to mobilize liquidity compared to conventional banks.
Following high-level consultations between Hijra Bank’s leadership and NBE officials, the regulatory exemption was secured. This allowed the bank to scale its asset-backed financing activities, resulting in a 97% year-on-year increase in annual revenue.
Fiscal Performance Highlights
The bank’s financial results for the 2025/2026 fiscal year reflect substantial growth across its core metrics:
| Metric | 2025/2026 Result |
|---|
| Annual Revenue | 3.55 billion Birr |
| Gross Profit (Before Tax) | 1.9 billion Birr |
| Total Assets | 31.45 billion Birr |
| Customer Deposits | 24 billion Birr |
The bank reported that its revenue for this single fiscal year exceeded its cumulative gross revenue from the previous four years, which totaled 2.965 billion Birr. Total assets grew by 115% during the period, rising from 14.61 billion Birr, while customer deposits saw a 101% increase from 11.94 billion Birr.
According to Abdusalam Kemal, Chairperson of the Board of Directors, the policy adjustment was essential for the bank to support small and medium enterprises and expand its digital and branch networks. The bank maintains that its model remains strictly focused on asset-backed financing, as it does not offer traditional interest-bearing loans.
