Oromia Bank S.C. posted a 49% rise in profit before tax to Birr 3.82 billion for the 2025/26 fiscal year, up from Birr 2.57 billion in the prior year, according to its annual report released at the bank's 17th Ordinary and 6th Extraordinary General Meetings of Shareholders held in Addis Ababa on Saturday. Click to view Oromia Bank's data intelligence profile for more financial data and peer comparisons.
The pre-tax result exceeded the bank's internal target of Birr 3.59 billion by 6.4%. Net profit after tax reached Birr 2.84 billion, a 44% increase over the previous year, after an income tax charge of Birr 980.7 million. Earnings per share rose to Birr 386 from Birr 297.
Income growth outpaces expenses
Total income grew 23% to Birr 15.24 billion, which the bank said was 99.9% of its annual target. Total expenses increased at a slower pace of 17% to Birr 11.42 billion. Chief Executive Officer Teferi Mekonnen described the relationship between income and expense growth as a sign of a healthy income and expense structure.
Interest income from loans and advances remained the largest contributor at Birr 10.05 billion. Other local income jumped 213% to Birr 1.89 billion, while fee and commission income declined 19% to Birr 2.45 billion.
Balance sheet expansion
Total assets expanded 24% to Birr 105.7 billion and total deposits rose 24% to Birr 88.1 billion. Loans and Interest-Free Banking financing grew 28% to Birr 56.2 billion. Paid-up capital increased 14% to Birr 7.8 billion, bringing total capital to Birr 14 billion.
The bank's non-performing loan ratio stood at 2.43%, below its internal target of 2.75% and the 5% regulatory limit. Return on equity was 37.5%, slightly lower than the 38.46% recorded in the prior year.
Foreign currency mobilisation weakens
Foreign currency mobilisation fell 19.99% to USD 262.65 million from USD 328.25 million. Inward transfers dropped 69.09% and export earnings declined 31.9%. Forex dealing, however, rose sharply to USD 106.89 million.
Board outlook
Board Chairperson Assefa Seme (PhD) said deposit growth reflected continued depositor confidence. He noted that Ethiopia's economy is projected to grow by 9.2% in 2026 and 7.9% in 2027, but cautioned that conflict-related disruptions in the Middle East could affect commodity-importing economies such as Ethiopia.
Assefa listed stronger digital capabilities, human resource competencies, prudent risk management and governance, and compliance with National Bank of Ethiopia directives as board priorities for navigating what he called a dynamic, difficult, and uncertain environment.
The latest figures place Oromia Bank among the mid-sized private banks in Ethiopia by asset size. For comparison, Aksion.ET's own data on listed peers shows Awash Bank S.C. with total assets of Birr 442.60 billion in its latest published year, while Bank of Abyssinia S.C. reported Birr 381.50 billion. Oromia Bank's Birr 105.7 billion asset base remains smaller, but its 24% annual growth rate signals continued balance sheet momentum in a competitive banking market. See the full Oromia Bank data intelligence profile for detailed financials and peer comparisons.
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