Tsedey Bank has significantly improved its financial standing, reporting a pre-tax profit of ETB 4.3 billion and a sharp reduction in its non-performing loan ratio to 6.4% for the 2025/26 fiscal year.
Tsedey Bank has reported a major financial turnaround for the 2025/26 fiscal year, posting a gross profit before tax of ETB 4.3 billion. This performance follows a difficult 2024/25 period, during which the institution recorded a net loss of ETB 2.13 billion.
The bank attributed the recovery to institutional reforms initiated over the past five months, following the appointment of Yohannes Ayalew (PhD) as President in February 2026. A centerpiece of this recovery is the reduction of the Tsedey Bank's non-performing loan (NPL) ratio, which fell from 21.3% to 6.4% during the fiscal year. According to the bank, this represents a total reduction of ETB 6.1 billion in non-performing assets.
Operational Highlights for 2025/26:
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Grew to ETB 61.2 billion, up from ETB 45.7 billion, exceeding the bank's annual target.
Loan Recovery
Reached ETB 30 billion, achieving 104% of the planned performance.
Foreign Exchange
Recorded earnings of USD 53.7 million, a significant increase from the USD 17.8 million reported in the previous year, as tracked by market rates.
RTGS Transactions
Managed a net positive balance of ETB 1.43 billion, with incoming transfers totaling ETB 51.05 billion.
The bank's management outlined long-term growth objectives during its recent performance review and planning forum. Tsedey Bank aims to secure a position among Ethiopia’s four largest commercial banks by 2030, with a broader ambition to rank among the top 40 commercial banks in Africa by 2040. Investors and analysts can monitor the broader bank sector data to see how these targets align with the competitive landscape.
For the Ethiopian banking sector, the recovery of Tsedey Bank underscores the impact of internal restructuring on asset quality. With the NPL ratio now at 6.4%, the bank is better positioned to manage liquidity and expand its loan portfolio compared to the previous fiscal cycle. For more updates on the industry, visit Aksion News or utilize our financial institution compare tool to evaluate performance metrics across the market.
Source: Ethiopian Business Review
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