ETHIOPIA · BANKING
Key Facts
- —What is happening Hibret Bank, a private Ethiopian lender, told shareholders it earned a net profit of 4.02 billion birr (about US$24.7 million) for its 2025/26 fiscal year, announced on Thursday 22 October 2026.
- —Why it matters The result is a sharp recovery from a near zero year caused by foreign exchange losses after Ethiopia moved to a market based birr rate, and it shows how fast bank earnings can swing.
- —The numbers Pre-tax profit was 5.46 billion birr (about US$33.6 million), up 4.71 billion birr, while total assets reached 150.63 billion birr (about US$927 million) and deposits 124 billion birr (about US$763 million).
- —Who is who Hibret Bank is a private commercial bank in Addis Ababa chaired by Mesfin Tesema, and the National Bank of Ethiopia is the central bank that regulates it and sets its capital rules.
- —What to watch Shareholders were urged to pay up unpaid shares under the central bank’s new risk based capital rule, and the open questions are whether a dividend follows and how the headquarters expansion is funded.
- —What it means for you The result is a gauge of Ethiopian banking health for US investors, lenders and the diaspora sending money home, not a tradable stock, since no source shows a US listing.
Hibret Bank earned a net profit of 4.02 billion birr (about US$24.7 million) for 2025/26, up from US$145,000 a year earlier. The result was announced at its general assembly on Thursday 22 October 2026.
Hibret Bank earned a net profit of 4.02 billion birr (about US$24.7 million) for 2025/26, a sharp rebound. The bank announced the result at its general assembly, and the Ethiopian Reporter dated its report Thursday 22 October 2026.
A year earlier it made only 23.52 million birr (about US$145,000), say Addis Fortune and Capital, two Ethiopian business papers. Birr Metrics, a financial news site, says pre-tax profit rose 4.71 billion birr to 5.46 billion birr (about US$33.6 million).
Hibret Bank Profit at a Glance
The Reporter, which writes in Amharic, says the bank announced the figures at a general assembly it held that day. It gives no pre-tax total, total assets, loans or dividend figures.
Birr Metrics covers the board’s report to the 21st Regular and 5th Emergency General Assembly, for the year to 30 June 2026. It does not say on which date the meeting took place.
The gap between 5.46 billion and 4.02 billion birr implies a tax charge near 1.44 billion birr (about US$8.9 million). That gap is simple subtraction, not a published figure.
The Reporter also gives a return per share of 49.4 against 3.07 a year earlier, calling both percentages. Addis Fortune had given the 3.07 as earnings per share, so the measure is unclear.
Why Hibret Bank Profit Rebounded
In 2024 Ethiopia moved to a market based exchange rate, and the birr fell from about 57 to over 150 per US$1. Banks holding foreign currency assets and debts took large valuation hits, says Birr Metrics.
For 2024/25 Hibret booked a foreign exchange loss of 3.76 billion birr (about US$23.1 million at today’s rate), says Birr Metrics. Addis Fortune says tax of 725.5 million birr (about US$4.5 million) took most of the 749 million birr pre-tax profit.
At the 2025/26 assembly, Chairman Mesfin Tesema said the bank absorbed the shock of foreign exchange liberalisation and returned quickly to profit. He said the outcome confirms the bank’s reliable strength, according to Birr Metrics.
Birr Metrics also reports that the bank generated US$433.3 million in foreign currency during the year, up US$133.24 million. Addis Fortune reported in February 2026 that management planned to cut foreign currency exposure, grow fee income and expand digital banking.
A Bigger Balance Sheet
Birr Metrics reports total assets of 150.63 billion birr (about US$927 million), up 36.7 billion birr. Deposits rose 33.8% to 124 billion birr (about US$763 million).
Loans, including interest free services, grew 25.43% to 99.49 billion birr (about US$612 million). Total capital rose 37.96% to 16.95 billion birr (about US$104 million).
The board urged shareholders to pay for unpaid shares, citing the National Bank of Ethiopia’s new risk based capital adequacy directive. Mesfin Tesema called raising paid up capital an obligation rather than an option.
The bank said its non performing loan ratio stayed below the central bank’s ceiling, though the sources give no exact ratio. It also said it became the first Ethiopian bank certified to the ISO 27001 information security standard.
Who Runs the Bank
Hibret Bank is a private commercial bank in Addis Ababa that had 505 branches in 2024/25, according to Addis Fortune. Negusu Gebregziabher, a former president of Lion International Bank, became its president in August 2025.
The National Bank of Ethiopia is the central bank that licenses lenders and set the new capital rule. Mesfin Tesema chairs the board, which held 28 meetings during the year.
Birr Metrics says the bank spent 46.7 million birr (about US$287,000) on charitable contributions. It also says excavation has begun on a headquarters expansion after the foundation stone was laid.
What It Means for US Readers
No source shows Hibret Bank on a US exchange, so this result gauges Ethiopian banking, not a stock tip. Nothing here is investment advice.
US investors, lenders and development agencies watching Ethiopia’s reforms can read the swing as a sign that banks absorbed the birr’s float. Ethiopian Americans who send money home use banks like this, so a stronger capital base matters to them.
A bank that repairs its balance sheet can lend to importers, including buyers of US goods. Capital calls on shareholders show, however, that the regulator still wants more equity behind fast loan growth.
What Is Not Known
The bank’s own announcement could not be read, because its website blocks automated access. The figures here therefore rest on the Reporter, Birr Metrics, Addis Fortune and Capital.
The sources do not say whether a dividend was declared, and the Reporter gives no pre-tax total, total assets or loan figures. The date of the general assembly is stated only by the Reporter, which says it was held that day.
Last year’s net profit of 23.52 million birr (about US$145,000) comes from Addis Fortune and Capital, not from this year’s reports. The 22.22% asset rise that Birr Metrics gives does not match its own figures, so it is omitted.
The base for the 49.4 return per share is not stated. US$ values use open.er-api.com’s 22 October rate of 162.55 birr per US$1, as the central bank’s rate was unreadable.
What Comes Next
Shareholders are expected to pay the unpaid part of their shares as the National Bank of Ethiopia’s capital directive takes hold. The sources give no deadline for those payments.
The next step to watch is the audited annual report and any dividend decision from the board. The bank’s headquarters expansion is the other project readers can follow.
Frequently Asked Questions
How much did Hibret Bank earn?
Hibret Bank reported a net profit of 4.02 billion birr (about US$24.7 million) after tax for 2025/26. Its pre-tax profit was 5.46 billion birr (about US$33.6 million).
What was the profit last year?
Addis Fortune and Capital put net profit for 2024/25 at 23.52 million birr (about US$145,000). Pre-tax profit then was 749 million birr (about US$4.6 million).
Why did profit fall so low last year?
A foreign exchange valuation loss of 3.76 billion birr (about US$23.1 million) followed Ethiopia’s move to a market based birr rate. A tax charge absorbed most of the rest.
Did Hibret Bank pay a dividend?
The sources read do not say whether a dividend was declared for 2025/26. No dividend was declared for 2024/25, according to Addis Fortune.
Can US investors buy Hibret Bank shares?
No source read shows any US listing for Hibret Bank. This article is news, not investment advice.
Sources: The Reporter Ethiopia (Amharic), 22 October 2026; Birr Metrics, 22 October 2026; Birr Metrics, 11 December 2025; Addis Fortune, 21 February 2026; Capital Ethiopia, 14 December 2025; exchange rates, open.er-api.com (all accessed 22 October 2026).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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