Oromia Bank posted a significant 49% surge in pre-tax profit to 3.82 billion Birr for the 2025/2026 fiscal year. This achievement was made amid severe liquidity pressures that have constrained Ethiopia's banking sector over the past year. The bank's Board Chairman, Asfa Semee, outlined the institution's strategies for navigating severe macroeconomic friction at the bank's 17th Annual Regular and 6th Extraordinary General Meetings.
The bank generated 15.24 billion Birr in total revenue, fulfilling 99.9% of its annual target and marking a 23.3% jump year-over-year. Operating costs were capped at 11.42 billion Birr, allowing revenue growth to significantly outpace expenses. This disciplined approach to cost management enabled the bank to maintain a strong financial position despite the challenging economic environment.
According to the annual report, total assets crossed 105.7 billion Birr—a 24% annual gain—while total deposits rose identically by 24% to hit 88.1 billion Birr. Paid-up capital climbed 14% to 7.8 billion Birr, bringing overall equity capital to 14 billion Birr. These indicators demonstrate the bank's resilience and ability to grow in a difficult economic climate.
Despite an unstable economic backdrop, the lender managed to preserve asset quality. Its non-performing loan (NPL) ratio stood at 2.43%—well below the central bank's 5% regulatory threshold—signaling disciplined risk management relative to industry peers. This achievement reflects the bank's commitment to prudent lending practices and effective credit risk management.
The bank's retail footprint also expanded, as deposit accounts grew 9.7% to reach 7.54 million, while digital banking adoption climbed to 5.7 million users. This growth in retail banking indicates a successful strategy to increase financial inclusion and provide more services to individual customers.
To diversify revenue streams, Oromia Bank launched the "Abbaa Ferda" remittance app and partnered with Visa and Premier Switch Solutions (PSS) to issue international payment cards (Oro Visa Classic, Gold, and Platinum). These initiatives aim to enhance the bank's offerings and attract new customers in a competitive market.
The bank's performance demonstrates its ability to navigate challenging economic conditions while maintaining growth and stability. Asfa Semee and the management team are optimistic about the bank's future prospects, given its strong financials and strategic initiatives to drive further growth and innovation.
Key points
- Oromia Bank's pre-tax profit surged 49% to 3.82 billion Birr for the 2025/2026 fiscal year.
- The bank's total assets and deposits both rose 24% to 105.7 billion Birr and 88.1 billion Birr, respectively.
- Oromia Bank's non-performing loan ratio stood at 2.43%, well below the central bank's 5% regulatory threshold.
