Hijra Bank reported a 97% revenue increase to 3.55 billion Birr in the 2025/2026 fiscal year following the National Bank of Ethiopia's removal of its lending cap.
The interest-free bank, which started operations nearly five years ago, recorded total assets rising 115% to 31.45 billion Birr. Customer deposits grew 101% to 24 billion Birr, while gross profit before tax reached 1.9 billion Birr.
Board Chairperson Abdusalam Kemal said the lending cap had restricted the bank's ability to expand financing under Sharia rules that prohibit interest-based investments. He noted the bank does not offer traditional cash loans but relies on asset-backed financing.
The National Bank of Ethiopia had adjusted the cap from 14% to 24% to control inflation. Hijra Bank advocated for and received a full exemption for fully interest-free institutions after consultations with regulators.
Revenue for the year exceeded the bank's combined gross revenue from the prior four years, which totaled 2.965 billion Birr.