Berhan Bank outpaces peers with measured gains

Berhan Bank stood out with strong performance in a turbulent financial sector last year, amid foreign exchange regime shifts and ongoing inflation. Its loan-to-deposit ratio slipped slightly to 77.2 percent, while non-performing loans edged down to 4.78 percent.

Berhan Bank demonstrated standout performance last year in Ethiopia's turbulent financial sector, characterized by foreign exchange regime shifts and persistent inflation. This marked a decisive turn for mid-sized private banks. The bank's loan-to-deposit ratio slipped slightly to 77.2 percent, indicating a cautious approach to lending. Non-performing loans decreased marginally to 4.78 percent. The asset quality remained strong, supported by conservative collateral valuation and an emphasis on legacy exposures over new defaults. These metrics highlight Berhan Bank's resilience amid broader economic pressures. The report, dated December 27, 2025, was written by Nahom Ayele, a Fortune staff writer. While details on overall profitability or comparisons to specific peers are limited, the bank's strategy underscores a preference for measured growth in uncertain times.

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Amhara Bank reported a pre-tax profit of 1.15 billion birr in the first five months of the current fiscal year, reversing a previous loss. This turnaround stems from strategic efforts in wealth accumulation, digital transformation, and careful credit management.

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Hijra Bank ended its 2024/25 financial year strongly, with profit before tax surging nearly eightfold to 721 million Br amid a credit-starved market. Assets grew by 79 percent to 14.6 billion Br, while earnings per share rose 196 percent to 73.84 Br. Management attributes the success to a disciplined Sharia-compliant model and targeted outreach efforts.

One month after initial appreciation driven by central bank efforts, the Ethiopian birr continues to hold steady, with commercial banks aligning their strategies to support currency resilience, according to Addis Fortune.

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Following recent stability bolstered by bank coordination, Ethiopia's National Bank is maintaining a tight monetary policy amid the birr's gradual depreciation, as reported by Addis Fortune.

 

 

 

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