The Commercial Bank of Ethiopia (CBE), the country’s largest state-owned bank, announced on Tuesday that it has reached a record-breaking ETB 1.69 trillion in total deposits, marking an unprecedented milestone in the history of Ethiopia’s banking industry. The figure represents a remarkable increase of over ETB 515 billion during the 2024/25 fiscal year alone—an annual growth rate that underscores the institution’s dominant position and the continued trust of the Ethiopian public.

In an official statement, CBE President Abe Sano praised the achievement as a testament to the discipline, teamwork, and shared sense of ownership demonstrated by the bank’s staff at every level—from the Board of Directors to regional branches, head office personnel, and worksite supervisors. He credited the milestone to the bank’s “unwavering commitment” to serving its customers in a rapidly evolving economic environment.

“This extraordinary result showcases our resilience and the depth of our capacity to deliver exceptional customer service, even in the face of complex challenges,” Sano said.

Strong Deposit Growth Despite Headwinds

CBE’s surge in deposits is especially notable given the macroeconomic headwinds Ethiopia has faced in recent years, including inflationary pressures, foreign exchange shortages, and geopolitical tensions. The bank’s leadership attributed the record deposit growth to several strategic initiatives:

• Aggressive Branch Expansion: CBE has been expanding its branch network, particularly in rural and underbanked regions, bringing formal financial services to millions of new customers.
• Digital Transformation: The bank has invested heavily in mobile banking, online platforms, and agent banking networks, making it easier for customers to transact and save.
• Targeted Deposit Mobilization Campaigns: Focused marketing and outreach efforts encouraged both retail and institutional customers to increase savings, with tailored products designed to attract deposits from diverse sectors.

According to industry analysts, the ETB 515 billion jump in deposits in a single fiscal year is among the largest annual gains ever recorded by an Ethiopian financial institution, reflecting rising public confidence in the safety and convenience of formal banking channels.

CBE’s robust deposit base has significant implications for the broader Ethiopian economy. As the country’s largest lender, the bank plays a central role in financing critical sectors, from agriculture and manufacturing to infrastructure and trade. Larger deposits translate to greater lending capacity, potentially spurring economic growth and job creation at a time when Ethiopia is working to implement ambitious economic reforms.

Analysts also note that strong deposit growth can help improve domestic resource mobilization—a crucial policy goal as Ethiopia seeks to reduce reliance on foreign debt and develop more sustainable sources of financing for its development agenda.

Leadership’s Vision for the Future

President Abe Sano reiterated that the record deposits are not an endpoint but a foundation for future growth. He emphasized the bank’s commitment to maintaining financial stability, enhancing customer experience, and driving financial inclusion.

“We view this achievement not as a finish line but as a launching pad for even greater service to the nation,” he said. “Our priority remains the sustainable development of Ethiopia’s financial sector and the empowerment of our people through accessible, reliable, and innovative banking solutions.”

Sector-wide Competition and Reforms

The record-breaking performance comes at a time of significant change in Ethiopia’s banking landscape. The government has moved to open the sector to foreign competition, recently issuing guidelines that will allow foreign banks to establish subsidiaries or representative offices. Industry experts believe this will raise the bar for customer service, technological innovation, and financial product diversification.

CBE’s leadership has signaled that it welcomes competition, viewing it as an opportunity to further strengthen operations and deliver even better value to customers.

As the new fiscal year begins, CBE’s focus will remain on consolidating its gains, further expanding access to banking services, and supporting Ethiopia’s broader development objectives. With its record ETB 1.69 trillion in deposits, the Commercial Bank of Ethiopia is well-positioned to remain the financial backbone of Africa’s second-most populous country.

For Ethiopia’s banking industry and the wider economy, CBE’s milestone is not just a number but a sign of resilience, ambition, and a banking sector ready to meet the challenges and opportunities of a changing world.