Addis Ababa — Amhara Bank has posted a pre-tax profit of 654.8 million birr for the 2017 fiscal year, marking one of its strongest financial performances since its establishment and registering an 85% jump compared to the previous year.
The announcement was made during the Bank’s fourth annual general meeting, which convened today in Addis Ababa.

Profit Up Sharply as Key Metrics Strengthen

CEO Yohannes Ayalew (PhD) attributed the profit surge to stronger operational efficiency, disciplined credit management, and steady expansion across retail and corporate segments.

According to the CEO, the significant 85% rise in pre-tax earnings reflects the bank’s efforts to diversify income streams, tighten risk management, and expand its customer base amid heightened competition in Ethiopia’s financial sector.

Asset Base Expands to 43.4 Billion Birr

Amhara Bank’s total assets increased to 43.4 billion birr, up 23.2% year-on-year, signaling continued balance-sheet growth supported by deposit mobilization and lending activities.

Deposits—traditionally the backbone of Ethiopian banks—also rose strongly. The Bank reported:

• 31.5 billion birr in total deposits,
• representing a 26% annual growth.

This growth allowed the bank to expand its loan book while maintaining liquidity buffers in line with National Bank of Ethiopia (NBE) requirements.

Foreign Exchange Earnings Reach $70.8 Million

Despite Ethiopia’s persistent foreign currency shortages, Amhara Bank generated $70.8 million in forex earnings during the fiscal year.
The Bank credited improved correspondent banking partnerships and increased engagements with exporters, remittance senders, and international organizations.

Capital Strengthens, Bolstering Resilience

The Bank also reported notable improvements in both total and paid-up capital:

• Total capital climbed 21% to 8.6 billion birr
• Paid-up capital rose 14% to 7.4 billion birr

The strengthened capital position is expected to enhance the Bank’s ability to expand lending, invest in technology, and absorb external shocks—especially critical as the financial sector moves toward gradual liberalization.

Income Growth Driven by Lending Activities

Amhara Bank generated a total income of 5.6 billion birr in the fiscal year, up 29% from the previous year.
Notably, 80% of the income came from interest-bearing lending activities, underscoring the Bank’s reliance on traditional banking operations.

The Bank said it will continue modernizing its digital platforms, launching new products, and strengthening SME financing to diversify revenue beyond interest income.

Looking Ahead

The Bank’s leadership signaled confidence in sustaining momentum into the coming year, citing investments in digital banking, improved service delivery, and strategic branch expansion.

As Ethiopia moves forward with major economic reforms—including banking sector liberalization, new capital adequacy rules, and the entry of foreign financial institutions—Amhara Bank says it plans to position itself as a competitive and well-capitalized player in the evolving financial landscape.