Record Profit, Deposit Power Awash Push into Djibouti

Awash Bank has signalled plans to expand into Djibouti after a year of strong deposit growth and record gross profit.

President of the Bank, Tsehay Shiferaw, disclosed that the Bank has filed a formal request with the National Bank of Ethiopia (NBE) to open a branch in Djibouti, a market it considers strategically important for its close trade ties with Ethiopia. The move is part of a wider regional expansion that the Bank is accelerating as Ethiopia's rules shift to

allow more cross-border banking.

Awash Bank is investing heavily in digital and branch transformation. According to Tsehay, 25 new tech-focused branches will open, while four

underperforming urban branches will be merged after efficiency reviews. Design work is underway for a new corporate headquarters, with construction slated to begin within the next year.

The Bank has hired Deloitte consultants to lead a human transformation programme as it retools its corporate structure.

“Pending completion of the formal audit, dividend payments for the year are expected to be higher than last year,” Tsehay said yesterday at a press briefing, a day after the Bank closed its books for the financial year 2025/26.

Deposits reached 467 billion Br, up 136 billion Br from a year earlier, while outstanding loans totalled 268.9 billion Br, signalling a deliberate focus on liquidity and capital preservation. However, the loan-to-deposit ratio fell to about 58pc, from about 65pc a year earlier, a more conservative lending position than industry norms.

The yet-to-be-audited book posted gross profit before provisions and taxes reached about 40 billion Br for the year, a marked rise from the

prior period. Paid-up capital is approaching 40 billion Br after a 10.6 billion Br increase during the year, and management projects it could

reach 55 billion Br in the near term.

The Bank posted that its non-performing loans (NPLs) remain low at about two percent, a sign of strong asset quality.

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