Awash Bank's latest financial performance places it squarely at the forefront of the private banking industry. Its 2023/24 results show robust gains in assets, deposits, and profitability, all achieved despite a difficult macroeconomic environment marked by liquidity strains, regulatory pressure, and fast-changing industry dynamics. The Bank appears poised to influence the future contours of private banking, as its directors and executives eye a position among Africa’s premier financial institutions by 2030.

Central to its recent success is a substantial increase in paid-up capital, which rose by 38.6pc to 20.33 billion Br. This comfortably exceeds generational peers like Dashen Bank's 12 billion Br and Bank of Abyssinia's 14.2 billion Br. Observers took note when Awash Bank’s capital adequacy ratio climbed two percentage points from the previous year to 16.2pc. Capital and non-distributable reserves also grew by 32.5pc to 29.3 billion Br, reinforcing the Bank’s capital foundation.

According to Awash’s President, Tsehay Shiferaw, who has run the Bank for the last 15 years, such moves are not incidental but reflect strategic foresight. He attributed the results to a disciplined approach that balanced growth and prudence. Tsehay, a veteran who started his career at the Commercial Bank of Ethiopia (CBE) and graduated from Addis Abeba and Greenwich universities, has led Awash through multiple cycles, each time pushing it further up the industry ladder.

Profit after tax rose by 24pc to 8.67 billion Br, representing a modest improvement compared to previous years but, according to Tsehay, a noteworthy success given the credit growth caps imposed by the Central Bank and trying economic conditions.

“It wasn't the same,” he told Fortune.

Even with a substantial capital injection of five billion Birr in one year, equal to the Central Bank’s minimum threshold for commercial banks by 2026, Awash Bank maintained earnings per share (EPS) well above the industry average. Although its EPS declined by 15.6pc during the year, it remained about 17 percentage points above the industry mean of 31.6pc.

Total revenues reached 36.6 billion Br, a hefty 27pc jump from the preceding year. Interest on loans, advances, Central Bank bonds, and other deposits surged by 24.8pc to 27.36 billion Br. Non-interest income sources also saw healthy growth. Fees and commissions rose by 34.9pc to 7.57 billion Br, and foreign exchange gains, rebounding from the previous year’s dip, expanded by 37.7pc to 926.88 million Br.

Analysts attributed the remarkable outcome to disciplined lending strategies, prudent credit risk management, and a well-diversified revenue mix in interest income, fees, commissions, and forex dealings. Together, these factors fortified Awash Bank’s bottom line against industry-wide strains.

The London-based financial statement analyst Abdulmenan Mohammed (PhD) deemed these accomplishments "impressive," particularly given the National Bank of Ethiopia’s (NBE) credit caps, which have forced private banks to find alternative revenue streams. Awash Bank’s capacity to adapt and boost non-interest earnings demonstrated its regeneration.

Profitability metrics were well against broader industry benchmarks. The Bank’s net profit margin on total assets rose to 3.14pc from three percent the previous year, beating an industry average of around 2.8pc. The gain is remarkable given the persistent inflationary pressures, constrained lending environment, and policy shifts buffeting financial institutions. Where many private banks have struggled to maintain margins, resorting to rapid loan issuance at times, Awash Bank’s measured approach and careful portfolio management have preserved its profitability. The conservative posture may prove advantageous in the medium term, as rising provisioning across the industry showed that some lenders stretched too far too fast.

However, these gains did not come without a cost.

Total expenses climbed 35pc to 25.8 billion Br. Interest on deposits increased by 22.6pc to 7.43 billion Br, wages and benefits by 47.3pc to 13.39 billion Br, and other operating costs by 38.4pc to 5.05 billion Br. These costs remain a concern, as they account for about 65.3pc of total expenses. This rise in expenses raised concerns among analysts, with Abdulmenan cautioning that executives should remain watchful.

“The growth of expenses over the past years is concerning,” said Abdulmenan. “Executives should keep an eye.”

While heavy in the short run, such a burden could pay off if Awash Bank successfully leverages human capital and operational improvements. Tsehay sees staff quality as a long-term investment, hoping to develop a more efficient, skilled workforce meeting the Bank’s strategic vision of technological advancement. As the financial sector is potentially open to foreign capital and global players, Awash Bank aspires to ensure it can compete not only on size but also on sophistication, product diversity, and customer experience.

"Awash aims for cost optimisation while maintaining staff priority," he told Fortune, noting that the entire industry wrestles with similar payroll pressures.

His strategy focuses on digitisation, investments in efficiency-enhancing technologies, and steady branch expansion, particularly where digital platforms have yet to penetrate. The Bank opened 72 branches during the financial year, bringing its total to 947.

Deposits per branch rose to 245.4 million Br, illustrating that the Bank’s extensive branch network yields meaningful returns. This contrasts with historical productivity struggles in the banking industry, where expansions in staffing have not always translated into proportional efficiency gains. Awash Bank’s steady improvements hint at a performance-oriented culture that links investment in personnel and infrastructure to tangible outcomes.

Productivity indicators signal progress on this front, too. Profit per employee reached 429,600 Br, surpassing the industry’s decade-long average of 79,000 Br and Awash’s own figure of 410,000 Br from the previous year.