Hibret Bank to Raise Capital to 20b Br

Nov 19 , 2022

Hibret Bank shareholders decided to raise the Bank's capital to 20 billion Br in the next five years in response to the central bank's order to reach five billion Birr in four years and with the anticipation of foreign banks coming into the industry. However, the Bank will offer 7.5 billion Br in equity to non-shareholders. The Bank raised its capital to 4.3 billion Br from 3.88 billion Br. It inaugurated a 32-storey building as its new headquarters in the financial district around Sengatera and opened 40 new branches, increasing the total branch network to 423. Hibert Bank reported positive results from its operation last year, registering a gross profit of 1.8 billion Br. The Board Chairwoman, Samrawit Getamessay, told a shareholders' meeting held at the Interluxury Hotel, on Guinea Conakry St. (Cazanchis area) the performance comes in the face of global and domestic challenges. "The slowdown in China, the negative spillover from the war in Ukraine on top of the continued trade tension between the US and China exacerbated the situation," said Samrawit. "The Ethiopian economy faced daunting challenges during the year under report, the most severe being the war in the northern part of the country." The total loan portfolio stood at 46 billion Br, growing by a whopping 10 billion Br while deposits show a similar increase to 53.