AWASH BANK RINGS IN A MARKET STILL LEARNING TO TRADE

Apr 25 , 2026. By HELINA HADGU ( FORTUNE STAFF WRITER )

Awash Bank’s arrival on the Ethiopian Securities Exchange (ESX) last week placed one of the country’s largest private banks at the centre of the nascent public securities trading, turning a bell-ringing ceremony into a marker of how far the capital market has moved from concept to transaction.

The Bank became the second to Wegagen Bank and the fourth company to list on the Exchange, a debut watched closely by the financial sector, bank executives, and early investors looking for signals from a market still forming its rhythm. The event at ESX headquarters on Ras Abebe Aregay St., near Commerce College, carried the symbolism of a financial sector seeking to broaden ownership, formalise share trading, and bring larger corporate names into a regulated marketplace. For Exchange officials, Awash Bank’s listing was presented as more than a corporate event. For Tilahun, it is a sign of confidence in the Exchange and in its ability to mobilise investment through formal channels.

“The listing provides investors with an opportunity to participate in a regulated market and demonstrates our commitment to fostering a stable and diverse investment landscape,” he said.

Awash Bank floated 37 million shares for trading out of its 54 million existing shares, giving the new market one of its most substantial early listings. Trading began with visible interest. Prices on the floor reached 3,000 Br, while opening transactions were reported as high as 4,000 Br. More than 8,000 shares changed hands within the first hours, providing an early glimpse of investor appetite for one of the country’s most established private financial institutions.

The listing also gives Awash Bank a public-market platform three decades after its formation. Incorporated in November 1994 with paid-up capital of 24.2 million Br raised from 486 founding shareholders, the Bank has since grown into an institution with 37.9 billion Br in capital held by more than 12,000 shareholders. It began business with a single branch and 37 employees, and it now operates 1,004 branches and employs over 20,000 staff, a scale that places it among the country’s largest private banks.

That expansion is reflected in its latest financial results. Net interest income reached 26.3 billion Br in the 2024/25 financial year, rising from 19.9 billion Br a year earlier and 15.9 billion Br in 2023. Net operating income climbed to 52.3 billion Br, while gross profit more than doubled to 25.7 billion Br, and net profit was 18.7 billion Br. The balance sheet also grew sharply, with total assets reaching 442.5 billion Br by June 2025, supported by deposits of 332.9 billion Br and net loans of 215 billion Br. Compare this with industrywide commercial-bank assets, which expanded by 44.5pc to 4.74 trillion Br. Deposits climbed by 40.7pc to 3.51 trillion Br. Liquid assets almost doubled to 1.07 trillion Br. Net income after tax jumped by 61.3pc to 93.4 billion Br. Total liquid assets grew by 90.9pc in a single year.

Awash Bank's earnings per share increased to 783 Br, while the loan-to-deposit ratio declined to 65pc, revealing faster deposit mobilisation than lending growth. The figures show a Bank expanding across assets, income and branch reach while entering a market where disclosure, governance and tradable valuation will become more visible to investors. Tsehay dubbed the listing a continuation of Awash Bank’s record of market leadership.

“This ensures we remain at the forefront of innovation and value creation,” he said. "The move would improve transparency, strengthen corporate governance and broaden participation for both domestic and foreign investors."

The listing comes as the Bank prepares another stage of expansion. Awash Bank plans to raise its capital to 55 billion Br this year, with a longer-term target of 300 billion Br.

PUBLISHED ON Apr 25,2026 [ VOL 27 , NO 1356]