Marcopolis.net presents the list of top banks in Ethiopia.

The number of banks operating in the country remains for the moment only 19 with a total of 1798 branches dispersed across Ethiopia. The majority of the bank branches are concentrated in the capital Addis Ababa. 

There exist significant differences among the 19 existing banks in the country in terms of total assets and number of branches. The Commercial Bank of Ethiopia has the largest total assets (158.1 billion ETB) and it also has the largest network of branches (806) while Zeman Bank has just one branch. However the Commercial Bank of Ethiopia is not the only bank which is currently undergoing rapid expansion of its network; Oromia International Bank and Awash International Bank are experiencing similar developments, too.

Ethiopia remains highly under-banked as the number of banks in the country is very low when compared the size of population (93 million).

We have compiled the following list of top banks in Ethiopia according to their size and role in the banking market in Ethiopia.

Top Banks in Ethiopia (by assets)

 National Bank of Ethiopia

The National Bank of Ethiopia (NBE) was established in 1963 by proclamation 206 of 1963 and began operation in January 1964. Prior to this proclamation, the Bank used to carry out dual activities, i.e. commercial banking and central banking. The National Bank of Ethiopia was entrusted with the following responsibilities:
» To regulate the supply, availability and cost of money and credit.
» To manage and administer the country's international reserves.
» To license and supervise banks and hold commercial banks reserves and lend money to them.
» To supervise loans of commercial banks and regulate interest rates.
» To issue paper money and coins.
» To act as an agent of the Government.
» To fix and control the foreign exchange rates.

However, monetary and banking proclamation No. 99 of 1976 came into force on September 1976 to shape the Bank's role adoring to the socialist economic principle that the country adopted.

The National Bank of Ethiopia, governed by Teklewold Atnafu, has issued a directive that requires Microfinance institutions (Mfis) to have a minimum paid-up capital of two million ETB, effective as of October 1, 2013. This is a tenfold increment from the previous requirement of ETB 200,000. The fate of Mfis that do not fulfil the new requirement will be a merger or liquidation, according to the directive.

 Commercial Bank of Ethiopia

The Commercial Bank of Ethiopia has been established in 1942. In 1980, Addis Bank and Commercial Bank of Ethiopia S.C were merged to form the sole commercial bank in the country until the establishment of private commercial banks in 1994. The Commercial Bank of Ethiopia is governmentally owned.

This bank is considered as the leading bank in Ethiopia and the pioneer in introducing modern banking to the country, ATM services for local users and Western Union Money Transfer services in Ethiopia.

As on June 30, 2012, its total deposits stood at ETB 122 billion while total asset and capital reached ETB 155 billion and 7.5 billion, respectively.

 Awash International Bank

AIB is privately owned. Ethiopia's privately owned Awash International Bank has reported a ETB 639 million unaudited gross profit in the 2012/13 fiscal year. Tsehay Shiferaw, President of AIB, told journalists at a press conference held on Friday August 2 at the Addis Ababa Hilton Hotel, that the bank's profit has grown by ETB 180.6 million (18%) compared to the previous fiscal year. wash’s total revenue in 2012/13 fiscal year reached ETB 1.4 billion, showing a growth of ETB 309 million or 28 percent when compared with the previous year. AIB has also registered 37 percent growth on deposit. According to the bank’s statement, its deposit mobilization including letter of credit (LC) margin has reached ETB 13.1 billion in the just ended fiscal year. AIB announced its loan provision has shown a significant rise to ETB 7.7 billion.

Awash, the oldest and largest private bank in Ethiopia has opened 29 new branches in the past fiscal year making its total branches 115.

 Wegagen Bank S.C.

Wegagen Bank has started operations on June 11, 1997.

It is a privately owned share company. In fact, the number of shareholders reached 2,130 as at March 31, 2012. The performance during 2009/10 confirms that the Bank is making huge strides to achieve its vision of “Becoming the most preferred Bank in Ethiopia.”

The total assets increased from ETB 5.1 billion in 2008/09 to ETB 5.7 billion. Alongside this, the concerted effort made to improve the asset quality succeeded to drop the non-performing loan of the Bank to 3.47%. Total capital (including paid-up capital, share premium and legal reserves) reached over ETB 1.5 billion as at March 31, 2012.

 Zemen Bank

Zemen Bank is a privately owned commercial bank established in 2008.

The formative activities of the Bank were spearheaded by the main promoter, Ato Ermyas Tekil Amelga, alongside Ato Tecle Alemneh, who were subsequently appointed as Chairman of the Board and President of the Bank respectively. The bank’s work in mobilizing deposits and foreign exchange was particularly successful, given growth rates of 40 and 46 percent respectively in these two critical resources. The Bank’s pre-tax profits reached ETB 123.8 million, reflecting gross revenue of ETB 405.1 million that was offset by ETB 281.3 million in expenses. Operating profit—which measures underlying growth trends and excludes year-end deductions for amortization, depreciation, and provisions—rose from ETB 143.1 to ETB 236.4 million, or a growth of near 65 percent for the year.

Zemen Bank’s strong financial performance continues to be propelled by the Bank’s distinctive model, through which we offer corporate-focused and technologically-driven banking services that are delivered via multiple channels (such as internet banking, ATMs, POS terminals, Foreign Exchange Bureaus, and Banking Kiosks).By June 30, 2013, total assets were ETB 3,248,479,460.

 Oromia International Bank

Oromia International Bank is a private bank established in Ethiopia on September 18, 2008.

At the time of its establishment, OIB’s authorized capital was ETB 1.5 billion, whereas its subscribed capital was ETB 279.2 million, and its paid-up capital ETB 91.2 million. OIB began operation on October 25, 2008 by opening its first branch at the Dembel City Center. More specifically, its branch was named Bole Branch.

OIB’s total asset has risen to 1.96 billion by June 2011. It is a growth of 75 percent compared to the previous year.

The president is Ato Abie Sano.

 Eastern and Southern African Trade & Development Bank (PTA Bank)

The Eastern and Southern African Trade and Development Bank, commonly known as the PTA Bank, was established on 6th November, 1985.

With total assets growing by 35% to reach USD 1.84 billion, the Bank recorded an improved 2.78% Return on Assets (RoA) compared to the 2.50% RoA recorded in 2011.

Although the Bank is a COMESA institution, its membership is open to non-COMESA states as well as institutional shareholders. In fact, the Common Market for Eastern and Southern Africa (COMESA) is a free trade area with nineteen member states stretching from Libya to Zimbabwe. COMESA was formed in December 1994. COMESA is one of the pillars of the Community. In 2008, COMESA agreed to an expanded free-trade zone including members of two other African trade blocs, the East African Community (EAC) and the Southern (SADC).

The Bank is currently owned by nineteen members comprising of seventeen members from the Eastern and Southern Africa region, one non-regional member and one Institutional member. The regional member’s shareholding is 87.71% whereas the non-regional shareholding stands at 6.53% and the Institutional Shareholding at 5.76%.

The current members are:
Regional Members
• Central Bank of Burundi
• Central Bank of Comoros
• Central Bank of Djibouti
• Central Bank of Congo
• Central Bank of Egypt
• Bank of Eritrea
• National Bank of Ethiopia
• Central Bank of Kenya
• Reserve Bank of Malawi
• Bank of Mauritius
• National Bank of Rwanda
• Central Bank of Seychelles
• Central Bank of Somalia
• Central Bank of Sudan
• Bank of Tanzania
• Bank of Uganda
• Bank of Zambia, Central Bank
• Reserve Bank of Zimbabwe
Non-regional Members
• People’s Bank of China
Institutional Members
• Africa Development Bank

 United Bank

United Bank was incorporated as a Share Company on 10 September 1998.

At the end of June 2012, United Bank reported a net profit with earning per share of 52.8%. Today, United Bank is a full service Bank that offers its customers a full range of commercial banking services with a network that includes 72 branches.

By June 30, 2012, total assets were ETB 1,101,716,413.

 Addis International Bank

Addis International Bank was recently established in 2011.

AdIB endeavors to be an inclusive Bank that addresses the financial needs of different income groups in the country. It has the plan to penetrate the huge market that host low and middle income people through Cooperatives and Micro Finance Institutions. AdIB will expand its operating by opening new branches at market centers within and outside Addis.

AdIB is established by diversified groups of shareholders, Cooperatives, Micro Finance Institutions (MFIs), Iddirs, other business organizations and individual citizens. The major shareholders of the Bank are Cooperatives and their members. The Cooperatives are mainly engaged in the provision of financial services, export business, manufacturing and services. The members of the major shareholders are mainly low and middle income citizens. The first General Assembly of the bank met on February 14, 2002 (Ethiopian Calendar) in the millennium Hall with shareholder owning ETB 152,723,000 and 106,324,040 subscribed and paid up capital respectively. Out of the total paid up capital 64.32% is owned by corporate shareholders (Cooperatives 48.04%, Share companies 11.13%, Iddirs 3.30%) and the rest 35.69% by individual shareholders. The direct and the indirect owners of the bank are estimated at 200,000 individuals.

It has assets of ETB 427.7 million, and has invested ETB 40.2 million into the National Bank of Ethiopia’s (NBE) five-year bonds.

 Lion International Bank

Lion International Bank S.C. (LIB) is a privately owned Share Company, established on October 2, 2006.

With over 6400 shareholders, LIB has a unique position in the commercial banking indusrty and is distinguished for its broad based participation of the public from all walks of life. The General Assembly of shareholders has the highest decision making authority in the bank, and elects the board of directors whose responsibility is to decide on policy matters and oversee the overall performance of the Bank. The president of the Lion International Bank is Ato Negusu G/Egziabher.

Total Assets were equal to ETB 2.462 Million.

 Enat Bank

Enat Bank was established in 2013. The story of Enat Bank is one of triumph over adversity. Enat Bank was initiated by a diverse group of 11 powerful Ethiopian women, and this tight team of founders has shepherded Enat from an idea to a reality. Enat is a unique success story. The founders of Enat had a vision to create a new bank that was open to everyone, with a special focus on women. Women own 64 percent of the bank, and compose many major leadership positions from the senior bank management to the Board of Directors.

Enat raised ETB 75 million (USD 4.1m) in start-up capital, and narrowly avoided legislation in September 2011 that requires new banks to have start-up capital of ETB 500 million. It will now have until 2016 to raise the cash.

Other Banks in Ethiopia

 Development Bank of Ethiopia

The history of Development Bank of Ethiopia goes back to 1909 when the first attempts of its kind known as The Societé Nationale d'Ethiopie pour le Dévéloppement de l'Agriculture et du Commerce (The Society for the promotion of Agriculture and Trade) was established in the Menelik II era. Since then the Bank has taken different names at different times although its mission and business purpose has not undergone significant changes except for occasional adjustment that were necessitated by change in economic development policies of the country.

 Construction and Business Bank

Construction and Business Bank S.C. (CBB) is a wholly government–owned public enterprise and successor of the Housing and Savings Bank (HSB) which was formed in 1975 through the merger of two financial institutions namely, Imperial Savings and Home Ownership Association, and Savings and Mortgage Corporation of Ethiopia which were nationalized at the on-set of the socialist era of Ethiopia.

 Dashen Bank

 Bank of Abyssinia

 Nib International Bank

 Cooperative Bank of Oromia

 Bunna International Bank

 Behan International Bank

 Abay Bank S.C.

 Debub Global Bank S.C.