Addis Bank Review

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Addis Bank Exchange Rate

The exchange rate of Addis Bank can also be found at our exchange rates page, along with all other banks’ exchange rates in Ethiopia today.

About Addis Bank

Addis Bank is a collective formation and effort of shareholders, Cooperatives, microfinance institutions (MFIs), Iddirs, other business organizations, and individual citizens. Addis Bank held its inaugural general assembly in February 2002 EC (Ethiopian Calendar). At the time, the bank boasted over 8,500 shareholders, with a total ownership exceeding 152 million Birr and a paid-up capital surpassing 106 million Birr.

Services provided by Addis Bank

Retail Banking

Kuteba Lehulum (Saving for All Account)

The Kuteba Lehulum Savings Account is designed for underserved, low-income individuals, including domestic workers, laborers, and others lacking formal ID. It offers a secure way to save, with a minimal opening deposit of just Birr 10.00.

Special Saving Account

The Special Savings Account combines the benefits of both a savings and a checking account. Account holders receive a checkbook allowing up to 10 withdrawals per month. Deposits in this account earn interest at the same competitive rate as the standard savings account. The minimum initial deposit to open this account is Birr 1,000.

Current Account

The Current Account is designed for frequent transactions and daily banking needs. It is an affordable and convenient deposit/withdrawal account tailored for individuals, companies, and organizations to manage their routine financial operations efficiently. The minimum initial deposit is Birr 500 for individuals and Birr 1,000 for corporate clients.

Fixed Time Deposit Account

The Fixed Time Deposit Account is specially designed for clients who want to invest their funds for a fixed period and earn attractive interest. This account is available to individuals, businesses, corporations, groups, and organizations seeking a secure way to grow their savings with guaranteed returns. A minimum initial deposit of Birr 100,000.00 is required to open the account.

Children Account

The Children’s or Minor Savings Account is a specially designed account created to help parents or legal guardians save on behalf of minors (individuals under the age of 18). This account can be opened by a parent, legal guardian, or through a court order. It requires a minimum initial deposit of only Birr 25.00. The account serves as a tool to build a financial foundation for children’s future needs, while also promoting a culture of saving and financial literacy from an early age.

• Valid ID card
• A church certificate
• A municipality certificate, or
• A certificate from a hospital, etc which anyways proves the date of birth of the minor

Youth Special Savings Account 

The Youth Special Savings Account is tailored for young adults aged 18 to 29 years. It aims to cultivate a strong culture of financial discipline and saving habits among the younger generation. With a low initial deposit requirement of just 25 birr, this account encourages young individuals to take the first step toward financial independence and long-term security.

Addis Premium Saving Account

The Addis Premium Saving Account is a specialized deposit product designed for Ethiopian citizens aged 18 years and above. It requires a minimum initial deposit of Birr 1,000. The account is passbook-based and offers a progressive interest rate structure, encouraging disciplined and goal-oriented savings behavior. 

• Flexible Withdrawals: Account holders are allowed to withdraw up to 25% of their balance or make up to three withdrawals per month. Exceeding this limit will result in a reduced interest rate of 7.0%.
• Attractive Interest Rates: Interest rates vary based on deposit amount, ranging from 8% up to 9.25%, offering better returns for higher savings balances.
• Progressive Savings Benefit: The account rewards consistent savers with increasing interest rates as their deposit balance grows, promoting long-term financial discipline.

Current Account

The Current Account is designed for frequent transactions and daily banking needs. It is an affordable and convenient deposit/withdrawal account tailored for individuals, companies, and organizations to manage their routine financial operations efficiently. The minimum initial deposit is Birr 500 for individuals and Birr 1,000 for corporate clients

Fixed Time Deposit Account

The Fixed Time Deposit Account is specially designed for clients who want to invest their funds for a fixed period and earn attractive interest. This account is available to individuals, businesses, corporations, groups, and organizations seeking a secure way to grow their savings with guaranteed returns. A minimum initial deposit of Birr 100,000.00 is required to open the account.

Addis Bank Credit Service

Term Loan

A Term Loan is provided by Addis Bank to finance working capital. It must be repaid within a fixed period, which includes interest. Repayment can be structured into regular installments, depending on the business’s nature and cash flow. Addis Bank offers these loan services across short, medium, and long terms.

The specific Term Loans offered by Addis Bank include:

• Agriculture Term Loan
• Manufacturing Term Loan

Revolving Export Credit

The Bank provides export credit facilities to customers who generate foreign currency through export activities. These facilities are offered at a minimum interest rate determined by the customer’s export performance.

Overdrafts

Addis Bank offers renewable, short-term advances that allow customers to withdraw funds from their current accounts even when the withdrawal amount exceeds their maintained deposits.

Import Letter of Credit

This is a credit facility, provided by Addis Bank to its customers who are engaged in import and export businesses upon payment of some percentage of the document.

Merchandise Loans

These are advances of short-term, which go against the merchandise or documentary proof, such as:

• Railway Receipt
• Warehouse Receipt, and
• Airway Bills
• Such loans are to be used as collateral when pledging by Addis Bank.

Letter of Guarantee

Addis Bank offers a written commitment to pay a specified sum of money to a beneficiary, who may be local or foreign. This payment is made should the obligor (the bank’s customer) fail to meet their contractual obligations according to the agreed terms and conditions. The bank provides several categories of guarantees, including:

• Advance payment Guarantee
• Bid Bond Guarantee
• Performance Bond Guarantee
• Suppliers’ Credit Guarantee
• Retention Guarantee
• Customs Bond Guarantee
• Foreign Employment Agent Guarantee

International Banking at Addis Bank

FX Permits

Addis Bank offers an attractive interest rate for excess funds deposited in the fixed deposit account by the account holders. The bank offers that for both short & long term tenors. Additionally, customers can get easy access to foreign exchange facilities. Addis Bank also has the following included in its FX Permits:

• Import & Export transactions
• Invisible payments
• Franco valuta import
• Small items export
• Trade Services

Addis Bank offers trade services, which are transacted all over the world, in its international banking service for:
Imports & Exports Made by:

• Advance Payments
• Consignments
• Irrevocable & Confirmed Irrevocable Letter of Credits (LC)
• Cash Against Documents (Documentary Collections)
• Letter of Guarantee:
• Bid Bond Guarantees
• Performance Bond Guarantee
• Advance Payment Guarantee
  
  

  Foreign Currency Management

Addis Bank opens and maintains the following foreign currency-denominated accounts to its eligible customers: Customers of Addis Intercan maintain foreign currency in several types of accounts, provided by the bank, which are:

• Non-residential (N/R) and Foreign Currency Accounts
• Diaspora Foreign Currency Accounts
• Retention Accounts

Addis Bank Credit Worthiness and Credit History

Creditworthiness:

• Addis Bank’s (AB) creditworthiness is evaluated based on its Capital Adequacy Ratio, which is 18.2% as of December 2024. This indicates that the bank has a strong capital position, which is essential for absorbing potential losses and maintaining its financial stability.

Credit History:

• AB’s credit history is categorized as “Good” according to the NBE’s evaluation. The report states that the bank has a well-established credit history, with a low non-performing loan (NPL) ratio of 2.3% as of December 2024.
• The bank has also maintained a high provision coverage ratio of 85.6%, indicating that it has sufficient provisions to cover potential losses

Banking Fees

Service Fees:

• Account Opening: The bank charges a minimum of Birr 100.00 (approximately USD 2.50) for account opening, with a maximum of Birr 500.00 (approximately USD 12.50).
• Monthly Maintenance Fee: AB charges a monthly maintenance fee of Birr 20.00 (approximately USD 0.50) for accounts with balances below Birr 10,000.00 (approximately USD 250.00).
• Overdraft Fee: The bank charges an overdraft fee of Birr 100.00 (approximately USD 2.50) per month, with a maximum of Birr 500.00 (approximately USD 12.50).
• ATM Card Fees: AB charges a monthly ATM card fee of Birr 10.00 (approximately USD 0.25).
• POS Transactions: The bank charges a POS transaction fee of Birr 5.00 (approximately USD 0.13) per transaction.
• Cheque Book Fee: AB charges a cheque book fee of Birr 20.00 (approximately USD 0.50) for a book of 20 cheques.
• Stop Payment Fee: The bank charges a stop payment fee of Birr 50.00 (approximately USD 1.25).
• Outward Remittance Fee: AB charges an outward remittance fee ranging from Birr 1,000 to Birr 5,000 (approximately USD 25 to USD 125), depending on the amount.

Other Fees:

• Mobile Banking Fees: AB charges a mobile banking fee of Birr 5.00 (approximately USD 0.13) per transaction.
• Internet Banking Fees: The bank charges an internet banking fee of Birr 5.00 (approximately USD 0.13) per transaction.

Important Note: The offers and terms listed above are subject to change without notice and may vary depending on your specific account type, account status, and other factors

Addis Bank Financial Performance Report

Financial Year Ended June 30, 2025

Addis Bank delivered exceptional financial results for the year ended June 30, 2025, recording strong growth across core performance indicators and reinforcing its trajectory toward meeting the National Bank of Ethiopia (NBE) minimum capital requirement.

Executive Summary

The Bank posted record expansion in assets, capital, profitability, and foreign currency mobilisation. Strategic reinvestment of dividends into paid-up capital signals a disciplined capital strengthening strategy aligned with regulatory requirements and long-term growth objectives.

Key Financial Highlights

Balance Sheet Performance

• Total Assets:
  Increased by 53.4% to 23.6 billion Br
• Total Capital:
  Rose 78.4% to 5.6 billion Br
• Paid-up Capital:
  Grew 22.7% to 2.5 billion Br

The Bank is on track to reach the NBE’s 5 billion Br minimum paid-up capital requirement by 2026.

Income & Profitability

• Profit Before Tax:
  Surged nearly fourfold to 2.9 billion Br
• Net Profit After Tax:
  Reached 2.2 billion Br
• Return on Assets (ROA):
  11.2%
• Return on Equity (ROE):
  49.9%

The strong earnings performance was driven by revenue expansion, operational efficiency, and prudent cost management. Notably, 62% of income growth was attributed to last year’s foreign exchange policy reform, which liberalised the FX market and enhanced revenue streams.

Deposits & Lending

• Total Deposits:
  Increased 34% YoY to 14.6 billion Br
• Loan Portfolio:
  Expanded 11.7% to 9.7 billion Br
• Non-Performing Loan (NPL) Ratio:
  Maintained at 3.4%, reflecting sound credit risk management.The Bank sustained asset quality while supporting credit expansion, maintaining NPL levels within acceptable regulatory thresholds.

Foreign Currency & Digital Banking

• Foreign Currency Mobilisation:
  Reached USD 189 million, up 30%
• Digital Transaction Volume:
  76.7 billion Br processed during the year

The increase in foreign currency mobilisation reflects improved market dynamics following FX reforms. Digital banking activity continues to scale, indicating growing customer adoption of electronic channels.

Capital Strategy & Dividend Policy

Shareholders resolved to reinvest the full 1.38 billion Br dividend into paid-up capital. Future dividends will also be directed toward capital strengthening until the 5 billion Br regulatory threshold is achieved.

Upon meeting the requirement, the Bank plans to introduce quarterly dividend distributions, signalling confidence in sustainable earnings capacity.

Operational Developments

During the reporting year, Addis Bank:

• Rebranded and modernised its corporate identity
• Expanded its branch network to 167 branches
• Adjusted operations following the closure of one branch due to city corridor development

Outlook

With accelerated capital accumulation, strong profitability metrics, improved foreign exchange positioning, and disciplined credit risk management, Addis Bank is well-positioned to meet regulatory capital requirements by 2026 and capitalise on opportunities within Ethiopia’s evolving financial sector landscape.

Contact Information

Addis Bank phone number: +251-115-549774

SWIFT: ABSCETAA, Addis Ababa, Ethiopia

Addis Bank Head Office: Jomo Kenyatta St, Zequala Complex Bldg, Addis Ababa, Ethiopia