Awash Bank Review

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Banks Ethiopia gives you the access and information you need to get car loan and house loan services in Ethiopia from the bank of your choice. If you are a non resident and/or a foreigner with origin of Ethiopia looking for these loan services, make sure to visit our diaspora mortgage loan and diaspora vehicle loan pages to acquire a more detailed information.

Awash Bank Exchange Rate

The exchange rate for Awash Bank can also be found at our exchange rates page, along with all other exchange rates in Ethiopia today.

About Awash Bank

Awash Bank is among the largest private banks in Ethiopia. Awash Bank is one of Ethiopia’s pioneering private banks, established in 1994 and commencing operations in 1995 with 486 founding shareholders and an initial paid-up capital of 24.2 million birr. Over the years, the bank has grown into one of the country’s leading private financial institutions, focusing on expanding its capital base, technological capacity, and customer services.

The bank is known for its wide accessibility through an extensive branch network and 24/7 digital banking services, including ATMs, mobile, internet, and agency banking. Guided by its “nurturing like the river” philosophy, Awash Bank supports Ethiopia’s socio-economic development through savings promotion, credit provision, and community development initiatives in education, health, and environmental sustainability.

Services of Awash Bank

Diaspora Account

Definition: It is a deposit account designed for Ethiopians and foreigners of Ethiopian origin living in Diaspora to open and use foreign currency account with a bank in their home country. Read more on Awash and other Diaspora accounts in Ethiopia.

Features:

Individuals and companies that have head offices in foreign countries can open this account.

The account can be opened in one of the following currencies only:

• US Dollar
• Pound Sterling
• Euro

A deposit made in other convertible currencies, such as Canadian Dollar, Saudi Riyal, Japanese Yen, Australian Dollar, and UAE Dirham, shall be converted to any of the above three currencies at a spot exchange rate based on the preference of the account holder.

Benefits:

• Make a local payment in Birr
• Transfer to other foreign currency accounts, which may include transfer to other foreign currency accounts
• Make foreign payments such as import and other Foreign Service Payments
• Withdrawal for a travel allowance of their requirements in cash notes or any other instruments upon presentation of valid travel documents.
• Convert into a Birr account at the prevailing exchange rate.
• Pay for authorized bank charges
• Serve as collateral or guarantee for loans or bids

Foreign Currency Accounts

All Ethiopian nationals living and working abroad for more than one year, or business entities owned by non-resident Ethiopians and located outside Ethiopian territory for more than one year, are eligible to Awash Diaspora service and to open the following foreign currency accounts:

• Non-Resident Non-Transferable Birr accounts: Non-Resident Transferable accounts are also non-interest-bearing accounts, but they are denominated in Birr. The source of funds for NR foreign currency accounts and NR transferable Birr accounts shall be from abroad or shall only be from payments from other NR accounts.
• Non-Resident Transferable Birr accounts: Non-Resident Non-Transferable birr accounts are also non-interest-bearing accounts, but they are denominated in Birr.
• Non-Resident Transferable Foreign Currency accounts: A non-resident foreign currency account is a non-interest-bearing account denominated in foreign currency. Non-resident foreign currency account, N/R transferable   Birr account shall be opened in the name of Diplomatic missions, international institutions, and their foreign employees.

Foreign exchange retention accounts:

• Foreign Exchange Retention Account “A”
• Foreign Exchange Retention Account “B”

The balance held in retention account “A” may be kept for an indefinite period of time and shall be sold fully or partly at a freely negotiable exchange rate at any time in the inter-bank foreign exchange market.

The balance held in retention account “B” shall only be kept up to 28 days and shall also be sold fully or partly at a freely negotiable rate within the period of 28 days in the inter-bank foreign exchange market

If not sold, the balance shall be automatically converted into local currency the next working day.

Interest-Free Banking With Awash

Interest-Free Banking services offered at Awash Bank are:

• Fund Mobilization Scheme
• Wadiah’s savings accounts
• Labbaik-Wadiah savings (For Hadji & Umrah),
• Wadiah Educational Savings for students
• Wadiahcurrent account (Amanah)
• Unrestricted Mudarabah Investment account, with more than 1,000,000 initial deposit & pre-agreed PSR between the Bank & the customer

Fund Utilization(Financing/Loan) Scheme

• Murabaha Financing scheme (Cost + Mark-up)
• Ijarah Muntahia Bittemlik (IMB)- Financing Ijarah
• IFB Trade Services, (Murabaha, Musharakah and Wakalah L/C).
• Interest-Free Export Financing scheme (Qard) = Free Loans
• IFB Loans from the charity account (Qard) = Free Loans for the neediest person
• IFB Bank Guarantees (Kafalah – All types of Bank Guarantees parallel with the Conventional Banking)

Banking Services to Micro Finance Institutions

Awash Bank offers custom-tailored products and services that are supposed to meet the ever-changing needs of the MFIs industry, after assessing the needs of these institutions.

These products and related services include deposit accounts, lending, salary solutions, agency banking partnerships, etc., which can either be offered individually or as product packages.

Loans and Advances – Awash Bank

To bridge the gap or the imbalance between deposit and loan requests sustainably, one of the alternative sources of finance to resort to is bank loans. Awash Bank has proposed loans and advances that are tailored to the needs of MFIs.

Loan to MFIs under Credit Risk-Sharing Guarantee Schemes

Due to limited institutional capacity to mobilize savings and insufficient collateral to borrow from banks, MFIs face challenges constraining the outreach and growth of MFIs so as to source funds for on-lending to their clients.

As a result, Awash Bank, in cooperation with USAID’s Development Credit Authority (DCA), provides credit risk-sharing guarantee facilities in order to further incentivize the mobilization of funds to the Microfinance Sector from banks.

The collateral requirement for MIFs was reduced or eliminated as a result of the guarantee.

By reducing the potential credit risks to banks that may occur due to a lack of collateral, credit risk-sharing guarantee helps to expand access to capital by MFIs and to catalyze sustainable MFI relationships with formal financial sector actors, thereby increasing the availability of credit to micro and small enterprises.

Benefits of the Product to MFIs

Benefits to Micro Finance Institutions (MFIs):

• • Easy requirements: Requirements for MFI to get a loan are simplified and easy to be fulfilled.
  • Reaching a new segment of clients with additional funds
  • Flexible Access funding and repayment arrangement
  • Decrease the operating costs of obtaining funds
  • Overcome the regulatory constraints of deposit-taking
  • Expand its operations and increase profitability
  • Access to expertise

Benefits To the Community:

• •  Helps the unbanked community to get access to formal financial services
  • Increase the income of households and solve unemployment problems.
  • Improves saving cultures and living standards of the community.
  • Helps to eradicate poverty.

Benefits to Target Customers

• • Target customers for proposed term loans and related services are Microfinance institutions (MFIs) that are registered and legally operating in Ethiopia.

Benefits to Mechanics of MFIs’ Loan

• • The MFIs applying for a loan shall secure and fulfill all legal documents, and express their commitment (undertake the obligation) to deposit and use other services of the Bank.
  • Required documents by the Bank shall be ensured or fulfilled before any application is received.
  • Once the eligibility requirements are ascertained and all conditions are met, the Credit Policy of the Bank will be applied in the processing and approval of the loans.
  • The approval may be for a lump sum disbursement or for a credit limit that the MFIs will draw over a period of time on a phase-by-phase basis.

Benefits to Rationale for Offering Deposit Products for MFI Clients

• • MFIs look for loans and deposits that best address their needs under these conditions.
  • The Bank may consider the features and benefits that can maximize productivity, and experience the optimum combination of products and services, custom-tailored to the MFIs business needs.
  • There is a big deposit market potential for the Bank in MFIs.

Money Transfer Services with Awash Bank

for domestic transactions here in the country, Awash Bank mobile banking plays the main role, whereas for border cross transactions, Awash has relevant options like:-

• Incoming Transfers: Incoming Transfers, Handling incoming money transfers from abroad via International Money Transfer agents working with the Bank. Incoming Transfers refer to receipts of funds from abroad for further credit to our customer account or payment in cash to the customer.

Inward remittances could be sent for different purposes such as project financing, advance payments for exports, personal remittances, charities, salaries, and holiday gifts.

Transfers could be sent through Swift, Personal or Bank Checks, and Remittance Service Providers. Awash Bank handles remittances sent through the following transfer companies: MoneyGram, T & Y, Western Union, Al-Alansari, X-press Money, EZ Remit, Dahabshill, Send exchange, Asgori, PayPal, Trans Fast, Dubai-Remit, Money Trans, Doha Bank, RIA, World Remit.

• Outgoing Transfers:  Payment processed to individuals or organizations abroad upon the request of the Bank’s customers. Such transfers are used to effect payment for imports, tuition fees, membership fees, consultancy fees, medical bills, hotel bookings, etc. Transfers can be made either through SWIFT or through a Foreign Bank Draft. A foreign exchange permit is required to make outgoing transfers.

Forex Bureau Services

• • Buying of Foreign Currency (USD, EURO, GBP) cash notes
  • Selling of Foreign Currency (USD, EURO, GBP) cash notes
  • Foreign Bank Guarantee
  • Safe-deposit box services at areas where the bank has buildings

Awash Bank Digital Banking

Awash Bank Online Banking

Awash Bank has an online banking option for its customers.

Online services of Awash Bank include:

• Transfer between two Awash Bank accounts
• Transfer money
• Accounts Overview
• Transaction history

Awash Bank Mobile Banking

The Awash bank mobile banking system is called Awash Mobile Wallet. It is a mobile banking service provided by the bank themselves. Anyone can register for Awash Mobile Wallet at any of Awash Bank’s branches and agents.

Services at Awash Bank Mobile Banking are:

• Balance Inquiry
• Paying the Telephone Bill
• Rate Inquiry
• Money Transfer
• Withdraw cash
• Payment
• Request a mini statement

Awash Bank Mobile Banking Code

Awash Bank customer service focuses on providing customers with the easiest way of accessing their accounts. Once a person is registered for Awash Mobile Wallet, dial *901# to get the mobile banking service.

Awash Bank Credit Scores, Worthiness, and Credit History

According to the Financial Stability Report of the National Bank of Ethiopia (NBE) for 2024, which you provided, here are some key points from Awash Bank’s latest financial report:

• Awash Bank reported a record pre-tax profit of approximately 22.6 – 25.7 billion birr in the 2024/25 financial year, marking a significant increase compared with the prior year and reflecting strong earnings growth across interest and non-interest income streams.
  • Total income increased sharply, driven by strong growth in lending, deposits, and foreign exchange earnings.

Credit Quality & Portfolio Growth

• The bank expanded its loan portfolio substantially during the year, disbursing more than 219 billion birr in loans, representing a notable increase from the prior year.
  • Even with rapid loan expansion and facing macroeconomic hurdles, asset quality was strong. Non-Performing Loans (NPLs) were maintained at approximately 2%, significantly lower than the 5% limit set by the National Bank of Ethiopia, which demonstrates effective control over credit risk.

Deposits & Capital Strength

• Total deposits grew significantly, reaching over 332 billion birr, with interest-free banking (IFB) deposits forming a meaningful share — an indicator of diversified funding sources.
  • Paid-up capital also increased during the year, strengthening the bank’s capital base and its ability to support further credit expansion and absorb potential losses.

Creditworthiness Indicators

Profitability: High profitability supports stronger creditworthiness by improving internal capital generation and risk absorption capacity.
Asset Quality: Low NPL ratio demonstrates effective credit evaluation, monitoring, and recovery processes.
Capital Base: Capital growth enhances solvency and compliance with regulatory requirements.
Market Confidence: Expansion of retail, SME, and IFB lending alongside robust deposits reflects ongoing confidence from customers and institutional investors.

Summary – 2024/25 Credit Score & History Context

For the 2024/25 fiscal year:

• Profit before tax: ~22.6 – 25.7 billion birr (record performance).
• Loan portfolio: ~219 billion birr, expanding lending capacity.
• NPL ratio: ~2 %, indicating strong asset quality.
• Deposits: ~332 billion birr.
• Capital growth: Paid-up capital increased, improving solvency.

Financial Performance

Awash Bank’s latest disclosures for the 2024/25 period indicate a sustained growth in both profitability and the strength of its balance sheet.

• Pre-tax profit reached approximately 22.6–25.7 billion birr, marking a record performance year.
• Total loans and advances grew to about 219 billion birr, reflecting strong credit deployment.
• Customer deposits exceeded 332 billion birr, supporting a stable funding base.

Asset Quality

• Non-performing loan (NPL) ratio improved to around 2%, well below the regulatory ceiling of 5%.
• Loan loss provisioning was strengthened to support portfolio expansion and risk coverage.

Capital Adequacy

• Capital strength remained robust, with capital adequacy indicators staying above regulatory minimum requirements.
• The growing capital base enhances the bank’s capacity to absorb potential financial shocks.

Risk Management

• The bank enhanced credit risk monitoring, portfolio diversification, and operational risk control systems.
• Internal control and compliance frameworks were further strengthened to support sustainable operations.

Other Key Indicators

• Liquidity levels were maintained above the required regulatory threshold, supported by strong deposit growth.
• Return performance improved alongside controlled asset risk and sustained profitability growth.

Awash Bank Banking Fees

Account Maintenance & Service Fees

• Savings account maintenance: usually free for most standard accounts.
• Current account maintenance: varies by account type; some business accounts may incur small monthly charges.

ATM & Card Services

• Local ATM withdrawal (own bank): approximately free – 5 birr per transaction depending on account package.
• Interbank ATM withdrawal: around 7 – 15 birr per transaction.
• Debit card issuance or renewal: about 50 – 150 birr, depending on card type.

Money Transfer Fees

• Internal transfer between Awash Bank accounts: generally free.
• Local interbank transfer: typically 5 – 50 birr depending on transaction amount and channel.

Loan Processing Fees

• Loan processing and appraisal charges: commonly 0.5% – 2% of the loan amount, subject to the product category.

Cheque & Payment Services

• Cheque book issuance: approximately 50 – 100 birr per booklet.
• Cheque clearing charges may apply for special or returned items.

Digital Banking Services

• Mobile and internet banking registration: usually free.
• Electronic transaction charges are minimal compared to branch-based services.
  

Note: Exact fees may vary by product type, account category, and regulatory updates. Customers should confirm current tariffs directly from the bank’s official channels or branch offices.

Awash Bank Financial Report Summary (2024/25)

Profitability

• Pre-tax profit: approximately 22.6 – 25.7 billion birr.
• Strong growth driven by expanded lending, foreign exchange income, and non-interest revenue streams.

Assets and Loans

• Total loans and advances: about 219 billion birr.
• Continued portfolio expansion while maintaining controlled credit risk exposure.

Deposits

• Customer deposits: exceeded 332 billion birr, supporting liquidity and lending capacity.

Asset Quality

• Non-performing loan (NPL) ratio: around 2%, indicating strong loan portfolio performance and effective recovery management.

Capital Position

• Capital base strengthened through profit retention and paid-up capital growth.
• Capital adequacy indicators remained above regulatory minimum requirements.

Liquidity

• Liquidity levels were maintained within regulatory standards, supported by strong deposit mobilization.

Return Performance

• Profitability improvements supported healthy return generation and financial stability during the reporting period.

Contact Information

Toll-free Number: 8980

Awash Bank phone number: +251-115-57-12-54

Awash Bank email address: [email protected]

SWIFT: AWINETAA, Addis Ababa, Ethiopia

Awash Bank Head Office: Awash Towers, Ras Abebe Aregay St, Addis Ababa, Ethiopia