Hibret Bank Review

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Hibret Bank Ethiopia

United Bank S.C., also known as Hibret Bank, began its operation in 1998 in accordance with the Commercial Code of Ethiopia of 1960. Over the years, United Bank of Ethiopia built itself into an escalating and modern banking institution, growing with a strong financial structure and strong management as well as a large and ever-increasing customer and correspondent base.

Today, United Bank of Ethiopia is a full-service bank that offers its customers a wide range of commercial banking services with a network of more than 339 branches and 9 sub-branches.

United Bank’s priority is to strengthen its capital base, maximize its return on equity, and benefit from the latest technology in order to keep up with the latest developments in the local and international financial services industry.

Services Provided by United Bank

• Ordinary Saving Account

  • Type: Interest-bearing savings account, accessible on demand.
  • Initial Deposit: Birr 50.00
  • Interest: Calculated on the minimum monthly balance.
  • Channels: Access via Hiber Mobile, Debit Card, Online Banking, ATMs, and all branches.
  • Eligibility: Natural Persons (18+) and Judicial Persons.
  • Extra: SMS transaction alerts are provided.

  Hibir Biruh/Minor Savings Account

  • Purpose: An interest-bearing savings account for children (minors) until they turn 18, operated by a parent or guardian.
  • Interest: Special interest rates, calculated on a monthly basis.
  • Withdrawals: Limited to a maximum of five times per year, with each withdrawal not exceeding 50% of the current balance.
  • Channels: Access via Hiber Mobile, Debit Card, Online Banking, ATMs, and all branches.
  • Extra: SMS transaction alerts are provided.

  Special Saving Account

  This is an interest-bearing savings account where the account holder can deposit and withdraw cash without visiting a branch. It offers higher interest rates and allows deposits and withdrawals via cheques.

  The account is available to Natural Persons (individuals) and Judicial Persons.

  There are four types of Special Saving Accounts, each with specific requirements:

  Type	Minimum Initial Deposit	Withdrawal Limit for Accrued Interest	Interest Rate
  Hiber Basic (Type A)	Birr 50,000.00	Maximum 3 per month	Attractive, computed monthly
  Hiber Classic (Type B)	Birr 100,001.00	Maximum 4 per month	Attractive, computed monthly
  Hiber Prime (Type C)	Birr 200,001.00	Maximum 4 per month	Attractive, computed monthly
  Hiber Premium (Type D)	Birr 400,001.00	No limitation	Negotiable, computed monthly

  Hibir Executive/Lemeriwoch Savings Account

  This is an exclusive savings account designed for higher officials in organizations (e.g., Board members, CEO, Director, Managers) to provide customized financial services.

  • Eligibility: Individuals in administrative positions (Executive Officer to Manager) in private, non-governmental, commercial, and government organizations.
  • Interest: Higher than ordinary savings accounts, calculated on the minimum monthly balance.
    • A minimum monthly balance of Birr 100,000 is required to earn interest.
  • Key Features & Benefits:
    • Includes a special saving feature and operates through cheques.
    • Doorstep service for deposits, CPOs, and cheque collections.
    • Dedicated Relationship Manager.
    • Preferential priority on Forex services for approved travel abroad.
    • Loans are available for executive account holders.
    • Account holders with a deposit of Br. 3 million and above receive a loyalty card and priority banking service.
  • Channels: Access to multi-channel services like debit cards, online banking, and mobile banking.

  Hibir Golden Blocked Savings Account (HGBS)

  This account is designed for rewarding savings and disciplined savings through a blocked arrangement agreed upon by the customer and the branch.

  • Purpose: Encourages disciplined saving with the benefit of higher interest.
  • Minimum Deposit: Birr 50,000.
  • Blocked Amount: The agreed-upon amount is blocked until the agreement period ends.
  • Interest:
    • Calculated daily on the minimum balance.
    • Accrued interest is compounded monthly and can be credited to the account and withdrawn upon request.
  • Access: It is possible to deposit or withdraw amounts exceeding the agreed-upon block amount at any time.
  • Eligibility: Natural Persons and Judicial Persons.

  Hibir Maraki Hawala Savings Account

  This account is designed to regularly receive foreign currency (FCY) inward remittances through SWIFT or money transfer agencies and offers a higher interest rate that accrues on a daily basis.

  • Purpose: To facilitate the regular receipt of foreign currency inward remittances.
  • Minimum Initial Deposit: Birr 1,000 or its equivalent in an acceptable foreign currency.
  • Deposits: Must be made only through SWIFT transfer, money transferring agents, international card, or foreign check/CPO in acceptable foreign currencies. Local currency deposits are not allowed.
  • Interest: A higher rate that accrues on a daily basis.
  • Withdrawals: Cash withdrawals are allowed at any time and in any amount.
  • Channels: Operated using passbooks and digital channels.
  • Foreign Currency Access: Account holder(s) may access foreign currency of less than or equal to 10% of the remitted/cash notes exchanged and deposited foreign currency in the preceding year for family members/employees’ foreign travel, subject to the Bank’s regulations.
  • Eligibility: Person(s) residing in Ethiopia who regularly receive inward remittance in foreign currency and have attained majority age.

  Hibir Overseas Employees Account

  This is an interest-earning foreign currency deposit account designed for Ethiopians traveling abroad for more than one year via Private Employment Agencies.

  • Initial Deposit: Not required to open the account.
  • Deposits: Can be made through SWIFT transfer or money transferring agents, in foreign currency or its Birr equivalent.
  • Withdrawals: Direct foreign currency withdrawal is not allowed. Withdrawals are made in Birr, in person, or via standing transfer instruction.
  • Interest: Double the minimum ordinary savings deposit interest rate.
  • Benefits: Serves as collateral for various bank credit facilities (personal, housing, investment loans) and includes access to free 24-hour online banking services.

  Business Banking

  Hibret Bank Demand Deposit /Current/ Account

  This is a non-interest-bearing deposit account designed for making multiple daily payments, receipts, and other transactions.

  • Type: Non-interest-bearing deposit account.
  • Initial Deposit: Birr 500 for individuals; Birr 1,000.00 for legal persons.
  • Deposits: Made by cash, fund transfer, or cheque clearance.
  • Withdrawals: Mainly made by cheque or by a letter.
  • Benefits: Easy access to the Bank’s credit facilities.
  • Note: Accounts without movement for 6 months or more will be charged.
  • Entitlement: Natural persons and legal persons.

  Hibret Bank Special Blocked Savings Account (Business) 

  This is an interest-bearing savings account designed for businesses, which requires a minimum deposit to be blocked for an agreed-upon tenure.

  • Type: Interest-bearing savings account with a minimum blocked deposit amount, restricting indiscriminate withdrawals until the agreed-upon tenure ends.
  • Initial Deposit: A minimum of Birr 200,000.00 is required for account opening.
  • Interest:
    • Higher interest rates on the blocked deposit.
    • Rates differ in accordance with the total amount deposited and the chosen tenure.
  • Entitlement: Natural Persons (Individual customers) or Legal Persons.

  Hibret Bank Fixed Time Deposit Account

  This is an interest-earning deposit account where the depositor agrees to save for a specific period of time in exchange for an attractive and negotiated interest rate.

  • Type: Interest-earning deposit account with a fixed tenure.
  • Interest: Negotiable and attractive rates, with higher deposits and longer tenures accruing higher interest.
  • Account Feature: Withdrawal before maturity will result in forfeiting the interest accrued.
  • Maturity: If the customer does not appear on maturity, the principal and interest are transferred to a blocked account.
  • Entitlement: Natural Persons (Individual customers) or Legal Persons.

  Hibret Bank Payroll Payment Account 

  This is an interest-earning savings account maintained by organizations for processing their employees’ payroll payments.

  • Type: Interest-earning savings account for organizational payroll.
  • Initial Deposit: No standard initial deposit is required.
  • Deposits: Organizations can credit the account or send cash monthly.
  • Key Benefits (for the Organization):
    • Free salary payment uploads via the Hiber Online service.
    • Free of service charge to process payments for employees.
    • Can set and schedule automatic payments via Hiber Online.
  • Entitlement: Organizations and their individual staff members.

  Hibret Bank Pension Payment Account

  This is an interest-earning savings account designed for retired pensioners, established through a partnership agreement with the Federal Public Servants’ Social Security Agency to process payments.

  • Type: Interest-earning savings account for retired pensioners.
  • Initial Deposit: No standard initial deposit is required.
  • Account Opening: Pensioners must open a “Special Pension Payment Saving Account” at their preferred branch.
  • Benefits:
    • Payment services at a convenient branch/location of choice.
    • Free of service charge to process payments.
  • Entitlement: Individual Pensioners.

  Hibir Overseas Employees Account 

  This is an interest-earning foreign currency deposit account designed for Ethiopians traveling abroad for more than one year via Private Employment Agencies.

  • Initial Deposit: Not required to open the account.
  • Deposits: Can be made through SWIFT transfer or money transferring agents, in foreign currency or its Birr equivalent.
  • Withdrawals: Direct foreign currency withdrawal is not allowed. Withdrawals are made in Birr, in person, or via standing transfer instruction.
  • Interest: Double the minimum ordinary savings deposit interest rate.
  • Benefits: Serves as collateral for various bank credit facilities (personal, housing, investment loans) and includes access to free 24-hour online banking services.

  Hibret Bank Escrow Deposit Account

  This is a deposit account in which Hibret Bank enters into a tripartite agreement to hold a fund (deposit) of two parties involved in a bilateral agreement (e.g., Real Estate Developers and house buyers for the sale and purchase of a house) before the fund is transferred from the seller to the buyer.

  • Purpose: To hold funds for a bilateral agreement, often used for real estate transactions.
  • Deposits: May begin with a percentage of the total cost, followed by mid and final installments over an agreed period.
  • Interest: The rate is set by the bank, calculated on the minimum monthly balance.
  • Alternatives: Depositors can also save via a fixed time deposit agreement or interest-free banking services.
  • Access: An EDA card is issued instead of a cheque book or passbook.
  • Benefits: Access to free online Banking services for 24-hour account information.

  Hibret Bank Credit Service (Business)

  Hibret Bank provides a diverse range of credit products for individuals, NGOs, Diasporas, and various businesses (Agriculture, Trade, Manufacturing, Service, etc.).

  Key Offerings:

  • Loan Types: Term loan, Overdraft, Letter of Credit, Merchandise loan, Personal/Consumer loan, etc.
  • Eligible Collateral: Buildings, Motor Vehicles, Machinery, Cash Deposits, Merchandise, Negotiable Instruments, and Guarantees.

  Lending Process Requirements:

  • Open an account at the requesting branch.
  • Submit a credit application form.
  • Provide a renewed trade license and other relevant licenses.
  • For legal entities, submit Memorandum/Articles of Association and audited financial statements.
  • Provide a profile of management and a business plan.

  Hibret Bank Corporate Banking

  Hibret Bank’s Corporate Banking provides innovative financial services through a dedicated unit for mid-size and large non-export companies, export companies, and financial services companies.

  Key Offerings and Service Model:

  • Services: Financing, cash management, and other digital banking services, typically involving high-value transactions.
  • Relationship Management: Services are delivered through dedicated Relationship Managers (RMs) who provide support, quick handling of requests, and a consultative approach to find appropriate financial solutions.
  • Special Privileges:
    • Special treatment during transactions.
    • More competitive and affordable interest rates.
    • Service by specially trained, designated RMs.
    • Big depositors are entitled to employee financing benefits at the prevailing minimum interest rate.
    • Separate the service channel from other customers.
  • Ways to Bank: Dedicated RMs (including door-to-door service), 24/7 access through the Hilton branch, and ISO certified online and Mobile banking platforms, as well as Card Banking and POS terminals.

  Hibret Bank Institutional Banking

  The Institutional Banking Department provides specialized banking services to various segmented institutions operating in Ethiopia.

  • Services: Accepting deposits in local and foreign currencies, financing for employees of the institutions, and guarantee facilities.
  • Target Institutions (examples):
    • Non-Governmental Organizations (NGO)
    • Aid & Donor Agencies and Development Agencies
    • Embassies and Consulate Offices
    • Not-for-profit Government Institutions
    • Public Institutions and Enterprises
    • Professional or Non-Professional Associations
    • Employment Agencies

  Diaspora Banking

  Diaspora Deposit Account 

  This is an interest-earning foreign currency deposit account tailored to the Ethiopian Diaspora community.

  • Type: Interest-earning foreign currency deposit account.
  • Initial Deposit: USD 100 or its equivalent in other foreign currencies.
  • Interest: Double the minimum ordinary savings deposit interest rate.
  • Deposits: Can be made through SWIFT transfer or money transferring agents, in foreign currency or its Birr equivalent upon conversion.
  • Withdrawals: Direct withdrawal in foreign currency is not allowed.
  • Benefits: The deposit account serves as collateral for the Bank’s credit facilities, including personal, housing, automobile, and Diaspora direct investment loans.

  Diaspora Loan Account / Diaspora Financing 

  This service provides various loan and financing options tailored to the Ethiopian Diaspora community for personal, housing, automobile, and investment purposes. Hibret Bank also offers a Shariah-compliant Murabaha Diaspora Financing option.
  Key Financing Types:

  • Diaspora Personal Financing: Extended for personal uses, such as purchasing household items, home renovation, car maintenance, education, medical expenses, or wedding costs, upon presentation of a proforma invoice.
  • Diaspora Automobile Financing: Extended for purchasing new or used vehicles. The year of manufacture for the vehicle shall not exceed 15 years at the time of purchase.
  • Diaspora House Financing: Extended for house financing with a period of 15-25 years, depending on the applicant’s equity contribution. A grace period of up to 18 months may be allotted before repayment begins. To be entitled to a housing loan, the applicant should channel at least 20% of the total loan request amount in acceptable Foreign Currency (FCY) before loan approval.
  • Diaspora Direct Investment (DDI) Financing: Investment schemes for businesses affiliated with the Diaspora, which generally have lower interest rates and longer loan tenures. Packages include:
    • DDI – Real Estate: For developers building residential or commercial properties for rent or sale. Developers must have an equity contribution made in FCY, and at least 50% of buyers/tenants must be from the Diaspora community who can channel their contribution in FCY.
    • DDI – Manufacturing: For manufacturing establishments by the Diaspora, with equity contribution made in FCY.
    • DDI – Moveable Economic Asset Financing: To cover the partial cost of purchasing Transport vehicles, Equipment, and Construction Machineries used for rental or operational purposes to generate income.

  Note: The Diaspora Deposit Account can serve as collateral for accessing these credit facilities. The bank also offers Interest-Free (Sharia-compliant) financing options.

  Hibret Bank Interest-Free Banking

  Hibret Bank’s Interest-Free Banking services are based on Sharia-compliant principles and offer a range of deposit and financing options.

  Key Offerings:

  • Wadi’ah Accounts (Safe Custody): Designed for customers seeking safe custody of their funds with convenient access. They operate under a trust agreement, ensuring deposits are held securely without profit or loss-bearing implications.
    • Examples: Wadi’ah Saving Account, Tatari Youth’s Wadi’ah, Hiber Beleh Women’s Wadi’ah, Wadi’ah Current Account.
  • Mudarabah Accounts (Investment/Profit-Sharing): Funds are invested by the bank, and profits are shared with the account holders based on a pre-agreed ratio.
    • Examples: Mudarabah Savings Account for Women, Mudarabah Hajj/Labaik Account, Mudarabah Idir/Equib Saving Account, Mudarabah Investment Saving Account, Mudarabah Fixed Time Investment Accounts, Mudarabah Diaspora Account.
  • Financing: Includes Trade-Based Financing and Investment-Based Financing.
  • Others: Tailored Services and Guarantees.

  Hibret Bank Trade Finance Services 

  Hibret Bank offers a range of Trade Finance services tailored for import and export businesses.

  Key Offerings:

  • Import & Export Service: Banking solutions for importers and exporters.
  • Foreign Money Transfer Service: International money transfer services.
  • Foreign Currency Account Service: Available for individuals, foreign diplomats, and international organizations.
  • Foreign Bank Guarantee: Issuance of conditional or unconditional guarantees.
  • Forex Bureau Services: Buying and selling of convertible currencies in cash notes.

  Hibret Bank S.C.Financial Performance Review – Fiscal Year Ended June 30, 2025

  Hibret Bank S.C. closed the 2024/25 financial year with continued expansion in assets, deposits, and income, though profitability margins remained under pressure. The audited annual report presented at the 28th Annual General Meeting indicates solid operational growth despite a challenging macroeconomic environment.

  Key Financial Highlights (FY 2024/25)

  • Total Assets: Birr 113.93 billion (↑ 17.96% YoY)
  • Customer Deposits: Birr 92.68 billion (↑ 24.16% YoY)
  • Gross Loans & Advances: Birr 79.33 billion
  • Total Income: Birr 16.74 billion (↑ 26.55% YoY)
  • Pre-Tax Profit: Birr 749.04 million

  The bank demonstrated stronger revenue expansion relative to balance sheet growth, supported by foreign exchange operations and credit portfolio expansion.

  Ratio Analysis & Financial Analytics

  1. Profitability Ratios

  Ratio	Calculation	FY 2024/25	Assessment
  Pre-Tax ROA	749.04m ÷ 113.93bn	0.66%	Indicates modest asset profitability
  Pre-Tax Profit Margin	749.04m ÷ 16.74bn	4.47%	Reflects margin compression
  Income Growth (YoY)	Reported	26.55%	Strong revenue momentum

  Interpretation:
  While revenue growth was robust, profit margins remained narrow. The divergence suggests rising operating expenses, funding costs, or provisioning impacts affecting bottom-line efficiency.

  2. Liquidity & Funding Ratios

  Ratio	Calculation	FY 2024/25	Assessment
  Loan-to-Deposit Ratio (LDR)	79.33bn ÷ 92.68bn	85.6%	Balanced credit utilization
  Deposit-to-Asset Ratio	92.68bn ÷ 113.93bn	81.4%	Strong deposit-funded structure
  Deposit Growth (YoY)	Reported	24.16%	Above asset growth rate

  Interpretation:
  An LDR of 85.6% suggests prudent credit deployment without liquidity strain. The high deposit-to-asset ratio indicates stable core funding reliance.

  3. Balance Sheet Expansion

  Indicator	FY 2024/25	Growth
  Total Assets	Birr 113.93bn	↑ 17.96%
  Gross Loans	Birr 79.33bn	Expanded
  Deposits	Birr 92.68bn	↑ 24.16%

  Asset growth remained solid, driven by deposit mobilization and credit expansion. Deposit growth outpaced asset growth, strengthening liquidity buffers.

  Operational Efficiency Considerations

  The cost-to-income ratio and ROE require detailed expense and equity disclosure from the full audited financial statements. However, based on margin performance:

  • Revenue growth did not proportionally translate into higher profitability.
  • Efficiency optimization and cost management will likely be strategic priorities.
  • Sustained deposit growth provides headroom for future credit expansion.

  Strategic Outlook

  Hibret Bank enters the 2025/26 fiscal year with:

  • A strengthened balance sheet
  • Healthy liquidity levels
  • Expanding loan portfolio
  • Strong revenue growth momentum

  Future performance will depend on improving operating efficiency, protecting margins, and maintaining asset quality amid economic pressures.

  Source: Audited Annual Report of Hibret Bank S.C. for the fiscal year ended June 30, 2025.

Contact Information

Toll-free Number: 995
USSD: *811#
Hibret Bank phone number: +251-114-655-222
Hibret Bank email address: [email protected]
SWIFT: UNTDETAA, Addis Ababa, Ethiopia
Hibret Bank Head Office: Ras Abebe Aregay Street, Hibir Tower, Addis Ababa, Ethiopia