Hibret Bank Review

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Hibret/United 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, maximizing its return on equity and benefiting 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

Diaspora Banking

 Hibir Diaspora service was recently introduced, a service designed to suit the needs of the Diaspora community. It includes service package, among others, deposit and loan services, for those Ethiopian Nationals or Foreign Nationals of Ethiopia Origin, who are living and working abroad for more than one year.

Please see the list of our selected banks with the best benefits for the diaspora community here.

Foreign Currency Accounts

The bank provides a foreign currency account that enables Ethiopians residing abroad, foreigners of Ethiopian origin, and other foreign nationals to benefit from depositing their money in foreign currency.

Interest-Free Banking

The Bank is currently providing Shariah-compliant deposit and financing products.

IFB deposit products include

• Wadi’ah Saving Account
• Wadi’ah Current Account
• Mudarabah Investment Saving Account
• Mudarabah Investment Term Deposit

Among other things, the interest-free banking business majorly concentrates on the following major Shariah principles.

• Prohibition of Riba/Interest/usury
• Transactions should be free from Excessive uncertainty and Gambling /Gharar and Mysir/
• Avoiding trading in unlawful/Haram goods- Alcohol, tobacco, pork…etc
• Risk-sharing/profit-loss sharing and Justice and equity-based transactions

The Bank has more services to provide under IFB,  click here to find out more information.

Hibret /United Bank Exchange Rate

The bank provides foreign currency exchange services at its branches and forex bureaus. The bank handles Foreign Exchange deal with legal sellers or buyers within the NBE directives and in compliance with Anti Money Laundering rules.

Electronic Banking

This is a pioneer Bank in the country to provide SMS and Internet Banking services to customers (Hibret bank mobile banking ussd code). Hibir Mobile and Hibir Online Banking services (Hibret bank app) are a 24 hours link to account information with a view of all banking transactions that enables customers to access details on dealings regarding current, saving and overdraft accounts, loan particulars, Letter of Credit, Checkbook status, exchange rate value of foreign currencies and many other relevant details to keep of all customer’s financial demands 24/7.

Hibret is among the few banks that provide Card Banking Services through ATM & POS. Hibret Bank provides money to send/receive service on ATM. The Bank has also has started rendering MASTERCARD Card and VISA services and has also finalized arrangements to start offering  China Union Pay card service soon.

Financial Reports

Financial Highlights:

1. Total Assets: ETB 113.3 billion (approximately USD 2.4 billion)
2. Total Deposits: ETB 94.4 billion (approximately USD 1.9 billion)
3. Total Loans and Advances: ETB 74.6 billion (approximately USD 1.5 billion)
4. Net Profit: ETB 2.8 billion (approximately USD 58 million)
5. Capital Adequacy Ratio (CAR): 24.3%
6. Return on Equity (ROE): 17.4%
7. Return on Assets (ROA): 2.5%

Asset Quality:

1. Non-Performing Loans (NPLs): 5.2% of total loans and advances
2. Provision Coverage Ratio: 45.1%

Risk Management:

1. Credit Risk Management: Hibret Bank has a robust credit risk management system in place, with a focus on risk assessment, credit scoring, and collateral requirements.
2. Market Risk Management: The bank has implemented a market risk management framework to manage its exposure to market risks.
3. Operational Risk Management: Hibret Bank has established an operational risk management framework to identify, assess, and mitigate operational risks.

Capital and Liquidity:

1. Tier 1 Capital: ETB 34.8 billion (approximately USD 714 million)
2. Tier 2 Capital: ETB 13.3 billion (approximately USD 275 million)
3. Liquidity Ratio: 43.1%

Recent Developments:

1. Capital Adequacy Ratio (CAR): Hibret Bank’s CAR has increased to 24.3% as of December 2023, exceeding the regulatory minimum requirement of 15%.
2. Loan Growth: The bank’s loan portfolio grew by 15.1% year-on-year to ETB 74.6 billion (approximately USD 1.5 billion) as of December 2023.
3. Deposit Growth: Hibret Bank’s deposit base grew by 12.5% year-on-year to ETB 94.4 billion (approximately USD 1.9 billion) as of December 2023.
4. Net Profit: The bank reported a net profit of ETB 2.8 billion (approximately USD 58 million) in 2023, representing a growth of 10.3% compared to the previous year.
5. Return on Equity (ROE): Hibret Bank’s ROE improved to 17.4% in 2023, driven by its strong net profit and stable capital base.
6. Return on Assets (ROA): The bank’s ROA remained stable at 2.5% in 2023, indicating its ability to generate earnings from its assets.

Risks and Challenges:

1. Credit Risk: Hibret Bank continues to monitor its credit risk exposure, with a focus on loan quality and provisioning.
2. Interest Rate Risk: The bank has implemented a robust interest rate risk management framework to manage its exposure to changes in interest rates.
3. Liquidity Risk: Hibret Bank maintains a strong liquidity position, with a liquidity ratio of 43.1% as of December 2023.

Strategic Focus:

1. Digital Transformation: The bank is investing in digital transformation initiatives to improve customer experience, reduce costs, and enhance operational efficiency.
2. Product Diversification: Hibret Bank is expanding its product offerings to include new financial products and services, such as mobile banking and e-banking services.
3. Corporate Social Responsibility: The bank is focusing on corporate social responsibility initiatives, including community development and environmental sustainability programs.

Promotions and Incentives:

• Refer-a-Friend Program: The bank offers a refer-a-friend program that rewards customers with cash incentives for referring friends and family to open new accounts.
• Birthday Bonus: Savings account holders receive a birthday bonus of ETB 500 (approximately USD 10) as a token of appreciation.
• Account Anniversary Bonus: The bank offers an account anniversary bonus of ETB 1,000 (approximately USD 20) to customers who maintain a minimum balance of ETB 10,000 (approximately USD 200) in their savings account for one year.

Contact Information

Toll-free Number: 995

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