Hijra Bank Review

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About Hijra Bank

Hijira Bank is one of the developed Banks that recently started bank operations in Ethiopia, targeting to be the premier Partner in Ethical Banking. Hijra was established on January 16, 2022. Hijra Bank’s capital during its establishment was 1.2 billion birr, of which 700 million birr was paid by 9,000+ small farmers, peasants, unbanked communities, and small traders from all parts of the country. The Bank is the second full-fledged interest-free Bank in Ethiopia.

Hijra Bank S.C. is a private Ethiopian commercial bank that provides fully Sharia-compliant (interest-free) banking services. Headquartered in Addis Ababa, the bank has expanded rapidly across the country, operating over 135 branches and serving more than 931,000 customers. Its financial growth has also been significant, with total assets exceeding 15 billion birr and customer deposits reaching about 12 billion birr in recent years.

Hijra Bank S.C. offers a range of interest-free products, digital banking platforms, and financing solutions designed to support individuals, traders, and businesses while promoting ethical and inclusive banking in Ethiopia.

More About Hijira Bank

Hijra Bank has built a strong reputation for its firm in accordance with Sharia principles. Hijira provides interest-free banking. All the Bank’s financial products and services are regulated by Islamic Banking principles. They are periodically reviewed and approved by the Sharia Advisory Committee, consisting of 7 members of Sheiks, imams, and respected religious scholars. Furthermore, the Bank is known for using the Core Banking System acquired from the first and only AAOIFI-certified Sharia-compliant software solutions.

Hijra Bank S.C. has expanded rapidly, now operating over 135 branches nationwide and serving more than 931,000 customers, making it one of the fastest-growing interest-free banks in Ethiopia. In addition to its branch network, the bank has adopted digital technologies, including mobile and internet banking, to broaden access to financial services and strengthen financial inclusion alongside its core banking operations.

The IFB system can be a bit ambiguous for both customers who are and are not followers of the Islamic religion. How does the Interest-free banking system work, and what do the customers get from it?

Banks that work under Sharia principles, like Hijira Bank, provide a system that allows customers to get a profit out of their savings without interest; this is how: –

• Through trading via muraban financing
• By constructing buildings through Istisna
• By engaging in the import & export trading
• By working together on feasible projects
• Extending fee-based service to the customers, such as guarantee services.

Services Provided by Hijra Bank S.C.

Hijra Bank offers a comprehensive range of Sharia-compliant (interest-free) banking services for individuals, businesses, and communities across Ethiopia. With over 135 branches and more than 931,000 customers, the bank combines traditional banking, digital solutions, and Islamic financial products to promote financial inclusion.

Islamic Financing Products

• Murabaha Financing – A Sharia-compliant alternative to interest-based loans, where the bank sells goods at cost plus a profit margin. This includes interest-free mortgages, vehicle loans, and Islamic financing solutions.
• Mudarabah & Musharakah
  • Mudarabah: A profit-and-loss sharing partnership where the investor provides capital and the entrepreneur manages the project. Profits are shared per a pre-agreed ratio, while losses are borne by the investor.
  • Musharakah: Both parties contribute capital and share profits and losses from the venture.
• Wakalah – An agency contract where the bank acts as an agent on behalf of the customer, empowered to make decisions and execute transactions within the agreed mandate.
• Istisna & Salam
  • Istisna: Financing for the manufacture and future delivery of goods, such as buildings or infrastructure projects. Payments are made progressively as the project develops.
  • Salam: Prepayment contracts for goods already in existence, such as agricultural products, with remaining payments issued at scheduled intervals.

Haramain Savings Services

• Haramain Wadia Hajj and Umrah Savings Account – Allows customers to save for religious pilgrimages, with flexible deposits and the option for Qard Al-Hassan, a free loan covering up to 50% of the pilgrimage cost once 50% of the target savings is reached.

Haramain Hajj/Umrah Installment Saving

• Enables customers to save regularly for 1–5 years, receiving free financing for the remaining cost of the journey. Accounts are open to all Islamic communities, including children via guardians, and support domestic and foreign currency deposits.

Hijra Bank’s Financial Performance & Credit Quality 2025

Hijra Bank S.C. continued strong growth in the 2024/25 fiscal year, reporting significant improvements across key financial metrics:

• Revenue & Profit: The bank’s total income exceeded ETB 1.8 billion, driven by broad revenue expansion, while profit before tax surged to around ETB 721 million — one of its strongest results to date.
  
• Total Assets & Deposits: Total assets reached over ETB 15 billion, reflecting near‑doubling year‑on‑year growth, and customer deposits rose sharply to approximately ETB 12 billion.
  
• Customer Base & Footprint: The customer base expanded to roughly 931,000 account holders, and the branch network increased to 135 branches nationwide.
  

Credit Quality / Asset Quality Indicators

• Industry Context: For the Ethiopian banking sector as a whole, non‑performing loans (NPLs) have historically remained moderate, with the overall industry NPL ratio below about 5.0% of total loans as of 2023.
  
• Hijra Bank Historical NPL: The most recent published annual report (2022/23) indicated a non‑performing financing (NPF) ratio of 0%, demonstrating high asset quality at that time, though no official, audited NPL figure for the 2024/25 year has been publicly disclosed.
  

👉 Key takeaway: While specific, audited 2025 NPL or non‑performing financing data for Hijra Bank has not yet been published by the bank or central regulator, industry norms show Ethiopian banks typically operate with NPL ratios below 5%, and earlier reports show Hijra Bank achieved very low NPF levels historically. 

Contact Information

Hijra Bank phone number: +251 15581899

Hijra email address: [email protected]

SWIFT: HIJRETAA, Addis Ababa, Ethiopia

Hijra Bank Head Office: Dembel, on the way to Olompia, Addis Ababa, Ethiopia