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Quick Overview

About Oromia Bank

Oromia Bank S.C. (Afaan Oromo: Baankii Oromiyaa; Amharic: ዓሮሚያ ባንክ) is one of Ethiopia’s most influential, innovative, and historically significant private commercial banks. Founded on September 18, 2008, the bank carries two remarkable distinctions that set it apart from virtually every other private bank in Ethiopia: it is the pioneer of Interest-Free Banking (IFB) in the Ethiopian private banking sector, and it is the first Ethiopian bank ever to receive an international quality award — the European Society for Quality Research’s Quality Choice Award in 2022, awarded in Barcelona, Spain.

Oromia Bank’s founding mission has always been to connect Oromia and Ethiopia to the world — providing modern, accessible, and inclusive banking services to all Ethiopians, with a particular commitment to the farming, trading, and pastoral communities of Oromia and beyond. This mission has guided the bank through 17 years of growth, from a modest startup in 2008 to a Birr 85.5 billion institution with 575+ branches, 6.9 million deposit accounts, and 5.68 million digital banking users.

The bank’s FY 2024/25 annual report — presented at the 16th Annual General Meeting at Millennium Hall in December 2025 — marks an extraordinary milestone: the highest profits in the bank’s 17-year history, with pre-tax profit surging 155% to Birr 2.57 billion and net profit after tax rising 136% to Birr 1.99 billion. These results were achieved despite significant macroeconomic headwinds, including 14.4% annual inflation, foreign exchange pressures, and liquidity shortages in the Ethiopian banking system — making the performance even more impressive.

Perhaps Oromia Bank’s most defining characteristic is its role as the pioneer of Interest-Free Banking in Ethiopia’s private sector. The bank was the first private commercial bank in Ethiopia to offer IFB services — a landmark that has shaped the development of Islamic finance in the country and earned it the recognition and trust of millions of Muslim customers. Today, Oromia Bank’s IFB portfolio stands at Birr 3.73 billion in Sharia-compliant financing as of June 2025.

Under the leadership of CEO Teferi Mekonnen (Obbo Teferi Mekonnen) and Board Chairman Dr. Assefa Sime, the bank is executing an ambitious digital transformation agenda. The launch of OrooDigital — an 8-channel omnichannel digital banking platform — and the groundbreaking Milkii AI-powered collateral-free lending app (developed with Quantum Technology S.A.) position Oromia Bank at the forefront of Ethiopia’s digital banking revolution.

Historic Milestones

• 2008: Founded as Oromia International Bank S.C. on September 18, 2008
• Pioneer IFB: First private commercial bank in Ethiopia to offer Interest-Free Banking services
• 2022: Received the ESQR Quality Choice Award in Barcelona — first international quality award in Ethiopian banking history
• 2022: Deployed ICS BANKS Universal Banking + IFB core banking system across 264 branches
• 2024: Launched OrooDigital — Ethiopia’s most comprehensive 8-channel omnichannel banking platform
• 2025 (May): Launched Milkii — AI-powered collateral-free digital lending app (with Quantum Technology S.A.)
• 2025: Milkii – Fly Now, Pay Later partnership with Ethiopian Airlines
• FY 2024/25: Highest profit in 17-year history — Birr 2.57 billion pre-tax (+155%)

Deposit Products

Oromia Bank offers a comprehensive range of savings, current, and fixed deposit products — available in both conventional and Interest-Free Banking (IFB) formats — designed to serve every segment of Ethiopian society.

Conventional Savings Accounts

• Regular Savings Account: A standard interest-bearing savings account for individuals, associations, and organizations. Accessible via branches, ATMs, mobile banking (OrooDigital), and agent banking (Oro Agent).
• Premium Savings Account: A tiered savings account offering higher interest rates for customers maintaining larger balances.
• Youth / Student Savings Account: Savings products for young Ethiopians and students, building financial literacy and savings discipline.
• Women’s Savings Account: Dedicated savings product for women, reflecting Oromia Bank’s commitment to women’s financial inclusion.
• Children’s Savings Account: A savings account for minors, opened by parents or guardians.
• Senior / Golden Age Account: A savings product for senior citizens with preferential terms.

IFB Deposit Products

• Mudarabah Savings Account: Oromia Bank’s flagship IFB savings product. A profit-sharing savings account where the depositor provides capital and Oromia Bank manages the funds. Profits are distributed according to a pre-agreed ratio. Available to all eligible customers.
• Subii Farmer Mudarabah Savings Account: Oromia Bank’s most distinctive and socially impactful IFB product. The Subii account (Subii means “morning” or “sunrise” in Afaan Oromo) is a specialized Mudarabah savings account designed specifically for farmers and agricultural communities — reflecting the bank’s deep roots in Oromia’s agricultural economy. It features flexible deposit and withdrawal terms aligned with seasonal farming income patterns.
• Diaspora Mudarabah Savings Account: A Sharia-compliant savings account for Ethiopian diaspora customers, offering profit-sharing returns on deposits held in Ethiopia.
• Mudarabah Fixed Time Deposit: A fixed-term IFB investment account for customers seeking higher profit-sharing returns on committed deposits.
• IFB Foreign Currency Account: Sharia-compliant foreign currency savings accounts for customers with foreign currency income.

Demand Deposit (Current) Account

Non-interest-bearing current accounts for individuals and businesses requiring unlimited transaction access. Available in both conventional and IFB (Wadiah) formats.

Fixed Time Deposit

Conventional fixed-term deposits earn higher interest for committed deposit periods. Both principal and interest paid at maturity.

Loan & Financing Services

Oromia Bank provides a broad range of loan products serving individuals, MSMEs, corporate enterprises, and agricultural communities — in both conventional and IFB-compliant formats.

Milkii — AI-Powered Collateral-Free Digital Lending

Milkii is Oromia Bank’s most innovative product launch of 2025 — a fully digital, AI-driven lending application that offers collateral-free loans up to ETB 300,000. Developed in partnership with Quantum Technology S.A. and unveiled at a high-profile event in May 2025, Milkii represents a fundamental shift in how Oromia Bank extends credit.

Traditional Ethiopian banking requires physical collateral — land, buildings, or vehicles — to access most loans. This requirement effectively excludes millions of creditworthy Ethiopians who have income but no fixed assets. Milkii solves this problem by using an AI-driven credit assessment system that evaluates customer loyalty, transaction history, and behavioral data to determine creditworthiness — removing the collateral barrier entirely.

Key Milkii features:

• Collateral-free loans up to ETB 300,000
• AI credit scoring using customer loyalty and transaction history data
• Fully digital application — no branch visit required
• Developed with Quantum Technology S.A. — local Ethiopian fintech partner
• Targets all Ethiopians regardless of asset ownership
• Customer loyalty serves as a primary guarantee mechanism
• Aligned with Digital Ethiopia 2025 national transformation goals

Milkii — Fly Now, Pay Later (Ethiopian Airlines Partnership)

In a landmark partnership with Ethiopian Airlines, Oromia Bank launched the “Milkii – Fly Now, Pay Later” service — enabling Oromia Bank customers to purchase Ethiopian Airlines tickets on installment payment plans. This product makes air travel accessible to millions of Ethiopians who cannot afford to pay for a ticket in a single lump sum, democratizing access to air travel and supporting Ethiopia’s growing aviation economy.

How it works:

• Customer selects their Ethiopian Airlines flight via the ET website, the ET app, or by calling 8611
• Payment is arranged through Oromia Bank’s OrooDigital channels (mobile app, USSD, internet banking, Telegram Bot, agents, merchants)
• The full ticket cost is divided into convenient installments
• Customer travels immediately; pays back over time through their Oromia Bank account

Conventional Business Loans

• Working Capital Loans: Short-term revolving credit for businesses to fund operational expenses, inventory, and trade receivables.
• Term Loans: Fixed-period loans for capital investment, business expansion, and asset acquisition.
• Agricultural Loans: Crop finance, equipment loans, and post-harvest credit for farmers and agricultural cooperatives — the core of Oromia Bank’s lending heritage.
• Import & Export Finance: Trade credit facilities including pre- and post-shipment export finance, LC settlement loans, and import advance financing.
• Overdraft Facilities: Revolving credit on current accounts for business cash flow management.
• Construction Loans: Medium and long-term financing for residential and commercial construction.
• Transport Loans: Financing for commercial vehicles and transport fleet acquisition.

Consumer Loans

• Personal Consumer Loan: Financing for household goods, education, medical, and personal needs.
• Salary Advance: Short-term loans against expected salary for salaried employees.
• Vehicle Loan: Financing for a personal motor vehicle purchase.
• Housing / Home Improvement: Long-term financing for residential property purchase, construction, or renovation.

IFB Financing Products

• Murabahah Financing: Cost-plus-profit sale financing for goods, assets, agricultural inputs, and trade transactions. The most widely deployed IFB financing product at Oromia Bank.
• Ijarah Financing: Lease-based financing for vehicles, equipment, and productive assets.
• Salam Financing: Advance payment for future agricultural commodity delivery — particularly relevant for Oromia’s grain and coffee farmers.
• Musharakah Financing: Partnership-based joint venture financing for business projects.
• Mudarabah Business Financing: An investment partnership where Oromia Bank provides capital and the customer manages the enterprise.

International Banking — Global Banking Services

Oromia Bank’s International Banking division provides comprehensive cross-border financial services, enabling Ethiopian importers, exporters, and diaspora customers to conduct international transactions with confidence.

Export Services

• Export Letters of Credit: Oromia Bank advises, confirms, and negotiates LCs for Ethiopian exporters receiving international payments. The bank supports coffee, sesame, oilseeds, leather, and other key Ethiopian export commodities.
• Pre-Shipment Export Finance: Credit to exporters before shipment to finance production and processing.
• Post-Shipment Export Finance: Credit against confirmed export documents after shipment.
• Export CAD: Documentary collection for Ethiopian exporters.

Import Services

• Import Letters of Credit: Oromia Bank opens import LCs for Ethiopian importers, providing international payment guarantees.
• Cash Against Documents (CAD): Documentary collection for importers.
• Advance Payment (TT/SWIFT): International wire transfers for trade-related advance payments.

International Remittance

Oromia Bank provides fast and reliable international remittance services for Ethiopians abroad and their families at home. The bank partners with internationally recognized money transfer operators including Western Union and MoneyGram, and facilitates SWIFT-based bank-to-bank transfers.

Foreign Currency Accounts

• FCY Savings Account: Foreign currency savings accounts for customers with foreign currency income.
• Diaspora FCY Account: Dedicated foreign currency accounts for non-resident Ethiopians and Ethiopians by origin living abroad.
• Diaspora Mudarabah FCY Account: Sharia-compliant foreign currency account for diaspora customers preferring IFB arrangements.

Bank Guarantees

• Bid Bond: Confirming a bidder will fulfill contractual obligations if awarded a contract.
• Performance Bond: Guaranteeing contract completion to agreed standards.
• Advance Payment Guarantee: Protecting buyers who have made advance payments.
• International Guarantees: Guarantees in favor of foreign beneficiaries, subject to NBE FX permit requirements.

Digital Banking — OrooDigital

OrooDigital is Oromia Bank’s flagship digital banking platform — a comprehensive, 8-channel omnichannel system that provides customers with seamless access to banking services across every digital touchpoint. Described by Board Chairman Dr. Assefa Sime as the centerpiece of Oromia Bank’s digital transformation, OrooDigital has been central to the bank’s extraordinary digital growth: 5.68 million users (+50% year-on-year) and 13,056 digital service outlets (+527% year-on-year) in FY 2024/25.

OrooDigital — 8 Service Channels

1. Mobile Banking App

Oromia Bank’s mobile banking application (available on iOS and Android) provides full account management for smartphone users, supporting all standard banking functions, IFB account management, and digital payment services.

2. USSD Banking

Accessible from any basic mobile phone by dialing a short code, USSD banking enables all standard banking transactions without a smartphone or internet connection — critical for serving Oromia’s rural and agricultural customer base.

3. Internet Banking (Oro-Click)

Oromia Bank’s internet banking platform provides full browser-based account management for individuals and corporate clients. Available 24/7 from any internet-connected device.

4. Telegram Bot

Oromia Bank offers banking services through a dedicated Telegram Bot — making it one of only a handful of Ethiopian banks to provide banking through a social messaging platform. Customers can check balances, make transfers, pay bills, and manage accounts directly through Telegram.

5. ATM Banking (Oro-Card)

Oromia Bank issues Oro-Card ATM and debit cards, providing 24/7 cash access and POS payment capabilities across Ethiopia’s EthSwitch network. Cardholders enjoy withdrawals, balance inquiries, PIN changes, and merchant purchases.

6. Agent Banking (Oro Agent)

Oromia Bank’s extensive agent banking network extends financial services to communities beyond the physical branch network, with 13,056 digital service outlets as of June 2025 (a 527% increase from the prior year). Agents provide cash deposits and withdrawals, account registration, and mobile wallet services.

7. Merchant / POS Banking

Oromia Bank deploys POS terminals at merchant locations, enabling cashless commerce. Merchants can accept card payments from all EthSwitch-compatible cards, and customers can make instant payments at any registered merchant.

8. Branch Banking

Traditional in-branch banking remains available at all 575+ Oromia Bank branches nationwide, providing full-service banking for customers who prefer or require personal assistance.

Milkii — Digital Lending App

Launched in May 2025, Milkii offers collateral-free digital loans up to ETB 300,000 via AI credit assessment. See the Loan Services section for full details.

Digital Payment Services

OrooDigital provides an expanding range of digital payment solutions:

• Ethiopian Airlines Booking: Book ET flights via the ET website, the ET app, or the 8611 call center; pay through any OrooDigital channel.
• Guzo-Go Air Ticket Booking: Book flights on 8+ airlines, including Ethiopian Airlines, via the Guzo-Go app (call 7473); pay through OrooDigital.
• School Payment System: OrooDigital provides a comprehensive school payment management system for educational institutions — managing student data, attendance, fees, report generation, and parent-school communication. Parents can pay school fees from any Ethiopian bank or through any OrooDigital channel.
• Utility Bill Payments: Pay electricity, water, telecom, and other utility bills through any OrooDigital channel.
• Merchant Payments: QR code-based merchant payments for instant cashless retail transactions.

Interest-Free Banking (IFB) — Pioneer Services

Oromia Bank is the pioneer of Interest-Free Banking in Ethiopia’s private commercial banking sector — the first private bank to introduce IFB services in the country. The bank’s IFB operations have grown over many years into one of the most comprehensive and well-established Islamic banking platforms in Ethiopia, supported by the ICS BANKS IFB software suite and supervised by the bank’s Sharia Advisory Committee.

As of June 2025, Oromia Bank had extended Birr 3.73 billion in Sharia-compliant financing — making it one of the largest IFB portfolios among Ethiopian private banks. The bank’s 575+ branches all provide IFB services, covering both dedicated IFB windows and the full OrooDigital channel suite.

IFB Account Products (Full Suite)

• Mudarabah Savings Account: Core IFB savings product with profit-sharing returns.
• Subii Farmer Mudarabah Savings: Specialized IFB savings for agricultural communities.
• Diaspora Mudarabah Savings: IFB savings for Ethiopian diaspora customers.
• Mudarabah Fixed Time Deposit: Higher-return IFB investment account.
• Wadiah Current Account: Non-interest-bearing IFB demand deposit.
• IFB FCY Accounts: Sharia-compliant foreign currency savings.

IFB Financing Products (Full Suite)

• Murabahah: Cost-plus sale financing — the primary IFB lending vehicle at Oromia Bank.
• Ijarah: Lease financing for vehicles and equipment.
• Salam: Advance purchase for agricultural commodities.
• Musharakah: Partnership joint venture financing.
• Mudarabah Business Finance: Investment partnership financing.
• IFB Trade Finance: Murabahah-structured LCs, export finance, and Kafalah guarantees.

Oromia Bank — Credit Score, Worthiness & Credit History

Credit Score

Oromia Bank does not carry a formal published credit rating. However, its financial metrics, institutional track record, and international recognition provide a very clear picture of its credit standing:

• Record Profit Growth: A 155% increase in pre-tax profit to Birr 2.57 billion in FY 2024/25 — the highest in the bank’s history — is a powerful signal of financial strength, earnings quality, and management excellence.
• Strong Capital Base: Paid-up capital of Birr 6.88 billion (exceeding NBE’s Birr 5 billion minimum) and total capital of Birr 11.6 billion provide a very strong buffer against financial risks.
• International Quality Certification: The ESQR Quality Choice Award 2022 — the first international quality award in Ethiopian banking history — confirms that Oromia Bank’s operational standards meet internationally recognized quality benchmarks.
• ICS BANKS Certification: The successful implementation of ICS BANKS Universal Banking + IFB systems — described as “one of the most seamless implementations in the Ethiopian banking industry” — confirms the bank’s technological governance and project management quality.
• Strong EPS: EPS of Birr 297 (+109%) in FY 2024/25 reflects strong returns to shareholders, which is a positive signal for long-term institutional stability and investor confidence.
• Pioneer IFB Credibility: 17 years of IFB operations, Birr 3.73 billion in IFB financing, and the Sharia Advisory Board’s ongoing certification provide a robust governance layer for IFB credit quality.

Credit Worthiness — Key Financial Indicators

Credit History

• 17 years of uninterrupted commercial banking operations since 2008 — without any reported regulatory sanctions, license issues, or major compliance violations.
• Pioneer of IFB in Ethiopia’s private banking sector — a distinction that reflects early regulatory foresight and commitment to inclusive banking.
• Consistent profit growth over 17 years, culminating in an all-time high of Birr 2.57 billion pre-tax profit in FY 2024/25.
• First Ethiopian bank to receive an international quality award (ESQR 2022, Barcelona), confirming world-class operational standards.
• Digital transformation from a branch-centric bank to an 8-channel omnichannel platform with 5.68 million digital users — demonstrating adaptability and institutional agility.
• The 527% increase in digital service outlets (from ~2,079 to 13,056) in a single year represents one of the most dramatic digital channel expansions of any Ethiopian bank in a single fiscal year.
• Milkii’s launch in May 2025 — built with local fintech Quantum Technology S.A. — demonstrates Oromia Bank’s commitment to homegrown innovation in the Ethiopian fintech ecosystem.

Financial Report — FY 2024/25 (Most Recent)

The following results were presented at Oromia Bank’s 16th Annual General Meeting of Shareholders held at Millennium Hall, Addis Ababa, in December 2025. These represent the bank’s full-year audited results for the fiscal year ending June 30, 2025. The FY 2024/25 Annual Report is available at oromiabank.com/annual-report-2024-25/.

FY 2024/25 Full-Year Financial Highlights

FY 2023/24 Prior Year Results

Year-on-Year Growth Trajectory

Strategic Investment: Infrastructure Expansion

Oromia Bank is investing in long-term infrastructure to support continued growth:

• New branch buildings in Adama (Nazreth) and Jimma: design completed; construction to commence in FY 2025/26
• Land acquisitions in multiple major Ethiopian cities progressing positively
• Continued expansion of the Oro Agent banking network toward broader national digital coverage
• Further investment in OrooDigital platform enhancements and Milkii loan product scaling

Corporate Social Responsibility (CSR)

Oromia Bank contributed over Birr 22 million toward social and economic development in FY 2024/25, consistent with its long tradition of community investment:

• Agricultural Community Finance: The Subii Farmer Mudarabah Savings Account and agricultural loan products are Oromia Bank’s most direct CSR investments — providing specialized IFB and conventional financial services to Ethiopia’s farming and pastoral communities.
• Financial Inclusion: With 6.9 million deposit accounts, 5.68 million digital users, and 13,056 agent banking outlets, Oromia Bank has brought formal financial services to millions of previously unbanked Ethiopians.
• Milkii — Credit Access Revolution: By eliminating the collateral requirement for loans up to ETB 300,000, Milkii directly addresses one of the most entrenched barriers to financial inclusion in Ethiopia, enabling creditworthy individuals without assets to access formal credit.
• Milkii – Fly Now, Pay Later: Democratizing air travel access for middle and lower-middle income Ethiopians who could not previously afford lump-sum ticket purchases.
• School Payment System: OrooDigital’s school fee management platform serves thousands of educational institutions and families across Ethiopia.
• Pioneer IFB Services: 17 years of providing Sharia-compliant banking to Ethiopia’s Muslim communities represents an extraordinary long-term CSR commitment to religious financial inclusion.
• International Quality Leadership: Winning the ESQR Quality Choice Award raises Ethiopia’s profile as a banking sector capable of meeting international standards — a soft-power CSR contribution to the country’s financial reputation.
• Community Development Fund: Birr 22+ million directed toward social and economic development projects across the communities Oromia Bank serves.

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