Anbesa Bank Gets a Complete Board Reset as NBE Tightens Governance Oversight

Anbesa Bank has replaced its entire board of directors in an extraordinary general assembly held under the supervision of the National Bank of Ethiopia (NBE), marking a major governance reset at the mid-sized lender.

The fresh election follows the NBE’s rejection of the bank’s previous board election in November 2025 after a dispute among directors raised concerns about the board’s ability to function effectively and protect the interests of depositors.

Eleven directors were elected in the new vote, including eight shareholder representatives and three independent directors. The election also included women among the nominees, reflecting a broader shareholder slate than the previous board.

The NBE closely supervised the process, with senior officials from its regulation, licensing and supervision functions overseeing the election. None of the directors from the rejected board returned to the new body.

The governance overhaul comes as Anbesa Bank continues to expand its operations. In the 2024/25 financial year, the bank nearly doubled its pre-tax profit to 1.8 billion birr, up from about 940 million birr a year earlier.

Its balance sheet also expanded:

• Assets: ETB 54 billion, up 25%
• Deposits: ETB 44 billion, up 23%
• Loans and advances: ETB 36.2 billion, up 18%
• Branches: 341
• Employees: About 6,888

The figures show that the governance dispute emerged while the bank was experiencing significant financial and operational growth.

The central issue behind the earlier board conflict was linked to the bank’s capital increase and the entry of new shareholders. Questions were raised over how some investors acquired significant stakes, including allegations that some share purchases were financed through loans from the bank itself.

Such arrangements raise broader concerns because using a bank’s own funds to finance the acquisition of its shares can undermine the purpose of capital raising and create conflicts between ownership, lending and governance.

The new board therefore inherits a bank that is growing rapidly but also needs to strengthen its governance structures, risk oversight and internal controls.

The NBE’s involvement in the election also signals the increasing importance regulators are placing on corporate governance as Ethiopia’s banking industry expands and prepares for greater competition.

The new directors are expected to elect a chairperson and deputy chairperson and establish the board’s committees before assuming full oversight responsibilities.

For Anbesa Bank, the immediate challenge will be to turn the governance reset into stronger institutional oversight while maintaining the growth that has pushed the bank into Ethiopia’s increasingly competitive mid-sized banking segment.

Source: Addis Fortune