Hijra Bank Paid-Up Capital Surpasses 5.36 Billion Birr as Customer Base Exceeds One Million

Hijra Bank has announced that its paid-up capital has surpassed 5.36 billion birr, marking a sharp increase from 1.93 billion birr recorded at the end of the 2024/25 fiscal year as the bank accelerates expansion in Ethiopia’s growing interest-free banking sector.

The bank said the latest figure represents a 177 percent increase in paid-up capital, while its shareholder base has now grown to more than 26,000 shareholders.

The milestone was disclosed during a Recognition and Gratitude event attended by shareholders, executives, and stakeholders.

Deposits and Financing Expand Rapidly

Board Chairman Abduselam Kemal stated that Hijra Bank now serves more than 1 million customers and has mobilized over 18 billion birr in deposits.

The bank has also provided more than 14.56 billion birr in Sharia-compliant financing, reflecting significant growth compared to the previous fiscal year, when deposits stood at 11.94 billion birr and financing totaled 4.74 billion birr.

The figures highlight the continued expansion of Ethiopia’s interest-free banking market, where demand for halal financial products and services has been growing steadily over recent years.

Profitability and Digital Banking Momentum

Dawit Kena said the bank has begun distributing dividends to shareholders for the first time, with nearly 20 percent of profits from the 2024/25 fiscal year allocated as dividends.

According to the CEO, Hijra Bank currently operates through 160 branches, while mobile banking users have surpassed 900,000 customers.

The bank’s digital finance platform, Halal Pay, has also expanded rapidly. Dawit noted that Halal Pay users have now reached 1.3 million, while the platform has facilitated more than 1.4 billion birr in collateral-free financing through digital channels.

The development signals growing adoption of digital Islamic banking solutions in Ethiopia’s financial sector.

Financial Performance Shows Sharp Growth

Hijra Bank’s latest annual report showed strong growth across key financial indicators:

• Total assets rose to 14.61 billion birr, up 79 percent
• Total income reached 1.8 billion birr, up 152 percent
• Profit before tax climbed to 721 million birr, compared to 82.6 million birr a year earlier
• Foreign exchange mobilization increased by 301 percent to $40 million

The bank achieved profitability within less than four years of operation, making it one of the fastest-growing entrants in Ethiopia’s banking industry.

Interest-Free Banking Continues Expanding

Hijra Bank continues to rely heavily on Wadiah savings accounts, which account for roughly 63 percent of deposits, alongside a growing Mudarabah investment deposit portfolio.

The bank’s rapid expansion reflects broader momentum in Ethiopia’s Islamic finance segment, where increasing financial inclusion, digital banking adoption, and demand for Sharia-compliant services continue reshaping competition within the banking sector.