Hijra Bank Tops ETB 3.5 Billion in Record Year

Hijra Bank delivered its strongest financial performance since its establishment, generating ETB 3.55 billion in total income during the 2025/26 fiscal year as Ethiopia’s fastest-growing Islamic banking segment continued to expand its footprint across the country’s financial sector.

The lender said annual income nearly tripled from the previous year, rising 197 percent, while gross profit before tax climbed to ETB 1.9 billion, up 132 percent. The bank noted that both figures exceeded the combined totals recorded during its first four years of operation, marking a major milestone in its growth trajectory.

The performance was supported by rapid expansion across the bank’s balance sheet. Total assets grew by 115 percent to ETB 31.45 billion, while customer deposits surpassed ETB 24 billion, doubling from the previous fiscal year. Shareholders’ capital also strengthened significantly, increasing 202 percent to ETB 7.45 billion.

Hijra Bank also reported strong lending growth, with financing extended to customers reaching ETB 16.78 billion, a 133 percent increase from a year earlier. The lender expanded its physical presence by opening 41 new branches, bringing its nationwide network to 170 branches.

Digital banking emerged as one of the bank’s fastest-growing business lines. The value of digital transactions surged to ETB 41.72 billion, nearly ten times higher than the previous year, while transaction volumes increased more than fivefold. The bank’s digital banking customer base reached 2.24 million, reflecting growing adoption of mobile and online financial services.

The bank also expanded access to Sharia-compliant digital financing through its E-Murabaha platform, disbursing ETB 1.5 billion in collateral-free financing to 3,871 small businesses, women entrepreneurs, and youth-led enterprises. Overall transaction volume across all banking channels reached ETB 615.39 billion during the fiscal year.

Foreign exchange performance also improved sharply. Hijra Bank generated USD 158 million in foreign currency during the year, representing an 187.6 percent increase over the cumulative foreign exchange earnings recorded during its first four years of operation.

Board Chairman Abdulsalam Kemal said the results demonstrate the economic potential of expanding access to Sharia-compliant financial services, noting that a large segment of Ethiopia’s population had historically remained outside the formal banking system because conventional interest-based products conflicted with their religious beliefs.

Beyond its financial results, Hijra Bank announced what it described as a first for Ethiopia’s banking industry by allocating ETB 8 million from its annual profit for institutional Zakat and ETB 2 million for Waqf, integrating Islamic social finance into its corporate operations.

The bank also provided ETB 341.72 million in Qard al-Hasan, an interest-free financing facility representing just over two percent of its financing portfolio, while extending Sharia-compliant Hajj financing to 35 pilgrims.

Hijra Bank’s latest performance comes as interest-free banking continues to gain momentum in Ethiopia. Most commercial banks now operate Islamic banking windows, while several fully fledged Islamic banks have entered the market in recent years, reflecting rising demand for Sharia-compliant financial products and services.