Shabelle Bank Assets Jump 61% as Capital and Customer Base Expand.

Shabelle Bank is a fully licensed commercial bank in Ethiopia, which conducts all its operations under the principles of Islamic banking. Shabelle Bank’s total assets grew substantially in the 2024/25 financial year, increasing 61% to 6.03 billion birr from 3.76 billion birr in the prior year, reflecting a significant expansion of its balance sheet.

The performance was disclosed during the Bank’s fourth Annual General Meeting held in Jigjiga on December 28, 2025, where shareholders approved the audited financial statements for the year.

According to figures presented at the AGM, the expansion was driven by improved liquidity, capital mobilization, and a growing customer base. Cash and cash equivalents increased by more than 630 million birr, reinforcing the Bank’s liquidity position.

Customer deposits climbed to 2.27 billion birr, while outstanding loans reached 1.73 billion birr, reflecting increased financing activity across productive sectors. Shabelle Bank now serves around 1.7 million customers through 65 branches nationwide, supported by 646 employees.

Capital strengthening remained a key priority during the year. Paid-up capital reached 2.26 billion birr, after the Bank mobilized 878.4 million birr through share sales, achieving 88 percent of its annual target. The Bank noted that rising participation from regional governments has bolstered both capital adequacy and strategic partnerships.

Operationally, total income increased to 570.3 million birr, up five percent from the previous year, while expenses were contained at 544.06 million birr. As a result, net profit rose to 20.95 million birr, representing a 65.6 percent year-on-year increase.

Foreign currency mobilization totaled 5.63 million US dollars, supported by correspondent banking and remittance partnerships with institutions such as the Bank of Beirut UK, Equity Bank Kenya, Afreximbank, and other regional and international operators.

Speaking at the meeting, Board Chairman Ibrahim Osman Farah said the results reflect the Bank’s emphasis on governance, regulatory compliance, and long-term sustainability. Acting Chief Executive Officer Abduljuhad Hassen Muhammed highlighted continued investment in digital banking, product diversification, and institutional capacity as priorities for the coming year.

Source EBR