Shabelle Bank Posts Tenfold Profit Surge in FY2025/26

Shabelle Bank S.C. recorded one of the strongest earnings improvements among Ethiopia’s emerging banks during the 2025/26 fiscal year, reporting a more than tenfold increase in pre-tax profit as rapid deposit mobilisation, financing expansion, and customer growth accelerated the lender’s performance.

The bank announced that pre-tax profit rose to 231 million Birr, marking a significant turnaround from the previous fiscal year and reflecting stronger operating performance across its core banking activities.

Customer deposits climbed 122 percent year-on-year to more than 4.7 billion Birr, highlighting growing public confidence in the bank and providing additional liquidity to support financing activities.

The bank’s financing portfolio expanded by 101 percent to 3.5 billion Birr, while new financing disbursed during the fiscal year reached 2.5 billion Birr, representing a 530 percent increase over the previous year. Financing recoveries also improved, rising 45 percent to 855 million Birr.

Shabelle Bank continued to strengthen its balance sheet, with total assets increasing by 55 percent to more than 9.7 billion Birr, reflecting sustained business expansion.

Operating income grew 66 percent to 941 million Birr, outpacing the 35 percent increase in operating expenses, which reached 709 million Birr. The stronger revenue growth contributed significantly to the sharp rise in profitability.

The bank also expanded its customer base during the year. It reported serving more than 425,000 customers, while its digital ecosystem continued to grow, with approximately 1.7 million digital wallet accounts, underscoring increasing adoption of digital financial services.

Board Chairman Ibrahim Osman Farah said the results reflected growing customer confidence and the successful execution of the bank’s expansion strategy. He noted that relocating the bank’s headquarters to Addis Ababa has strengthened its strategic position and supports its long-term growth ambitions.

Looking ahead, the bank plans to continue investing in customer acquisition, digital banking services, operational efficiency, and corporate governance as competition intensifies across Ethiopia’s banking industry.

Acting Chief Executive Officer Abduljuhad Hassen Muhammed said the lender remains focused on improving service delivery and accelerating its digital transformation while expanding access to financial services across the country.

The results add to a series of strong annual earnings reported by Ethiopian banks following a year marked by expanding deposits, increased digital banking adoption, and continued growth in private-sector financing.

Source: EBR