By: Staff Writer | Borkena
NAIROBI, Kenya — Awash Bank has initiated plans to expand into Djibouti following a year of robust deposit growth and record gross profits. Tsehay Shiferaw, the bank’s president, revealed that the institution has formally requested approval from the National Bank of Ethiopia (NBE) to open a branch in Djibouti, a market it considers strategically important due to its strong trade links with Ethiopia. This move is part of a broader regional expansion effort that the bank is accelerating as Ethiopia’s regulatory environment increasingly permits cross-border banking.
Awash Bank is currently investing heavily in both digital infrastructure and branch transformation. Tsehay noted that 25 new technology-focused branches will be launched, while four underperforming urban branches will be merged following efficiency evaluations. Additionally, design work for a new corporate headquarters is underway, with construction scheduled to commence within the coming year.
The bank has also engaged Deloitte consultants to oversee a human transformation program as it reorganizes its corporate structure. “Once the formal audit is completed, we expect to pay out higher dividends this year than last,” Tsehay stated during a press briefing yesterday, held one day after the bank concluded its 2025/26 financial year.
Deposits reached 467 billion Birr, an increase of 136 billion Birr from the previous year, while outstanding loans totaled 268.9 billion Birr, reflecting a deliberate focus on liquidity and capital management. However, the loan-to-deposit ratio dipped to approximately 58 percent, down from roughly 65 percent a year earlier—a more cautious lending position than typical industry standards.
The bank’s unaudited financial results for the year show a gross profit before provisions and taxes of approximately 40 billion Birr, a significant increase compared to the prior period. Paid-up capital is nearing 40 billion Birr following a 10.6 billion Birr increase during the year, and management projects it could reach 55 billion Birr in the near term.
The bank also reported that its non-performing loans remain low at approximately two percent, signaling strong asset quality.
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