Ethiopia’s First Full-Fledged Interest-Free Bank Reports 1.8 Billion Birr Profit

October 26, 2026 | By Semahegn Nigatu

ZamZam Bank, Ethiopia’s first fully fledged interest-free bank, reported pre-tax profit of more than 1.8 billion birr in the 2025/26 financial year, as its total assets surpassed 30 billion birr, according to a statement issued following its annual shareholders’ meeting.

The results come as the bank enters its sixth year of operations, seeking to expand its financing capacity and strengthen its capital base in Ethiopia’s growing interest-free banking sector.

The bank’s paid-up capital reached 5.64 billion birr, while shareholders unanimously approved a proposal allowing them to receive dividends in additional shares rather than cash, according to the statement. The arrangement would enable participating shareholders to increase their holdings while retaining funds within the bank.

ZamZam Bank was the first institution to receive a licence from the National Bank of Ethiopia to operate as a fully fledged interest-free bank. It received its licence on September 28, 2020, and began operations in June 2021, according to its published corporate history.

The bank had previously set a target of increasing its authorised capital to 15 billion birr, following a decision at an earlier shareholders’ meeting. Its paid-up capital now stands at 5.64 billion birr, the statement said.

Board chairman Nasir Dino told shareholders that the bank had established a foundation for further growth during its first five years, despite operational challenges. He attributed the reported performance to efforts by shareholders, management and employees.

Chief executive Melika Badri said customer growth, service improvements and technology adoption had contributed to the bank’s performance. She said improvements to operational processes had also helped the lender deliver services more efficiently and manage costs.

The bank also reported encouraging performance in the first quarter of the 2026/27 financial year but did not disclose figures for the period.

The latest results point to the bank’s expansion, although the statement did not provide a breakdown of operating income, deposits, financing or net profit after tax. It also did not include comparative figures for the previous financial year, limiting an assessment of year-on-year earnings growth.

Source: FSX Business News