CBE Hits Historic 80B Birr Profit Milestone Amid Ethiopia’s Economic Reforms

The Commercial Bank of Ethiopia (CBE) has cemented its position as the bedrock of the nation’s financial system, reporting a record-breaking annual profit of over 80 billion birr for the 2025/26 fiscal year. The results, announced on July 1, highlight the state lender’s continued dominance even as Ethiopia’s banking sector undergoes rapid competitive expansion.

A centerpiece of the bank’s performance was its aggressive deposit mobilization. The CBE brought in 707.4 billion birr in new deposits during the fiscal year a significant jump over the 515 billion birr collected in 2024/25. This growth pushed the bank’s total deposit base past the 2.4 trillion birr mark, a clear signal that the CBE remains the primary vehicle for liquidity in the Ethiopian economy.

Driving Growth Through Private Sector Lending The bank’s lending strategy underwent a notable shift toward the private sector, which now constitutes the bulk of its credit operations:

• Total Disbursements: 648 billion birr, up from 458.4 billion birr the prior year.
• Private Sector Allocation: 588 billion birr, representing 90 percent of all new lending (compared to 88.3 percent in 2024/25).
• Asset Quality: Loan recoveries surged by 91 percent, reaching 546 billion birr, a critical metric for analysts monitoring credit health in a reforming economy.

Foreign Currency and Strategic Outlook The CBE’s influence extends beyond domestic deposits; it generated 5.6 billion US dollars in foreign currency over the 12-month period. Export proceeds accounted for 2.1 billion US dollars of this total, reinforcing the bank’s role as a vital conduit for Ethiopia’s hard currency requirements.

CBE President Abe Sano attributed the record performance to a combination of disciplined internal operations, government support, and strong customer retention. Looking ahead, the bank has set an ambitious trajectory for the 2026/27 fiscal year, targeting 832 billion birr in new deposits and 360 billion birr in total revenue.

As the largest lender in the country, the CBE’s financial statements serve as a definitive indicator of the nation’s overall economic trajectory. With the market adapting to sweeping policy changes, the bank’s ability to scale both its balance sheet and its profit margins provides a strong pulse-check for investor confidence in the Ethiopian banking system.