Nib International Bank Share Company has reported a pre-tax loss of Birr 2.9 billion for the fiscal year ended 2024/25, marking a significant financial setback largely attributed to foreign exchange revaluation losses.

According to the bank’s annual report, the loss was not due to the deterioration of its regular operations but stemmed from a Birr 4.4 billion foreign exchange revaluation loss arising from the government’s recent policy decision to unify the foreign exchange markets. The change in monetary policy led to a sharp increase in the value of foreign currency, forcing the bank to settle long-standing foreign-denominated debts at substantially higher exchange rates.

As a result of this loss, the bank’s total assets declined by 28 percent, and it was confirmed that no dividend will be paid to shareholders for the reporting period. The report further explained that much of the impact originated from obligations contracted at older, lower exchange rates under previous management.

Despite the loss, Nib Bank successfully repaid a Birr 5.85 billion loan obtained from the National Bank of Ethiopia in full, along with Birr 658.4 million in interest payments. The bank’s operational performance showed resilience, with income rising by 4.6 percent to Birr 11.3 billion, while customer deposits grew by 14 percent to Birr 51.3 billion during the year.

Source: Capital Ethiopia