Hijra Bank S.C. is drawing significant interest from foreign investors seeking equity stakes between 5% and 50%, originating from Dubai, Turkey, Saudi Arabia, Djibouti, and Kenya. This surge follows Ethiopia’s recent banking sector reforms allowing foreign participation, promising fresh capital and expertise for local institutions. The bank’s proactive steps to meet central bank capital requirements position it strongly in this evolving landscape.
Investor Interest Details
Foreign suitors include financial institutions and diverse business groups, though identities and timelines remain undisclosed. Board chairperson Abdulselam Kemal emphasized prioritizing existing shareholders during the fifth annual general meeting at Millennium Hall. Discussions at the board level ensure alignment with current stakeholders before proceeding.
Financial Performance Highlights
Revenue soared 150% to 1.766 billion birr for the fiscal year ended June, marking the first earnings per share declaration since inception. Pre-tax profit hit 721 million birr, with paid-up capital climbing 29.4% to 3.5 billion birr via a growing shareholder base. Key boosts came from the largest shareholder’s 500 million birr purchase and Oromia Majlis’s 20 million birr investment.
Strategic Capital Moves
The bank accelerates compliance with minimum paid-up capital mandates amid sector liberalization. This positions Hijra to leverage international best practices and technical know-how. Prioritizing shareholders underscores governance focus in foreign deal talks.
Benefits of Sector Opening
Liberalization injects capital, expertise, and global standards into Ethiopia’s banks. Domestic players like Hijra gain competitive edges through partnerships. Expect enhanced services and stability as foreign entry materializes.
FAQ
What equity stakes are foreign investors seeking in Hijra Bank?
Investors target 5% to 50% stakes, spanning financial institutions and business groups from multiple sectors.
Which countries are showing interest in Hijra Bank?
Interest originates from Dubai, Turkey, Saudi Arabia, Djibouti, and Kenya.
How has Hijra Bank’s revenue grown recently?
Revenue reached 1.766 billion birr, up 150% year-over-year, with pre-tax profit at 721 million birr.
What capital actions support regulatory compliance?
Largest shareholder bought 500 million birr shares; Oromia Majlis added 20 million birr, lifting paid-up capital to 3.5 billion birr.
Why prioritize existing shareholders?
Board decision ensures current owners’ interests lead foreign investment discussions, as stated by chairperson Abdulselam Kemal.
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