Regulatory Alerts2025-12-31
National Bank of Ethiopia Audited Financial Statements for the Year Ended 30 June 2025
The National Bank of Ethiopia released audited financial statements for the year ended 30 June 2025, revealing a Birr 428.56 billion operating loss and Birr 380 billion in negative equity primarily caused by Birr 445 billion in unrealized foreign exchange adjustments and gold commodity write-downs. In response, the newly enacted Proclamation No. 1359/2025 raises authorized capital to Birr 20 billion, restricts profit distributions until the General Reserve Fund reaches five percent of monetary liabilities, and mandates that unrealized exchange gains be transferred to revaluation reserves. The Bank sustains its going concern status by recognizing an Birr 815.6 billion impairment reversal on financial assets, implementing rigorous foreign exchange risk controls, and conducting comprehensive capital adequacy assessments.