CBE Strengthens Dominance as Smaller Banks Lose Ground

The Commercial Bank of Ethiopia (CBE) has increased its market share in the country’s banking sector, reversing a declining trend and reinforcing its position as the dominant player.

New data from the National Bank of Ethiopia’s (NBE) third Financial Stability Report, released this week, shows that CBE’s share of total banking assets rose to 49.1 percent in 2025, up from 47.9 percent a year earlier and nearly returning to its 2023 level of 49.5 percent.

The rebound is even more pronounced in lending. CBE’s share of loans and bonds jumped to 51.7 percent, from 45.2 percent the previous year, pointing to a stronger grip over credit allocation in the economy.

By contrast, medium and small banks are losing ground. Their shares of loans, deposits, and capital have either stagnated or declined over the past year, even as the overall sector continues to expand.

CBE’s renewed dominance is not happening in isolation. The bank has undergone a series of reforms in recent years, including changes to its lending practices to state-owned enterprises, efforts to strengthen internal governance, and investments in workforce capacity.

The share of total banking sector credit held by the top 10 borrowers, largely state-owned enterprises and regional governments, has declined from 14.7 percent in the previous fiscal year to 12.4 percent by June 2025, indicating a gradual reduction in concentration risk.

In addition, CBE is strengthening its capital base through government support and concessional financing from the World Bank, positioning the bank to continue playing a central role in financing Ethiopia’s economic development.

Based on total asset size classification, CBE remains the only bank categorized as a large bank in Ethiopia among the country’s 31 commercial banks. Meanwhile, there are five medium-sized banks and 25 small-sized banks as of the latest review period. This means that 25 of the country’s 31 banks operate with a combined total asset share of 21.8 percent.

Interactive Visual by Shega

Ethiopia's Banking Sector Market Share by Size, 2023–2025

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Anteneh Tesfaye Taye

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