Six of seven are banks
As of October 2026, six of the seven companies on the ESX register are banks. Learning to read a bank therefore covers most of the market.
Stock Market Basics · Lesson 7 of 10
Banks: how they make money
The basics of reading a bank, which covers six of the seven ESX listings.
6 minutes · 8 questionsLesson 7 · Card 1 of 4
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Six of seven are banks
As of October 2026, six of the seven companies on the ESX register are banks. Learning to read a bank therefore covers most of the market.
How a bank earns
The biggest source of income is net interest income: interest earned on loans and securities minus interest paid on deposits. Banks also earn fees and commissions, and income from buying and selling foreign currency.
The key ratios
Net interest margin shows how profitable lending is. Cost-to-income shows how much income running costs eat. The non-performing loan ratio shows how many loans are not being repaid. The capital adequacy ratio shows the cushion against losses.
Rules matter
The National Bank of Ethiopia sets capital, lending and reporting rules, and they have changed recently. Always compare a bank's capital with the current minimum and read the audited annual report.