Aided by investment income, Oromia International Bank, one of the mid-sized commercial banks, netted 860.5 million Br in profits during the past fiscal year. Its profit posted a 15pc expansion from the previous year.

Despite this considerable increase, Oromia's earnings per share (EPS) slowed to 320 Br, a 16pc decline from a year ago. Last year's EPS is far lower than the 525 Br value recorded three years ago.

A massive injection of paid-up capital caused the reduction in EPS. The Bank increased its paid-up capital by 26pc to three billion Birr, making it one of the better capitalised commercial banks.

Putting his Bank's performance in the context of the country's economic situation, Asegid Regassa, board chairperson of Oromia, asserted that the country's macroeconomic data showed a better-than-expected outcome in the last fiscal year. His statement is contrary to those of many board chairpersons of banks and insurance companies.

Asegid cited better tax collection performance, bank lending, export figures, airline receipts, and industrial park activities as strong economic signs. But he also explained the key challenges facing the banking industry and his Bank as well.

The Novel Coronavirus (COVID-19) pandemic, high inflation, the foreign currency crunch, and reduced activity in a few COVID-19 affected sub-sectors were key challenges of the Bank, according to Asegid.

Teferi Mekonnen, president of the Bank, says that the management used an out-of-the-box approach to overcome these challenges and use them as opportunities.

"We finished the year with a pretty encouraging bottom line of six percent year-on-year growth during such an unprecedented year full of unexpected institutional and national spending and loss of target earnings," he said.

Oromia's income from interest on loans, advances and investments in National Bank of Ethiopia (NBE) bonds and income from interest-free financing soared by 27.1pc to 3.1 billion Br. However, revenues from service charges and commissions dropped by 20pc to 522.4 million Br, while gains on foreign exchange dealings sank by 55.6pc to 65 million Br.

"The reduction in service charges and commissions is concerning," commented Abdulmenan Mohammed, a financial statement analyst. "The management should pay attention to this area of business."

The fall in bank service charges and commissions is explained by the lockdown sustained by global trade in general and that of local trade in particular, according to Teferi.

A reduction in gains on foreign exchange dealings has been observed across commercial banks. While some banks' gains declined, others have reported zero earnings or even losses from foreign currency dealings last year. The bankers cited the Birr's depreciation against a basket of major foreign currencies and slowed global trade activity as causes.

Over the past couple of years, the annual pace of nominal depreciation of the Birr has been gradual and quite stable at about five percent. However, throughout the past year, the local currency has been continually devaluing by approximately 0.3pc every week.

"Foreign exchange dealings in which we deal with the NBE [when available] aren't among regular business both in volume and frequency," said Teferi. "It's an insignificant component of our income, and the margin is very tight even during a normal situation. Last year it was almost not available."