Bunna International Bank managed to steer itself back into the realm of positive growth after making a profit that has made the turnaround.

Netting 670.6 million Br in its operations last year, a 52.3pc jump, the performance is a welcome change for Bunna's executives, who shad seen a 4.6pc decline in 2019/20, displeasing shareholders. Among these shareholders was Meseret Degefu, who was discontented with the decline in earning per share in the preceding year. Bunna's earnings per share (EPS) receded by 21.6pc to 225 Br in the previous year's operation.

To the delight of close to 16,000 shareholders, Bunna's latest performance boosted earnings per share by 68 Br to 293.2 Br. They also saw equity grow by 15.6pc to reach 2.5 billion Br by the end of June 2021.

“Last year was better than the disappointing returns shareholders had received the year before,” Meseret told Fortune.

She bought shares worth 50,000 Br eight years ago. Her investment has since doubled as she recapitalises the dividends she receives.

The tide changed due to the management’s focus on the expansion of customer base, improved service efficiency and growing branch outreach, according to Sewale Abate (PhD), board chairperson, who addressed shareholders during a meeting at the Golf Club held on December 11, 2021.

The Bank closed the financial year with 1.4 million deposit account holders after over 579,000 clients opened accounts last year. It added 46 branches during the reporting period, bringing the total branch network to 285. Total deposits reached 20.5 billion Br last year, growing 47.5pc.

The rise in deposits matched the growth in loans and advances.

Bunna disbursed 6.7 billion Br last year, bringing its outstanding loans and advances to 17.9 billion Br. This pushed the loan-to-deposit ratio to 87.7pc from 83.3pc the previous year, inching closer to the prudent ceiling of 90pc. Although the high ratio brings more in interest income, it could cause liquidity problems, according to Abdulmenan Mohammed, a financial statement analyst based in London.

"The management should constantly monitor liquidity levels,” he said.

Accounting for 79pc of the total, interest income remains the major contributor to Bunna Bank’s revenue, reaching 2.6 billion Br last year. This shows that the Bank is generating much of its income from viable and less risky sources, according to Mulugeta.

However, the Bank saw its gains from foreign exchange dealings plummet by 85.5pc to 7.61 million Br last year.