Dispute with Directors Leads Berhan Bank’s President to Step Down

Nov 3 , 2023

Berhan Bank’s President, Girum Tsegaye, tendered his resignation yesterday, November 2, following undisclosed disagreements with the Bank’s board of directors, chaired by Gumachew Kussie, signalling potential strategic discord at the financial institution he helped navigate through a challenging period.

Girum, who took the helm at Berhan Bank 20 months ago, was at the forefront of steering the Bank back to profitability following a year that saw its net profit plunge by 65pc to 195 million Br and shareholders’ returns fall by 71pc to 74 Br. Under his tenure, the Bank made a turnaround, raising its dividend from 3.3pc in 2021 to 7.7pc last year, despite performance remaining below the industry’s average.

“I consider this a great success,” the President told Fortune, declining to disclose the reasons for his disagreements with the Board.

The Board promptly filled the executive vacuum created by Girum’s departure, appointing Solomon Assefa as the interim President.

Solomon, 51, is an Addis Abeba University economics graduate and a veteran banker, with stints at the now defunct Construction & Business Bank (CBB), the National Bank of Ethiopia (NBE), and Nib Bank, where he amassed a diverse experience ranging from business development to international banking over the years.

Berhan Bank, which has been navigating what industry insiders describe as “turbulent waters,” will hold its annual shareholders meeting in November, where disclosure over the executive transition is expected to be disseminated.