Awash Bank shareholders voted to boost the paid-up capital to 55 billion Br in the next four years, a one billion dollars threshold in the current exchange rate. Achieving such height will make the first private bank the most capitalised in the league of private commercial banks.

However, the decision has raised eyebrows in the legal community that the directors of Awash Bank are in non-compliance with the commercial code that required submissions of a list of new shareholders subscribing stakes with the company before securing existing shareholders' concessions. They have decided to offer three billion Birr worth of shares to loyal customers over the past 28 years with half the premium value. Two billion Birr shares will be offered to the staff.

In the words of the Bank's President, Tsehay Shiferaw, the move is one way of preparing to compete with foreign banks anticipated to enter the domestic financial sector.

Awash Bank has maintained its reputation as the leading private bank in the market; hence its shares are most sought after by prospective shareholders. Its net profit from last year's operation climbed by a substantial 57pc to 5.3 billion Br, an amount equal to the capital threshold the central bank demands all banks to meet come 2026.

The Bank has recorded meritorious growth, increasing its paid-up capital by 25pc from last year to 10.2 billion Br, already doubling the ceiling put by the central bank way before the deadline in 2026. Dibaba Abdeta (PhD) marked the year as "commendable", despite instability, pandemic, drought and inflation.

The growth is mainly attributed to a significant increase in interest income and fees on foreign exchange dealings. The interest on loans, advances, central bank bonds and other deposits surged by 43pc to 14.1 billion Br. Its revenues from non-financial intermediation businesses showed impressive growth. Fees and commissions grew by 89pc to 4.9 billion Br, and gains on foreign exchange dealings surged by 33pc to a little over one billion Birr.

"It was a remarkable performance," said Abdulmenan Mohammed, a financial expert who closely follows developments in the domestic financial market. "The management of the Bank should take credit."

Earnings per share (EPS) significantly increased by 100 Br from the previous year to 570 Br, more than double the industry's average, a result that pleased shareholders.

Elias Negassi is one of the over 6,000 shareholders who bought 811 shares while working in the bank 20 years ago. He is delighted with the Bank's overall performance and appreciates Awash's management positioning to navigate through the entry of foreign banks.

However, he feels there are areas for improvement, particularly on the digital technology front. He worries that inadequately trained staff at a management level not adept at technological advancement can challenge Awash Bank.