Awash Weathers Inflation, Rakes in 8.7b Br


Awash Weathers Inflation, Rakes in 8.7b Br

On its 29th annual general assembly, the 947-branch Awash Bank posted 8.7 billion Br in net profits. Held at Skylight Hotel, the Bank’s board of directors announced significant financial growth over the past year with deposits surging 24pc to 232.4 billion Br. With non-performing loans below the regulator’s 5pc requirement, sitting at 1.25pc, credit rose to 183.5 billion Br, up from 161.9 billion Br, with 24pc allocated to domestic trade and services, followed by exports at 16.6pc and building and construction at 16.4pc. As the first private bank to surpass the one billion dollar mark in forex receipts last year, Awash generated 1.52 billion in dollars. Total assets increased by 25.9pc to 282.4 billion Br with paid-up capital showing a 39pc increase to reach 20.3 billion Br. Tsehay Shiferaw, CEO, pointed to the challenges faced over the past year due to various factors. A significant issue was the nationwide drop in export earnings during the fiscal year as well as credit growth limitations and ensuing liquidity crunch owing to the Central Bank’s efforts to control inflation. He also noted concerns with heightened cybersecurity risks, as the country has seen an increase in cyberattack attempts, posing a serious threat to operations. Tsehay stated that the bank was able to withstand the challenges by crafting different strategies and has also become a shareholder in the Ethiopian Securities Exchange to the tune of 70 million Br in February 2024. Though earnings per share decreased from 577 Br to 487 Br, Tsehay said: "I believe it is still attractive." He also noted that personnel expenses of the bank have been emerging as the largest component of total expenses, increasing 47pc with double digit inflation to blame.

[ssba-buttons]

Radar

Bank of Abyssinia Signs Partnership with Droga Cooperative

Bank of Abyssinia has entered into a partnership agreement with Droga Health & Financial Savings and Credit Cooperative to provide financial support and services for its members. The agreement was signed yesterday at the Bank's headquarters. The deal aims to strengthen collaboration between the two institutions, enabling cooperative members to access tailored banking services. It was signed by Wosenyeleh Abera, Deputy CEO for Customer Relations and Marketing at the bank, and Zelalem Yilma...


Radar

Wegagen Introduces Real Time SWIFT Tracking

Wegagen Bank has launched a new mobile app feature enabling customers to track international SWIFT payments in real time. The bank is the first in Ethiopia to introduce an online SWIFT payment tracking system. By integrating SWIFT Global Payment Innovation, customers, particularly those involved in import-export trade, can monitor cross-border transactions using a Unique End-to-End Transaction Reference (UETR) directly from their smartphones. To use the service, customers select the SWIFT...


Radar

National ID, Zambia Partners to Expands Program Reach

The National ID Program has signed an agreement with Zambia's counterpart to provide consulting services for the development of software that will issue digital IDs. It is the first time the institution has extended its expertise beyond national borders, a sign of growing recognition for its rapid progress. Program officials described the partnership as a milestone in their effort to position themselves as a regional player in digital transformation. The collaboration is expected to center...