Berhan Bank, which celebrated its 10th year of establishment recently, achieved an impressive performance last year by boosting profit by almost half.

The Bank netted 440.8 million Br in profit, a 42pc increase from the previous year. Earnings per share (EPS) clocked in at 24.65 Birr a share, up from 20.36 Br. Yet EPS still fell below the level the Bank achieved three years ago, 30.44 Br a share, mainly due to a huge increase in its paid-up capital.

The Bank designed a strategy of passing the two Billion Br paid-up capital level before June 2020, according to Abraham Alaro, president of Berhan.

"It is to ensure the long-term competitiveness of the Bank instead of focusing on the short term gains," Abraham said.

In the reporting period, the Bank achieved growth in both financial and non-financial intermediation activities.

However, Gumachew Kussie, the chairperson of the board of directors, asserted that the Bank's positive performance is even more commendable when viewed in light of the industry's challenges.

"The macroeconomic environment can be well explained by numerous challenges encountered," wrote Gumachew in his address to the shareholders.

The economic and political transitions, the tense political situation, the chronic forex currency shortage on top of global development having a negative bearing on international trade are the major challenges Gumachew mentioned.

The Bank generated more than 1.5 billion Br in income from interest on loans, advances and NBE bonds, a growth of 38pc. Revenues from service charges and commissions also increased by 58pc to reach 543.3 million Br. Foreign exchange earnings also showed a marked rise of 31pc to 81.5 million Br.

“The growth in income at Berhan is impressive,” remarked Abdulmenan Mohammed, accounts manager for the Portobello Group Ltd, a London-based holding company.

Abraham states that the management of the Bank has employed a successful marketing strategy to increase the Bank’s foreign currency earnings.

He also noted the Bank efficiently used the foreign currency allocation it received from the National Bank of Ethiopia (NBE). The NBE allocated a new pool of foreign exchange currency to the commercial banks last year based on each bank's transfer of 30pc of their foreign currency earnings to the central bank. Berhan received 12.2 million dollars from the allocation.

The Bank had more than 10,000 registered customers on its waiting list at the time, according to Abraham.

The surge in income is also accompanied by a huge increase in expenses. The 45pc increase in interest expenses reached 605 million Br, while salaries and benefits also shot up by 42pc, hitting 623 million Br. General administration expenses have also shown a 38pc increase, exceeding 324 million Br.