Jul 13 , 2024
The state-owned Commercial Bank of Ethiopia (CBE) registered a record-breaking 25.6 billion Br in gross profits for the ended fiscal year, driven by aggressive cost-cutting measures. While CBE faced a challenge earlier in the year with a system glitch, the bank has demonstrably grown its customer base, now exceeding 45 million people. Its total deposits surpassed the trillion birr mark, reflecting a major increase of 170 billion Br. The Bank's revenue also grew by 13pc, reaching 135.4 billion Br. CBE stands out as one of the top three most profitable state-owned enterprises under the Ethiopian Investment Holding (EIH). The Bank issued loans and advances totalling around 218 billion Br, with the private sector receiving nearly 91pc of this amount. Notably, CBE has managed to reduce its non-performing loans to just 2.6pc. CBE holds a unique position within Ethiopia's banking sector. The central bank's recent classification designated CBE as the only bank in the "large" category. This dominance is achieved despite a major portion of its paid-up capital being comprised of government-issued promissory bonds that are yet to be settled. CBE manages nearly half of the 3.1 trillion Br in assets held by the entire financial sector. The Bank has prioritised technological advancements in recent years which has driven the value of digital transactions to a staggering 1.19 trillion Br, representing a surprising 71pc of all transactions conducted.
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