Fortune News | Mar 07,2020
Mar 21 , 2020
By GELILA SAMUEL ( FORTUNE STAFF WRITER )
Debub Global Bank, one of the late entrants in the industry, has finalised the process to secure a plot for its headquarters in the capital's financial district.
The land, which is located behind the headquarters of Dashen Bank in Senga Tera, covers 5,500Sqm. The Bank is expected to agree to 115.5 million Br as a lease payment for the land.
Debub Global placed a request to the city's Land Development & Management Bureau at the end of December. Currently, the two parties are finalising the paperwork for the transfer of the land. The management of the Bank hopes the process will be wrapped up in two months.
The construction of the headquarters is planned to be completed within five years, according to the in-house pre-feasibility study the Bank submitted to the land management bureau.
Senga Tera, located in the Mexico area in Lideta District, is the heart of the financial district, already home to the headquarters of many banks and insurance companies including the Commercial Bank of Ethiopia (CBE), Zemen Bank, Nyala Insurance, Oromia Insurance, Nib Bank and United Bank.
The city's land administration bureau met with bank executives six months ago at Hyatt Regency Hotel to discuss how to allocate land to them in the area. Executives of Debub Global were among those who attended the meeting and showed interest in leasing land for a headquarters building.
The Bank is waiting to receive the land to commence with the design of the building, according to a senior management member at the Bank, which netted 225.8 million Br in the last fiscal year, while its total assets reached 5.5 billion Br.
During the last fiscal year, the Bank spent 36.3 million Br to rent its headquarters and branches. Currently, it is using National Tower as a headquarters, a four-storey building situated near General Abebe Dametaw St. behind Ethiopia Hotel. The Bank has a branch on the ground floor of the building.
Established in 2012 with a paid-up capital of 22.3 million Br, Debub Global began operations by opening its first branch on Africa Avenue. Since its establishment, the Bank has built a network of 57 branches and hired more than 3,000 employees that serve more than a million customers across the country. Through its eight years of operation, the Bank’s paid-up capital has risen to 721.9 million Br with 11,000 shareholders.
For the sake of housing most of its operations in a centralised location, cutting down expenses, and developing the city, it is a smart move, according to Abdulmenan Mohammed, a financial expert with 15 years of experience.
However, looking at the current trends, most banks are in a cut-throat competition of asset accumulation and investing heavily in real estate instead of focusing on rigorously improving their core banking services, according to the expert.
"Hence, banks must level the competition of expanding corporate headquarters with efficient service," he said.
PUBLISHED ON Mar 21,2020 [ VOL 20 , NO 1038]
Fortune News | Mar 07,2020
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