Debub Global Bank raised its earnings per share (EPS) last fiscal year, leveling it with the industry average.

The Bank was able to boost its EPS by more than a double-digit figure as a result of a huge increase in net profit that soared by 113pc to 225.8 million Br. Earnings per share shot up to 323 Br from 131 Br.

Abdulmenan Mohammed, a financial analyst with close to two decades of experience, commends the management’s decision to bring the EPS of the Bank on par with the industry average.

Tesfaye Botu (PhD), president of Debub Global since July 2019 after replacing Addisu Habba, attributed the huge increase in profit after tax to the increase in interest income and deposit mobilisation.

In the reported period, the Bank's earnings from interest on loans and advances and NBE bonds reached 331.7 million Br, registering a 51pc growth. It also gained 76.6 million Br in foreign exchange dealings, which increased by 51pc.

“Achieving such an increase in gains on foreign exchange dealings is amazing in an area of business with tough competition,” said Abdulmenan.

Making major coffee exporters from the Southern Nations, Nationalities &  Peoples' Regional State its clients has helped Debub Global boost its earnings from foreign currency, according to Tesfaye.

The Bank also registered a marked increase in fees and commission income, which rose by 102pc to exceed 275.8 million Br.

The restructuring implemented in the top management of the Bank and the expansion of the marketing department has contributed to the positive gains, according to Nuredin Awol, the chairperson of the board of directors of the Bank, which was established seven years ago and whose shareholders exceed 11,000.

It also employed a close follow up by the board members to help attract big shareholders in the business sector who were instrumental in increasing the foreign exchange earnings, according to Nuredin.

Parallel to the income spike, the Bank witnessed a considerable expansion in expenses. Interest expenses shot up by 80pc, exceeding 144 million Br associated with the massive growth in deposits.

Expenses for salaries and benefits also increased by almost half to 125.7 million Br, with general and other operating expenses swelling to 123.3 million Br, showing a 19pc increase.

The expert cautions that the growth of salaries and benefit expenses needs attention from the management of the Bank.

However, Tesfaye, relates the expense spike with the growth of the Bank. Branch expansion along with its associated costs such as office rents and salary payments for the new employees caused the expenses to swell, according to the president.