Nib International Bank, a two-decade-old firm, was highly successful this past fiscal year, registering considerable net profit growth.

In the reporting period, the Bank netted 722 million Br in profit, a growth of 42pc. During the preceding year, the Bank's profit grew by only four percent. The company's earnings per share (EPS) also climbed by 20 Br to 154 Br.

Organisational structure, customer segmentation, deposit mobilisation and resource monitoring, were the reasons for the improved performance of the Bank, according to Genene Ruga, president of the Bank, which designed a new five-year strategy.

"The work we did on customer segmentation had a great impact on completing this year with a profit," said Genene, "moreover, the strategy helps us to maintain our capacity on technology, human resources and customer service."

Woldetensai Woldegirgis, the board chairperson of the company, attributed the Bank's success largely to its adoption of Balanced Scorecard (BSC), a strategic management tool that contributed substantially to growth.

"The tool concentrates not only on financial aspects but also takes into consideration three other major areas, which are setting customer need priorities, internal process and learning and growth endeavours," he wrote in the financial statement.

Several factors have contributed to such improved performance, including income-generating activities and financial intermediation operations. Interest on loans, advances and NBE bonds increased by 38pc to 2.9 billion Br, while fees and commissions increased by 29pc to 411.2 million Br.

However, income from foreign exchange dealings plummeted to zero from 46.4 million Br. Over the past few years, income from foreign currency dealing has been in decline.

"The decline is very concerning," said Abdulmenan Mohammed, a financial analyst based in London. "This area of business needs serious attention."

The wide gap of the exchange rate at the official and parallel market is one of the reasons why forex earnings declined, according to Genene.

Expenses of the Bank have also soared by 32pc to reach 2.4 billion Br. Interest expense went up by 39pc to 1.2 billion Br, while salary expenses and benefits increased by 27pc to 703 million. Other operating expenses increased 23pc to 423.1 million Br.

Provision for impairment of loans and other assets increased by 38pc to 65.6 million Br.

The growth of expenses at NIB is reasonable, according to the expert.

In the reporting period, Nib's total assets expanded by 26pc to 33.7 billion Br, matching the same growth rate as the preceding year. Nib's assets have largely expanded as a result of an increase in deposits.