Nib Bank Flaps its Profit Amidst Buzzing Board Challenges

Jan 1 , 2024

Nib Bank's robust net profits of 1.5 billion Br face a shadowy backdrop as the selection of the Board of Directors necessitated intervention from the central bank. The election process took an unexpected turn as objections raised concerns about corporate governance violations in the nominations with representatives from the National Bank of Ethiopia (NBE) called in to oversee. Board Chairman Woldetensai Woldegiorgis expressed gratitude to the central bank for guiding the Bank through the challenging election terrain. The general assembly, hosted at the Inter-Luxury Hotel last week, included cautionary remarks from the central bank representative, who disclosed a myriad of complaints received at NBE headquarters. Despite the turbulence in the board selection, Nib Bank managed to illuminate its financial performance, reporting a 27.5pc increase in total income to 8.9 billion Br, while outstanding loans and advances saw growth by 14.3 billion, reaching a total of 53.3 billion Br. Nib Bank exhibited strength in its financial metrics, with a 19.3pc increase in total mobilised deposits, reaching 59.4 billion Br. However, shareholders voiced concerns about withdrawal limits of 5,000 Br from the Bank's branches, indicating severe liquidity challenges. The total assets of Nib Bank experienced a substantial uptick, registering a 25.3pc increment to reach 77 billion Br in the financial year. Notably, non-performing loans showed a decrease of approximately 0.9pc, settling at 1.91pc.