FORTUNE+ VIDEO SPONSORED CONTENTS ADVERTORIALS FORTUNE AUDIO Fortune Careers TRADE AFRICA Election 2026 New TIME REMAINING UNTIL ETHIOPIA’S NATIONAL ELECTION 0Days 0Hours 0Minutes 0Seconds

Fortune Logo

Awash International Bank (AIB) posted a striking surge in net profits, reaching 6.9 billion Br this year, a milestone announcement made by its Chairman, Gure Kumssa, at the shareholders' meeting on Saturday. The celebration, however, was dampened by a contentious tax dispute that has emerged as a considerable concern for the Bank and its shareholders. The Bank's robust financial performance was revealed at a meeting held at the Skylight Hotel on Africa Avenue (Bole Road), demonstrating a substantial increase in net gains. However, the festive air was overshadowed by a looming legal challenge from federal tax authorities. AIB is embroiled in a dispute over the tax treatment of shareholders' retained earnings used to finance subscribed capital.


The controversy reached a critical point with AIB's appeal to the Federal Tax Appellate Commission. The legal quagmire derived from a Federal Supreme Court ruling that earnings used to pay subscribed capital should be subject to dividend tax. The ruling mandated that back taxes, including interest and penalties, be levied on previously untaxed earnings. It has rattled the financial sector, with observers predicting a potential standoff between Ethiopian banks and tax authorities.


Despite the legal hurdles, AIB reported a strong operational year. The Bank saw a 17pc increase in foreign exchange earnings, amounting to 1.46 billion dollars, and a 44pc growth in total assets, reaching 224.02 billion Br. Notably, the Bank has successfully reduced its non-performing loans (NPL) to under one percent, a key factor in its profit growth. AIB's performance has been remarkable, more than doubling its profits from the previous year and overshadowing competitors like Dashen and Abyssinia banks. The Bank's aggressive expansion strategy, marked by substantial growth in its branch network and a workforce exceeding 20,055, has significantly contributed to its success. However, the Bank's Earnings Per Share (EPS) saw a slight increase of a mere 1.2pc, from 570 Br posted the previous year. AIB maintained the highest EPS among private banks.



PUBLISHED ON Nov 25,2023 [ VOL 24 , NO 1230]

[ratemypost]


Related Posts

[ssba-buttons]

Put your comments here

N.B: A submit button will appear once you fill out all the required fields.

Editors' Pick

Exclusive Interviews

State Enterprises from Oracles to Apprentices

Dec 22 , 2024 . By TIZITA SHEWAFERAW

Charged with transforming colossal state-owned enterprises into modern and competitiv...

Agenda

Rising Costs, Inflation Threaten Insurance Industry

Aug 18 , 2024 . By AKSAH ITALO

Although predictable Yonas Zerihun's job in the ride-hailing service is not immune to...

Agenda

BREWING DISCONTENT

Jul 28 , 2024 . By TIZITA SHEWAFERAW

Unhabitual, perhaps too many, Samuel Gebreyohannes, 38, used to occasionally enjoy a couple of beers at breakfast. However, he recently swit...

Fortune News

Electric Vehicle Push Leaves Investors in the Lurch

Jul 13 , 2024 . By AKSAH ITALO

Investors who rely on tractors, trucks, and field vehicles for commuting, transporting commodities, and f...

Commentaries

How Africa Can Escape the Debt Trap

The narrative that Africa faces a persistent debt crisis has become entrenched. Despite representing nearly one-fifth of...

International Climate Law Needs Teeth

Last year, the International Court of Justice (ICJ) delivered a legal opinion on clim...

Fineline

Leaders of the National . . .

Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...

When the country’s most. . .

When the country's most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or two...

Editorial

T-Bills Trap Begins in the Federal Government's Own Budget

May 16 , 2026

The federal budget tells a troubling story about inflation, debt and reform. The prob...

Every Encounter with the State Should Not Become an Invoice

May 9 , 2026

The Ethiopian state appears to have discovered a fiscal instrument that is politicall...

National Dialogue Has Everything But the Trust It Needs

May 2 , 2026

By the time Ethiopia's National Dialogue Commission (ENDC) reached the end of its fir...

Addis Abeba's Roads Reveal a Country Where the Powerful Drive Through the Law

Apr 25 , 2026

In a political community, official speeches show what governments want their citizens...

Gallery

Parliament Approves New Cabinet Members

Oct 6 , 2021

Parliament Approves New Cabinet, Incorporates Opposition Leaders Lawmakers have approved today the nominations of 22 ministers, including three opposition leaders. Two MPs have voted against, while 12 abstained...

2020 in Posterity

Jan 5 , 2021

TIGRAY VOTES DESPITE "NULL & VOID" THREAT

Sep 9 , 2020

IN-PICTURE: LAUREATE'S RECEPTION  

Dec 14 , 2019

PM Abiy Ahmed (PhD) at a Gala Dinner Called for the Awarding of the Félix Houphouët-Boigny Peace Prize

May 6 , 2019

Faces, Voices of Addis Abeba

Apr 26 , 2019

Sunday With Eden

Love, Not Blood, Makes a Family

There are moments that quietly expose the prejudices buried inside society. They appear in ordinary places, a hospital corridor, a waiting r...

The Silence That Leadership Can't Keep

A few days ago, I attended a virtual conference in Canada that stayed with me, not because of the agenda...

Life Matters

The Hidden Limits Behind Unlimited Data Plans

A few weeks ago, I found myself reaching for a mobile data package after our home Wi-Fi went down. The el...

Motivation Drops as the Day Begins in Sleepwear

We have all seen the aesthetic. The “work from home” dream usually comes packaged with a plush sofa,...