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]
Fortune News | Dec 26,2020
Radar | May 11,2019
Fortune News | Jan 15,2022
Fortune News | Feb 13,2021
Fortune News | Nov 16,2019
Radar | Dec 20,2025
Fortune News | Aug 13,2022
Fortune News | Jan 01,2022
Fortune News | Dec 27,2018
Radar | Jan 10,2026
Dec 22 , 2024 . By TIZITA SHEWAFERAW
Charged with transforming colossal state-owned enterprises into modern and competitiv...
Aug 18 , 2024 . By AKSAH ITALO
Although predictable Yonas Zerihun's job in the ride-hailing service is not immune to...
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...
Jul 13 , 2024 . By AKSAH ITALO
Investors who rely on tractors, trucks, and field vehicles for commuting, transporting commodities, and f...
Jun 27 , 2026
The federal legislative house rushed through one of the country's most contentious ho...
When Parliament takes up the appropriation bill, federal legislators will receive a d...
Jun 13 , 2026
The recent policy decision to fully open freight forwarding to foreign capital may be...
Jun 6 , 2026
For a political veteran as controversial as Getachew Reda, last week's national elect...
Loading your updates...