Abay Bank’s sees record high profit of Birr 419 million, up by 68% from the previous year

Abay Bank’s sees record high profit of Birr 419 million, up by 68% from the previous year

ADDIS ABABA (Semonegna)–The Board of Directors of Abay Bank S.C. has reported, as per the IFRS reporting requirement, that the bank registered 419 million birr gross profit for the fiscal year (FY) ended on 30th June 2018, which represents a 68% growth over the previous year’s record of 249 million birr.

During the year ended on June 30, 2018, the Bank’s aggregate deposit reached 9.6 billion birr. The Bank’s aggregate deposit has surged by 41% indicating a net increment of 2.8 billion birr from its previous year record.

Compared to the previous year’s achievement, saving and demand deposit mobilization performance recorded a growth rate of 55% and 42% respectively; while fixed time deposit recorded a 1% decline. Similarly, the deposit mobilized through the Interest Free Banking service has reached 289 million birr growing by 182 million birr from last year’s record.

The total loans and advances of Abay Bank reached 6 billion birr in the FY showing a growth of 40% from last year same period.

Abay Bank was able to generate a foreign currency of 164 million USD registering a 33% growth against the preceding year. Out of all sources, the foreign currency mobilized from export sector took the lion’s share (87%) followed by SWIFT (7%), money transfer agents (5%) and others (1%).

During the year, the Bank incurred a total expense of 898 million birr, exhibiting a 44% upsurge over the previous year’s record. As compared to the previous year, interest expense, salaries and benefit expense, general expense and Provision on Loans and others Assets expense have gone up by 64%, 35%, 14% and 202%, respectively.

As of June 30, 2018, the total asset of the Bank reached 12.3 billion birr showing an increase of 43% from the previous year record. Paid up capital of the bank has reached 1.3 billion birr increasing by 33% as compared to its previous year record. On the other hand, the total capital of the bank has increased by 36% and reached 1.8 billion birr.

In the reporting period, the bank generated a total operating income of 1.3 billion birr (66% from interest income, 19% from commission income, and 15% from other miscellaneous incomes), indicating an overall growth of 51% compared to the previous year’s performance.

Abay Bank was able to open 18 new branches in different parts of the country (12 in Addis Ababa and the rest outlying towns), so as to have a total of 162 branches as of 30th June 2018. It is reported that 68% of the Bank’s branches are located in regional towns and cities (including Dire Dawa City Administration) while the rest are in Addis Ababa. The total number of customers of the Bank (both Conventional and Interest Free Banking Service customers) has reached 475,386 growing by 41% over the last year record.

The total number of employees rose to 2,689 of which 1,374 are permanent employees while the number of outsourced staff is 1,315. On the other hand, the Bank has provided various in-house and external trainings for 1,944 permanent employees to improve the competence of its human resource in different capacities.

Source: abaybank.com.et


The post Abay Bank’s sees record high profit of Birr 419 million, up by 68% from the previous year appeared first on Semonegna Ethiopia.

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