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Abyssinia boast sold performance
Mulugeta Asmare, President of BoA

Abyssinia boast sold performance

Bank of Abyssinia SC (BoA) last week reported a remarkable performance for the ended budget year. The bank, which is among the seasoned private financial institutions in the country, amassed a net profit after tax amounting to 534 million birr, a 42.6 percent from the preceding year.

The Bank has also repeated its last year’s performance as far as earning per share (EPS) is concerned. In this respect, Abyssinia increased its EPS of 1,000 birr by 19 percent to 375.6 birr.

Its profit registered as of June 30, 2017 is the largest since 2010.

The Bank has managed to increase its EPS at the same time expanding its paid-up capital by 62 percent to 1.8 billion birr. This will put the bank among the few private banks that are a few miles away from fulfilling the Central Bank’s requirement of increasing their paid up capital to two billion birr by 2020.

In addition, when looking at the bank’s balance sheet, BoA has managed to expand its total assets by 50 percent to 25.3 billion birr whereas for deposit generation, it mobilized a total deposit of 20.7 billion birr, a 7.06 billion birr increase from the preceding year.

As far as loans and advances are concerned, the bank disbursed loans and advances amounting 14.1 billion birr, reflecting a 73.7 percent rise from the previous reporting year.

When it comes to revenue generation, BoA generated a total income of 2.4 billion birr of which interest incomes from loan disbursed are 1.5 billion birr.  This year’s 45.64 percent growth in total income is marginally higher than its previous year, which was 41 percent.

BoA unlike the industry’s decreasing trend in net gain from foreign exchange dealings, reported a 21.1 percent rise to 202 million birr.

As far as the industry is concerned, the decline is basically associated with a nationwide shortage of forex.

Private Banks such as Lion have also reported a declining trend while Bunna Bank was the exception with a very slight increase.

On the other hand, the bank incurred a total expense of 1.67 billion birr, a 46 percent rise from the previous year. From this, the bank spent 615 million birr in salaries and benefits for staffs.

As of June 30, the bank has opened 48 new branches and brought the total number of branches to 233. The bank has also aggressively worked on the penetration of the digital service.

The adoption and usage of card banking and mobile banking grew by 127 percent and 157 percent, respectively, reads the bank’s report. In this respect, the number of mobile banking users reached 107, 711 while card users stand at 132,703.

BoA was established with an authorized and paid up capital of 50 million birr, and 17.8 million birr, respectively, and with only 131 shareholders and 32 staff. Its total capital has now reached 2.9 billion birr and has a total staff of more than 5000.