Awash Bank of Ethiopia grows profit by $43.4 million

Compared to the previous budget year annual gross profit of Awash Bank for the year ended June 30, 2019, has grown up by about 1.381 billion birr (about $43.4 million at the current exchange rate).

Awash Bank, which is the first private in Ethiopia after 1991, has earned a gross profit of close to 3.35 billion birr (about $105.2 million). The profit for the year is 70% higher than the previous budget year, according to the annual report of the Bank obtained.
The capital and reserve of Awash Bank has also increased by 48% to 9.639 billion birr (about $303.1 million) compared to the previous budget year.

The report also shows that loans and advances provided by Awash Bank has increased by 51% to 47.262 billion birr (about $1.49 billion).
The deposit of Awash Bank has also gone up by 36% reaching 62.464 billion birr (about $1.97 billion) during the budget year concluded June 30, 2019. It is also stated that Awash Bank has created jobs for a total of 9,046 employees, including 1,425 new recruits during the budget year July1, 2018-June 30, 2019.

The report also stated that Awash Bank has also opened 44 new branches across Ethiopia during the year in review increasing the total number of its branches to 410 by the end of June 30, 2019.

“…Earnings per share of Awash Bank has shown an amazing growth from 543 birr in 2018 to 632 birr in 2019 for par value of 1,000 birr,” said Tsehay Shiferaw, CEO of Awash Bank, in his statement published on the annual report of the Bank. “…In spite of the challenges, with a concerted effort of all, our Bank was able perform much better than the preceding years and has maintained its leading position in the private banking industry,” he said.

Instability in some parts of Ethiopia, huger demand-supply gap for hard currencies, the foreign currency surrender requirements set by the financial sector regulatory agency of the country (the National Bank of Ethiopia) and stiff competition among local banks for deposits, were some of the major challenges for Awash Bank during the year concluded June 30, 2019, according to Mr. Tsehay.

He also indicated that the nonperforming loans ratio of Awash Bank was at 1.1% at the end of June 2019, which is below the maximum threshold set by the National Bank of Ethiopia.