BoA nets 178.44 million birr profit

Bank of Abyssinia (BoA) registered a record 178.44 million birr net profit in the past fiscal year. BOA’s gross profit before tax stands at 258.4 million birr. BoA, named after the oldest private bank in Ethiopian history, and itself one of the oldest private banks since the country implemented  a free economy in the past two decades, registered the biggest profit compared with last year’s performance, which was 140.581 million birr.

The aggregate balance of loans and advances that the BoA extended to its customers stood at 3.32 billion birr at the end of fiscal year 2010/11, showing a growth of 162.6 million birr compared with its balance of the previous fiscal year.

The financial statement indicated that domestic trade and services took the biggest lending position with its 34.6 percent of the total share followed by construction sector at 15.9 percent, exports at 15.3 percent, imports at 13.9 percent and industry at 9.3 percent.

Addisu Habba, President of Abyssinia Bank, said the bank earned a record income of 618 million birr an increase of 149 million birr from the 2009/10 fiscal year while total assets reached a record 7.28 billion birr a 16 percent increase from the preceding year.

The total deposits of the bank stood at 6.08 billion birr exhibiting an increase of more than 18 percent from the 2009/10 fiscal year. The percentage composition of the total deposits of the bank stood at 73 percent for saving deposits, 26 percent for demand deposits and one percent for time deposits.

He also said the bank has managed to bring down the level of non-performing loans to less than the five percent standard set by the National Bank of Ethiopia.

However the bank’s total expenses reached 359.7 million birr including provisions for doubtful loans in 2009/10 fiscal year, an increase of 87 million birr over the expenses incurred during the 2009/10 fiscal year.

Bank of Abyssinia was also to raise the number of deposit accounts to 288,259 as of June 30, 2011 from the previous 263,167.

The bank also increased its number of branch outlets by a total of seven to 55 in the 2010/11 fiscal year. BOA has also forged business relations with international money transfer companies such as Western Union money transfer services as well as regionally with Dahabshill money transfer services and others as well.