BIB’s gross profit increases by 79%

0
37

Birhan International Bank (BIB)  Share Company, one of the newest banks in Ethiopia disclosed that it increased its gross profit by almost 80 percent to reach 46.5 million birr during the last Ethiopian Fiscal Year, 2011/12. The net profit of the bank stood at 33.69 million birr. 
BIB’s report indicated remarkable growth since the bank had just two years ago registered a loss of six million birr.
Solomon Alemseged, Board Chairperson of BIB, said the bank which managed to open six additional branches totaling its outlet to15 during the year, increased its total deposit by about a third to reach 932 million birr, with its total assets standing at 1.2 billion birr, exhibiting an increase of 40.6 percent.  The bank’s paid up capital had reached 197 million birr exhibiting an increase of 46.4 percent. Birhan International Bank, so far in the current Ethiopian Fiscal Year 2012/13, added three more branches to increase the number to 19, with its 20th branch expected to be opened shortly in the South Western commercial city of Jimma. 
He also stated that the Bank has identified and devised strategic directions such as, improving its liquidity position, raising capital, expanding service outlets and enhancing its service quality and customer satisfaction.
This was said to have been achieved despite difficulties encountered like scarcity of deposits because of ever-growing domestic investment, leading banks to intense competition through aggressive branch opening and increased interest rate. Inflation also continued to be a growing challenge that eroded the purchasing power of birr, negatively affecting the expenditure of banks.
One notable aspect of BIB’s banking operations, which also showed growth was its total outstanding loans and advances which stood at 493.7 million birr, a more than 50 percent increase from the previous fiscal year.
Perhaps not surprisingly, the single highest share was taken by the Construction sector at 27.7 percent, followed by Import/ Export at 22.1 percent, Domestic Trade and Services at 19.2 percent, with the manufacturing sector and hotel tourism rounding up the list at 11.6 percent and 10.4 percent each.
Belachew Bogale, President of BIB told Capital that the bank has prepared the infrastructure for Internet  and Mobile Banking but is waiting for a law on cyber security to be enacted, and then will ask the National Bank of Ethiopia (NBE) to implement the new system.
BIB is also one of the 17 Ethiopian banks which is a member of a consortium called Ethio-switch Solutions which is expected to finalize preparations by the next Ethiopian fiscal year 2013/14, at which time the bank expects to start card banking system.
Belachew further said some shareholders of the defunct Hawassa Bank Share Company have received the go-ahead from NBE to add their shares on an individual basis to the asset of BIB.