Awash International Bank (AIB) has amassed 639 million birr unaudited gross profit in the just-ended fiscal year.
Tsehay Shiferaw, President of AIB, told journalists that the bank profit has grown by 18 percent or 180.6 million birr when compared with the preceding year at a press conference held on Friday August 2 at the Addis Ababa Hilton Hotel. The recorded amount may make the bank the leading profitable private financial institution in the country, looking at its past years experience.
AIB’s total revenue in 2012/13 fiscal year reached 1.4 billion birr, showing a growth of 309 million birr or 28 percent when compared with the preceding year.
The bank, which is one of the oldest and biggest private banks in the country, has registered 37 percent growth on deposit.
According to the bank’s statement, its deposit mobilisation including letter of credit (LC) margin has reached 13.1 billion birr in the stated fiscal year, which was 9.5 billion birr in the 2011/12 fiscal year.
AIB announced its loan provision, which it lends to various economic sectors, has markedly risen to 7.7 billion birr in the past fiscal year. This shows a growth of 2.2 billion birr from 2011/12 fiscal year.
Awash’s paid up capital has reached 1.2 billion birr as of the end of the past fiscal year, which is a 27 percent increment compared to the bank’s accomplishment a year ago. Hence its paid up capital is more than double the minimum requirement of 500 million birr set by the National Bank of Ethiopia (NBE). NBE, the financial institutions’ regulatory body, has instructed all banks to reach the minimum requirement by mid 2016.
The bank has also targeted to increase its paid up capital to 1.5 billion birr in the coming two years.
Currently, the bank is working on the expansion of core banking solution with Misys, a British-based firm, at the cost of USD 3.5 million. It has also signed a USD 2.5 million deal with IBM for the procurement of software, hardware and related items, and for training.
Awash opened 29 new branches in the past fiscal year making its total branches 115.
Awash has also approved 150 million birr loan for the investment of Ethiopian-born Saudi business tycoon Sheik Mohammed Hussein Al Amoudi, just a day before the end of the past fiscal year.