BIB posts profits, to double its branches

0
70

Berhan International Bank (BIB) S.C, one of the youngest banks currently operating, is to open over 20 additional branches throughout the country,

while consolidating its operation with information technology services.
So far, the bank has 22 branches and five sub-branches throughout the country. Seven of the 22 branches and four sub-branches were opened in the 2012/13 fiscal year, according to Abraham Alaro, Vice President of the bank. The newly opened branches are located in Alemgena, Meshualekia, Kera and Teklehaimanot in the capital and Bishoftu, Shashemene, and Jimma outside of Addis Ababa, according to the annual report the bank issued for the fiscal year.
BIB, which earned 70 million birr in profit over the previous fiscal year, is also finalizing plans to begin ATM services very shortly. Abraham told Capital that the bank has already finalized agreements to become the fourth member of the Premier Switch Solutions (PSS) S.C to use PSS over 60 ATMs. According to the vice president, the membership in PSS will help the bank accelerate ongoing efforts to launch card banking services with less time, effort and cost.
Awash International Bank, NIB International Bank and United Bank were the pioneers that initially established the PSS and BIB and Addis International banks joined PSS later.
Over the 2012/13 fiscal year, Berhan International Bank earned a total income of 168.1 million birr. This showed an increase of 58.8 million or 53.8 percent compared to the previous fiscal year, which was 109.3 million. Income from interest stood highest showing an increase of 51.8 percent, while non-interest income increased by 48.2 percent. “Out of the total non-interest income, the highest share, 73.7 percent income is generated from foreign banking operations in the form of commission, service charge and gain on foreign exchange,” the annual report of the bank for the fiscal year reads. “The share of commission income from guarantee was 18.9 percent, followed by service charge and commission from local banking activities, which is 7.4 million.”
Abraham told Capital that the total capital of the bank, including the legal reserve and retained earnings for the stated period, reached 381.5 million birr. This showed an increase of 145.4 million birr or 61.6 percent over the previous year.
The total capital of the bank reached 313 million birr as of the end of the fiscal year, according to Abraham. “This is higher by 115.9 million birr than the previous fiscal year,” he told Capital. According to Abraham, the capital increased significantly in the last four months of operation, enabling the bank to meet the requirement of the National Bank of Ethiopia (NBE) to increase paid up capital to 500 million by June 2016.
According to the vice president, the bank’s outstanding loans and advances were 979 million birr. This also showed a significant increase of 95.3 percent from the 2011/12 fiscal year, which was only 499.5 million birr.
Currently, the total assets of the bank reached over 2.2 billion birr, an increase of 913.3 million birr or 71 percent from the previous year.
Abraham attributed the steady and sustainable growth of the bank to a very flexible work atmosphere and the customer based services of the bank. He said that this growth is building the public confidence and ability of the bank to meet commitments.
“In the last fiscal year alone, the bank was able to sell 116 million birr worth of shares,” said Abraham.