Capital Ethiopia Newspaper

Awash Bank continues high profits

Awash International Bank (AIB), one of the first two private financial institutions held its 21st general assembly last week where it announced that its gross profits grew by nearly 135 million birr.

Their pre-tax profits grew by 13.4 percent, amounting to over one billion birr. It is one of the highest profit margins for a private bank in Ethiopia.

The net (after tax), profits increased by almost 100 million birr. The bank’s report indicated that it has earned 744 million birr this year as opposed to 645 million birr a year ago.

AIB registered profit in all their banking operations as they mobilized 24.2 billion birr with 24 percent or 4.7 billion birr growth. The lion share is taken by saving deposit accounts with a 61. 7 percent share.

AIB’s report indicated that the growth of deposit mobilizations is the biggest in the country.

The outstanding loans and advances also grew by 23.8 percent and reached 15.5 billion birr. International and domestic trades have took the largest proportion of loans and advances with shares of 33.1 and 30.1 percent respectively.

The bank’s assets grew to 31.1 billion birr. This is a 24 percent or six billion birr increase.

Paid up capital also increased by 465 million birr and stood at 2.2 billion birr. Due to the expansion of capital by almost half a billion birr the earnings per share decreased.

A year ago the earning per share amount per 1,000 birr was 445 birr, which went down to 371 birr for the 2015/16 fiscal year.

The total income of AIB climbed by 23 percent reaching 2.8 billion birr.

To modernize its business a year ago AIB signed a contract with KPMG, an international consultancy firm.