By our staff reporter
Nib International Bank, one of the largest banks in Ethiopia, achieved remarkable results for the fiscal year ending on June 30 of the previous year. Despite some leadership disagreements that required intervention from the National Bank of Ethiopia during the board of directors election at the general assembly, the bank reported overall satisfactory performance.
According to the annual report, Nib International Bank maintained its growth trajectory, with an increase in overall income of more than a quarter, reaching 8.9 billion birr. Specifically, the bank’s income grew by 27.5 percent, or 1.9 billion birr, compared to the previous fiscal year ending on June 30, 2022.
During the specified period, the bank generated a profit before tax of 2 billion birr, marking a 12 percent increase compared to the same period in the previous year. The bank’s profit after tax amounted to 1.5 billion birr, representing a growth of over 12 percent, or 168 million birr, from the previous year.
Nib International Bank experienced substantial growth in its total deposit mobilization, reaching 59.4 billion birr, a 19.3 percent increase compared to the previous year’s balance of 49.8 billion birr. The number of deposit accounts also rose by more than 28 percent within a single year, surpassing 2.7 million depositors.
The bank’s total outstanding loans and advances at the end of the 2022/23 fiscal year amounted to 53.3 billion birr, an increase of 14.3 billion birr from the previous fiscal year’s figure of 38.9 billion birr.
In terms of assets, Nib International Bank observed significant growth, with assets reaching 77 billion birr, a rise of 15.5 billion birr compared to the previous year. Net loans and advances constituted the largest component of total assets, accounting for 69.2 percent, while liquidity represented 15.7 percent, or 12.1 billion birr.
The bank’s total equity also increased to 10 billion birr, reflecting a growth of over 13 percent. Additionally, Nib International Bank raised its paid-up capital by 24 percent, surpassing 6 billion birr compared to the previous year’s 4.8 billion birr.
Although the earnings per share (EPS) experienced a slight decline during the indicated period, largely due to the aggressive capital increase, the bank’s EPS for the year was reported as 139 birr of its par value of 1,000 birr. This represents a decrease of nearly 5 percent from the 146 birr EPS reported in the 2021/22 fiscal year, which is a typical occurrence when capital increases are implemented, as experts have noted.
