By Muluken Yewondwossen
Lion International Bank (LIB) earned nearly half a billion-birr last fiscal year, as they brought in a huge chunk of revenue and profits and increased earnings per share. The audited report of LIB presented to shareholders indicated that during the 2017/18 financial year the bank earned 168 million birr more in gross profits than the year before. They also amassed 480 million birr in pre-tax profits, compared with 313 million birr during the 2016/17 fiscal year.
Net profits reached 391 million birr which is a significant increase from 232 million birr during the previous fiscal year, according to the report. During the fiscal year, the bank’s revenue increased by 167.4 million birr to reach a total of 1.6 billion birr.
Loans and advances grew 36 percent to 7.6 billion birr. The rate of fresh loans increased by almost three billion birr. The thriving savings and banking sector has reportedly led to the growth in disbursement of loans.
LIB’s deposit mobilization has increased by 2.8 billion birr, or 32 percent to 11.6 billion birr. The number of depositors has risen to over 590 thousand. In just a single year 45 percent more people have made deposits in the bank.
The bank’s total assets went up 10.9 billion birr to 14.3 billion birr which is a growth of 31 percent. Paid up capital surpassed a billion birr, standing at 1.18 billion birr which is a 26 percent increase from 938 million birr a year ago. The bank’s total equity reached 1.8 billion, compared with 1.4 billion a year ago.
Earnings per share also rose significantly compared with the preceding period. By the end of the fiscal year, earnings per share stood at 30.2 percent per one-thousand-birr share value. In the 2016/17 financial year earnings per share was 23.1 percent.
The bank brought in USD 118 million in hard currency, 77 percent of which came from the export sector. Even though the financial firm is relatively young, the bank has sprouted many branches. By the end of the fiscal year on June 30, 2018 it had 206, opening 40 in just one year.