The Commercial Bank of Ethiopia generated 55.8 Billion birr income in the third quarter of the current fiscal year 2020/21. The bank earned 13.4 billion birr profit before tax during its 9 months overall performance.
From interest income, the bank gained 46.5 billion birr, while 8.8 billion birr was obtained from charges while 231 million birr from was got from other services.
The bank has raised its incremental deposit to 102.7 billion birr which is 82.4percent of its target of 124.6 billion. The bank has grabbed 101.1 billion birr incremental deposit from the private and cooperates which is 99.8 percent of its goal which makes the private deposit to 698 billion birr. According to the bank, private deposited shares account for 97 percent of the total deposit.
In the last nine months of the fiscal year, the bank has grown its deposit to 698.2billion birr from 595.5 billion birr. The total deposit of the bank has reached 698.2 billion birr, explained the president of the state giant bank.
The bank has collected 36.9 billion birr in repaid loans over the past nine months, which is only 54 percent of its target. On similar lines, 67.3 billion birr loan has been distributed to its customers over the nine month which is 67.8 percent of its goal.
He said the bank has provided over 67.2 billion birr in loans and bonds, adding that special attention should be paid to the fundraising.
In the first nine months of the current budget year, 62 new branches were opened and an additional deposit of 886 million birr was collected. The total number of branches has been increased to more than 1665. In the last nine months, 4.27 million accounts have been opened and the total number of deposits has reached 29.37 million, Abie Sano explained.
The Commercial Bank of Ethiopia’s nine-month performance appraisal was held in the presence of the Board’s Board of Directors, management members and other participants.
The President of the Commercial Bank of Ethiopia, Abie Sano, who opened the conference, said the implementation of the major goals and strategic measures in the first nine months of the current budget year are encouraging.
Abe recalled that the bank had planned to collect 2.7 billion USD in foreign exchange in the first nine months of the current budget year.
Deposit growing significantly, customer account, digital transaction growth, significant strengthened liquidity, review its structure and maintain profitability are listed as success while loan collection, FCY generation and COVID-19 were listed as challenges that the bank has faced during the last nine months.
“Fundraising will continue to be a major focus of the bank, adding that human resource development, the implementation of various technology projects, consolidated loan repayment, reduction of bad debts and COVID-19 are among the issues that need attention” said the president.
CBE’s third quarter performance
Ethiopia calls for the Diaspora to contribute for GERD accomplishment
On the webinar organized by the Ethiopian Embassy in Canada in collaboration with Alliance for Grand Ethiopian Renaissance Dam (GERD) in Canada Seleshi Bekele, Minister for Water, Irrigation, and Energy called the Ethiopian Diaspora community in Canada to stand together and extend help to the completion of the national flagship project.
On the webinar discussion entitled, ‘Updates on GERD and Information Session on GERD Bond Purchase’ Seleshi tabled presentations over the current status of the GERD construction and what is expected of the Ethiopian Diaspora to support the project.
The Minister made a call to Ethiopian Diaspora in Canada to stand together and extend help to the completion of the national flagship project.
According to the statement that Ministry of Foreign Affairs, he said the Diaspora should consider themselves as ambassadors to their country declaring the rights of Ethiopia to an equitable and fair utilization of the Nile River basin.
Diaspora Branch Manager at the Commercial Bank of Ethiopia, Lemma Wakeyo, explained the various modalities regarding the purchase of the GERD bonds.
Ethiopian Ambassador to Canada, Nassise Chali, on her part, reiterated how the GERD would benefit us all and underscored the need to support the project in advocacy, funding, and in every other possible way.
Ethiopia has announced that it would start the second filling in the coming flooding season that would be in July or August. The country has made a stand on equitable water use on the Abay/Nile River that is the source of the GERD.
Despite the downstream countries mainly Egypt expressed its concern on its water flow Ethiopia strongly reassured that the project would not have harm on others and the country does not have intention to affect others.
Ethiopia contributes more than 86 percent of water share for Abay, while the river does not provide required economic benefit.
GERD that is financed by local sources is expected to generate more than 5,000 MW in electric power.
New innovators enter the hotel and tourism sector
A new local brand called Room Roaming joins the hotel and tourism sector. Established by three young cofounders, Room Roaming introduces a brand that can franchise local budget-hotels in order to maximize the hotels profit margins unlike the different traditions of doing business.
“Room Roaming is a budget hotel aggregator & franchiser with technology-based business model. Our focus is mainly on consultation, rebranding, monitoring and evaluation of budget hotels,” stated Feven Tefera, one of the co-founders.
“We re-brand budget hotels, face-lift them to deliver international services for a fair price and market them through our platforms enabling them to be visible worldwide and attract large number of customers by working our digital market online and offline thus supporting our hotels,” added the co-founder.
Room roaming was established in 2019, after organizing the firm the global pandemic presented a bit challenge to room roaming to franchise with hotels, however, the firm has tackled the challenges head on.
With regards to standards set by the firm, Room Roaming looks into: their physical appearance, their service and quality and certain things that can discomfort guest. After that prudent assessment, hotels then join to become members.
Even though currently Room Roaming is operating only in Addis Ababa, according to Bruktawit Ambachew, the sales and marketing manager at the firm and co-founder expressed that they plan to expand their networks across the country, thereafter the continent in order to improve the hotel sector.
“We have built an integrated website as well as social media accounts and short code 7488, where local clients can call at any time to use our services. Our dedicated call center representatives will provide necessary information about our member hotels and assist guests in their booking and further inquiries,” explained Bruktawit
Basically, guests don’t have to access the internet and roam around looking for hotels nearby; they can just dial 7488, book our rooms and they will receive COVID-conscious experiences at our member hotels.
“In addition, with a quick look at the stories of local hotels, one can find lots of queries that remain unanswered. When hotels join our group, this will not happen,” emphasized the co-founder.
“We consider them as family, we will give solutions, whether complaints or compliments, as fast as possible. We understand and have positive exchanges with our customers and that is the nature of our business. This also gives us an opportunity to demonstrate the importance of customers. Most hotels fail, not because of service, but because they do not market and place the needs of their customers at the top of their priorities,” Feven sensitized.
On Saturday April 24, 2021, Room Roaming officially partnered with Bellevue hotel and spa which makes their member hotels six including Empire Addis International Hotel, Weygoss Guest House, Ronali International Hotel, Kersay Hotel and Newday Hotel.
Hijra bank inaugurates its newly acquired headquarter
Hijra bank, one of the latest banks to join the ever growing banking sector has inaugurated its own building and first headquarter on Wednesday April 28, 2021. Similarly, the bank has planned to raise its capital to 5 billion birr within 4 to 5 year time.
After receiving green light from the National Bank of Ethiopia (NBE) Issued on September 14, 2020 to the founding board of directors of Hijra, the second under establishment, full-fledged interest-free bank in the country started its activity to start its operation according to Mukemil Betru, Board Chairperson of the bank.
By way of 130 million birr finance, Hijra bought its first building located at Bole around Denbel city center. According to Mukemil the 9 story building will be the headquarter of the bank.
Moreover to accelerate its operation the bank has floated an international bid to link core banking software and connect the same to its branches.
“We have floated a bid and we have thus far five shortlisted international suppliers. Now we are in the process of identifying the winner after which we will start operation,” said Mukemil.
“Hijra Bank is not only for the Muslim society but also for all who need interest free banking services,” said Dawit Kenno, the newly appointed acting CEO of Hijra.
Hijra officially started selling shares on July 22, 2019, after getting the pre-formation licenses from the regulatory bank on June 20, 2019. Initiated by nine individuals, the Bank sold shares through 12 banks, having a par value of 1,000 Br, a maximum of 20,000 and a minimum of 30 shares were offered for public subscription.
After finishing its share sale within three months, the bank managed to raise 700 million Br in paid-up capital from over 9,000 shareholders that subscribed to 1.2 million shares.
The bank plans to become operational within two months, and it further aims to make fully operational its dozens of branches with in the coming four months, according to the board chairperson.
However, after Prime Minister Abiy Ahmed (PhD) came to power, the administration expressed its commitment in allowing the formation of Islamic banking by issuing a directive that enables banks to offer interest-free banking services exclusively. Zam-Zam Bank, the pioneer in attempting to establish a full-fledged interest-free bank in the country over a decade ago, was the first to start the processed of forming a bank in the current round.
Recently, the National Bank of Ethiopia (NBE) has issued a directive to new entrants to the banking industry to increase their paid-up capital to five billion birr within seven years. As Muklemil maintained, Hijra, will increase its capital and rise past the threshold to reach 5 billion birr with 4 to 5 years’ time.
