On behalf of the Board of Directors, it gives me great pleasure and sense of pride to present the bank’s Annual Report for the financial year concluded on June 30, 2020, while celebrating the Bank’s 10th year anniversary.
May I take this opportunity to congratulate everyone for the success we have achieved in the last ten years since this institution was established, as we look forward to many more years of astounding performance.
The year under review was marked by significant global and domestic developments which impacted our business in several ways. Despite the COVID-19 pandemic and its impact on business slowdown, intense and growing competition in the sector, the performance of the bank remained commendable.
For the Bank, total deposits and outstanding loans grew by 39% and 52%, respectively from the last year’s record. Similarly, the paid-up capital of the bank has grown by 30% and attained its annual target of Birr 2.2 billion. Subsequently, the Bank’s total Capital soared up by 26% from last year’s position and attained a balance of Birr 3.1 billion reflecting commensurable balance sheet status. During the year, revenue grew by 14 % from last year and the bank has registered a profit before tax of Birr 640 million.
In the non - financial spectrum, the Bank achieved substantial results. Thanks to the coordinated effort of all the players, the Bank acquired an additional plot of land adjacent to our current landholding in Addis Ababa. The total area we own matches our ambition to build iconic Head Quarters and the review of the design work to upgrade it further by scale and quality is well under progress. The bank has also considered the option of acquiring assets through the purchases of buildings after conducting a thorough analysis of its feasibility. In this regard, the bank has acquired a mixed-use building, known as Quara Hotel building, in Gondar city.
The Board has taken actions to fast track fundamental changes ensuring sustainable and profitable growth through excellence in operations, technology, and customer experience. The Board also believes that having an engaged and motivated workforce and a sound governance and risk management are pivotal to attaining the sustainable profit and growth that the Bank aspires. In light of these, the Board revised the five years strategic plan of the bank based on the results of the mid-term review. A new organizational structure to enable the implementation of the revised strategy is put in place. The bank has finalized the upgrading of the Core Banking System to the state-of-the-art version and subsequently made digital banking services more reliable than ever before. Besides, the bank’s risk management program and audit charter have been revised and implemented, thereby instituting a strong internal control system.
As a well-diversified business underpinned by historically-stable revenue generation and significant capital strength, Abay has registered a notable financial and non-financial performance. The board of directors continues making its utmost effort to strike a balance between robust growth and sustainability to deliver on long-term value to stakeholders. In doing so, the board is determined to follow-up on the execution of the strategic plan along with the recommendations forwarded based on the findings of the Mid-Term Review of the bank’s strategic plan,to take measures that would strengthen corporate governance and institutional capabilities, strengthen risk management frameworks and internal control systems.
With the new fiscal year, the Board of Directors, the Management, and the entire staff of Abay Bank S.C. will continue to accelerate its transformation and seize opportunities to capture more market shares through business innovation and increased efficiency. We will continue to embark on the construction of the bank’s headquarters and regional office buildings, conduct aggressive resource mobilization while rendering personalized financial services.
Finally, these achievements would not have been possible without the commitment of the management and the dedication of the Bank’s staff, the continued support and trust of our esteemed customers, and the strategic leadership and guidance of the National Bank of Ethiopia and other stakeholders. On behalf of the Board of Directors and my own behalf, I would like to express my deepest gratitude and appreciation to all of you and count on your continued support.
Chairperson, Board of Directors
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