Dear Esteemed Shareholders,

On behalf of the Board of Directors, it gives me a great pleasure and sense of pride to present the Bank’s 2018/19 Annual Report. Despite the challenging circumstances, the bank remarkably performed in both financial and non-fi­nancial business endeavors.

The aggregate deposit of the Bank, including deposits col­lected through interest-free banking services, has gone up by 21% from the previous year’s balance and reached Birr 11.6 billion. The Bank’s IFB and conventional outstanding loans and advances reached Birr 7.6 billion witnessing a growth of 29% from last year’s achievement.

Similarly, the paid-up capital of the Bank has grown by 26% attaining Birr 1.7 Billion, the target set for the year. Subse­quently, the Bank’s total capital soared up by 36% from last year’s position by attaining a balance of Birr 2.5 billion.

During the year under review, the Bank has registered a magnificent growth in revenue. The total income gener­ated from interest and non-interest income sources has increased by 40% from the previous year. The Bank regis­tered a gross profit of Birr 683 million. This achievement is attributed to the collective commitment and effort of the Bank’s staff, Management and the Board of Directors.

As part of its effort to strengthen its asset hold, the Bank has signed a DB contractual agreement with a prominent global construction firm to have its headquarters building constructed. The Bank’s request for additional plot of land which accommodates its desire for an iconic headquarters office has got a positive response from the Addis Ababa City Administration and the Bank is now in the process of secur­ing the title deed.

To enhance its sustained growth, the Bank has been in­volved in various groundbreaking activities. Nowadays, de­veloping and providing customer-centric products, enhanc­ing the quality, efficiency and accessibility of service has become crucial for the sustainable growth of the Bank. For these to happen, identifying top talents, developing and retaining competent and satisfied staff and management team are essential. To this effect, revision of processes, systems and procedures have been undertaken throughout the year. Besides, the Bank was immensely involved in dis­charging its corporate social responsibilities to give back to the society it is working with.

Working hand-in-hand with the management of the Bank, the Board has focused on maintaining a balance between a robust growth and sustainability to deliver a long term val­ue to its shareholders. In this regard, the Board continued to ensure the proper implementation of the Bank’s strate­gic plan at its breadth, strengthening corporate governance and institutional capabilities, risk management frameworks and internal control systems.

Looking forward, the Bank is making preparations to cap­italize on opportunities that can be brought about by the economic reforms that the county has embarked on. Cur­rent projects to enhance IT infrastructure and related sys­tems upgrades, construction of own building and progress on implementation of the Bank’s strategies are in line with our aspiration to be premium Bank.

Finally, on behalf of the Board of Directors and on my own behalf, I would like to take this opportunity to express my deepest appreciation and gratitude to all of you who con­tributed to the Bank’s success. All these financial and non-fi­nancial achievements would not have been true without the cooperation of our esteemed shareholders, the dynam­ic management team and the energetic staff of the Bank, the National Bank of Ethiopia and our valued customers.

I sincerely appreciate and count on your continued support for the future.

Thank you,

Ethiopia Tadesse

 Chairperson, Board of Directors