It is an honor and great pleasure to me to present the corporate performance of the Bank for the year ended June 30, 2019, to our esteemed shareholders, customers and all stakeholders.
The year 2018/19 was a year of remarkable achievements in most of the financial and non-financial measures. To feature out some of the remarkable financial achievements, the deposit position has soared to Birr 11.6 billion increasing by 21% from the previous year record. The Foreign Currency generated during the year exhibited a growth of 50% from last year’s record. Similarly, the Bank’s revenue went up by 40% from the previous year and generated an income worth of Birr 1.8 billion in the year just ended. Accordingly, the Bank attained a record-high profit of Birr 683 million and grew up by 63% from last year’s balance.
During the year, the Bank’s total loans and advances reached Birr 7.6 billion, showing an upsurge of 29% against the previous year same period. Likewise, the total capital and asset of the Bank reached Birr 2.5 billion and 15 billion growing by 36% and 23% respectively, from their preceding year records.
In non-financial respects, the bank has been commendable in being accessible on conventional and alternative service delivery channels. Accordingly, the bank has opened 30 new branches in the year, amassing its operational branches to 192. Likewise, 25 new ATM machines were installed and 33 additional Abay Bedeje Agents were recruited to deliver banking services at various locations where the total number of ATMs and Agents reached 65 and 282 respectively. The Bank’s customer base has reached 625,000 revealing a trajectory of 31% from the previous year the same period. Likewise, the number of Card, Mobile and Internet banking users increased by 59%, 69% and 27%, respectively, from their subsequent records of 2018. New products and services were innovated and assorted with existing customer services.
However, all these remarkable achievements were not without challenges. The undergoing national socio-political reforms on the one hand, public unrests on the other hand, were a mixture of the phenomenon of the year impacting Abay in particular and the banking sector in general. Coupled with these changes, foreign currency shortage, fierce competition in deposit mobilization, up surging of inflation and market slowdowns, were the features of the year.
Furthermore, lack of office buildings and increasing rental prices; unstable market operations especially in Hotel and Tourism, Construction and Transport sectors; the power outages and network interruptions, among others, were the specific performance deterrents.
Despite all these multi-faceted and interwoven hurdles, the bank remained profitable. As always, we were attuned to the execution of the Bank’s strategy. Much of our effort was synergized in correcting our limitations, in exploiting the opportunities and mitigating the difficulties. Consequently, the year 2018/19 was marked by notable achievements in both financial and non-financial respects.
Finally, I would like to take this opportunity to express my sincere thanks to the management and employees of the Bank, our valued customers, the National Bank of Ethiopia and other stakeholders for your delivery, leadership, guidance and the Board of Directors and the shareholders, since without their profound leadership and support it is unthinkable to meet the aforementioned performance records.
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