Board Chairperson’s Message

Dear Shareholders,

I am pleased to present our Bank’s operational performance results for the fiscal year ended on June 30, 2023.

The past year has been marked by challenging times and global economic vulnerabilities. Heightened tensions between the US and China over the Taiwan issue have persisted, while the Russia-Ukraine conflict has continued with no sign of resolution. Climate change has brought about extreme weather events such as heatwaves, floods, and earthquakes, impacting lives across continents.

Global inflation remained high due to disruptions in both demand and supply. Government monetary policies and spending to combat the economic effects of the COVID pandemic have contributed to the demand-side disruptions. Supply chains have- largely recovered, but the aftershock effects of the pandemic and the Russia Ukraine conflict have impacted the supply side.

Despite these challenges, there have been positive developments, including the announcement by the WHO that an end to the pandemic is in sight. Among other noteworthy events that happened during the fiscal year, the signing of trade agreement between Brazil and China to use their own currencies for a trade exchanges can be mentioned.

Global growth has been below historical averages, with the 2022 output at 3.5%. Projections for 2023 indicate a further decline to 3%. Africa has faced similar growth challenges, with countries grappling with crises related to conflicts, commodity prices, climate shocks, and debt.

In Ethiopia, peace and stability have been restored after a two-year war in the north. Economic growth, thus, improved to 7.5% from 6.4 last year.

Despite these circumstances, our Bank has achieved remarkable results. Total deposits reached Birr 41.8 billion, growing by 29% year-on-year. The number of clients increased by 49%, with close to 2.5 million customers. We expanded our service outreach by opening 110 new branches, and our profitability reached new heights with profits before tax of Birr 2.1 billion.

We have also undertaken strategic planning for the future. Our five year strategic plan, “Journey to Greatness,” will guide our operations from 2023/24 to 2027/28. We have redefined our vision as “To Become the First Bank of Choice” and reaffirmed our mission “Providing best-in-class banking servic- es and adding value for stakeholders”. A new organizational structure and a rebranding initiative have been implemented to support our strategic goals. Despite global and domestic challenges, we remain committed to our goals and are confident in our ability to overcome obstacles through profes- sionalism and focused efforts.

I extend my gratitude to the outgoing and incoming members of the Board of Directors for their oversight and guidance. I also appreciate the hard work of our management team and employees, as well as the support of our valued customers. Special thanks to government organizations and the NBE for their efforts in ensuring a stable financial sector.

Thank you,

Amlaku Asres (PhD.)

Chairperson, Board of Directors