|
Another round of banking profits were announced over
the last two weeks by United Bank and Bank of
Abyssinia (BoA), which respectively grossed 133.5
million Br and 145.5 million Br.
Within the last month, most of the banks in
operation have disclosed their annual performance
for the year that ended June 30, 2009. These banks
have achieved a profitable year regardless of the
unfavourable conditions in the international and
domestic markets due to the global economic crisis
and domestic inflation, which restricted their
lending capacity.
Both United and Abyssinia enjoyed better deposit
mobilisations during the year, which were higher
than their 2007/08 performance by 48pc and 29pc,
attaining 3.6 billion and 4.5 billion Br. On the
other hand, the United and Abyssinia banks have a
3.8pc and 15.8pc growth in the loans and advances,
respectively.
From the total amount saving deposits account the
largest share of 1.9 billion Br followed by demand
and time deposits which stood at 1.1 billion Br and
525 million Br, respectively.
On the other hand, total deposits BoA managed to
mobilise in 2008/09 amounted to 4.5 billion Br; an
increase from 3.4 billion Br in 2007/08. Saving
deposits accounts have the largest share of three
billion Br followed by demand and time deposits
which stood at 1.2 billion Br and 233.1 million Br,
in that order.
For Abyssinia, loan and advances in the period of
reporting was 2.7 billion Br showing a decrease from
3.7 billion Br loans provided in 2007/08. It has
given 27.9pc of the total loans to domestic trade
and services. Manufacturing took the second largest
share of 15.7pc while import and export sectors
accounted to 11.5pc and 10.2 pc of the total.
This did not apply for United, which advanced 2.1
billion Br in loans during the reporting period with
an increase from 2007/08’s 1.8 billion Br. Its
lending portfolio, 21.1pc of the total loans, was
absorbed by imports followed by Domestic Trade and
Services which took 19.8pc. The Building and
Construction sector accounted to 19pc of the total
loans extended.
The income of both banks has increased during the
period under report and their international banking
departments have contributed much to that.
BoA, which elected Addisu Haba to presidency and
Alem International Plc, FAB Trading Plc and Mehari
Alemayehu as new board members, replacing
Fikremariam Yifru, Tilahun Teshome (Prof.),
Minwuyelet Kassa and Miheretab Leuel, saw its total
expenses decline from 325.5 million Br in 2007/08 to
259.4 million Br.
This is attributed to the substantial reduction in
the provisions for loans and advances in 2008/09,
according to the annual report.
United’s expenses increased from 153.8 million Br to
211.3 million Br. The increase of salaries and
benefits from 34.3 million Br in 2007/08 to 54.6
million Br in 2008/09 is one of the factors for the
increase.
Similarly for Abyssinia, salaries and benefits
showed an increase from 45.2 million Br in 2007/08
to 65.9 million Br in 2008/09 in addition to general
and administrative expenses accounting to 65.3
million Br in 2008/09 from 42.6 million Br in
2007/08. |
