- December 13, 2019
- Posted by: Nemera W
- Category: News
Registering 41.2 percent Growth in Profit, Berhan has Vowed to Double its Capital
Berhan Bank has conducted the 10th Ordinary and the 5th Extra Ordinary Annual General Meeting of Shareholders on Thursday, December 12, 2019 at the Millennium Hall, Addis Ababa.
Ato Gumachew Kussie, Chairman of the Board of Directors, presented the Bank’s annual performance report, which was closed on June 30, 2019, to the shareholders. He mentioned, despite the political, economic and social challenges persisted in the country during the reporting period, by designing workable business strategies to tap the available business opportunities and properly addresses the prevailing challenges; the Bank has achieved impressive results in all key performance indicators.
According to the report, the Bank posted a record high profit before tax of Birr 580.1 million during 2018/19 fiscal year. It was further revealed that the profit registered exhibited an annual increment of Birr 169.1 million or 41.2 percent compared with the Bank’s preceding year’s performance. With this, the Bank’s Return on Equity (RoE) reached 24.6 percent recording a notable growth from prior year’s level of 20.4 percent.
In terms of resources mobilization, the report indicated that the Bank’s deposit surged to Birr 14.9 billion, exhibiting an annual increment of Birr 4.1 billion or 37.8 percent. Likewise, the annual foreign exchange inflow reached USD 161.7 million surpassing the preceding year by USD 53.2 million or 49 percent. Furthermore, the Bank’s outstanding loans and advances grew to Birr 10.2 billion from its level of 7.2 billion in the preceding fiscal year, registering a net annual increment of Birr 3.02 billion or 42.1 percent. The Bank’s total assets reached Birr 19.2 billion, exhibiting Birr 5.2 billion or 36.3 percent growth over the preceding year. The paid up and total capital reached Birr 2 billion million and Birr 2.8 billion respectively, depicting a respective growth of 17 percent and 27 percent.
With regards to branch expansion, it was reported that the Bank opened 18 new branches during the captioned period. As a result, the total branch network of the Bank reached 200 at the close of the reporting period. Likewise, the number of the Bank’s account holders surged by 133 thousand or 25.5 percent increase and reached 657,026. Regarding digital financial services, in addition to card banking business, in a bid to create more convenience and accessibility to its customers, the Bank has managed to launch Mobile Top Up and Master Card Payment Services.
Moreover, in its 5th extraordinary meeting, the Assembly has favored to double the bank’s capital, from its existing 2 Billion, to Birr 4 Billion.
Finally, the chairman cited that the Bank has drawn effective strategies to sustain the growth momentum and register greater achievements in the years to come.