Addis Ababa, Ethiopia – The paid up capital of Awash International Bank (AIB) S.C surpassed one billion birr, twice the amount of money that the National Bank of Ethiopia (NBE)Ã‚Â will require banks to have by June 2016. The bank is waiting for the endorsement of the four newly elected members of the board of directors by the NBE, the regulatory body of the financial sector.
AIB, one of the leading and oldest private banks in the country, also announced that it registered a paid-up capital of 1.2 billion birr by the end of the 2012/13 fiscal year, according to the annual performance report. The paid up capital of the bank in the preceding budget year was 812 million birr. The growth of the paid up capital of AIB therefore was 28 percent, according to Wole Gurmu, Chairman of the Board of Directors of AIB.
Over the last fiscal year, the bank earned a total income of 1.4 billion birr, while the income was 1.1 billion birr in the 2011/12 fiscal years. The major contributor to this growth is the increase in the interest income and commissions and services.Ã‚Â During this fiscal year, the interest income rose by 33.1 percent from 668.7 million birr to 890.2 million birr.
AIBÃ¢â‚¬â„¢s expenditures also rose from 580.1 million birr in the previous fiscal year to 836.7 million birr in 2012/13, according to the chairpersonÃ¢â‚¬â„¢s report. All components of expenses have increased during the fiscal period, the chairman told shareholders at the assembly. Ã¢â‚¬Å“Interest expense increased by 27.3 percent to birr 362.7 million in 2012/13, compared with the preceding year, mirroring the growth in the volume of interest bearing deposits, namely saving and time deposits,Ã¢â‚¬Â he said. Ã¢â‚¬Å“Salary and benefit expenses increased by 64.6 percent owing to recruitment of qualified personnel both for vacant posts and newly opened branches.Ã¢â‚¬Â
The bank therefore registered a record gross profit of 583 million birr in the budget year, showing an increase of 52.4 million birr (9.9 percent) over the previous budget year. AIBÃ¢â‚¬â„¢s net profit after tax increased by 11.3 percent to 438.6 million birr.
The earnings per share this year is 456, lower than the preceding year (469) as a result of a significant increase in paid up capital.
During the last fiscal year, the bankÃ¢â‚¬â„¢s total assets expanded to 17.8 billion birr, up from 13.1 billion birr in the preceding year. Ã¢â‚¬Å“The expansion in the asset size of the bank was largely associated with significant increases in loans and advances and purchase of NBE bills,Ã¢â‚¬Â the chairman reported.
The board chairman said that among the major achievements of the bank are the launching of the second strategic plan, construction of buildings for branches in Ghimbi and Agaro, production and revision of operational policies and manuals, growth of the paid-up capital, rapid expansion of the branch network, making its total branches 115, the introduction of ATMs and launching of the card payment system, among others.
Meanwhile, four new members of the board of directors including Antonio Carnevali (Eng.), Tabor Wami, Daniel Tewodros and Ephrem Tesfaye, were elected at the 18th Annual General Assembly held on November 16th. Wole Gurmu and Amsalu Bizuneh, Vice Chairman, have completed their term and other two directors didnÃ¢â‚¬â„¢t run for the election because of their own reasons. Eight members of the former board including Asegedech W/Mariam, Elias Bedada, Fanta Tesgera (Dr.), Girma Borishie, Kibret Shuma, Kidist Duguma, Yared Abera and Yidnekachew Ayele, were re-elected.
The board will elect the chair and vice chair right after the endorsement of the four newly elected directors.