A number of Ethiopian banks have released their annual reports during the month of December with mixed figures. Most banks reported an increase in profits while few reported significant decreases. Based on reports (including those from other sectors of the Ethiopian economy) prospects for the financial sector are hopeful, especially considering the COVID-19 pandemic.
Bunna International Bank is one of the banks that has reported a decline in annual profit. The bank saw a 6 percent decrease in profit for the budget year that ended on June 20th, bringing in 582 million ETB in total profits and 440.3 million ETB after taxes and other costs.
Berhan and Awash International Bank, on the other hand, have reported significant increase in profits. Awash Bank made more than 4 billion ETB in profits solidifying its status as the biggest earner in the Ethiopian Banking sector. Berhan Bank also made significant profits, bringing in 707.5 million ETB in total profits; a 22 percent increase from the previous year.
Awash Bank reported the largest assets valued at 89.3 billion ETB marking a 14.6 billion ETB increase. This trend was common among all banks, including those that reported a decline in profits like Bunna Bank which saw a 4.4 billion ETB increase in the valuation of its assets.
Banks like Hibret Bank were even able to break corporate milestones. Hibret Bank reported 1.12 billion ETB in total profits marking the first time the bank has brought in more than 1 billion ETB in profits since it first started operating. Hibret Bank assets also showed a 41 percent increase compared to the previous year, in line with trends in the sector.
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