Bunna International Bank, Ethiopia has declared 30.3 million birr in profits after tax for the past fiscal year. The profit earned 
by the bank is 54.7% (19.4 million birr) more than what it earned in the previous year.
The board of directors of the bank has recommended that 22.1 million birr to be paid as dividend to shareholders. The earnings per share have grown to 132.5 per 1000 birr which is a 24% increase on the dividends per share last year.
The increase in earnings per share is below the average for the industry because of the new regulation by the National Bank which raised the equity requirements for banks to 500 million birr from 75 million birr.
Bunna, which currently has 225 million birr in paid up capital, plans to increase its capital by 75 million birr every year to reach 600 million birr by 2016. This scheme requires Bunna to increase its net profit and capital by 19% and to maintain the current levels of earnings per share according to sources.The Bank’s efforts to execute this program are also hindered by the National Bank directive which requires banks to dedicate 27% of loan allocations to the purchase of treasury bills limiting the amount of money that bank’s can loan according to Eshetu Fantaye, President of the Bank.
The Bank would have been able to raise income from interest if the money was not tied up in treasury bills allowing the EPS to increase to 38% he explained.
Source: Addis Fortune
