The Oromia International Bank, Ethiopian announced a profit of 49.4 million birr after tax for the previous fiscal year. The bank was able to register a 23.7% growth in performance as compared to the revenue it had earned in the previous year according to the announcement at the Third General Assembly Meeting.
A significant part of OIB’s profit come from interest income which totaled 122.4 million birr at the end of the last fiscal year while non interest income grew to 106.9 million according to the company report.
The bank however failed to perform well in foreign exchange transactions with the exception of the revenue it earned in relation to devaluation.
The bank was negatively affected, in terms of foreign exchange transactions, by the lowered performance of the coffee export sector in the last year as the bank has a significant number of coffee exporter clients said Abie Sano, President of the bank. OIB expects to diversify its credit portfolio to enhance its deposit mobilization efforts explained Abie.The bank disclosed that it had been able to disburse 1.1 billion birr in all major sectors of the national economy and was also able to collect 2.1 billion birr in deposits during the fiscal period.
Thirty percent of the total loan disbursement went to domestic trade and services while the export sector received a 16% share and the import sector 10% noted the report. 456.6 million birr of the total money disbursed by th bank went to the purchase of National Bank bills.
Source: Fortune
