United Bank registered net profit of 297.9 million for the 2011/12 financial year according to sources. The bank’s Earnings 
per Share stayed the same at 52.8 percent however due to the need to increase the bank’s paid up capital.
The bank’s paid up capital increased by 11 percent to 580.9 million birr it was explained that the 14th General Share holders Meeting held at the Addis Ababa Hilton Hotel.
The total capital of the bank including paid up capital, retained earnings, legal reserve and premium on shares added up to 1.1 billion birr showing an increase of 22.2 percent from the previous financial year.
The main focus of the bank is to build up its capital even at the cost of lower earnings per share in the short run said Berhanu Getaneh, President of the Bank.Most shareholders at the meeting endorsed the strategic plan of the bank to raise its capital according to sources.
The bank’s Capital Adequacy Ratio, at 21.5% is more than double the legal requirement if it has lowered from the previous year it was noted. The liquidity level of the bank has also declined with the ratio of Liquid Assets to Total Assets declining to 32.6 percent from 46.1 percent while the liquid assets to total deposits ratio decreased from 58.7 percent to 42.5 percent.
This decline is attributed to the National Bank requirement compelling the bank to invest 27 percent of its gross loan disbursement in five year bonds and United is focusing on mobilizing deposits to combat this pressure according to Berhanu.
United was able to mobilize 6.8 billion birr from its depositors at 68 branches which showed an increase of 11.4 percent from the previous year improving its loan to deposits ratio from 52.5% to 59% although its loan disbursement increased by 24.7 percent in the previous fiscal year.
The income the bank earns from interest grew significantly by 52.2% whereas non-interest income showed a growth of just 8.4 percent it was noted.
Source: Fortune
