Addis Bank announced 7.81 Million birr in profits in its first year of operations. The bank’s unique achievement was mainly due to income earned through indirectly channeling funds between borrowers and lenders as well as other non-interest bearing activities said Hailu Alemu, president of the Bank speaking at the Bank’s general assembly, held at Kokeb Building.

The Bank was also able to significantly reduce its expenses over the fiscal year. He added.

“This incredible result was recorded because of two reasons, which are integrity-based service and cost controlling mechanisms,” said Hailu.

AdIB has also incurred 4.96 million birr on interest and 19.8 million for staff salaries and general administration while maintain a provision of 1.57 million or 12.9 percent of the interest income for provision of doubtful loans and advances.

Addis has disbursed loans and advances to the amount of 152. 9 million birr and mobilized deposits of 211.4 million birr while its loan to deposits ratio stood at 72 percent for the financial year.

The bank has been able to collect most of the subscribed capital and is getting ready to sell new shares to meet the newly established capital requirement according to Hailemelekot Teklegiorgis, Chairman of the Board of Directors.

The bank expects existing shareholders and others to purchase the new shares when they come on the market said Hailu.
Shareholders decided to invest 100% of their dividend income as part of plans to increase the bank’s capital to 350 million birr over the next year to reach 800 million in 2016.

Source: Fortune