Berhan International Bank, Ethiopia announced  after tax profits of 21.3 million birr, for the last fiscal year. The bank had registered a loss of 5.6 million birr in its first year of operation.

BIB mobilized 694.4 million birr in the reporting period. Savings and time deposits made up 73.3% of the total deposits while the rest was made up of demand deposits.

The high rate of time and saving deposits versus demand deposits is a common trend for new banks said Belachew Bogale President of Berhan. The bank will achieve a balance in deposits account reducing interest payment once it’s established he explained.

BIB showed a significant advance in financial intermediation activities and non interest operations. The bank increased its interest income to 34 million birr, disbursing 328.1 million birr in loans and advances.

Non interest earnings also exhibited a significant increase to reach 33.13 million birr in the last fiscal year.
The bank’s loan to deposit ratio, however, fell from 63.7% to 47.3% while the ratio of liquid assets to total assets increase to 57.9% from 51.9%. The ratio of liquid assets to deposits increased to 76.2% from 71.4% suggesting rising liquidity levels.

The bank will work to avoid an excess liquidity problem by increasing loans and advances in the future responded Belachew.

The paid up capital of Berhan bank has reached 134.7 million birr from 95.7 million birr when the bank was established.  

Source: Addis Fortune