ADDIS ABABA (DBE) – Development Bank of Ethiopia (DBE) has registered outstanding net profit in the fiscal year 2019/20. Its total income generated is Birr 7.37 billion and it is 111% of the plan target and 31% increment compared with the preceding year. The operating income/loss before tax of the Bank is Birr 1.27 billion in the 2019/20 fiscal year. All in all, during the year under review, the Bank has gained a net income of Birr 1.13 billion after provision and tax.
The historical high profit was disclosed by President of the Bank, Ato Haileyesus Bekele during the annual management members meeting held through video conference (due to the ongoing COVID-19 pandemic) on 21st and 22nd of August 2020.
During the meeting, the performance report of the Bank by all districts, vice presidents and at the corporate level was presented and important discussion was held over by management members of the Bank.
According to the report, the Bank approved Birr 10.4 billion, disbursed Birr 8.54 Billion and collected Birr 7.7 billion registering 76%, 71% and 98%, respectively, of its planned target during the fiscal year. Particularly, the Bank’s annual loan collection almost doubled as compared to previous year’s performance and its historical average performance.
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The total loan portfolios of the Bank reached Birr 55.67 billion and increased by 9% compared to the previous year’s same period, which was Birr 51 billion. While, nonperforming loans (NPLs) ratio decreased by 4.6% compared from the previous year’s same period.
The Bank also sold the Grand Ethiopian Renaissance Dam (GERD) bond amounting to Birr 616.43 million during the budget year under review.
During the meeting, participants discussed operations of project and lease financing, bond sale, the reform related activities, financial, human resources and other functions’ performance of the Bank for the fourth quarter and the reporting year under review, challenges occurred such as COVID-19 and [political] unrest, efforts to overcome the challenges, problems encountered, corrective measures taken, strengths and weaknesses evaluated and the way forward.
Finally, Ato Haileyesus Bekele appreciated all working units of the Bank at different levels for the successes gained in the fiscal year and, he adding, this achievement should be continued more in the next budget year by reducing NPLs, collection of loans and aggressively participating in bond sales.
In 2020/21 fiscal year, the Bank planned to approve Birr 10.09 billion, disburse Birr 10.03 billion and collect Birr 8.24 billion as well as reduce NPL ratio to 25%.
About the Development Bank of Ethiopia (DBE)
The Development Bank of Ethiopia (DBE) is one of the leading financial institutions in Ethiopia engaged in providing short, medium and long term development credits. DBE’s distinguished feature is its “project-based” lending tradition. Projects financed by the Bank are carefully selected and prepared through appraised, closely supervised and systematically evaluated. Since its establishment in 1909, the Bank has been playing a significant role in promoting overall economic development of the country.
Source: DBE