In a challenging global economic environment marked by the ongoing impact of the Russia-Ukraine war and the aftermath of the COVID-19 pandemic, Ethiopia’s Awash Bank has reported a significant rise in profits for the financial year 2022/23. The announcement was made during the bank’s 28th annual general meeting, hosted at the Skylight Hotel on November 25, 2023.
Despite a backdrop of international economic uncertainty and domestic challenges, including rising inflation and security concerns, Awash Bank has managed to not only navigate but also capitalize on these conditions. According to Gure Kumsa, Chairman of the Board of Directors, the bank’s strategic adherence to its ten-year roadmap and effective crisis management played a key role in its robust financial performance.
The bank’s financial results indicate a notable growth trajectory. It recorded a 23% increase in deposits from the previous year, adding up to 35.4 billion Birr, pushing the total deposits to a record high of 187.4 billion Birr. In the realm of foreign exchange, the bank earned 1.49 billion USD, marking an increase of 250 million USD over the previous year.
The bank’s loan portfolio also saw significant growth, with 40.9 billion Birr disbursed across various sectors of the economy, representing a 22.3% increase. This brought the total amount of loans issued to 161 billion Birr. The bank’s total assets reached 224 billion Birr, and its paid-up capital saw a substantial increase of 42%, from 10.2 billion Birr to 14.6 billion Birr as of June 30, 2023.
Notably, Awash Bank’s profit for the fiscal year was reported at 9.8 billion Birr, a 31% increase from the previous year. This figure sets a new high in the history of private banking in Ethiopia.
In addition to its financial achievements, Awash Bank has maintained a focus on social responsibility and development initiatives. The bank supported entrepreneurial efforts through cash awards in the Afan Oromo Gehalewan project competition and made significant donations to various charities. It also continued its expansion efforts, notably with the construction of new buildings in several Ethiopian cities to reduce rental costs and contribute to urban development. The completion of the Bale Robe building and ongoing construction in other cities underlines the bank’s commitment to expanding its physical footprint.
As of June 30, 2023, Awash Bank has grown its network to over 875 branches nationwide, significantly up from its original five branches, and employs more than 20,000 staff members, marking substantial growth since its inception 29 years ago.
Awash Bank’s performance in the last financial year reflects its resilience and adaptability in the face of a complex economic landscape, solidifying its position as a leading player in Ethiopia’s banking sector.
