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The Commercial Bank of Ethiopia (CBE) has announced an exceptional financial performance for the 2023/24 fiscal year, marking a significant milestone in the bank’s history. The bank’s total revenue reached 135.4 billion Birr, representing a 13% growth compared to the previous fiscal year. Furthermore, CBE recorded a pre-tax profit of 25.6 billion Birr, the highest in its history, thanks to effective cost-cutting strategies and turnaround efforts.
Financial Performance
The bank’s total revenue reached 135.4 billion Birr, reflecting a 13% growth compared to the previous fiscal year. Pre-tax profit for the period was recorded at 25.6 billion Birr, the highest in the bank’s history, driven by effective cost management strategies and operational improvements.
Growth in Deposits and Customer Base
CBE saw a significant increase in total deposits, which surpassed 1.17 trillion Birr. The bank’s customer base also expanded, now exceeding 45 million. Loan disbursements totaled more than 218 billion Birr, with a substantial 91% (over 198 billion Birr) directed to the private sector. The bank reported an improvement in its bad loan stock, reducing it to 2.6% by the end of the fiscal year.
Transaction Volume and Digital Payments
The bank recorded over 1.56 billion transactions during the fiscal year, with a total cash transfer of over 31.6 trillion Birr. A notable 1.19 billion transactions, accounting for 72%, were conducted through digital payment options. This highlights the bank’s ongoing efforts to enhance digital banking services.
Reforms and Strategic Initiatives
Under its five-year master plan, CBE has implemented several reforms aimed at reducing bad loans and improving operational efficiency. These reforms have played a significant role in the bank’s overall financial performance.
Community Engagement and Social Responsibility
CBE allocated a portion of its budget to community and development initiatives. Notably, the bank supported the Ethiopian Commercial Bank football team in its efforts to qualify for the Ethiopian Premier League Cup. Additionally, CBE contributed 23 million Birr to the “Clean Ethiopia” movement.
Recovery Efforts
The bank reported significant progress in its recovery efforts related to a system update issue that occurred on March 7, 2016. CBE successfully recovered 99.34% (796.6 million Birr) of the 801.4 million Birr impacted, with ongoing efforts to recover the remaining 4.76 million Birr.
The financial performance of the Commercial Bank of Ethiopia for the 2023/24 fiscal year shows considerable growth in revenue, deposits, and customer base. The bank’s focus on digital transactions, strategic reforms, and community engagement has contributed to its overall results. CBE continues to implement measures aimed at sustaining its growth and enhancing its service offerings.
