Message from the PRESIDENT

Fiscal year of 2015/16 was a beginning of second GTP where major macroeconomic environment was expected to continue as previous years. However, the economic growth of the year observed in some macro-economic factors was not as expected. The major factor attributed to this slower growth of the economy was unprecedented drought caused by Elnino that had adverse effect on agriculture sector which is the major contributor of GNP. The agriculture production of the year has been adversely affected by both quality and quantity. Agriculture as a major contributor also put its impact on both supply and demand side of the national economy. Particular impact of drought was observed by lower export earnings of the country where relative shortage of foreign exchange has been observed. The shortage of foreign exchange earning was not only affected by volume of export but also by fall in global price of agricultural commodity. The import sector which was dependent on export on the other hand was critical for direct consumption as well as for raw material supply to industry sector which both have negative impact on the overall macro economy of the country including financial sector.

In spite of the unfavorable macroeconomic environments observed in the year, I feel great pleasure and pride to announce another successful year of record of our Bank. In the operational year ended June 2016, our Bank has overcome the multi-dimensional challenges including stiff competition of financial sector and successfully achieved commendable strategic and operational results observed in the overall business expansion and growth.

During the reporting period of 2015/16, the Bank has earned a gross profit of Birr 458.8 million which is higher than last year by Birr 17.9 million. The Bank’s total asset grew by Birr 2.6 billion or 19.4% and reached Birr 15.8 billion. The total liability of the Bank rose to Birr 13.3 billion from previous year balance of Birr 11.1 billion. Of which, the total deposit constitutes 93.4% or Birr 12.4 billion and shows an absolute growth of Birr 2.6 billion compared to last year same period. This is the highest absolute growth registered during 16 years history of the Bank. The Bank’s customer base is significantly growing from year to year and has reached 412,910 in the year ended June 2016.