On the eve of celebrating the Bank’s 20th anniversary, it is indeed an honor and a privilege for the Board to present the Annual Report for the financial year concluded June 30, 2019; along with the Audited Financial Statements to its esteemed shareholders.

As a well-diversified business underpinned by historically-stable revenue generation and significant capital strength, NIB has registered a landmark profit of close to Birr 1 Billion. The registered result would not have been possible without the relentless effort and hard work of NIB’s team. The Board has been and is still doing a lot to ensure that the Bank’s growth is sustainable and will continue to prosper for the years to come.

The Board is focused on sustaining resilience by enhancing service excellence and performance. The Board will further ensure the implementation of the 3rd 5-year strategicplan to deliver value to all of our stakeholders within a governance framework that provides stability, prudence and effective oversight.

The Board is confident that the focus on our strategy with respect to customer-centricity and digital transformation is right, indeed essential and has taken into account the current global and national trends. A crucial evolution for our business this year has been identifying, adopting and embedding a clear sense of purpose, to shape the Bank where employees and the management thrive for excellence. Along with our values, this underpins everything we do and will ensure all our people can undertake their work with pride and a stronger sense of ethics and fairness.

To ensure same, the Board has taken action to fast-track fundamental changes ensuring sustainable and profitable growth through excellence in operations, technology and ultimately customer experience. The Board also believes that having an engaged and motivated workforce and a sound governance and risk management are pivotal to attain the sustainable profit and growth the Bank aspires for. In light of the above, the Board approved and implemented a new organizational structure that made us create additional two Vice Presidents along with a new salary scale as part of executing the Bank’s 3rd Strategic Plan and 10-year roadmap. The Board was also able to develop and approve various policies with a focus on successfully implementing the aforementioned change initiatives.

As part of implementing the 3rd five-year strategic plan, the Bank also conducted various experience sharing engagements on the adoption of the Balanced Scorecard (BSC) which is a very popular strategic management tool. This is a tool that concentrates not only on financial aspect (i.e. maximizing profits) but also takes into consideration three other major areas which are setting customer need priorities, internal processes and learning&growth endeavors. The Board believes that the adoption of BSC is core to the effective and efficient execution of the 3rd five-year strategic plan and implementation of same will continue.

It is important not just to achieve good results, but to do so in a way that treats all of our stakeholders – regulators, shareholders, customers, and employees – in a fair and transparent way. We are committed to hold ourselves to account in meeting that aim, and to being accountable to our stakeholders for our actions. As part of this commitment, the Board and the Senior Management are determined to ensure that NIB remains a place where all our people have the opportunity to fulfill their potential in a nurturing environment that encourages the right behavior. Our stakeholders expect honesty and integrity and we will continue to promote a culture in which people do the right thing.

The various investment activities that the Bank has engaged itself are also a clear indication of the Board’s determination and effort exerted in prudently managing and sustainably growing the Bank’s asset. The ongoing construction projects are evidences that the Bank is making the required investments to build a bank worthy of the trust and respect of our customers, shareholders and the people it serves.

Finally, the significant achievements recorded by the Bank would not have been possible without the continued support and trust of our customers, the strategic leadership of the Board, the commitment of the management and the dedication of the Bank’s staff. I on behalf of the Board of Directors would like to extend my heartfelt appreciation to the National Bank of Ethiopia and all stakeholders.

Having wished you all Happy 20th anniversary, the Board would like to assure all stakeholders that the best years of theBank have just begun and we will be witnessing more glorious days to come.

    Woldetensai W/Giorgis

Chairperson, Board of Directors

           December, 2019