Abay Bank Share Company, Ethiopia reported a 2.35 million birr net profit in the first quarter of the Ethiopian financial year (July-October). The bank, a new entrant to the Ethiopian banking sector, earned 14 million birr in total revenue according to Dr. Molla Mengistu Manger of Business Development for the bank.
The expenses registered by Abay Bank for the same period stood at 11.4 million birr while total assets rose to an estimated 577 million birr said Dr Molla. The bank’s total deposit also grew to 356 million birr and the paid up capital of the bank is neat 177 million birr he said.The bank had not expected to turn a profit in the last quarter because it was fairly new to the banking scene in Ethiopia and was saddled with high expenses from office rent, and the purchase of equipment and supplies explained Dr. Molla.
Abay Bank raised the number of its branches by 8 over the first quarter of the fiscal year to reach 17. An 18th branch is expected to open in Metema this week.
Abay Bank is in the process of acquiring land to construct branches in Addis Ababa, Dessie, Bahir Dar and Gondar said Mesenbet Shenkut President of the bank. The bank hopes to resolve the financial burden of high rent by constructing its own buildings she noted.
The bank is also engaged in discussions towards establishing arrangements with international money transfer agents such as Express, Money Gram and Western Union.
Source: Capital
