Awash Bank reported that it has earned 7.45 billion birr profit before tax for the 2022/2021 budget year up by 2.6 Billion or 54.5 percent compared to the previous year’s amount of 4.82 billion birr.
In it’s annual shareholders’ meeting held at Hilton Hotel on Nov 26, 2022, the company’s shareholders decided to raise the bank’s capital to 55 billion birr which is an increase of 43 billion from the current amount of 12 billion birr. Out of the newly availed 43 billion birr worth of shares, 38 billion will be allocated to existing shareholders. Additional 2 billion birr worth of shares are allocated to the employees of the bank while the remaining 3 billion birr worth shares are for sale to the bank’s customers and partner companies at 50% premium.
For the 2022/2021 budget year which ended on June 30, 2022, the paid-up capital has reached Birr 10.29 Billion from Birr 8.19 Billion of last year same period; which is, an increment of Birr 2.1 Billion or 25.65%. In spite of the capital increment, earnings per share (EPS) has shown a significant growth from 470 in 2021 to 570 in 2022 for a par value of Birr 1,000. Total capital of the bank reached 20.95 billion birr up from last year’s amount of 15.82 bln.
Awash Bank generated a total income of Birr 20.6 billion during financial year 2021/22, from Birr 13.7 billion a year earlier, indicating a growth of Birr 6.9 billion (50.2 percent) as compared with the same period of last year Interest income rose by 42.8 percent and stood at Birr 14.2 billion, while income from fees and commissions as well as other operating incomes grew by 89.4 percent and 25.9 percent, respectively, indicating a surge in income associated with foreign currency transactions,
issuance of letters of credit and gains on foreign currency dealings.
The total expenses of the Bank surged to Birr 13.2 billion by the end of June 2022, up by 47.9 percent from previous year similar period. This surge in total expense of the Bank was mainly derived by an increase in personnel and interest expenses.
Profit after tax for the year under review reached 5.34 billion birr.
Total deposit for the year under review stood at Birr 151.64 Billion which grew by Birr 43.87 Billion or 41% in 2022
compared to 2021. Deposits mobilized from Interest Free Banking line of business reached Birr 11.4 billion as at June 30, 2022; registering a net increment of Birr 3.9 billion (52 percent) over previous year same period. The effort of the Bank to enhance its foreign exchange earnings through different mechanisms has culminated in earnings of a record high USD 1.25 billion during the year under review.
Total asset significantly grew from Birr 128.70 Billion in 2021 to Birr 183.4 Billion in 2022; showing a growth of Birr 54.70 Billion or 42.51%. Loans and advances took the biggest share of the total asset accounting for Birr 126.9 Billion or 69.20% of the total asset of the Bank.
Non performing loans (NPLs) ratio as at June 30, 2022 stood at 1.2% and this was far below the threshold; i.e. 5%, set
by the NBE. Awash Bank is constructing it’s own building such as Bulbula building (2B+G+13) and Bale Robe building (B+G+4) which are progressing as scheduled. Moreover, structural design and tender document were completed for the envisaged Dire Dawa building. The Bank has secured land for the construction of buildings at Ambo, Asosa and Woliso towns and is in the process of acquiring land for the future Headquarters complex building from Addis Ababa City Administration which is expected to be finalized in the coming year.
Awash Bank opened 159 branches in the fiscal year increasing the total number of branches as at end of June 2022 to 725. A As of June 30, 2022, Awash Bank has 17,393 employees.