ADDIS ABABA, 12 May 2005 (Addis Tribune) - When a group of interested people came together ten years ago to establish a private bank by the name of Awash International Bank (AIB) little did they realize that their bank would be the first private bank in post-1991 years to register uninterrupted profit.

According to the annual report 2004 released last Saturday at the 10th general meeting of shareholders for the year ended 31st December 2004 Awash International Bank made a net profit after tax of 34.7 million birr, which is higher than the profit made during the preceding year by 17.3 million birr.  Earnings per share for the financial year stood at 279 birr, compared to 157 birr in 2003, showing a growth of about 78 percent.

This encouraging result, the report says, is attributable to an increase in the Bank’s aggregate income as well as a decrease in the level of provision for doubtful loans, advances and debts held during the year in comparison with the preceding year. The Bank opened three more branches and created 113 more jobs in 2004, raising the number of its branches  to 32 and that of its employees to 1119.

“These figures are indicative of AIB’s modest contributions towards reducing unemployment and its continued efforts to bring banking services close to its valued customers.  The frontiers of AIB’s services can expand and the quality of its services to its customers can be enhanced only through the competence and dedication of its employees.  The management of this critical resource and its development has deservedly drawn the close attention of the Bank’s Board and Management during the year under review and will continue to be an area of focus in the future,” says Leikun Berhanu, president of AIB.

Awash International Bank has a paid-up capital of 135.7 million birr, deposits and loans of 1.8 and 1.2 billion birr respectively and a total asset of 2.4 billion birr as at December 31, 2004.

“The Bank’s contributions over the last decade to the government treasury have also been significant and include over 80 million birr in profit taxes alone,” says Leikun.

Paying tribute to all who have made the success of the Bank possible, Ato Leikun gave special recognition to the 486 founders and to the entire shareholders whose number is more than 2200 today. “ The founders’ laudable vision of establishing a bank was realized thanks to their economic heroism. Their vision was shared by hundreds of new shareholders who are all ambassadors of their bank today,” he says.

Following the tenth ordinary annual meeting of the Bank, the seventh extraordinary meeting was held to discuss further rise of paid-up capital.

 It will be recalled that the Board of Directors decided in June, 2004 to sell shares to new shareholders, as mandated by the shareholders, side by side with selling shares to existing shareholders to reach by April 2005 the set target of 140 million birr.  Accordingly, it was decided at the meeting that the paid-up capital be raised from 140 million birr currently to reach 200 million birr within five years. n