By Muluken Yewondwossen
Enat Bank, which is one of the late comers to the financial industry, has exceeded expectations during the previous fiscal year.
The bank’s annual report which came out recently showed the bank earned high profits and approached the paid up standard for the banking sector.
During the 2017/18 financial year the bank earned 750 million birr in total income which is an increase of 230 million birr compared with the 2016/17 financial year. The total amount of income has surpassed the target the bank set for the year.
According to the report of Enat Bank, their goal was to generate 736 million birr in the 2017/18 fiscal year. However, the achievement went up 2 percent compared with the target. For the stated period the bank earned a gross profit of 216.5 million birr before tax, which is an increase of around 50 percent. A year ago the gross profit before tax was 146.5 million birr. According Enat’s external audit report they have secured 159 million birr in gross profits after tax. During the 2016/17 fiscal year that amount was 112 million birr.
Their after tax earnings per share also increased 18.4 percent compared with 16.8 percent a year ago. The bank’s deposit mobilization was a third of what it was a year ago. The report indicated that the bank’s deposit
reached 4.9 billion birr which is a 33 percent increase. At the same time the number of depositors rose to over 70,000.
The bank disbursed 3.3 billion birr, which is 10 percent higher than the target, in loans and advances, according to the report. The bank had a goal for outstanding loans and advances of 3.1 billion birr. From the total of loan shares constructions and exports took the majority at 18.6 and 19.6 percentage respectively.
Enat’s paid up capital has now reached almost one billion birr. This is an 8 percent increase over the targets set for the year. The bank’s goal was for paid up capital to be 902 million birr, while the actual achievement was 971 million. The National Bank of Ethiopia, wants all banks to have one billion birr in paid up capital. The bank’s total assets were of 6.5 billion birr as of June 30, 2018 as compared to 4.9 billion birr a year ago. (capital; Ethiopia)