DBE Registers Historically High Profit of Birr 1.13 Billion
Development Bank of Ethiopia (DBE) has registered outstanding net profit in the fiscal year 2019/20. Its total income generated is Birr 7.37 Billion and it is 111% of the plan target and it increased by 31% as compared with preceding year. The operating income/loss before tax of the Bank is Birr 1.27 Billion in the 2019/20 F.Y. All in all, during the year under review, the Bank gained a net income of Birr 1.13 Billion after provision and tax.
The historical high profit was disclosed by President of the Bank, Ato Haileyesus Bekele during the Annual Management Members Meeting held via video conference using Zoom platform on 21 & 22 August 2020 due to the wide-spreading of Corona Virus (COVID-19).
President of the Bank, Ato Haileyesus Bekele while chairing the meeting via video conference
During the meeting, performance report of the Bank by all districts, vice presidents and at the corporate level was presented and important discussion was held over by management members of the Bank.
According to the Report, the Bank approved Birr 10.4 Billion, disbursed Birr 8.54 Billion and collected Birr 7.7 Billion registering 76%, 71% and 98% of its planned target respectively during the fiscal year. Particularly, the Bank’s annual loan collection almost doubled as compared to previous year’s performance and its historical average performance.
The total loan portfolios of the Bank reached Birr 55.67 Billion and increased by 9% compared from previous year same period amount, Birr 51 Billion. While, NPLs ratio decreased by 4.6% compared from the previous year same period.
The Bank also sold Grand Renaissance Bond amounted to Birr 616.43 Million during the budget year under review.
During the meeting participants discussed operations of project and lease financing, bond sale, the reform related activities, financial, HR and other function’s performance of the Bank for the fourth quarter and the reporting year under review, challenges occurred such as COVID-19 and unrest, efforts to overcome the challenges, problems encountered, corrective measures taken, strengths and weaknesses evaluated and the way forward.
Finally, Ato Haileyesus Bekele appreciated all working units of the Bank at different levels for the successful achievements gained in the fiscal year and, he adding, this achievement should be continued more in next budget year by reducing NPLs, collection of loans and aggressively participate in bond sales.
In 2020/21 fiscal year, the Bank planned to approve Birr 10.09 Billion, disburse Birr 10.03 Billion and collect Birr 8.24 Billion as well as reduce NPL ratio to 25%.
