NewsEast & Horn AfricaEthiopian state banks record $500 m profit

Tue,21Nov2017

Posted on Friday, 05 October 2012 13:51

Ethiopian state banks record $500 m profit

Ethiopia's three state owned banks on Friday declared a record $500 million profit for the 2011/12 financial year.

 

The Commercial Bank of Ethiopia (CBE), Development Bank of Ethiopia (DBE) and Construction and Business Bank (CBC) said their profits exceeded those recorded last year by $100 million.

CBE's profits grew by 90 percent during the period under review.

Income from exports, agricultural projects, mining, and remittances from the Diaspora, among others was attributed to the surge.

CBE, the leading bank in Ethiopia with 547 branches in the Horn of Africa country and South Sudan, led the way by introducing modern banking products.

Established in 1942, the bank claims to be a leading African bank with assets of around $ 9 billion as on June 30,  2011.

CBE has more than two million account holders and has a relationship with more than 50 renowned foreign banks and a SWIFT bilateral arrangement with 500 others as well as 10 000 employees.

Ethiopian authorities argue that their strict banking regulations, which do not allow foreign banks and insurance companies to operate in the country, protect local banks and insurance companies.

But following indications reports that the country needs 40 more banks, the government has indicated that it intends to open the banking sector to foreign investors.

The country has 14 private banks and insurance companies and a  population of more than 80 million people.

Neighbouring Kenya which has less than half of Ethiopia's population has around 40 banks.

Ethiopia, one of the fastest economies in Africa, is projected to register over a 10 percent economic growth this year.

However, the International Monetary Fund and the World Bank have warned that growth would slow down to six percent because of rising inflation.



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