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Honorable Shareholders! |
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On behalf of the Board of Directors and myself, I am pleased to report that our
Bank has reached a significant level of recording high achievement in the fiscal
year 2008/09.
It is indeed apparent that the last year was challenging and remained to be a
source of concern particularly for the banking sector. The nature of the
challenges was multifaceted and was triggered by the intermittent power outage,
shortage of foreign currency, dwindling market for some of the exportable items
and shortage of construction materials. These have certainly affected the
performance of the ongoing situation as well as causing banks to operate under
credit contraction, which has a direct impact on their major source of revenue. |
Despite these challenges and the world economic meltdown, however, our Bank
with motto of delivering today, and well articulated effort and work program
has once again made it possible to reiterate the upward trend which was our
aspiration. It has registered a record high profit before provision for tax of
Birr 352.5 million. As a result, the Bank will effect payment of Birr 102.6
million to the government as profit tax, evidencing that banks are a stimulus
for the economic growth of our country.
In view of maintaining adequate capital, the 12th extraordinary meeting of the
shareholders has deliberated upon the recommendation of the Board of Directors
and passed major resolution to increase the Bank’s paid up capital.
Consequently, the paid up capital of the Bank as at June 30, 2009 is increased
to Birr 528,512,000 that raises the primary capital of the Bank to Birr
787,719,089. This position has significantly increased the single borrower
limit of the Bank to nearly Birr 197 million. On behalf of the Board of
Directors and myself, I seize this opportunity to extend our sincere thanks for
the timely response and action taken by the shareholders in this regard.
Last year I indicated in my statement that the process of acquiring MasterCard
was in its certification process. At this moment in time, I take the
opportunity to announce that the Bank has already commenced operating
MasterCard through the payment card system installed and have penetrated the
market from end to end to give services to our customers. Moreover, pursuing
our strategy of applying appropriate technology, the Bank has always teamed up
for new ideas and harvesting new technology. We have now embarked upon an
M-Commerce project, which is an added product and unique in terms of
functionalities and easing access to and operating bank accounts. This puts the
Bank in the forefront not only in terms of availing technology-oriented
products and services but in setting a landmark.
It was in the fiscal year under consideration that we colorfully inaugurated
our buildings in Adama and Bedelle towns. Similarly, the construction of the
Head Office Building in Addis Ababa and other office buildings in Woliata and
Dilla are progressing on schedule. The selection of Contractor for the building
to be constructed in Bahir Dar is identified and preparation is underway to
conclude the contract.
In view of enhancing the corporate governance, the Board of Directors has been
regularly meeting to assess overall progresses and set essential directions.
The Board has a healthy debate, is committed to a common goal with a positive
view, sees bright future possibilities and ensures that savings are put into
productive investments. The Board Audit Committee with all the integrity,
professionalism and concern, which was established two years ago, has continued
to be a useful arm of the Board and performing its activities as per its terms
of reference. I thank all Board Directors and members of the Audit Committee
for their unreserved commitment, and diligence and support that they have
demonstrated.
We all believe that work culture plays a significant role in our success. The
result attained is the outcome of strategic leadership, managerial competence
and sturdy team work of individual employees. Indeed, one feels optimistic to
challenge the challenges ahead along with such a winning team. The Board was
contented with the performance of the team, which in reality reflects their
values. In this regard, I would like to give additional assurance that the
systematic motivational considerations that have been pursued shall continue
for our deserving workforce. In all circumstances, nothing will override our
"quality" of services to secure our future. I congratulate the whole team for a
job well done. We applaud the success and the progress from year to year that
make our dreams as they say "wake up".
In the past, Dashen has never exposed itself to complacency even with the
successive record high results attained and it will never give such room in the
future as well. The challenges we anticipate ahead shall not influence us so
that our dreams are dashed. In contrast, with the discipline involved, openness
to new ideas, experience we have so far accumulated, proven leadership,
committed and motivated workforce, we shall put on a fresh thoughts, remain
optimistic and leave with renewed confidence of making it possible again and
thereby add value for our shareholders.
Finally, I would like to express my sincere thanks to all stakeholders, our
beloved customers for their intact confidence in the Bank, candid and
constructive feedbacks and patronage; respected shareholders for their
encouragement and insightful decisions; the National Bank of Ethiopia for their
useful guidance; and the management and staff of the Bank for their dedicated
services and commitments.
Thank You.

Teklu Haile
Chairman, Board of Directors
18 September 2009 |