Honorable Shareholders! 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