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As usual, during the year ended we were very
much keen to dedicate ourselves to provide
banking services up to our promises. This
first year operational performance of the
third strategic plan period illustrates our
success in fulfilling our promises. I am
therefore, pleased to announce again that we
are still working towards our mission of
maintaining the Bank’s pre-eminence in the
private banking business. |
The year ended has been difficult for the entire
global financial sector. Financial market
turmoil related to the sub-prime market
failures, which led to global credit crunch, and
the unprecedented increase in global oil prices
have been the main challenges attributed for the
global economy. In effect, economic slowdown has
been observed in the developed and emerging
economies. Issues related to the worldwide food
shortages and inflationary tendencies in other
consumable goods have been bones of contention
among policy-makers and concerned international
development agents.
Moreover, the implementation of the new Basel II
accord is also believed to have its own marked
impact on the overall approaches of risk
assessments and sensitivity to respond. Even if
it has some difficulties in fulfilling its
sophisticated procedures and effective
implementation in most countries including the
developing nations, it would most certainly have
inducing impacts or considerable policy
implications in terms of instigating the
relatively stringent monetary policy instruments
and other extended statutory requirements in the
financial sector.
As part of the international community, the
observed overall macroeconomic scenarios had
both explicit and implicit impacts on the
robustness of the domestic economy. Inflation
had been lingering as the main challenge for the
economy with no significant sign of improvement.
Consequently, ranges of regulatory measures have
taken place in order to maintain the overall
macroeconomic and financial sector stabilities.
Banks have, therefore, strived to respond
effectively to changes in the overall external
environment and regulatory measures. During the
year ended, we believe that we have both
achieved much and learnt much. The Bank’s total
deposits with a larger share of stable sources
amounted to Birr 6.2 billion, which showed a 27%
increase compared to the reported amount during
2006/07. Total loans and advances increased from
Birr 3.98 billion in 2006/07 to Birr 4.4 billion
during 2007/08 fiscal year.
In terms of financial leverage, Dashen Bank has
also exhibited remarkable achievements and the
corporate total assets in turn amounted to Birr
7.8 billion while for last year they were Birr 6
billion. The total corporate Tier 1 (Primary
Capital) reached Birr 650 million. Total income
also exhibited 38% annual growth and amounted to
Birr 670 million. Profit before tax reached Birr
332.5 million having a yearly growth rate of
28.3% compared with the previous year
performance.
Our market penetration power had also kept on
enhancing our efforts by having 487,410 deposit
account holders and 5,496 loanees. Concerning
our service outlets, by the end of 30 June 2008
the total number of Dashen Area Banks had
reached 47 excluding 4 Foreign Exchange Bureaux.
While the number of other customers’ own choice
service outlets such as ATMs and POS have
reached 20 and 409 respectively. In tandem,
considerable foreign currencies have been
generated. Furthermore, expansion endeavors have
been taken in the payment card service. We have
already signed an agreement to acquire and issue
MasterCard and the operation is soon to
commence.
As per the agreement made with the Ethiopian
Commodity Exchange Market to handle the
electronic modalities of payments, gradual
progress of the business is being witnessed. In
relation to asset quality management, we
attained the non-performing loan position which
is much better than the internationally accepted
loan quality standard. Moreover, our prudential
level of reserves has strengthened our balance
sheet and hence more effectiveness in our risk
management. Thus, I have no doubt that Dashen
Bank is becoming much stronger as a result of
consistent commitment for excellence and
continuous coping with changes and modern
banking practices.
To recapitulate, withstanding all the
challenges, we have been witnessing encouraging
achievement in maintaining the Bank’s
pre-eminence among private banks in terms of
overall performance indicators. We believe that
there is still a climb ahead to mount and uphold
our sustainable growth through building the
future Dashen Bank that meets the ever-changing
and highest customers’ expectations through
realizing the corporate ultimate targets and
filling gaps in a persistent manner. We shall
not give any space for complacency and remain
committed to walking the talk of our strategic
business directions.
Finally, on behalf of the management I would
like to extend my sincere gratitude to all
institutions and individuals who extended to us
their high support. Special gratitude goes to
our esteemed customers for their loyalty,
integrity and confidence in us. The support of
our Shareholders, the National Bank of Ethiopia
and Federal Government as well as regional
public offices in the process of attaining our
corporate targets and working towards our
mission is highly appreciated. Special thanks
also goes to the Ethiopian Telecommunication
Corporation without whose extended cooperation,
our advancement in IT could have hardly
materialized. The Board of Directors, the
Management and our entire staff deserve
gratitude and congratulations.
There is no commitment without involvement!
Lulseged Teferi
President
27 August 2008 |
