Abyssinia Bank Reaps Higher Profits

allAfrica -- Shareholders of the Bank of Abyssinia enjoyed higher returns this year, an annual report issued by the bank's Board of Directors disclosed here.

The report which was released late this week noted that, owing to the bank's successful performance during the now ending fiscal year, earnings gained per share picked up by 42 percent.

Each shares of Birr 100 has earned over forty birr in the reported period versus that of less than 29 birr same amount of shares fetched last year, according to the report.

The rate of earnings per share is the return per share computed on the basis of the average number of shares held during the year taking net profit after tax.

During the reported period, the bank has netted over 61 million birr, a record high profit ever for the Bank of Abyssinia since its establishment nine years ago.

The Bank said in the report that the improvement in the quality of the bank's loan portfolio and settlement of long overdue interest arrears were among the factors which partially contributed for its successful performance this year.

The report added that the bank's improvement in the quality of loans it mobilized has resulted in a net reduction of the yearly requirement for provisions of non-performing loans.

As of the end of the reported period, the total amount of deposits at the bank and outstanding loans and advances it mobilized have both increased by 28 percent.

Established nine years ago, Bank of Abyssinia is one of the private banks in Ethiopia. The Bank currently runs 21 branches operating across the country.