Bank of Ethiopia has earned 71.4 million birr in the first quarter

Ethiopia-November 10, 2011-The Development Bank of Ethiopia has earned 71.4 million birr in the first quarter of the fiscal year. The profit earned by the bank is 52% more than what it earned in the same period last year but 2 million birr less than its target.

The Development Bank also exceeded its target for loan approvals by approximately 1 billion birr in the last quarter. Loan approvals were especially concentrated in the agriculture and manufacturing sectors.

The three billion birr that the bank approved this past quarter makes up 38.4% of the 7.8 billion it aims to approve by the end of the current fiscal year.
The single most significant loan this quarter was the 1.5 billion birr approved for Habesha Cement Factory. The sum approved for the cement factory might be exceeded by a 2.1 billion birr loan request from AYGIM-BM Capital Technology group. The company aims to engage in manufacturing fiber optic cables, an area of priority for the bank.

Loan disbursements, however, failed to match the higher than the higher than expected levels of loan approval. The Development bank managed to disburse just 587.3 million birr, approximated one third of the 2.3 billion birr it had expected to disburse.

Loan collections for the quarter were also 146.3 billion birr below the targeted sum.

Non-performing loans held by the bank stand at 1.4 billion birr at the end of the first quarter of the fiscal year.

The Development bank calls on resources from various sources including loans from local and foreign sources and deposits to finance its loans. Source: Addis Fortune