Friday, March 29, 2024
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Dashen reaches newer heights in profits, assets

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Dashen Bank, one of the topflight financial firms, amasses huge profits in the 2021/22 financial year as assets hit over the 100 billion birr mark for the first time.
During the bank’s general assembly held at Sheraton Addis, leaders of the bank disclosed that in the recently concluded financial year which came to a close on June 30, Dashen secured a profit of 3.8 billion birr before tax. According to Dulla Mekonnen, Board of Directors Chairperson, the gross profit has an increment of 1.4 billion birr when compared to the 2020/21 financial year, registering a 57 percent growth in a single year alone.
In the reporting period, the bank bagged 12.9 billion birr in revenue from 10.25 billion birr a year earlier which is an increment of 26 percent.
The bank, during the course of the year was able to open 128 additional branches and according to Asfaw Alemu, President of Dashen, the profit after tax sat at over 2.9 billion birr with 68.3 percent growth from the preceding year.
A year ago the bank secured 1.7 billion birr profit after tax.
“Branch expansion has given us the opportunity to reach more customers and expand our services,” Asfaw told shareholders.
Regarding total assets, the board chairperson declared that the bank surpassed a 100 billion birr to reach 117.1 billion birr as of June 30.
He said that the asset accumulation had registered almost a quarter percent growth compared with the financial year that ended June 30, 2021.
A year ago the total asset of bank was almost 95 billion birr.
Loans and advances, took the lion’s share of the asset, growing by 21 percent towering at 77.3 billion birr.
Over the same period last year, loans and advances and interest free banking (IFB) financing had stood at 63.9 billion birr.
According to Asfaw, on the liability side, the total positional deposits balance both from conventional and IFB customers grew by 26 percent reaching 91 billion birr by the end of the period.
The deposit mobilization from IFB, which is one of the successful sectors for the bank in comparison with competitors, registered a growth of 37 percent on customers alone and reached 5.9 billion birr.
The total equity grew by 35 percent and reached birr 14.3 billion.
In the period under review, the owners’ equity also climbed by 42 percent to reach 14.4 billion birr.
According to the statement from Dashen Bank, with additional injection of 2.5 billion birr following the decision of the shareholders, the paid up capital of the bank has now reached 6.9 billion birr with 57 percent increment compared with the same period of last year.
Despite the bank increasing it’s paid up capital by 57 percent in a single year the earnings per share (EPS) did not show reduction.
In the 2021/22 financial year, the bank was able to achieve EPS of 532 birr per 1000 birr share value which is a growth of 13 percent when compared with 471 birr of the 2020/21 financial year.

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