Bunna Bank, one of the banks established with a mass base, reels in over a billion birr in profits for the first time in the financial year that came to a close in June.
Despite the ups and downs in the economy, the bank disclosed that it had a successful year as it saw its operations expand in every aspect.
At the heart of one of its success stories for the year was its growth in deposit mobilization which increased by close to a third in comparison to the previous financial year.
According to the annual report disclosed by the bank during its general assembly held a week ago, the deposit mobilization stood at 27.2 billion birr as of June 30, 2022. The deposit amount showed an increase of 6.7 billion birr or 32.8 percent in contrast to the preceding year.
The financial firm’s loans and advances have also seen a growth of 41.3 percent reaching a total of 25.8 billion birr.
In the fiscal year, the bank secured 4.54 billion birr which is an increase of 37.6 percent or 1.25 billion birr from the year that closed June 30, 2021.
Of the total, the interest income took 81 percent while the remainder was from other businesses that the bank operated in during the course of the year.
As a result, Bunna’s profits for the year peaked at over a billion birr for the first time. According to the annual report, the bank’s gross profit stood at 1.19 billion birr by increments of over a quarter when compared to the preceding year.
A year ago, the bank’s gross profit was 937.3 billion birr, 26.6 percent lower in contrast to the blossoming year under review.
The Bank’s booming profits after tax netted at 881 million, an increase of 21 percent up from 670 million from the previous year.
Thus its earnings per share stood at 29.8 percent up from 29.3 percent a year prior.
The Bank’s assets, in the year, continued to expand reaching a total of 34.1 billion birr which was an increase of over 31 percent or 8.16 billion birr.
Similarly, its capital surpassed five billion birr to reach 5.1 billion birr showing increase of 33 percent in a single year. Of the total capital, the paid up capital was 3.3 billion birr as of June 30, 2022.
According to the report, the paid up capital has increased by 32 percent or 807 million birr in a single year alone.