BIB attains splendid achievement despite slip in profits

0
941
(Photo: Anteneh Aklilu)

Significant personnel and some other expenses augmentation slightly reduced the profit of Bunna International Bank (BIB), meanwhile marvelous achievements were registered in all aspect for the year ended in June.
Bunna, one of the late comers in the financial industry, has announced that in the ended financial year it has been able to expand its deposit mobilization, loans and advances disbursement, included huge number of new customers, aggressive branch expansion and equity increment.
In annual performance for the 2019/20 financial year, the bank has enabled to boost its asset by close to one third or 4.4 billion birr to 18.9 billion birr from 14.5 billion birr of 2018/19.
In the financial year that ended on June 30, 2020, the bank’s paid-up capital has expanded by more than 396 million birr or 22 percent compared with the preceding year. According to the annual financial report of BIB, the paid-up capital has reached at close to 2.2 billion birr from 1.8 billion birr of 2018/19 financial year.
Similarly, the total capital of the bank has reached at about 3.1 billion birr with additional increment of 504 million birr for the year.
For the year, the bank has enabled to mobilize additional 3.3 billion birr deposit and expand the total deposit close to 14 billion birr.
Regarding total revenue in the reported year, BIB has enabled to amass almost 2.2 billion birr that climbed by 18.6 percent or 341 million birr.
From the total income the interest income has stood atop with 1.67 billion birr and followed by fee and commissions that was 415 million birr.
The total outstanding loans and advances have reached to almost 11.6 billion birr with increment of 40 percent by the ended period. In the 2019/20 financial year additional 3.3 billion birr fresh loans and advances have disbursed.
Import export business took the lion share regarding accessing the bank finance by the share of 45 percent and followed by construction and domestic trade by 21 and 19 percent respectively.
In the year the bank has bought a nine floor plus basement building located at Africa Avenue around Bole Rwanda that will now serve as head quarter.
For the year, the total expense has skyrocketed by 32 percent and reached at almost 1.6 billion birr.
The main expense expansion occurred for the year was come from personnel expenses that climbed by 33 percent and reached 532 million birr from over 400 million birr of the 2018/19 operation period.
In the year alone, additional 334 permanent and 331 outsourced staffs were hired at the bank that expanded its employees to 2,043 and 2,142 respectively.
Interest expense that took the major share regarding total expense by 34 percent share has stood at the second level in terms of incremental rate. For the year ended last June, the interest expense has increased by 23 percent and reached at 542 million birr from 440 million birr of a year ago.
Due to high expense growth mainly on the personnel and depreciation of right of use asset side, meanwhile the net operating income for the year have significant increment to profit has shown slight reduction.
According to the report, the net operation income for the reported year climbed to 1.56 billion birr from 1.34 billion birr of a year ago. While the profit before tax has stood at 582 million birr from 625 million birr of the 2018/19 financial year.
Similarly, the profit after tax has reduced to 440.3 million birr from 461.4 million birr in similar period mentioned above.
This contributed to show slight reduction on earnings per share (EPS) for the year. According to the annual report the EPS has dropped to 22.5 percent from 28.7 percent of a year ago.
For the year, the bank has opened additional 37 branched in the capital and other parts of the country that expanded the number to 424 as of the end of the financial year.
Deposit account holders have grown by close to 50 percent and reached at almost 810,000.