Dashen Bank, one of the trailblazing private financial firms in the country, concluded the past financial year with massive successes including the rise of interest free banking (IFB), assets and loans. With galloping success, the shareholders approve the bank’s capital to be pumped to 12 billion birr within two years.
The bank that conducted its general assembly on Thursday November 18 at Mechare Meda disclosed that its gross profit has also surged by 25.6 percent.
According to the annual report of Dashen, which is one of the top profitable banks, indicated that as of June 30, 2021 its asset spiked to almost 95 billion birr. The asset growth sees a 39 percent rise when compared with the preceding year which was 68 billion birr.
In notable fashion, the deposit amount grew by over 39 percent and stood at 74.6 billion birr. In a single year the bank deposit mobilization was 21.1 billion birr.
The other significant growth occurred in the loan sector. As per the annual report of Dashen, the bank’s outstanding loan expanded by half to reach 64 billion birr.
With another record performance in loans which is mainly driven by massive deposit mobilization, the IFB business has achieved more than threefold increment compared with the same period of last year.
According to the report, over 70 percent of the resources of the bank were channeled to major economic pillars that included domestic trade and service, manufacturing and international trade.
The pioneer bank stated that the loan for real estate and consumer financing exhibited strong growth during the reported period.
In the successful year, Dashen amassed 10.3 billion birr in total revenue with 36 percent growth, while the highest income that is 77.6 percent was secured from interest income.
With the total revenue being boosted in the stated period where the bank achieved massive successes like deposit mobilization, its costs also expanded. The bank stated that the deposit increment and cost of doing business are the main reasons for cost increment for the year.
In the year, the total cost shot up by 36 percent compared with the preceding year and stood at 7.8 billion birr.
From the total cost, the lion’s share went to payment for depositors’ interest, followed by personnel expenses that were 38 and 24 percent respectively.
Despite the costs incurred, the profits for the financial firm before tax stood at 2.4 billion birr bearing growth of 36 percent from 1.8 billion birr a year ago.
In the year that ended June 30, the bank’s profit after tax stood at 1.7 billion birr showing increment of 12.3 percent.
From the international banking activity in the year, Dashen was able to mobilize USD 603 million that grew by 9.3 percent.
Dashen that is a pioneer to introduce technology based banking activity in the country said that digital banking remains a strong competitive edge of the bank, “in the reviewed period the bank’s digital payments platform, Amole, was integrated with three payment gateways, Visa, Thunes and Flutter Wave. In the card banking co-branded cards were introduced with three partners.”
Currently, Dashen’s Amole platform has 2.4 million users with additional 427 thousand new users in the reported year alone, and 552 thousand transactions undertaken through the platform.
On the same day, the general assembly conducted an extraordinary meeting and decided to expand Dashen’s paid up capital by more than twice of its prior state.
As of June the bank paid up capital stood at 5.4 billion birr, and as per discussions the shareholders agreed to raise the amount to 12 billion birr in the coming two years. The bank said that the capital increment will allow the bank to expand to its activities and affirm its competitiveness in the financial industry.
Dashen which started operation with 11 initial investors currently has 2065 shareholders.