Enat bank surpasses the ‘billion birr’ mark in total income

0
1435

Enat Bank’s total outstanding loans and advances have continued on its massive expansion in the past financial year. In the 2019/20 financial year, it has surpassed by 27 percent with almost 1.5 billion birr increment.
The annual report of the bank indicated that the outstanding loans and advances have reached at 6.5 billion birr. In the 2018/19 financial year, Enat’s total outstanding loans and advances were 5.1 billion birr which climbed by 1.7 billion birr compared with the 2017/18 financial year.
The deposit mobilization for the year has also grown by 17 percent and reached at 8.4 billion birr, while the depositors have reached more than 120,000.
The other major move for the bank was the income that it secured in the reported period. In the year, the bank income had surpassed a billion birr which is a first for Enat, which is one of the latecomers in the financial industry.
The annual report indicated that the total income that it secured for the 2019/20 financial year was over 1.3 billion birr which is an increment of 35 percent. The report explained that the income growth is mainly attributed to interest income earned on loans and advances extended to customers. In the 2018/19 financial year the total income was 983 million birr.
As the income registered significant increment in the stated period, the expenses have also skyrocketed due to the operational and interest expenses increase. The report indicated that of the total 1.1 billion birr, the expense in operational and interest expenses constituted 60 percent; the report explains the reason by quoting that, “The growth in total expense was mainly driven by growth in interest-bearing deposit, which massively expanded for the year.”
In the 2018/19 financial year, the bank expense stood at 751 million birr that increased by 45 percent or 338 million birr in the 2019/20 financial year.
The annual report indicated that in the 2019/20 financial year Enat’s profit increased by four percent and reached 240 million birr before tax. The profit after tax for the year has been 208.6 million birr up from 201.6 million birr in 2018/19 financial year.
Due to the expansion of paid up capital, the earnings per share for the year has reduced to 161 birr from 185 birr of the 2018/19 financial year.
As of June 30, 2020, the paid-up capital that turned a billion birr in the 2018/19 financial year has reached 1.4 billion birr, which was 1.2 billion birr a year ago.
The annual report shows that Enat’s total asset is at 11 billion birr from 9 billion birr a year ago. In related development, the long serving president of Enat Bank, Wondwosen Teshome, has resigned from his post, he will however continue as advisor based on the request of the Board of Directors the bank.
Wondwosen, who has a four decade experience in the financial sector, served the bank for about seven years. Ermias Andarge, Vice President for Corporate Service is expected to replace Wondwosen.