Hibret Bank earnings per share drops by a quarter percentage, while the gross profit surges by 15 percent.
The annual performance of Hibret Bank for 2019/20 financial year indicated that the company has amassed close to 1.13 billion birr gross profit before tax and other deductions. This is an increment of over 15 percent compared with the 2018/19 performance that was 980 million birr.
The annual report indicated that the financial firm profit after tax stood at 893 million birr, which was 752 million birr in the 2018/19 financial year.
Meanwhile as the company profit shows significant growth, the earning per share has dropped by about 24 percent compared with the preceding year.
The report indicated that the earning per share for the 2019/20 financial year was 29.79 per 100 birr share value that was 39.19 birr in the 2018/19 financial year.
In the stated period, the bank’s expense has also shown significant increment due to high interest fee and personal expense that is mainly salary and benefit of staff.
According to the annual report the total expense of the bank has reached 3.78 billion birr with an increment of 33 percent compared with the preceding year that was 2.8 billion birr.
From the total expense, the interest expense stood at 1.8 billion birr followed by personal expense of one billion birr and other expenses of 954 million birr. However the total income of the bank reached 4.5 billion birr by an increment of close to 1.1 billion birr with the expansionary expense consuming a significant amount from the total income.
In the year, the bank’s outstanding loans and advances have climbed by 26 percent and stood at almost 27.5 billion birr from 22 billion a year ago.
The report shows that the company enabled to mobilize additional 4.8 billion birr of deposit in the 2019/20 financial year. With the stated deposit mobilization growth, the total deposit amount has reached 35 billion birr with 16 percent growth. Its interest free banking wing has achieved the deposit mobilization of 1.23 billion birr that was 878 million birr a year ago.
From the total deposit, the saving deposit has taken the lion share with over 18 billion birr followed by demand and time deposit, which have 8.5 billion birr and 8 billion birr respectively.
In the ended period, the bank asset has reached 43 billion birr with 20 percent growth, while the paid up capital has reached at 3.2 billion birr in the year.