Lion International Bank roars remarkable results

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(Photo: Anteneh Aklilu)

Lion International bank exerted great efforts to boost its deposit in the fiscal year 2019/20, and as a result has the deposit balance has significantly grown by 9.7 billion birr or 59.4 percent from the preceding year similar period and reached 26.1 billion birr as of June 30, 2020. The growth was practically attributed to the rise in savings deposits, which went up by 8.6 billion birr (70.5 percent).
Furthermore, the bank’s total number of account holders reached 1.2 million as of the 30th of June, 2020, which grew by 369 thousand 0r 46 percent as compared to the recorded number last year.
In matters of credit management, the bank has continued to play a key intermediary role in the Ethiopian economy through mobilizing resources to different economic sectors. Accordingly, the total net outstanding loans and advances of the bank markedly rose to 19.1 billion birr, which is an expansion of 7.5 billion birr (64.2 percent) during the ended fiscal year.
In the fiscal year 2019/20, the bank earned a total income of 3.1 billion birr, which increased by 892.2 million birr or 40.2 percent from the preceding year’s performance of 2.2 billion birr.
The total expense spent during the fiscal year 2019/20 posted 2.3 billion birr which soared by 807.1 million or 53 percent from 1.5 billion birr incurred a year earlier.
LIB completed the 2019/20 fiscal year with a remarkable achievement registering a gross profit after provision, deprecation, and before tax of birr 780.6 million, exceeding the last year’s same period performance by birr 85.1 million or 12.2 percent.
In the year under review, the bank had maintained a strong standing measured by key performance indicators. Return on assets ROA expressed as the ratio of profit after tax to the average asset of LIB stood at 2.5 percent during the ended fiscal year while the return on equality ROE articulated as the of profit after tax to average stakeholders’ equity was 25.6 percent. This profitability ratio, in this perspective, shows that the bank has continued to be capable enough to convert every invested resource into return.
Total assets of the bank have continued to expand considerably in the ended fiscal year. The bank has accumulated total assets of 31.8 billion birr exhibiting an increment of 55.9 percent (Birr 11.4 billion), over the beginning of the year balance of 20.4 billion. The expansion in the assets of the bank was attributed to growth in major components such as outstanding loans and advances, cash and bank balance, NBE bills and fixed assets.
On matters of capacity growth, the bank’s total capital and reserve rose to birr 3.5 billion, reflecting a 36 percent growth from last year same period. Similarly, the paid-up capital increased to 2.2 billion birr, which showed an increase of 621.1 million birr (40 percent) year-on-year. On the other hand, the number of shareholders reached 11,348 as of June 30, 2020.
As part of sustainable growth endeavors, the bank has been expanding its tangible assets by purchasing and constructing its buildings. The assets range from ongoing construction in Mekelle to procurement of a semi-finished building in Addis Ababa. Furthermore, as part of the effort to increase its accessibility and expand its service outreaches, the bank has opened thirty-three new branches in different parts of the country during the fiscal year under review.