Massive Earning Per Share recorded
Dashen Bank, one of the two top profitable private financial firms in the country, achieves massive earnings per share (EPS) in the past financial year. The profit after tax has also advanced by half compared with the preceding period.
Shareholders have agreed to expand the capital to 5.5 billion birr this finance year.
In the operational evaluation for 2019/20 and the general assembly that was held at Mechare Meda, the bank leadership announced that the performance of Dashen for the past financial year was very massive and impressive.
Neway Beyene, Chairperson of the Board of Directors of Dashen, highlighted that although the financial year that ended in June had been scorched with the unforeseen pandemic of COVID 19 as a major challenge for the global economy, the bank’s performance remained sound.
“Reflecting on the previous year’s performance, the bank remained resilient despite an otherwise difficult operating environment,” Asfaw Alemu, President of Dashen says on his report, “The review of our financial position reveals positive performance in terms of key performance metrics.”
The bank’s total assets in the stated period that ended on June 30, 2020 has expanded by 21.4 percent over last year position and climbed to 68.3 billion birr.
Dashen’s annual reported indicated that the deposit mobilization has been boosted by one fifth or by 8.8 billion birr in the 2019/20 financial year. As of June 30 the total deposit mobilization stood at 53.5 billion birr, which is one of the highest amounts in the industry regarding deposit mobilization.
From the total deposit, the interest-free banking (IFB) sector, which Dashen introduced and one of the leading in the sector, has taken 4.4 percent share or 2.4 billion birr.
In the reported year the banks had opened a full-fledged IFB branch in Adama that aims to maximize the promising IFB sector.
In the reported year the outstanding loans and advances stood at 42.6 billion birr, which makes it one of the unique performances not only for the bank but in the sector as a whole.
A year ago the total loans and advances were accounted at over 32 billion birr, while in the year ended June 30 the fresh loans and advances disbursement accounted 17.4 billion birr.
From the total loans and advances domestic trade and services, manufacturing, export and real estate have taken 11 billion, 10 billion and 5.1 billion and 5 billion birr respectively.
The loans and advances for domestic trade and services and manufacturing registered massive increment compared with the preceding year. The manufacturing sector loans and advance has increased by more than 3.5 billion birr, while domestic trade and services increment is over 2.6 billion birr for the year.
In the IFB financing, 542 million birr has also been disbursed for the year only.
According to the annual performance indicator, Dashen’s total capital increased by over 21 percent and surpassed over 8.3 billion birr.
“The capital increment, in turn, has enabled the bank to increase its capacity to lend to a single borrower and maintain a buffer to absorb shocks,” the bank president said on his annual report addressing.
From the total equity, the share capital has a stand of 3.5 billion birr that was 2.7 billion birr a year ago.
For the year, the total revenue has expanded by over 30 percent compared with the 2018/19 financial year. The report shows that in the 2019/20 financial year the total revenue stood at close to 7.3 billion birr from 5.6 billion birr of a year ago. The interest income has taken the lion share as usual and reached at 5.8 billion birr that was 4.3 billion birr a year ago. It is then followed by 1.5 billion birr of fee and commission income.
In relation to the expansion of operation and deposit mobilization, the bank expense has also increased by more than 27 percent in the reported year and reached 5.5 billion birr.
The annual report indicated that the interest expense for the year reached at about 2.5 billion birr from over 1.9 billion birr in 2018/19 financial year, while employee benefits expense surge by almost half a billion birr and stood at 1.9 billion birr and followed by other operating expenses of over a billion birr.
In the year the bank profit before tax has reached close to 1.8 billion birr that increased by 40 percent from 1.3 billion birr of 2018/19.
Similarly, the profit after tax has registered a massive increment like other operations in the bank operation for the financial year that ended on June 30.
The report indicated that the bank profit has been boosted by more than half from the 2018/19 financial year and reached at 1.53 billion birr from over a billion birr of the preceding year.
The EPS for the year has also reached almost half of a share value, which is the highest for the industry. The ERS for the year has increased to 49 percent per share value that surged by over 20 percent from 40.8 percent of the 2018/19 performance.
At the general assembly held on Thursday, December 24, shareholders have agreed to expand the bank capital to 5.5 billion birr from the current 3.5 billion birr.