November 4, 2024

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Dashen bank profit

Dashen Bank Achieves Record Profits Amid Economic Challenges

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Dashen Bank has shared financial results for the year. Dashen Bank achieved record profits of 4.8 billion birr.

Total deposits at Dashen Bank increased by 26.9%, reaching 145.9 billion birr. This growth arises from a 27.4% rise in customer accounts totaling 6.71 million. Such significant growth highlights the trust customers place in Dashen Bank, even as the banking sector faces liquidity challenges.

Savings deposits accounted for 54.8% of total deposits, providing a stable and low-cost source of funds. This focus on attracting savings has strengthened Dashen’s financial foundation and supported its lending activities.

Despite regulatory caps on credit expansion, Dashen Bank increased gross loans and advances by 14.6%, totaling 116.1 billion birr. This growth aligns with the central bank’s credit ceiling of 14%. The bank has effectively supported vital sectors while navigating high inflation and foreign exchange shortages. Consumer loans and trade services comprised the most significant portions of its diversified loan portfolio.

The pre-tax profits of Dashen Bank surged by 26.8%, reaching 6.4 billion birr. Total revenues rose by 33.8% to 23.5 billion birr, driven by interest and fee income. Effective cost management kept expense growth to 33.3%. The return on assets (ROA) improved to 2.7%, while the return on equity (ROE) reached an impressive 20.4%.

The Board of Directors proposed reinvesting 2.36 billion birr of net retained earnings into capital and distributing 1.01 billion birr as dividends to shareholders.

Dashen Bank strengthened its balance sheet with a capital injection that raised paid-up capital by 28% to 12 billion birr. This increase boosted total equity by 23.9%, reaching 23.9 billion birr. Total assets expanded by 26.9%, totaling 183.7 billion birr.

This year, Dashen Bank’s strong financial performance reflects its focus on customer satisfaction and operational efficiency in a changing economic landscape. With ongoing investments in customer service and innovative solutions, Dashen Bank is well-positioned for sustained growth and success in Ethiopia’s banking sector.

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