Expands digital, int’l partnerships
ADDIS ABABA – Dashen Bank, one of Ethiopia’s leading private banks, concluded the 2023/24 fiscal year with a profit before tax of 6.4 billion Birr, marking a 26.8% increase compared to the previous year. The achievement highlights the bank’s strong financial performance despite external economic challenges.
During the bank’s 31st ordinary and 26th extraordinary annual meeting held at Millennium Hall yesterday, shareholders discussed the bank’s impressive performance, future plans, and key initiatives.
Dashen Bank’s Board Chairperson, Dula Mekonnen, credited the bank’s strategic management and resilience for its success in a tough global environment. Inflationary pressures and geopolitical tensions, including the ongoing Russia-Ukraine war, contributed to global supply chain disruptions. However, Dashen Bank managed to increase total deposits by 30.9 billion Birr, bringing the total to 145.9 billion Birr-a 26.9% year-on-year growth.
The bank’s Islamic Financial Banking (IFB) division also saw significant growth, contributing 11.1 billion Birr in deposits, a 37.2% increase from the previous year. Overall, the bank’s assets surged to 183.7 billion Birr, a 27% rise.
Dula highlighted the growing competition from mobile money platforms, particularly the state-owned Ethio telecom’s Telebirr and Safaricom’s M-PESA, which have reshaped customer expectations. Dashen Bank has responded by increasing innovation and expanding its digital banking offerings.
Dashen Bank’s proactive approach also resulted in the opening of over 1.44 million new accounts during the year, bringing the total to 6.7 million.
CEO AsfawAlemu emphasized the importance of digital banking and partnerships with global financial institutions as key drivers of the bank’s growth strategy.
Notably, the bank secured 40 million USD in funding from British International Investment (BII) and the Dutch Entrepreneurial Development Bank (FMO). It also obtained a 40 million USD trade finance transaction guarantee facility from the African Development Bank (AfDB) to support small and medium-sized enterprises (SMEs) in import-export activities.
Dashen Bank has further committed to environmental, social, and governance (ESG) initiatives by establishing an ESG policy and department. The bank aims to strengthen its engagement with international partners to promote sustainable practices.
During the fiscal year, Dashen Bank earned recognition for its achievements, receiving prestigious awards such as “Bank of the Year 2023” for Ethiopia from The Banker magazine and “Outstanding Global Trade Finance Program Issuing Bank” from the International Finance Corporation (IFC).
Looking ahead, Dashen Bank remains focused on fostering innovation, enhancing digital services, and driving Ethiopia’s financial sector towards sustainable development, it was stated.
Established in 1996, Dashen Bank is playing a significant role in Ethiopia’s banking and financial sector.
BY STAFF REPORTER
THE ETHIOPIAN HERALD WEDNESDAY 16 OCTOBER 2024
