ADDIS ABABA – Ethiopia’s commercial banks have secured a total of 49.9 billion Birr in net profit in the year 2022, according to the National Bank of Ethiopia (NBE).
The figure has shown a 122 percent jump from 2019 during which they netted 22.4 billion Birr in profit.
Governor of the National Bank of Ethiopia (NBE), Yinager Dessie (PhD) said the financial sector has continued its growth trajectory despite challenges.
The growth in terms of deposit, credit, and other essential finance requirements has particularly been remarkable, the governor said on Monday.
Yinager has also welcomed the increasing adoption of the digital payment system in the banking sector that contributed to the creation of 43 million mobile banking users in the country, urging the banks to stay on the same path to reach the underserved segment of society.
Currently, there are 30 banks with a network of 8,944 branches across the country.
These banks have a cumulative capital of 199.1 billion Birr in 2022, up from 98.9 billion four years ago, and shown a 27 percent average growth annually.
In the same period, the total assets of the banks soared from 1.3 trillion Birr to 2.4 trillion Birr registering 92% growth while total deposits grew from 899.8 billion Birr to 1.7 trillion Birr, recording a 93% increase.
According to NBE, the bank’s Capital Adequacy Ratio (CAR), Non-Performing Loan (NPL), and Liquidity Ratio stand at 16%, 3.87%, and 27% against a minimum of 8%, a maximum of 5%, and a minimum of 5%, respectively.
Thus, by and large, financial sector has continued to operate in a safe and sound manner, the Governor said, urging the banks to step up preparations further for the future opening of the sector to foreign investors.
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