Message From the President

Dear Shareholders,

While the pace of change in the banking industry continued to accelerate with enhanced competition and challenges in the year 2016/17, Abay Bank S.C. with coordinated efforts of the Board, the management, its valued employees and the trust of our customers, positioned itself with remarkable performance.

The global economy experienced challenging conditions in the Fiscal year 2016/17, with weak growth, divergent monetary policies in advanced economies, stringent de-risking policies and significant decline in commodity prices. The Ethiopian economy on the other hand, continued to make progress during the year. However, there have been some challenges such as unrest in some parts of the Country, drought in some parts of the Country and low level of foreign currency earning against the plan.

Against this backdrop, the Bank focused on capitalizing on growth opportunities while at the same time taking necessary steps to address challenges in the environment. The Bank continued to enhance its accessibility, and maintained our financial strength with robust capital levels.

It is an honor for me to share some performance highlights of the Bank during the year under consideration.

  • In terms of deposit mobilization which is the major factor that determines our growth, the Bank generated additional deposit of Birr 2 billion and increased the total amount of deposit mobilized to Birr 6.8 billion, growing by 41% from the preceding year.
  • Though the Bank was challenged by the de-risking policies of the international market, the Bank generated foreign currency of USD 123 million growing by 53% from the previous year.
  • Loan collection was made as per the repayment schedule and as a result the Bank has collected Birr 2.1 billion during the year alone.
  • The total outstanding loan and advances of the Bank has increased to Birr 4.3 billion, growing by 37% from the previous year.
  • The Bank’s non-performing loan status has decreased to 1.56% from last year level of 2.43%.
  • The total income of the Bank has increased to Birr 872 million, growing by 36% from the previous year.
  • The Bank earned a record profit of Birr 249 million, growing by 30% from the previous year.
  • To enhance its accessibility, the Bank has opened 34 additional branches, deployed 20 additional ATM and 22 POSs during the year.
  • The number of customers increased to 337,120, growing by 45% from last year.
  • Regarding the Information Technology, development of various software, module acquisition, core banking fine tuning and cyber security assessment and enhancement activities have been done.
  • Besides, in line with Financial Reporting Proclamation No 847/2014 and Regulation No 332/2014, the Bank has been working on diligently to implement the International Financial Reporting Standards by 30 June 2018. The project is on progress and the Board and management are actively working to complete the project within the scheduled time frame.

In order to accelerate the growth of the Bank, comprehensive five years strategic plan has been crafted. The strategic focuses, among other things include resource mobilization, human resource development, risk management and compliance, optimal utilization of IT, capital growth and sustainable profitability.

Finally, on behalf of the management, employees of the Bank and myself, I would like to extend my sincere appreciation to our customers and shareholders for their support and investment in our Bank and working together, and also, to the National Bank of Ethiopia for its unreserved effort on follow-up and guidance and to all stakeholders who supported us in facilitating our business.

Members of the Board of Directors of our bank also deserve special gratitude for the commendable efforts they have exerted towards assisting the management and employees of the Bank.

Thank you!

Yehuala Gessesse,



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