It gives me a great pleasure and honor to present to you the corporate performance of the Bank for the year ended on June 30, 2018. During the year, the Bank registered a remarkable growth in most operational parameters despite the multi-dimensional challenges we had to live with.
According to World Bank's forecast, the Ethiopian economy continued to grow at a faster rate than most Sub-Saharan countries in the year 2017/18. However, the drop in production mainly in manufacturing and hospitality sectors and the decline in investment flows caused by political instability affected the sustainable growth of the economy. On the other hand, the inflationary pressure, decline in foreign currency earning, major changes made on the monetary policy (such as increase in deposit interest rate, devaluation of Birr, foreign currency surrender requirement, credit cap ) of the Ethiopian economy were the major challenges. Moreover, due to de-risking policy of Banks and compliance requirements of the regulatory body, establishing correspondent banking relationship is yet a major concern.
Despite the aforementioned constraints, the year 2017/18, in which we started the implementation of our Five years strategic plan, was marked by excellent achievements in all perspectives. By focusing on our major strategic issues and exploiting on growth opportunities, we were able to sustain significant growth on our major operational results.
To mention some of the financial achievements, the Bank's revenue went up by 51 % from the previous year and collected income of Birr 1.3 billion in the year just ended. Accordingly, the Bank's profit grew up by 68% from last year's balance to attain record high profit of Birr 419 million.
On the other hand, withstanding the tough competition in resource mobilization, the Bank added deposits of Birr 2.8 billion (41 % growth) on its previous year's record to reach at deposit of Birr 9.6 billion. With regards to foreign currency mobilization, the Bank generated of USD 164.3 million from all sources with growth rate of 33% from last year. During the year, Birr 2.2 billion loans and advances were collected and it has gone up by 30% from the performance of last year. Growing by 40%, the Bank's total outstanding loans and advances balance reached Birr 6 billion.
The total capital and asset of the Bank reached birr 1.8 billion and 12.3 billion growing by 36% and 43% respectively from previous year's record.
In the non-financial perspectives, the bank has worked on expanding its accessibility via conventional and alternative service delivery channels. Accordingly, the Bank has opened additional 18 branches, deployed 17 additional POS machines at different business centers and recruited 51 new Abay Bedeje Agents for its Agent Banking Services.
In line with the IFRS adoption strategy of the Government of Ethiopia we have fully implemented the IFRS project and starting from this year our financial reporting will be presented as per the IFRS requirements.
Finally, I would like to take this opportunity to express my sincere gratitude to the management and employees of the Bank for their unreserved effort and commendable achievements, our valued customers for their support and confidence on us, the National Bank of Ethiopia for their assistance and guidance and to all stakeholders who were by our side in achieving our goals.
My special gratitude goes to the Board of Directors and shareholders, since it is unthinkable to meet our objectives without their profound leadership and support.