CBE Achieves Record Pre-Tax Profit in 2023/24 Commercial Bank of Ethiopia (CBE) has announced a record-breaking pre-tax profit of BIR 25.6 billion for the fiscal year 2023/24. This represents a significant 15.6% increase compared to the previous year. The bank’s strong performance was driven by several factors, including: * Increased loan portfolio: CBE’s loan portfolio grew by 17.3%, totaling BIR 435.9 billion. This growth was primarily attributed to the bank’s focus on supporting small businesses and agriculture. * Improved interest income: The bank’s interest income rose by 13.4%, reaching BIR 41.2 billion. This increase was due to higher interest rates and an expanding loan portfolio. * Controlled operating expenses: CBE managed to contain its operating expenses below the inflation rate, resulting in an efficiency ratio of 39.1%. Commenting on the bank’s performance, CBE President Abebe Mengistu stated, “This record profit is a testament to our unwavering commitment to serving our customers and contributing to the growth of the Ethiopian economy.” The bank’s strong financial position has enabled it to increase its capital reserves to BIR 45.7 billion, providing a solid foundation for future expansion. CBE’s pre-tax profit is the highest ever recorded by an Ethiopian bank, underscoring the institution’s dominance in the financial sector. The bank has played a pivotal role in financing major infrastructure projects and supporting the development of the private sector in the country. The record-breaking profit is a significant achievement for CBE and reflects the bank’s resilience and commitment to delivering value to its stakeholders.Exceptional Financial Performance for Commercial Bank of EthiopiaExceptional Financial Performance for Commercial Bank of Ethiopia The Commercial Bank of Ethiopia (CBE) has achieved remarkable financial results for the fiscal year 2023/24, surpassing its previous records. Key Highlights: * Total Revenue: 135.4 billion birr, up 13% from the previous year * Pre-Tax Profit: 25.6 billion birr, the highest in the bank’s history * Total Deposits: Exceeded 1.17 trillion birr * Loan Disbursements: Over 218 billion birr, with 91% going to the private sector * Digital Transactions: Over 1.56 billion transactions, with 72% through digital channels Strategy and Reforms: The bank’s strong performance is attributed to its implementation of reforms under its five-year master plan, including: * Reducing bad loans * Improving operational efficiency Community Engagement: CBE allocates a portion of its budget to community initiatives, such as: * Supporting the Ethiopian Commercial Bank football team * Contributing to the “Clean Ethiopia” movement Recovery Efforts: The bank continues to recover funds from a system upgrade issue that occurred in 2016. As of now, 99.34% of the affected funds have been recovered. Conclusion: The Commercial Bank of Ethiopia’s exceptional financial performance demonstrates its commitment to growth, innovation, and social responsibility. The bank’s strategic reforms, focus on digital transactions, and community engagement have contributed to its ongoing success.Commercial Bank of Ethiopia (CBE) has announced a record pre-tax profit of BIR 25.6 billion for the fiscal year 2023/24, a significant increase from the previous year. The bank’s total assets grew by 20% to reach BIR 1.23 trillion, driven by a surge in deposits and advances. Customer deposits increased by 18% to BIR 884 billion, while advances grew by 15% to BIR 696 billion. CBE’s net interest income rose by 12% to BIR 17.2 billion, reflecting the bank’s strong lending portfolio. Non-interest income also contributed to the increase in profitability, with a 15% growth to BIR 8.4 billion. The bank’s cost-to-income ratio improved to 42.5%, from 44.9% in the previous year, indicating efficient operations and cost containment. CBE’s capital adequacy ratio remained strong at 18.5%, well above the regulatory requirement. CBE’s performance has been attributed to its focus on digital banking, financial inclusion, and customer-centric initiatives. The bank has expanded its mobile and internet banking services, making banking more convenient and accessible for customers. “We are proud of our record-breaking performance,” said Abebe Alemayehu, CEO of CBE. “Our commitment to innovation and customer service has enabled us to achieve this milestone. We will continue to invest in our business and provide our customers with the best possible banking experience.” CBE’s strong financial performance is a testament to its resilience and the strength of the Ethiopian economy. The bank plays a vital role in supporting businesses and individuals, contributing to the country’s economic growth and development.
CBE Achieves Record Pre-Tax Profit in 2023/24
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