Friday, May 24, 2024
HomeBusinessCBE total loan exceeds one trillion birr

CBE total loan exceeds one trillion birr

Commercial Bank of Ethiopia _ Loan
Commercial Bank of Ethiopia logo

By Staff Reporter

ADDIS ABABA – (BORKENA) – The total loan given by Commercial Bank of Ethiopia (CBE) has exceeded one trillion birr, sources said.

Wazema indicated in its report that the new loan given by the State Bank in the 2023 Ethiopian Fiscal Year (EFY) alone was 151 billion birr, which brought the total loan given by the bank to 1.05 trillion birr.

The money disbursed on loan by the bank this year alone accounts for over 32 percent of the total credits given by local banks in the year. In Ethiopian banking history, CBE has become the only bank that provided loans exceeding one trillion birr.

Wazema said that the bank’s total savings reached one trillion birr last EFY. But in the current FY the total amount of loan disbursed has passed one trillion birr.

 Wazema further said that CBE has also collected an additional 165.3 billion birr in savings in the 2022/23 EFY that ended on June 30. The Bank’s savings account for about 50 percent of the savings of other local banks combined. The total savings of the other local banks is 2.1 trillion birr, according to Wazema.

The bank’s 2022/23 EFY profit before tax was 20.6 billion birr, well below nearly one billion compared to the same period last year. The reason for the decrease in profits, according to sources, is due to higher reserves for loans.

This year, many private banks faced cash shortages but were striving hard to provide loans. Due to this, they have been forced to ban bank-to-bank transfers, cut off mortgages and similar loans for their own employees.

They have even gone farther than ever to offer higher interest rates to their customers who deposit on time-bound bases to ease their cash crunch. Abnormal withdrawal of deposits by customers was the main reason for the cash crisis faced by private banks. However, CBE has not been faced with the problem this year, according to Wazema.

Meanwhile, CBE has made a transition of new vice presidents. It is said that the transfer is from one position of vice president to another, not dismissal from responsibility. As a result, the bank has transferred 12 of the 18 vice presidents from one to another department and has kept six of them in place. 

Vice presidents of credit and audit departments are among those undergoing the transition. The transition is the fourth in a few years. It is said that the transition will also go down to the directors. 

__

To share information or for submission, send e-mail to info@borkena.com 

Telegram Channel : t.me/borkena

Got a business? Get Listed on Business Listing 

Join the conversation. Follow us on twitter @zborkenato get the latest Ethiopian News updates regularly. Like borkena on Facebook as well. Subscribe to YouTube channel 

advertisment

2 COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here