Its Tier 1 capital grew 40%, while assets are up an impressive 66.2%. Despite this growth in assets, the bank continued to lower its non-performing loan ratio, which stood at 5.7% of its loan book by year-end 2007, down from 8.8% in 2006. Return on equity was up more than 2% on 2006 and stands at 34.5%, while at the same time the bank’s cost-to-income ratio fell slightly to 40.7% in 2007, down from 45.7% the year before.
NIB International Bank chief executive, Amerga Kassa, is happy with the bank’s performance, but believes there is room for improvement. “We have been growing steadily since we were established in 1999, profits have increased and the size of our dividend is increasing. The shareholders are happy,” he says. “This award will be a good stimulus for us to do better.”
The bank has made great efforts of late to grow its trade finance business, particularly targeting those Ethiopian companies that do business abroad. It also strengthened its Tier 1 capital base by raising Br140m ($14.3m) through a successful equity issuance earlier in the year. With a strong focus on credit control NIB International has managed to expand its operations while at the same time lowering the non-performing loan ratio. It has also expanded its regional presence by opening 12 branches in 2007.
