Dashen Bank worked hard to advance its know-your-customer principle in 2006, intensifying loan follow-up and collection efforts, as well as dealing with customer NPLs. Through these efforts, it managed to reduce its NPL ratio by five percentage points to 6.2% of the loan book. For the 11th consecutive year, it had a strong bottom-line performance: net profits rose by 88% in the year, with Tier 1 capital and asset growth up 59% and 33% respectively. The group’s RoE grew from 29.3% to 35%, while the cost-income ratio was cut from 58.4% to 49%.
Dashen has catapulted itself into the top spot among domestic banks and has pulled 25% ahead of its nearest rival. Attention was placed on staff, who were motivated to reaffirm their commitment to providing first-class customer service.
As an integral part of its public awareness and training programmes, the bank organised a series of seminars on customer feedback, lending, international banking and payments cards. It has made a major outlay on five new ATM terminals, effectively doubling its network, and 500 PoS outlets. Visa cardholders can now access their accounts from outside Addis Ababa, as well as from abroad. Dashen has already placed orders for a further 10 ATMs, and there has been a large investment in proactive risk management software to detect fraudulent card activities, with automatic back-up and recovery software for disaster recovery sites.
The bank enlarged its premises to four modern buildings with an additional two structures under construction.
Ato Lulseged, president of the bank, says: “Dashen Bank has kept counting a better score of profitability, a high level of deposits, loans and advances, expanded service delivery outlets, decreased NPLs percentage and a modernised account operation; and has added modern buildings to its assets.
“Progress on the payment card business is encouraging. In addition to Visa, our application to sign up with MasterCard World Wide for issuing and acquiring MasterCard is under way for final approval. Our non-stop expansion programme through application of appropriate technology shall continue, as there is no commitment without involvement.“
