In 2007, YCB achieved net profit growth of 29.9% to $6m, with 39.8% growth in Tier 1 capital to $33m, and a healthy 50.1% increase in assets to $310m. The bank produced a credible 24.1% return on equity.
Yemen’s economy is highly dependent on oil production, with the country’s oil exports accounting for about 70% of government revenues and 30% of its gross domestic product. Its economic fortunes mainly depend on oil resources that are declining.
The mixed performance largely reflected the falling crude oil output, which affected overall growth, the fiscal and balance of payments positions. The World Bank has estimated real economic growth of between 2.8% and 3.6% in 2007 with estimates remaining unchanged in 2008.
The bank, which has 16 branches throughout the country, has increased the number of ATMs to 50, introduced internet banking services and launched a mobile bank. YCB’s cost-income ratio was reduced to 73.7% in 2007 and non-performing loans were reduced to 20.4%
Ayed Al-Mashni, CEO at YCB, says: “We are proud to accept the accolade of Bank of the Year from The Banker, which we believe recognises the bank’s efforts and standing as the leading bank in Yemen. “
