At the 31st ordinary and 26th extraordinary annual meetings held today at Millennium Hall, shareholders of Dashen Bank, one of Ethiopia’s first private banks, reviewed the bank’s performance in the previous fiscal year and established strategic goals for the upcoming one. Dula Mekonnen, the chairman of Dashen Bank’s board, told the assembly that the previous fiscal year had been characterised by both domestic and international difficulties that affected the banking sector while also offering new chances.
Dashen Bank’s board chairman, Dula Mekonnen, said the assembly that the previous fiscal year had been marked by both domestic and foreign challenges that impacted the banking industry while also providing new opportunities. Dula underlined how ongoing geopolitical conflicts, including the conflict between Russia and Ukraine and the attacks in the Red Sea region, have an impact on the global scene and cause supply chain disruptions, price increases, and inflationary pressures. Domestic inflation was caused by internal conflict, foreign exchange shortages, and disruptions in international trade.
Dula added that the National Bank of Ethiopia (NBE) implemented a stringent monetary policy at the start of the year in an attempt to lower inflation. The NBE capped loan growth at 14% and raised the emergency lending rate to banks from 16% to 18%. Dashen Bank upheld its commitment to its customers throughout the year while managing a forex crisis and liquidity concerns. He continued by saying that the rise of mobile money platforms had increased competition in the banking industry. The M-PESA app from Safaricom and the Telebirr app from state-owned Ethio Telecom have fundamentally altered what customers anticipate from banking services.
Despite these challenges, Dashen Bank recorded a highly successful year. The bank achieved a remarkable Birr 30.9 billion growth in deposits, bringing total deposits to Birr 145.9 billion, reflecting a 26.9% year-on-year increase. The Islamic Financial Banking (IFB) division also performed strongly, contributing Birr 11.1 billion in deposits, a 37.2% increase from the previous year.
Dashen Bank’s total assets surged to Birr 183.7 billion, a 27% growth, and the bank concluded the fiscal year with a Birr 6.4
billion profit before tax, representing a 26.8% increase compared to the previous year. The number of new accounts opened during the period exceeded 1.44 million, bringing the total number of accounts to 6.7 million.
Dashen Bank CEO Asfaw Alemu emphasized that the bank had successfully navigated a challenging environment characterized by political, economic, and competitive pressures. Despite these challenges, the bank made significant strides, particularly in digital banking and partnerships with global financial institutions.
He noted that Dashen Bank had partnered with leading global players such as Accion and local fintech companies like EagleLion System Technology to scale up its digital financial solutions. These collaborations aim to enhance the bank’s digital capabilities, enabling the launch of innovative financial products for its customers.
A landmark achievement for Dashen Bank during the fiscal year was securing USD 40 million in funding from British International Investment (BII) and the Dutch Entrepreneurial Development Bank (FMO). The bank also received a USD 40 million trade finance transaction guarantee facility from the African Development Bank (AfDB) to support small and medium-sized enterprises (SMEs) and local businesses engaged in import-export activities.
As part of its commitment to environmental, social, and governance (ESG) initiatives, Dashen Bank has taken steps to establish an ESG policy and department, and is engaging with international partners to build capacity for sustainable initiatives.
Dashen Bank’s prudent management and innovative practices were recognized with several prestigious awards during the fiscal year, including:
“Bank of the Year 2023” for Ethiopia by The Banker magazine, a publication of the UK’s Financial Times.
“Outstanding Global Trade Finance Program Issuing Bank” by the International Finance Corporation (IFC), a member of the World Bank Group.
“Best Bank in the Micro-Lending Category” by Pan Africa Bank 4.0, in recognition of the bank’s digital financial innovations.
As Dashen Bank continues to grow and evolve, it remains steadfast in its commitment to delivering exceptional services, fostering innovation, and contributing to the sustainable development of Ethiopia’s financial sector.