Ethiopia's Banking Sector Performance and Outlook

Ethiopia’s Banking Sector
With provisional 2019-20 results for Ethiopia’s banks recently becoming

available, this note reviews the sector’s latest performance, notable trends, and
near-term outlook. We find that the banking sector has so far come out of the RESEARCH & ANALYTICS
COVID pandemic in relatively good shape (as has the broader macroeconomy)
and that private banks have done particularly well in making market share gains
vis a vis the dominant state bank. Looking ahead, however, banks will be facing
major policy shifts in the way that Government finances its deficit, sets monetary
policy, and determines the exchange rate—while also having to cope with a
changing financial sector landscape that will bring many new entrants, additional
service offerings, and a wider range of funding sources. These extensive macro-
financial reforms should not pose a risk to the banking sector’s historically strong
growth record, in our view, but they do imply an increasingly competitive
operating environment, a moderation in average shareholder returns, and a
greater differentiation in performance across banks.
§ Recent performance—positive results despite COVID: Ethiopia’s private banks

finished the 2019-20 fiscal year on a sound footing, with deposits up 25 percent, Earnings Per Share, Sector Average, %
loans up 34 percent, and profits up 21 percent. Average returns to shareholders
(EPS) were near 32 percent, not much different from the norms of recent years. FY 2015-16 29.5%
FY 2016-17 28.4%
§ Market dynamics: Private banks have steadily increased their market shares in
branch networks, deposits, loans, and profits. For the just-ended fiscal year, the FY 2017-18 31.2%
total new deposits mobilized by private banks (Birr 89bn) exceeded that of CBE FY 2018-19 33.7%
(Birr 54bn), while private banks’ collective profits (Birr 17bn) have now
FY 2019-20 31.5%
surpassed—for the first time—that of the state bank (Birr 14bn).
25% 27% 29% 31% 33% 35%
§ Outlook—major shifts in the banking landscape: The sector is set to face major
policy shifts as the Government modernizes its framework for deficit financing,
monetary policy setting, and exchange rate determination. Other reforms will
Private Banks' Profit Market Share, %
bring many more competitors (up to 20 new banks, MFI-turned-banks, leasing
companies, fin-techs, specialized service providers, foreign financiers), broaden FY 2015-16 29.7%
funding sources (via local bonds and external borrowing), and permit new
FY 2016-17 42.5%
services (such as capital market offerings). Taken together, these changes in the
macro-financial environment will help propel continued banking sector growth FY 2017-18 49.1%
but within a much more competitive environment for the established players. FY 2018-19 47.1%
FY 2019-20 54.8%
Data Appendix: Revisiting our 2019 Banking Sector Report, we update by one year
our compilation of banking statistics and provide a 25-page data appendix covering 25% 35% 45% 55%
key sector trends as well as five years of bank-by-bank performance metrics (up to
FY 2018-19) for all of Ethiopia’s private banks.
Disclaimer: This report represents solely the views, analysis, and judgement of the Cepheus research team and does not
necessarily reflect the views or opinions of the Fund’s Managing Partners, Advisors, or Investors.
RESEARCH & ANALYTICS
Recent Performance of Private Banks: Deposits, loans, capital, and branch networks
§ Private banks recorded a strong performance last year across key metrics—deposits, loans, capital, and branches.
§ Loans rose by nearly Birr 100bn for the year, funded by Birr 87bn in new deposits and Birr 8bn in extra capital.
§ Branch networks were also significantly expanded, and the total number of private bank branches is now nearly
triple that of the CBE (4,361 private bank branches vs 1,604 CBE branches).
Fig 1: Deposits at Private Banks Fig 2: Loans at Private Banks
Deposits (Birr bns) Loans and Advances (Birr Bns)

447 347
345
435
385 295
360
251
335 245
279
285 179
195
235 202
145 133
185
147 91
95 75
135 118
92 53
85 45
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Source: Banks Survey data and NBE Source: Banks Survey data and NBE
Fig 3B: Total Capital at Private Banks

Fig 3A: Paid-Up Capital at Private Banks
Total Capital (Birr bns)
80 75
Paid-Up Capital (Birr Bns)
70
47
42 57
42 60
37 50
33 44
32
40
26 33
27
21 30 26
22 21
16 18
17 20
13
11
12 10
7 0
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Total Capital (Birr bns)
Fig 4A: No. of Branches at Private Banks Fig 4B: No. of Employees at Private Banks
4,361
No. of Employees
4,000 73,509
3,734
72,300
3,500
3,162 67,300
62,300 58,788
3,000
2,658 57,300 54,776
2,500 52,300
2,008 47,300 43,574

2,000 42,300 37,396
1,535 37,300
1,500 32,171
1,159 32,300 27,324
1,000 27,300
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
2
Recent Performance: Profits, Returns of Assets, and Return on Equity
§ Despite the COVID pandemic, pre-tax profits rose from 14bn to 17bn, though the latter are still provisional figures
for June 2020. Taking into account effective tax rates for the sector, we estimate after-tax profits will be Birr
13.1bn, implying close to Birr 4bn in tax payments by private banks for the year.
§ Expressed relative to year-average paid-up capital, the profit figures translate into an average Earnings per share
(EPS) of 31.5 percent in FY 2019-20, close to the average returns received by shareholders over the last five years.
§ Profits were equal to 2.5 percent of average assets (ROA) and also equal to 29 percent of total capital (ROE).
Fig 5: Profit Before Tax, and Profit After Tax est. at Private Banks Fig 6: Earnings Per Share at Private Banks
Profit Before Tax, & Profit After Tax est. (Birr bns) Earnings per share (Percent)
19.0 35.0
17.0 34.0 33.7
17.0
33.0
15.0 14.0
13.1 32.0 31.5
31.1 31.2
13.0 30.8
10.7 31.0
11.0 10.5
30.0 29.5
9.0 8.1
7.6 29.0 28.4
7.0 5.4 5.8 5.7 28.0
4.7 4.5
5.0 4.1 27.0
3.6
3.0 26.0
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 25.0
Profit before tax (Birr bns) Profit after tax est. (Birr bns) 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Fig 7: Return on Average Assets at Private Banks (RoAA) Fig 8: Return on Average Equity at Private Banks (RoAE)
RoAA RoAE
3.5 31.0
3.3 28.7
3.3 29.0
3.1
3.1 27.0
2.9
2.9 2.8 25.0
2.7 2.6 23.0
2.5 20.5 20.3 20.2 20.4
2.5 21.0 19.7
2.3 19.0 17.8
2.1 17.0
1.9 1.7 15.0
1.7 13.0
1.5 11.0
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
3
Recent Performance: Underlying sources of strong performance
§ Last year’s strong results were driven by a greater deployment of mobilized deposits (as loan/deposit ratios rose
sharply), still-sizeable lending spreads (near 7 percent), and on-going declines in banks’ cost-to-income ratios.
§ Given Ethiopia’s July-June fiscal year, COVID-related shocks were concentrated only in the last quarter, thus
minimizing adverse impacts for the banking sector (as for the broader macroeconomy) over the full fiscal year.
§ Regulatory forbearance by the central bank—in allowing generous rescheduling terms to be granted to COVID-
affected companies/loans—also helped the banking sector overcome the impacts of the pandemic, though most
private banks started from relatively low NPL ratios and loan-loss provisions even before the pandemic.
Fig 9: Loans to Deposits Ratio at Private Banks Fig 10: Adjusted Loans to Deposits Ratio at Private Banks
Loans to Deposits Ratio (Percent) Adjusted L/D Ratio* (Percent)

81.0 100.0
99.0
77.5 98.0 98.4
76.0
97.2
96.0
95.5
71.0
68.9 94.0 94.0
64.5 93.0
66.0 64.0 92.0
64.1
90.0
61.0
63.4
88.0
57.2 87.5
56.0
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 86.0
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
*Adjusted for reserve requirements and banks' holdings of NBE Bills & T-Bills.
Fig 11: Lending rates, deposit rates, and spread at Private Banks
Fig 12: Costs to Income Ratio at Private Banks
Lending rates, Deposit rates, and Spread (Percent)
16.0
15.3
Costs (excluding interest) to Income Ratio, %
14.0
46.0
44.9
45.0
12.0 12.0 11.9 12.0
44.0
10.5 10.4
10.0 10.2 43.0
42.0 41.7 41.7
41.0 40.9
8.0 41.0
7.4 7.2
6.8
6.5 40.0
6.0
5.5 39.0 38.6
5.0 4.8
4.5 38.0
4.0 3.9
3.4
3.2 37.0
2.0 36.0
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Effective Deposit Rate Effective Lending Rate (incl Bills) Spread
Source: NBE and Banks' Annual Reports Source: Banks Annual Reports, and NBE
4
Recent Performance: Underlying sources of strong performance (continued)
§ Seen from a longer-term perspective, and applying a Dupont analysis to bank’s underlying earnings, the strongest
contributors to the high returns of Ethiopian banks continue to be their sizeable net interest margins, low overhead
costs, and low loan-loss provisions.
§ For about a quarter of all banks, high non-interest income (reflecting strong fx trading businesses and high fx fees)
also contributed materially to the high EPS results.
§ Many of the above factors are, in turn, reflective of long-standing structural features of the banking sector: excess
demand for both credit and foreign exchange gives banks relatively strong pricing power in both areas, the
simplified nature of most bank service offerings allows for low overhead costs (relative to revenue or assets), and
a reliance on collateral-based lending practices makes possible a relatively low cost of risk.
Fig 13: Dupont Analysis for Private Banking Sector
Dupont Decomposition 2013 2014 2015 2016 2017 2018 2019

Interest income to Assets 5.8% 6.2% 6.7% 7.3% 7.1% 8.4% 8.0%
Interest cost to Assets -2.3% -2.3% -2.5% -4.9% -2.9% -3.5% 3.3%
Net interest income to Assets 3.5% 3.9% 4.1% 3.2% 4.3% 4.9% 4.7%
Other income to Assets 4.8% 4.9% 4.7% 4.4% 4.3% 3.7% 2.6%
Total income to Assets 8.3% 8.8% 8.8% 7.5% 8.6% 8.6% 7.3%
Operational costs to Assets -3.5% -4.3% -4.5% -4.5% -4.9% -4.7% -4.2%
Operational profit to Assets 4.2% 4.5% 4.3% 4.4% 3.7% 3.8% 3.1%
Provisions to Assets -0.5% -0.3% -0.2% -0.4% -0.3% -0.2% -0.2%
Profits-Before-Tax to Assets 3.8% 4.2% 4.1% 4.0% 3.4% 3.6% 3.1%

Taxes to Assets -1.1% -0.9% -1.0% -0.9% -0.8% -0.9% -0.7%
Profits-After-Tax to Assets (ROAA) 3.2% 3.3% 3.1% 1.7% 2.6% 2.8% 2.9%
Leverage ratio (Assets to total equity) 6.8 6.4 6.5 6.8 7.2 7.4 7.8
Profits to Equity (ROAE) 21.6% 20.5% 19.7% 20.3% 17.8% 20.2% 20.4%
Total Equity to Paid-up Equity 1.7 1.5 1.6 1.5 1.6 1.5 1.7
Earnings Per Birr 1,000 Share 36.0% 31.1% 30.8% 29.5% 28.4% 31.2% 33.7%
Source: Banks' Annual Reports
Fig 14: Dupont analysis: Bank by bank analysis for FY 2018-19 data
Awash Dashen Abyssinia Wegagen NIB United CBO Lion Zemen OIB Bunna Berhan Abay Addis Enat Debub
Gross interest income to Assets 9.2% 8.5% 9.8% 8.8% 9.5% 9.9% 7.8% 9.6% 7.5% 8.6% 9.3% 9.2% 8.0% 8.4% 9.5% 7.4%
Gross interest expense to Assets -3.2% -3.8% -4.2% -3.6% -4.0% -4.6% -2.9% -3.5% -3.9% -3.0% -3.2% -3.6% -3.4% -4.3% -6.2% -3.3%
Net interest income to Assets 6.0% 4.7% 5.6% 5.2% 5.4% 5.3% 5.0% 6.1% 3.6% 5.6% 6.1% 5.6% 4.6% 4.1% 3.3% 4.1%
Other income to Asssets 3.2% 2.5% 2.2% 2.4% 1.6% 2.1% 2.5% 3.1% 4.2% 3.0% 4.0% 4.0% 5.3% 5.4% 3.1% 8.5%
Operating income to Assets 9.2% 7.2% 7.8% 7.6% 7.0% 7.3% 7.5% 9.3% 7.7% 8.6% 10.1% 9.6% 10.0% 9.5% 6.4% 12.6%
Operating expenses to Assets -4.0% -4.7% -4.6% -4.8% -3.7% -4.3% -3.9% -4.7% -3.1% -4.5% -5.2% -6.1% -4.6% -5.1% -3.3% -5.7%
Operating profit to Assets 5.1% 2.5% 3.2% 2.9% 3.3% 3.1% 3.6% 4.6% 4.7% 4.2% 4.9% 3.5% 5.3% 4.4% 3.0% 6.9%
Provisions to Assets -0.6% 0.0% -0.3% -0.3% -0.2% 0.3% -0.1% -0.6% 0.0% -0.6% -0.4% -0.5% -0.4% -0.2% -0.1% -0.4%
Profit before tax to assets 4.5% 2.5% 2.9% 2.6% 3.1% 3.3% 3.5% 4.0% 4.7% 3.6% 4.5% 3.0% 5.0% 4.2% 3.0% 6.5%
Taxes to assets -1.4% -0.5% -0.7% -0.4% -0.7% -0.7% -0.3% -0.9% -1.1% -0.9% -1.2% -0.7% -1.3% -0.9% -0.4% -1.7%
Profit after tax to assets (ROAA) 3.1% 2.0% 2.2% 2.2% 2.4% 2.6% 3.2% 3.1% 3.6% 2.7% 3.3% 2.3% 3.7% 3.3% 2.6% 4.8%
Leverage ratio (assets/total equity) 8.1 8.0 7.8 7.0 7.8 9.4 7.4 7.9 6.7 8.8 6.0 6.7 6.4 4.8 5.8 5.2
Return on equity (ROAE) 25.1% 16.0% 16.9% 15.2% 18.4% 24.5% 23.4% 24.7% 23.7% 23.7% 20.2% 15.2% 23.5% 15.8% 14.8% 25.1%
Total capital to paid-up capital ratio 2.5 2.6 1.7 1.7 1.7 1.6 1.6 1.5 1.7 1.6 1.4 1.6 1.5 1.3 1.2 1.3
Earnings per share, actual 63.2% 40.8% 28.9% 25.6% 30.8% 39.2% 36.4% 38.0% 39.8% 37.4% 28.7% 24.7% 34.3% 20.7% 18.5% 32.3%
Source: Cepheus research based on banks' Annual Reports. Shaded cells show bank with best performance for given line-item
5
Banking Sector: Banking Sector Market shares
§ Private banks continue to make strong gains in capturing market share, and now make up 43 percent of sector
deposits and 55 percent of sector profits.
§ Looking just at new deposits, the amount of deposits mobilized by private banks last year (Birr 89bn) substantially
exceeded that mobilized by CBE (54bn); this partly reflects the fast-expanding branch network of private banks,
who opened 641 branches during the year, or four times the 160 new branches added by CBE.
§ In a historic first, private banks’ collective profits now exceed that of the state bank, reaching Birr 17bn ($538mn)
in FY 2019-20 or 55 percent of Ethiopia’s Birr 31bn ($980mn) banking profit pool.
Fig 15: Deposit Levels in 2019-20 at Banks (Birr bns) Fig 16: Deposit Market Share Trends at Banks
700 Deposit Market Share (Percent)

595 68% 68%
600 70% 66%
64%
65% 62%
500 60%
447 57%
60%
400 55%
50%
300
45% 43%
40%
200 38%
40% 36%
89 32% 34%
100 54 35% 32%
30%
- 2014 2015 2016 2017 2018 2019 2020
Deposit Levels Deposit Increase Last Year
CBE Private Banks
CBE Private Banks
Source: Banks Survey data and NBE

Fig 17: FY 2019-20 Profit Levels at Private Banks Fig 18: Profit Market Share at Private Banks
FY 2019-20 Profit Before Tax (Birr bns) PBT Market Shares (Percent)
35.0 75.0% 70.2% 70.3%
31.0 67.4%
70.0%
30.0 65.0%
57.5%
60.0% 54.8%
25.0 52.9%
55.0% 50.9%
20.0 50.0%
17.0
45.0% 49.1%
14.0 47.1% 45.2%
15.0 40.0%
42.5%
35.0%
10.0 30.0%
32.6%
25.0% 29.8% 29.7%
5.0
2014 2015 2016 2017 2018 2019 2020
0.0 %CBE %Privates
CBE Private Banks Total

6
Banking Sector: Banking Sector Market shares (continued)
§ Seen over a longer time frame, CBE has seen a steady decline in its market share in deposits and loans (both down
by about 10 percentage points) as well as in profits (down 25 percentage points) over the past five years.
§ Despite the above trends, CBE is still the single largest bank in the sector, with deposits and profits that are 8.5x
and 3.8x respectively that of the largest private bank.
§ Moreover, in certain areas, CBE remains the market leader even when compared to all private banks as a group:
for example, on foreign exchange intermediation, fx inflows captured by CBE (via remittances and exports) likely
exceed the $4.5bn intermediated by all private banks in FY 2018-19, while the bank’s CBE Birr mobile wallet
platform (with 2.1mn users) is substantially larger than the offerings of all other banks in the market.
Fig 19: CBE Market Share (%)
Loans
74.0%
71.9%
72.0% 70.5% 70.9%
70.0% 68.7%
68.0%
65.7%
66.0%
64.0%
62.0% 61.2% 60.8%
60.0%
58.0%
56.0%
54.0%
2014 2015 2016 2017 2018 2019 2020
Deposits
70.0%
67.6% 67.3%
68.0%
66.0% 64.4%
64.0%
61.9%
62.0% 61.2%
60.1%
60.0%
58.0% 57.1%
56.0%
54.0%
52.0%
50.0%
2014 2015 2016 2017 2018 2019 2020
Profit
80.0%
70.0% 70.3%
70.0% 67.2%
65.1%
60.0%
52.9%
49.6%
50.0% 45.2%
40.0%
30.0%
20.0%
10.0%
0.0%
2014 2015 2016 2017 2018 2019 2020
Source: CBE Survey and Annual Reports
7
Banking Sector Outlook:—Macro Policy Reforms
§ Macro policy reforms will bring major changes—as summarized below—to the banking sector as Government
modernizes its framework for deficit financing, monetary policy setting, and exchange rate determination.
Fig 20: Macroeconomic Reforms Affecting Banking Sector Operations
Area Issue Remarks

GOVERNMENT Implications for The launch of Treasury Bill auctions in Dec 2019 has provided a new framework for private banks to lend to Govt via
DEFICIT Banking 28-day and 90-day Bills that help cover the annual budget deficit. Gross T-Bills of 18bn were issued to banks in FY
FINANCING Operations 2019-20, and interest rates have risen to a range of 7-9 percent, sufficient to at least cover banks' cost of funds.
Looking ahead, private banks will now likely become more material financing providers to the Government based on
(and assuming) increasingly market-determined interest rates at the Treasury Bill auctions. Previously, mandatory
funding requirements imposed on banks required them to purchase NBE Bills equal to 27% of their new loans and a
fixed (5%) interest rate.
T-Bill allocations were roughly 2 percent of private banks' assets as of June 2020 (Birr 12bn net T-bills vs Birr 565bn in
assets), though NBE Bills were near 20 percent of bank assets in June 2019, suggesting much more additional room
for banks to assume additional T-Bill purchases in the coming years.
The T-Bill Market is expected to remain closed to foreign investors, thus preventing foreign portfolio inflows in this
area, consistent with Ethiopia's still-closed capital account and fx constraints.
Positive Returns on holdings of T-bills expected to be more reflective of market rates (or at least enough to cover funding costs)
opportunities Ability to sell T-Bill holdings, rather than holding them to maturity, will provide substantial liquidiy buffers to banks as
for banks & they can liquidate their T-Bill holdings for cash in times of acute liquidity stress
wider economy Higher interest rate in T-Bill market could potentially impose tighter discipline on size of Govt domestic borrowing
Potential Minimum purchase mandates not yet in place, but may be imposed if deficit financing needs become substantial
threats to Due to moral suasion or via other pressures, as is sometimes common by many central banks, interest rates may not
banks & wider rise to fully market levels, implying lower earnings from holding T-Bills versus allocating funds to private sector
economy borrowers
Crowding out: Credit to the private sector will be reduced by amount of T-Bill financing
Expected T-Bill market already started in December 2019, but a secondary market in T-Bills is still not established and is
timing expected to start in late 2020, allowing banks to exchange Bills for cash at times of liquidity stress
Additional instruments such as Treasury Bonds (with a more than 1-year maturity) may start in 2021 and beyond as
declining inflation allows for longer-term maturities to be issued.
MONETARY Implications for More conventional monetary policy tools and instruments expected in the near future--including most likely a
POLICY Bank reference central bank policy rate that sets the floor (and provides signalling) for interest rates and the practice of
Operations buying/selling Treasury Bills and Bonds by the NBE to inject/withdraw liquidity from the banking system
NBE can also use other potential tools--including its own Bills for liquidity management purposes and RR changes
Banks will need more active liquidity management operations/desks to anticipate impacts of changing interest rates,
inflation rates, and monetary policy decisions; improved forecasting capabilities in this area will be important as well.
Positive Banks will have more tools at their disposal to manage unexpected liquidity conditions
opportunities Banks will have a common benchmark at which to set minimum rates for their lowest risk or prime customers
for Banks
Potential Central bank's interest rate floor, if set to maintain positive real rates, may imply high lending rates than those
threats to currently offered for prime customers and could consequently limit loan demand (if inflation stays at elevated levels)
Banks The full flexibility to set lending rates that banks currently have may be constrained somewhat if/when the NBE policy
rate becomes the de facto minimum lending rate
Expected Potentially in the next fiscal year, i.e., FY 2021-22
timing Implementation is unlikely to start until inflation is firmly under control and is at or near single-digit levels
EXCHANGE RATE Implications for A market-determined exchange rate would imply banks having the flexibility to adjust their buying/selling rates to
DETERMINATION Bank clients depending on supply/demand conditions that they see in the market. At present, all banks receive daily
Operations buying/selling rates from the central bank each morning and all banks follow that rate for the day's fx transactions
The scope for exchange rate changes may still be kept within prudential limits, including for example maximum daily
upward/downward percent movements that are common in some emerging markets
The central bank may also, of course, occasionally intervene if it feels the exchange rate is depreciating/appreciating
at an unduly rapid rate by selling/buying dollars to the market; banks would need to be the counterparties to such fx
interventions by the central bank
Positive Banks could secure more fx by adjusting their rates to more depreciated offers if there are willing buyers at that
opportunities (more depreciated) rate
for Banks Exchange rates will not necessarily be identical at all banks (as is the case at present) and customers will have
greater opportunities to shop around for better rates (as they now do for lending rates); banks will also have room to
differentiate (within certain regulatory limits) among their customers
Potential Foreign exchange portfolio management will be more challenging as fx valuation changes (which thus far always
threats to translated into Birr gains when holding USD assets) can now bring both Birr gains (if/when Birr depreciates) as well
Banks as Birr losses (if/when Birr appreciates).
Internal finance and treasury management staffing and functions will require considerable training and upgrading
High fees charged for Letters of Credit should fall significantly and be subject to competition, as the greater fx
availability implied by flexible exchange rates would limit banks' pricing power on charges for L/Cs and P/Os.
Expected Unlikely this year, possible in FY 2021-22, and more certain for FY 2022-23
timing
Source: Cepheus Research compilation
8
Banking Sector Outlook:—Changing Financial Sector Landscape
§ Besides wide-ranging macro reforms, broader financial sector liberalization will also alter the banking landscape
by bringing many new entrants, additional service offerings, and a wider range of funding sources.
Fig 21: Ethiopia's Changing Financial Sector Landscape
Area Issue Remarks

NEW ENTRANTS & New Banks Close to 20 new banks are currently under formation, potentially bringing Birr 20-40bn in paid-up capital, and likely
COMPETITORS raising the number of banks in Ethiopia towards levels seen in Kenya (44 banks) and Egypt (40 banks).
Prospective entrants include: Zemzem Bank, Hijra Bank, ZAD Bank, Goh Betoch Bank, Amhara Bank, Gadaa Bank,
Sheger Bank, Selam Bank, Jano Bank, Ahadu Bank, Afro Bank, Dallol Bank, Kush Bank, Ethiopian Diaspora Bank
Foreign banks are still unlikely to be permitted to enter in the next couple years but could be possible thereafter.
Prospective players that might enter--via acquisitions or greenfield operations--include banks in Kenya (Equity, KCB,
CBO), South Africa (Standard Bank), Egypt, Morocco, plus regional players such as Ecobank
Stock market Non-bank funding from a prospective stock market will represent an alternative option for Ethiopia's largest firms
A few dozen firms (with revenue of above say Birr 500mn) could choose stock market funding rather than bank loans
However, stock market launch and activity is unlikely to be in fully in place till 2022 or beyond
Leasing Around five quasi-public and one private/foreign leasing company (Ethio-Leasing) are currently in place
Companies Low entry requirements (Birr 400mn capital) and openness to foreign investors should attract additional entrants
MFIs and More than 35 MFIs currently in place and the largest of these are expected to potentially convert to banks
SACCOs Conversion would allow new banks to engage in fx services and take advantage of higher lending limits
Large SACCOs may also convert into banks, potentially in specialized areas such as agriculture
Fin-techs Loosening of regulations is allowing for start-ups in mobile wallet, e-payments, and e-commerce space
Fin-techs could compete with banks' existing mobile money offerings and/or partner in particular sets of services
Scaling up has posed a challenge in this sector, however, and ability to do so has yet to be proven
Specialized New banks could focus on particular market niches: interest-free banking, regional markets, sector focus
service (mortgages, agriculture), or types of services (cash-flow based lending, start-up financing, equity investment)
providers Revamped and strengthened DBE is expected to also pose additional competition to commercial banks
Providers of specialized services may also join sector, i.e. ATM/POS operators, cash pick-up/delivery providers
Foreign Development Finance Institutions: IFC, CDC, AfDB, US DFC, and others expected to boosting debt/equity offerings
financiers EXIM Banks with private sector lending windows (in China, India, Turkey, UK, EU, etc) likely to remain in market
FDI companies already in Ethiopia also deploying surplus funds to re-invest in sectors beyond their core business
Private Equity and Venture Capital firms will also increasingly provide long-term equity funding alternatives
NEW SERVICE Capital The start of stock markets and bond markets expected to bring associated business opportunities for banks
OFFERINGS market Banks, advisory firms, and brokerage service providers will be a core part of this new ecosystem
services Advisory services in bond/stock issuance and in mergers/acquisitions expected to be potential bank offerings
Digital Non-branch based banking channels likely to become part of market for payments, saving, borrowing, and investing
banking Few large mobile-based service providers (banks, non-banks or joint ventures) likely to become dominant payment
platforms once widespread public acceptance/usage takes off
Consumer Consumer lending already beginning to become a standard service offering at most banks
lending National ID, being pushed by most banks, could substantially increase consumer lending activity in the coming years
Credit card services could also enter the market, supported by National ID, credit registries, and rising middle class
Other Non-collateral based financing: Using projected cash-flows; credit-scoring based methods, etc is a growing prospect
unconvention- Potential growth in micro-lending using digital channels is also a strong prospect, per many regional examplars
al services SME lending could also become a material share of the market through existing bank channels or specialized outfits
NEW FUNDING Local bond Large corporates likely to be able to issue bonds directly to the public (for lower rates) rather than using bank loans
SOURCES issuance Banks may also consider bond issues (regulations permitting) as an additional funding source beyond just deposits.
External Fx-generating local companies will increasingly have the option of seeking foreign loans for long-term financing
borrowing Per recently issued Directives, banks will also be able to contract foreign loans to on-lend to their corporate clients
Source: Cepheus Research compilation based on NBE announcements, Directives, press reports, and industry sources
9
Banking Sector Outlook:—Competitive Environment
§ In terms of competitiveness, most indicators show there has been active competition among banks for most of the
past decade, though there are some signs pointing to a pause during the last three years.
§ The market shares held by the largest banks have fallen from a range of 75-85 percent ten years ago to around 50-
55 percent in recent years, suggesting improving competitiveness, particularly for newer/younger entrants.
§ Further indications of a competitive environment are seen from the fact that several newer banks have managed
to match or exceed the deposits of older banks, have crossed certain critical thresholds (such as profits of Birr 1bn),
and have reached the ranks of the highest yielding banks (in terms of shareholder returns) alongside many of the
older, established private banks.
Fig 22A: Concentration indicators over the past decade at private banks: Market Share of Top 5 Banks
Concentration Indicators
83.0 82.5
80.1
78.0
74.1
73.0
68.0
64.2
63.0 62.6
60.1 57.4
57.3
58.0 56.8 56.8 55.8
58.5
56.5 55.7
53.4 54.0
55.9 52.6
53.0 55.1 52.7
53.1 53.2 51.6 50.2
48.0
2009 2014 2015 2016 2017 2018 2019 2020
Loans Deposits Capital
Fig 22B: Profit Concentration over the past decade at private banks: Market Share of Top 5 Banks Fig 22C: EPS concentration at Private banks [top 5 banks vs all other banks]
Average EPS (Top 5 vs all others)

Profit share
38.7
38.5
85.0 38.0
82.9
80.0
36.0
75.0
70.0
34.0
65.0 33.3
32.7
60.0 32.0
31.3 31.2
31.0 30.8
55.0
30.0
51.4
50.0 46.7 29.5
42.3 44.2 28.6

45.0 42.3 41.5 28.3 28.4
28.0 27.9
27.4
40.0 40.0
26.0
35.0
2009-10 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
2009 2014 2015 2016 2017 2018 2019 2020
Average EPS (Top 5 banks) Average EPS (all othes banks)

Source: Banks Annual Reports
10
Banking Sector Outlook:— Shareholder Returns
§ In terms of shareholder earnings, while banks continue to offer attractive returns, average EPS levels have fallen
from the high 30s to the low 30s over the past decade.
§ In addition, given recent levels of inflation, real returns declined sharply last year and are now around 12 percent,
or roughly half the real returns seen by shareholders five years ago.
Fig 23A: EPS Trends at Private Banks, in percent
Earnings per share, in percent

45.0
40.0 38.5
36.5 36.6 36.0
35.0 33.7
31.0 30.8 31.2 31.5
29.5 28.4
30.0
25.0
20.0
15.0
10.0
5.0
-
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Fig 23B: EPS Trends in Real Terms at Private Banks
EPS in Real Terms*

25.0
22.5 22.9 23.1
21.2 21.1
19.8
20.0 18.4 18.1
15.0
11.6
10.0
5.0
2.5
-
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

*EPS returns less year-average inflation for the relevant fiscal year.
11
Banking Sector Outlook:—Performance across banks
§ Looking at the distribution of performance across banks, some financial metrics point a widening gap between the
highest and lowest performers over the past three years.
§ For profits, market shares among private banks had steadily narrowed over the years and reached a low range
(max minus min) of 16.3 percentage points in 2015-16; this has since rise to 22 percentage points, showing greater
dispersion in market share within the private banking sector.
§ For EPS, there is an even larger dispersion among private banks, with the range in performance widening from a
low of 26 percentage points in FY 2016-17 to 48 percentage points in FY 2018-19.
Fig 24A: Profit share changes at private banks
Profit share changes across banks

30.0
23.9
25.0
20.3
17.7 17.8 18.7
20.0 17.0 22.4
19.9
15.0 17.3 17.4
16.3 16.9
10.0
5.0 1.4 1.5

0.4 0.4 0.6 0.9
-
2014 2015 2016 2017 2018 2019
Max Profit share Range in profit share Min profit share
Fig 24B: EPS changes at private banks
EPS changes across banks

70.0
67.0
63.2
60.0 58.9
57.90
52.30 54.3
50.0 48.7
44.30 44.70
40.0 40.9 41.20
30.0
26.00
20.0 18.5
14.9 13.1
10.0 9.1
6.6
4.4
-
2014 2015 2016 2017 2018 2019
Max EPS Range in EPS Min EPS

12
Banking Sector Outlook:—Forecasts for FY 2021 and FY 2022
§ Looking ahead, we update our banking sector model from last year and forecast trends in the sector’s key growth
drivers (deposits and fx) as well as its aggregate balance sheet, income levels, and rates of return.1
§ We expect Ethiopia’s banks to show somewhat slower growth this fiscal year, as anti-inflationary measures take
precedence in the near-term and the recent policy stimulus is gradually withdrawn by mid-2021. Thereafter, and
given Ethiopia’s still low starting base, we anticipate a return to stronger banking growth as (we presume) political
economy conditions gradually normalize, COVID impacts fade away, and several longer-term growth drivers (the
New Ten-Year Plan, Doing Business reforms, financial sector liberalization) begin to firmly take root.
§ With respect to average shareholder returns, we project—as before—that these will fall somewhat from past highs
but still remain comfortably above 25 percent per annum in Birr terms.
Fig 25: Banking Sector Model--Key Balance Sheet, Income Statement, and Operating metrics
Actuals Estimate Projections

2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Private Banks
Key Financials: Birr bns
Deposits 146.5 201.8 278.5 358.0 447.0 527.5 633.0
Loans 91.4 132.6 178.8 259.0 347.0 416.4 508.0
NBE Bills 41.7 53.6 71.3 89.0 67.0 50.0 37.0
T-Bills … … … … 12.0 37.0 62.0
Total Assets 190.5 259.7 348.6 447.0 565.2 666.9 800.3
Total Capital 33.1 26.0 44.0 57.4 75.3 85.8 107.2
Paid-up Capital 16.1 20.9 26.2 32.9 42.1 52.6 65.8
Interest income 12.2 16.4 25.9 35.6 47.5 56.9 67.2
Interest expense 5.9 6.4 10.3 14.6 22.1 25.8 29.0
Other income 6.4 8.4 9.3 11.6 14.3 16.8 19.8
Operating expenses 8.2 11.0 14.4 18.6 22.7 28.2 33.9
Profit Before Tax 5.8 7.6 10.4 14.0 17.0 19.7 24.0
Profit After Tax 4.5 5.7 8.1 10.7 13.1 15.1 18.5
Earnings per share 29.5% 28.4% 31.4% 33.7% 31.5% 29.9% 29.2%
Key Operating Metrics

Effective deposit rate 5.5% 3.9% 4.5% 4.8% 5.5% 5.3% 5.0%
Effective lending rate 10.4% 10.4% 11.9% 12.0% 14.2% 13.5% 13.0%
Net interest margin 4.6% 6.2% 6.9% 7.0% 6.6% 6.7% 6.9%
Other income growth 13.2% 30.6% 10.9% 24.7% 23.0% 17.0% 18.0%
Cost-to-income ratio 41.7% 44.9% 40.9% 38.6% 36.7% 38.2% 39.0%
Provision-to-Assets 0.80% 0.47% 0.34% 0.41% 0.60% 0.75% 0.75%
Leverage 5.7x 10.0x 7.9x 7.8x 7.5x 7.8x 7.5x
Commercial Bank of Ethiopia

Deposits 288.6 364.9 451.8 541.0 595.0 682.8 819.3
Loans 138.8 154.2 173.3 197.0 243.0 298.9 367.6
Bonds 188.7 237.8 319.1 395.2 400.0 492.0 605.2
Total Capital 16.1 40.0 47.2 49.8 56.8 65.4 75.2
Total Assets 384.6 485.7 573.9 712.9 813.8 933.8 1,120.6
Profit before tax 13.7 14.6 10.4 15.7 14.0 17.0 21.5
All Commerical Banks

Deposits 435.1 566.7 730.3 899.0 1,042.0 1,210.2 1,452.3
Total Capital 49.2 66.0 91.2 107.2 132.2 151.1 182.4
Profit before tax, Birr bns 19.5 22.2 20.8 29.7 31.0 36.7 45.5
Profit before tax, USD bns $ 0.92 $ 0.99 $ 0.82 $ 1.06 $ 0.98 $ 0.97 $ 1.05
Growth rates--all banks:

Deposits … 30.2% 28.9% 23.1% 15.9% 16.1% 20.0%
Credit … 25.5% 28.4% 26.6% 12.4% 18.9% 20.7%
Profits … 14.0% -6.6% 43.0% 4.4% 18.3% 24.1%
Source: Banks' Annual Reports, Bank Surveys, CBE website for CBE Annual Reports, NBE Annual Reports for Bond estimates,
and Cepheus Research for certain estimates and projections
1Our projections from more than a year ago (May 2019) were generally within 5 to 15 percent of the actual June 2020 outturns. For June 2020, we had
projected deposits of Birr 1,099bn vs a Birr 1,043 outturn (a 5 percent difference), loans of Birr 543bn vs a Birr 590bn outturn (an 8 percent difference),
and total industry profits of Birr 36bn vs a Birr 31bn outturn (a 14 percent difference). For private banks alone, we had projected profits of Birr 13.2 bn,
though this turned out even higher at Birr 16.9bn, and our EPS projection was correspongly lower at 27.7 percent vs an 31.5 percent estimated outturn.
13
Ethiopia’s Private Banking Sector: Data Appendix
Sector-wide trends: data up to June 2020
1. Bank deposits by bank…………………………………………………………………………..………....…pg 15

2. Bank loans by bank……………………………………………………………………………………………....pg16
3. Capital levels by bank………………………………………………………………………………..….…...…pg17
4. Branch levels by bank…………………………………………………………………………………….….....pg18
Sector-wide trends: data up to June 2019
5. Balance Sheet ratios by bank……………………………………………………………………...………..pg 19

6. Income Statement ratios by bank …………………………………………………………………………pg 20
7. Productivity ratios by bank …………………………………………………………………………………..pg 21
8. Earnings per share by bank………………………………………………………..…………………….……pg 22
9. Bank-by-bank performance metrics for 2018-19.………………………………..…………..pgs 23,24

10. Aggregate private banking sector metrics for 2014-15 to 2018-19………………………...pg 25
Bank-by-bank performance: five-year overview up to June 2019
11. Awash Bank ……………………………………………………………………………………………..…………….pg 26

12. Dashen Bank …………………………………………………………………………………………..………………pg 27
13. Bank of Abyssinia …………………………………………………………………………………..…………..…..pg 28
14. Wegagen Bank ……………………………………………………………………………………..…………………pg 29
15. NIB Bank ……………………………………………………………………………………………..………………….pg 30
16. United Bank ……………………………………………………………………………………………..…………..…pg 31
17. Cooperative Bank of Oromia ……………………………………………………………………………………pg 32
18. Lion Intl Bank ……………………………………………………………………………………………………..……pg 33
19. Zemen Bank …………………………………………………………………………………………………….………pg 34
20. Oromia Intl Bank ………………………………………………………………………………………..……………pg 35
21. Bunna Bank …………………………………………………………………………………………………..…………pg 36
22. Berhah Bank ……………………………………………………………………………………………….……………pg 37
23. Abay Bank ………………………………………………………………………………………………………..………pg 38
24. Addis Intl Bank …………………………………………………………………………………………………………pg 39
25. Enat Bank …………………………………………………………………………………………………………………pg 40
26. Debub Global Bank ………………………………………………………………………………………..…………pg 41
14
Appendix Table 1: Bank Deposits as of June 2020 (Provisional data)
Deposits (Birr bns), June 2020 Deposits growth (Percent), June 2020
Awash 70.2
Dashen 53.4
Lion 59.4%
Abyssinia
Debub 49.6%
47.5
Abyssinia 48.5%
CBO 45.5
Abay 38.8%
United 34.7
Bunna 31.3%
NIB 33.3 Wegagen 28.7%
Wegagen 30.1 United 26.6%
OIB 27.6 CBO 26.1%
Lion 26.1 Zemen 24.1%
Berhan 16.5 Dashen 19.7%
Abay 16.0 Awash 18.2%
Zemen 14.4 Addis 17.8%
Bunna 13.9 Enat 17.2%
Enat 8.2 NIB 14.7%
Debub 5.2
Berhan 10.9%
OIB 4.1%
Addis 4.6
- 10.0 20.0 30.0 40.0 50.0 60.0 70.0 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
% Checking Deposits, June 2020 % Saving Deposits, June 2020

Zemen 40.9 Lion 80.1
CBO 29.2 Bunna 76.1
Awash 28.6 Abay 75.3
Wegagen 27.7 Abyssinia 73.3
OIB 25.8 Berhan 68.3
Debub 25.3 Dashen 67.2
United 24.7 Awash 63.9
Berhan 24.0 CBO 62.6
NIB 23.6 Wegagen 61.7
Dashen 23.6 OIB 60.5
Addis 22.5 NIB 58.8
Abyssinia 21.9 Debub 53.6
Bunna 18.5 United 52.1
Abay 18.4 Zemen 51.6
Lion 14.2 Addis 47.1
Enat 11.0 Enat 46.6
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0
Source: Banks survey data (provisional data that may differ somewhat from final audited figures)
15
Appendix Table 2: Bank Loans as of June 2020 (Provisional data)
Loans and Advances (Birr bns), June 2020 Loans and Advances growth (percent), June 2020
Awash 56.9 Debub 84.3%
Dashen 42.3 Lion 61.2%
Abyssinia 37.6 Abyssinia 58.1%
CBO 34.2 Abay 49.9%
United 26.7 Wegagen 44.2%
NIB 25.9 CBO 40.3%
Wegagen 23.8 United 37.4%
OIB 20.1 Addis 30.4%
Lion 19.1 Dashen 29.9%
Berhan 12.7 Zemen 27.5%
Bunna 11.6 Enat 27.1%
Abay 11.2 Bunna 27.0%
Zemen 9.9 Berhan 24.9%
Enat 6.5 NIB 21.9%
Debub 4.5 Awash 20.7%
Addis 3.5 OIB 15.9%
- 10.0 20.0 30.0 40.0 50.0 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
Loans to Deposits Ratio (Percent), June 2020 Loans to Assets Ratio (Percent), June 2020
Debub 81.0 Abyssinia 66.7
Awash 81.0 CBO 64.7
Enat 78.6 Wegagen 62.7
Addis 77.0 Bunna 62.5
Abay 74.3 Dashen 62.3
Berhan 72.9 United 61.8
Bunna 72.4 NIB 61.7
OIB 70.9 Lion 60.4
Zemen 69.6 Berhan 60.4
Lion 68.5 Awash 59.5
CBO 68.4 OIB 59.1
United 68.2 Debub 58.8
NIB 67.1 Enat 58.1
Wegagen 67.0 Abay 56.0
Abyssinia 65.5 Addis 54.5
Dashen 65.5 Zemen 54.0
0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0
16
Appendix Table 3: Bank Capital levels as of June 2020 (Provisional data)
Total Capital (Birr bns), June 2020 Total Capital Growth, June 2020
Awash 13.6 CBO 64.4%
Dashen 8.6 Debub 50.0%
NIB 5.8 Zemen 46.2%
Abyssinia 5.7 United 45.7%
United 5.6 Lion 44.5%
CBO 5.4 Awash 40.8%
OIB 4.6 NIB 32.2%
Wegagen 4.3 Addis 28.4%
Lion 3.7 Abay 27.7%
Berhan 3.5 Berhan 25.7%
Zemen 3.4 Dashen 25.3%
Bunna 3.2 OIB 24.8%
Abay 3.1 Bunna 23.7%
Enat 1.8 Enat 18.6%
Debub 1.5 Abyssinia 16.1%
Addis 1.4 Wegagen
- 2.0 4.0 6.0 8.0 10.0 12.0 14.0 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
Paid-Up Capital, June 2020 Capital to Assets Ratio (Percent), June 2020
Awash 5.8 Debub 20.2
Dashen 3.5 Enat 18.1
NIB 3.4 Addis 17.7
United 3.2 Abay 16.7
Abyssinia 3.1 Berhan 16.3
OIB 3.0 Bunna 15.9
CBO 3.0 OIB 14.6
Wegagen 2.9 Zemen 14.4
Berhan 2.5 Lion 14.2
Lion 2.2 Awash 14.2
Abay 2.2 CBO 13.1
Bunna 2.2 United 12.9
Zemen 1.8 NIB 12.6
Enat 1.4 Wegagen 12.6
Debub 1.0 Abyssinia 12.2
Addis 1.0 Dashen 11.7
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 0.0 5.0 10.0 15.0 20.0
17
Appendix Table 4: Bank branches as of June 2020 (Provisional data)
No. of Branches, June 2020 2019-20 Branch Level Change
Abyssinia 503 Abyssinia 166

Awash 466 United 70
Dashen 423 Awash 56
CBO 420 Wegagen 43
Wegagen 382 NIB 41
United 344 Bunna 38
NIB 302 OIB 35
OIB 300 Abay 31
Lion 258 Berhan 31
Bunna 243 CBO 31
Berhan 231 Lion 29
Abay 223 Debub 28
Debub 82 Enat 12
Addis 75 Zemen 9
Enat 57 Addis 7
Zemen 52 Dashen -
- 100 200 300 400 500 - 20 40 60 80 100 120 140 160 180
2019-20 Branch Level %Change Deposit per Branch, Birr mns, June 2020
Debub 51.9% Zemen 277
Abyssinia 49.3% Awash 151
Enat 26.7% Enat 144
United 25.5% Dashen 126
Zemen 20.9% NIB 110
Bunna 18.5% CBO 108
Abay 16.1% Lion 101
NIB 15.7% United 101
Berhan 15.5% Abyssinia 94
Awash 13.7% OIB 92
OIB 13.2% Wegagen 79
Wegagen 12.7% Abay 72
Lion 12.7% Berhan 72
Addis 10.3% Debub 64
CBO 8.0% Addis 61
Dashen 0.0% Bunna 57
50 100 150 200 250
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
18
Appendix Table 5: Balance Sheet ratios as of June 2019
Loans/Deposits Ratio, June 2019 Adjusted L/D Ratio, June 2019

90% 120%
112%
80% 79%
77% 103% 103%
74% 101% 101% 102%
73% 99% 100% 100%
72% 100% 97% 98% 98% 98%
71% 96%
68% 68% 68% 70%
70% 67% 67%
65% 66%
87%
85%
59%
60% 58%
80%
50%
60%
40%
30%
40%
20%
20%
10%
0%
0%
OIB CBO Zemen Abay Berhan Addis Debub Wegagen Enat NIB Lion Dashen Abyssinia United Bunna Awash
OIB CBO Zemen Abay Berhan Addis Debub Wegagen Enat NIB Lion Dashen Abyssinia United Bunna Awash
Loans/Deposits Ratio, June 2019
Adjusted L/D Ratio, June 2019
Capital to Assets Ratio (Percent), June 2019 % Checking Deposits, June 2019
Addis 20.2 Berhan 35.9
Debub 18.1 Zemen 34.1
Bunna 17.7 CBO 32.4
Enat 16.7 Debub 32.2
Abay 16.3 Awash 31.8
Zemen 15.9 OIB 27.2
Berhan 14.6 Wegagen 26.1
Wegagen 14.4 Addis 23.7
NIB 13.1 Bunna 23.2
Awash 12.9 Dashen 22.5
Abyssinia 12.6 Abay 21.8
Lion 12.6 United 21.4
Dashen 12.2 Abyssinia 20.2
OIB 11.7 NIB 19.5
United 10.8 Lion 17.4
CBO 7.9 Enat 15.3
0.0 5.0 10.0 15.0 20.0 25.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0
Source: Banks’ Annual Reports for FY 2018-19

19
Appendix Table 6: Income Statement ratios as of June 2019
Net Interest Income to Income Ratio (Percent), Non -nterest Income to Income Ratio (Percent),
June 2019 June 2019
NIB 77.4 Debub 67.8
Abyssinia 71.8 Addis 57.0
United 71.7 Zemen 54.0
Wegagen 68.4 Abay 53.6
CBO 66.4 Enat 48.0
Lion 66.1 Berhan 41.9
OIB 65.3 Bunna 39.5
Awash 65.0 Dashen 35.0
Dashen 65.0 Awash 35.0
Bunna 60.5 OIB 34.7
Enat 52.0 CBO 33.6
Abay 46.4 Wegagen 31.6
Zemen 46.0 United 28.3
Addis 43.0 Abyssinia 28.2
Debub 32.2 NIB 22.6
0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0
Costs (excluding interest) to Income, June 2019 Provision Expenses to Total Expenses, June 2019
CBO 52.2 Awash 8.0
Berhan 49.8 OIB 6.9
Wegagen 45.2 Lion 6.5
OIB 43.1 Berhan 4.6
Dashen 42.5 Abay 4.2
Bunna 41.9 Bunna 4.1
Lion 41.1 Debub 4.0
Abyssinia 41.0 Wegagen 3.5
Addis 38.5 Abyssinia 3.2
Debub 38.4 NIB 2.8
Awash 37.4 Addis 2.2
Abay 37.3 CBO 1.2
NIB 35.9 Enat 0.9
United 33.5 Zemen 0.0
Enat 27.3 Dashen
-0.4
Zemen 26.3 -3.1 United
0.0 10.0 20.0 30.0 40.0 50.0 60.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0

20
Appendix Table 7: Productivity ratios as of June 2019
Revenue per employee, June 2019 Profit per employee, June 2019
Enat 1.8 Zemen 0.5
Zemen 1.8 Enat 0.4
Addis 1.2 Debub 0.3
Bunna 1.1 Addis 0.3
Debub 1.0 Bunna 0.3
Dashen 0.9 Awash 0.3
United 0.9 OIB 0.2
Awash 0.9 United 0.2
OIB 0.9 Dashen 0.2
CBO 0.8 Abay 0.2
Abyssinia 0.7 CBO 0.2
Wegagen 0.7 NIB 0.1
NIB 0.7 Wegagen 0.1
Berhan 0.6 Abyssinia 0.1
Abay 0.6 Berhan 0.1
Lion 0.5 Lion 0.1
0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 0.0 0.1 0.2 0.3 0.4 0.5 0.6
Revenue per branch, June 2019 Profit per branch, June 2019
Zemen Zemen 11.3

36.8
Enat Awash 5.9
21.8
Awash Enat 4.5
19.6
United Debub 3.9
13.9
Dashen OIB 2.8
13.2
Debub NIB 2.8
12.9
NIB United 2.7
12.8
Abyssinia Abay 2.6
12.7
OIB 12.2 Dashen 2.4
Addis 9.9 Addis 2.3
Lion 9.7 Abyssinia 2.3
Abay Berhan 2.3
9.6
CBO Bunna 2.3
9.5
Wegagen Wegagen 1.8
9.5
Bunna CBO 1.7
8.9
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0

21
Appendix Table 8: Earnings per share ratios as of June 2019
Private Banks: Earnings per share over the past decade, in percent
Ranked by ten-year average EPS

Ten-year
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Average
Dashen Bank 60.9 75.3 92.6 82.3 67.0 58.9 48.7 39.2 43.0 40.8 60.9
Awash Bank 49.3 56.0 46.9 45.6 47.5 44.5 37.1 40.9 54.3 63.2 48.5
Zemen Bank 38.7 58.1 57.7 41.0 32.1 32.0 35.0 38.4 28.6 39.8 40.1
United Bank 47.7 52.8 52.8 47.7 34.1 29.8 32.4 27.2 35.4 39.2 39.9
Abyssinia Bank 44.7 56.7 54.4 50.2 38.1 27.8 31.5 37.6 24.4 28.9 39.4
Coop Bank of Oromia 17.0 29.0 45.0 52.0 61.0 50.0 4.4 22.0 42.0 36.4 35.9
Lion Bank … 17.6 24.4 31.5 23.6 42.5 47.9 31.2 30.2 38.0 31.9
Wegagen Bank 38.0 44.8 37.8 33.0 26.1 24.4 22.2 28.0 36.5 25.6 31.6
NIB Bank 37.6 38.0 34.4 29.4 28.6 27.4 25.8 31.4 26.8 30.8 31.0
Oromia Intl Bank 12.3 20.5 14.8 19.2 31.0 36.4 31.0 27.8 52.5 37.4 28.3
Berhan Bank … 17.5 20.6 20.5 23.9 20.7 39.9 32.8 20.4 24.7 24.5
Bunna Bank … 10.7 13.3 21.1 22.8 28.7 34.0 24.2 28.6 28.7 23.6
Abay Bank … -2.5 12.2 14.4 16.3 27.2 23.1 22.9 28.4 34.3 19.6
Addis International Bank … … 5.7 15.9 19.6 18.7 19.3 18.7 17.1 20.7 17.0
Debub Global Bank … … … … 9.1 6.6 22.8 17.4 13.1 32.3 16.9
Enat Bank … … … … 14.9 16.4 16.8 14.9 18.4 18.5 16.7
Average 38.5 36.5 36.6 36.0 31.0 30.8 29.5 28.4 31.2 33.7 31.6
Median 38.7 38.0 36.1 32.2 27.4 28.3 31.3 27.9 28.6 33.3 31.3
Older six 46.4 53.9 53.1 48.0 40.2 35.5 33.0 34.1 36.7 38.1 41.9
Newer ten 22.7 21.5 24.2 27.0 25.4 27.9 27.4 25.0 27.9 31.1 25.4
Maximum 60.9 75.3 92.6 82.3 67.0 58.9 48.7 40.9 54.3 63.2 60.9
Minimum 12.3 -2.5 5.7 14.4 9.1 6.6 4.4 14.9 13.1 18.5 16.7
Earnings per share (Percent), June 2019

Awash 63.2
Dashen 40.8
Zemen 39.8
United 39.2
Lion 38.0
OIB 37.4
CBO 36.4
Abay 34.3
Debub 32.3
NIB 30.8
Abyssinia 28.9
Bunna 28.7
Weg agen 25.6
Ber han 24.7
Addis 20.7
Enat 18.5
15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 55.0 60.0 65.0
Source: Banks’ Annual Reports.
Note: Bank-by-bank EPS data for the just ended fiscal year (2019-20) are available on a provisional basis but are not
presented here. The 2019-20 sector-average EPS of 31.5 percent reported on pages 1 and 3 is calculated from banks’
provisional after-tax profit figures applied to their estimated year-average paid-up capital.
22
Private Banks Overview: FY 2018-19
Balance Sheet AIB DB BOA WB NIB UB CBO LIB ZB OIB Bunna Berhan Abay Addis Enat DGB
Assets 74,635 56,218 39,294 29,770 33,717 35,736 41,791 20,392 14,689 31,779 14,495 19,173 15,106 5,515 9,202 5,488
Loans and Advances 46,855 32,366 23,421 16,096 19,251 21,612 21,405 11,622 7,610 15,324 8,149 10,033 7,597 2,649 5,094 2,401
NBE Bills 11,221 12,295 7,565 6,867 6,867 7,384 8,279 4,230 3,205 7,063 3,257 4,256 3,386 1,063 1,924 1,089
Foreign Assets 3,385 1,152 549 116 28 338 367 34 1,465 1,291 476 801 329 294 41 438
Liabilities
Deposits 59,616 44,722 32,146 23,545 27,664 29,080 36,168 16,397 11,625 26,589 10,587 14,981 11,598 3,947 7,441 3,523
Paid-up Capital 4,385 2,705 2,812 2,522 2,650 2,257 2,049 1,554 1,412 2,386 1,771 2,000 1,671 831 1,194 722
Total Capital 9,639 6,847 4,950 4,294 4,411 3,860 3,290 2,559 2,333 3,713 2,569 2,796 2,457 1,112 1,535 994
Income Statement
Interest Income 5,977 4,301 3,504 2,519 2,859 3,148 2,813 1,673 1,015 2,399 1,282 1,536 1,104 408 743 322
Interest Expense 2,108 1,928 1,508 1,027 1,215 1,472 1,035 610 531 837 440 605 469 208 483 144
Net Interest Income 3,869 2,374 1,997 1,492 1,643 1,676 1,778 1,063 484 1,563 842 931 635 200 259 178
Other Income 2,079 1,277 784 690 481 661 900 546 568 832 550 670 733 265 240 374
Expenses Incl provisions 3,011 2,371 1,757 1,451 1,198 1,276 1,436 913 417 1,393 768 1,099 685 259 268 267
o/w: Salaries and Benefits 1,633 1,394 984 794 703 849 959 486 206 799 401 623 349 125 146 126
o/w: Provisions 407 (15) 104 87 67 (84) 36 99 0 153 50 78 48 10 7 16
o/w: Admin and all other 971 992 669 569 428 511 442 328 211 442 317 398 288 124 115 125
o/w: Rent expenses 221 265 216 208 163 167 160 86 60 45 123 - 88 51 40 36
Profit before tax 3,344 1,279 1,024 735 928 980 767 696 636 1,001 625 580 683 205 231 284
Tax 912 262 247 114 208 228 109 156 152 255 164 122 181 46 30 73
Profit after tax 2,433 1,017 777 621 721 752 658 539 484 746 461 458 502 159 202 211
Key YOY growth rates

Assets 35.0 23.8 22.9 8.7 26.3 27.5 39.8 42.4 18.1 33.5 11.3 36.3 22.6 31.0 41.9 68.3
Loans and Advances 50.9 40.4 31.7 8.9 42.6 45.3 45.5 57.6 52.3 53.7 19.1 42.0 28.8 30.1 53.7 54.5
Foreign Assets 13.9 -14.4 27.0 -37.0 -42.3 -59.0 -45.1 3.1 0.1 0.3 1802.0 218.0 -66.9 55.7 -47.5 169.0
NBE Bills 32.3 20.9 19.8 7.4 10.2 17.7 52.6 27.7 32.5 45.8 13.5 40.5 28.9 31.9 39.4 58.6
Deposits 37.2 24.3 24.6 14.8 28.0 26.0 40.1 40.9 13.8 33.4 6.4 37.6 21.2 32.9 49.5 63.6
Paidup capital 49.0 21.4 9.7 9.1 27.6 26.7 28.3 31.3 25.5 48.5 20.1 17.0 26.1 17.1 22.9 24.5
Total Capital 48.4 16.7 16.6 12.2 30.5 30.7 38.5 41.5 37.5 43.3 29.6 27.0 36.3 23.9 29.3 45.8
Total Income 49.0 25.9 31.0 3.9 34.4 32.0 48.1 42.6 39.3 30.9 31.6 42.5 39.6 37.1 30.8 65.3
Total Expenses 48.6 26.7 30.1 21.6 32.2 25.8 34.4 41.5 19.5 45.7 25.2 49.9 28.5 36.4 40.5 47.7
Profit before tax 70.3 11.9 33.7 -30.0 40.9 38.6 14.5 44.8 85.9 6.8 46.4 41.1 63.0 38.6 6.9 100.0
Per share data

Earnings per share (%) 63.2 40.8 28.9 25.6 30.8 39.2 36.4 38.0 39.8 37.4 28.7 24.7 34.3 20.7 18.5 32.3
Total Capital/Paid-up Capital 2.2 2.5 1.8 1.7 1.7 1.7 1.6 1.6 1.7 1.6 1.5 1.4 1.5 1.3 1.3 1.4
No. of:
Branches 410 423 337 339 261 274 389 229 43 265 205 200 192 68 45 54
Employees 9,046 6,129 5,825 4,561 4,972 4,064 4,369 4,599 885 3,647 1,709 3,853 3,284 575 540 730
Compensation costs
Wages & Salaries, Birr mn 1,633 1,394 984 794 703 849 959 486 206 799 401 623 349 125 146 126
Employees 9,046 6,129 5,825 4,561 4,972 4,064 4,369 4,599 885 3,647 1,709 3,853 3,284 575 540 730
Average monthly salary, Birr 15,040 18,959 14,080 14,511 11,781 17,402 18,292 8,798 19,364 18,250 19,553 13,471 8,855 18,044 22,580 14,348
Source: Cepheus Research compilaton based on Banks's Annual Reports
23
Private Banks Overview: FY 2018-19
Balance Sheet Ratios (%) AIB DB BOA WB NIB UB CBO LIB ZB OIB Bunna Berhan Abay Addis Enat DGB
Loans/Assets 63 58 60 54 57 60 51 57 52 48 56 52 50 48 55 44
Loans/Deposits 78.6 72.4 72.9 68.4 69.6 74.3 59.2 70.9 65.5 57.6 77.0 67.0 65.5 67.1 68.5 68.2
Assets/Total Equity 774 821 794 693 764 926 1,270 797 630 856 564 686 615 496 599 552
Deposits/Liabilities 92 91 94 92 94 91 94 92 94 95 89 91 92 90 97 78
Capital Ratio (%)
Capital/Assets 13 12 13 14 13 11 8 13 16 12 18 15 16 20 17 18
Deposit Composition
Total Deposits 59,616 44,722 32,146 23,545 27,664 29,080 36,168 16,397 11,625 26,589 10,587 14,981 11,598 3,947 7,441 3,523
% Saving Deposits 61.7 68.3 66.7 54.5 64.1 55.8 63.5 74.9 54.8 48.3 75.0 55.4 70.1 42.4 46.2 54.8
% Checking Deposits 31.8 22.5 20.2 26.1 19.5 21.4 32.4 17.4 34.1 27.2 23.2 35.9 21.8 23.7 15.3 32.2
% Time Deposits 6.6 9.2 13.1 19.4 16.4 22.8 4.1 7.8 11.1 24.6 1.8 8.7 8.1 33.9 38.4 13.0
Revenue Composition (%)

Net Interest Income/Income 65.0 65.0 71.8 68.4 77.4 71.7 66.4 66.1 46.0 65.3 60.5 58.1 46.4 43.0 52.0 32.2
Non-interest-Income/Income 35.0 35.0 28.2 31.6 22.6 28.3 33.6 33.9 54.0 34.7 39.5 41.9 53.6 57.0 48.0 67.8
Cost Ratios (%)

Costs (exc int)/Income 37.4 42.5 41.0 45.2 35.9 33.5 38.7 41.1 26.3 43.1 41.9 49.8 37.3 38.5 27.3 38.4
Costs (exc int)/Avg Assets 4.6 4.7 4.9 5.1 4.0 4.0 4.0 5.3 3.1 5.0 5.6 6.6 5.0 5.3 3.4 6.1
Personnel Expenses/Total Exp 31.9 32.4 30.1 32.0 29.1 30.9 38.8 31.9 21.7 35.8 33.2 36.6 30.2 26.7 19.5 30.6
Rent Expenses/Total Exp 4.3 6.2 6.6 8.4 6.8 6.1 6.5 5.7 6.3 2.0 10.2 - 7.6 10.8 5.4 8.8
Provision Expenses/Total Exp 8.0 (0.4) 3.2 3.5 2.8 (3.1) 1.4 6.5 0.0 6.9 4.1 4.6 4.2 2.2 0.9 4.0
Effective Tax Rate 27.3 20.5 24.1 15.5 22.4 23.2 14.2 22.5 23.9 25.5 26.2 21.1 26.6 22.4 12.9 25.8
Margins
Effective Deposit Rate 4.1 4.8 5.2 4.7 4.9 5.6 3.3 4.4 4.9 3.6 4.3 4.7 4.4 6.0 6.9 5.1
Effective Lending Rate (incl Bills) 12.2 11.0 12.7 11.4 12.5 12.6 11.3 12.6 11.1 12.9 12.1 12.6 11.3 12.4 12.7 11.2
Spread 8.2 6.3 7.5 6.8 7.5 6.9 8.0 8.3 6.2 9.3 7.9 7.9 6.9 6.4 5.7 6.2
NIM 7.9 6.1 7.3 6.8 7.2 6.7 7.1 8.0 5.3 8.4 8.0 7.6 6.5 6.1 4.4 6.2
Profitability Ratios (%)

RoAA 3.1 2.0 2.2 2.2 2.4 2.6 3.2 3.1 3.6 2.7 3.3 2.3 3.7 3.3 2.6 4.8
RoAE 25.1 16.0 16.9 15.2 18.4 24.5 23.4 24.7 23.7 23.7 20.2 15.2 23.5 15.8 14.8 25.1
EPS 63.2 40.8 28.9 25.6 30.8 39.2 36.4 38.0 39.8 37.4 28.7 24.7 34.3 20.7 18.5 32.3
Efficiency Ratios
Branch productivity (Birr mns)
Deposit per branch 145.4 105.7 95.4 69.5 106.0 106.1 93.0 71.6 270.3 100.3 51.6 74.9 60.4 58.0 165.4 65.2
Revenue per branch 19.6 13.2 12.7 9.5 12.8 13.9 9.5 9.7 36.8 12.2 8.9 11.0 9.6 9.9 21.8 12.9
Profit per branch 5.9 2.4 2.3 1.8 2.8 2.7 1.7 2.4 11.3 2.8 2.3 2.3 2.6 2.3 4.5 3.9
Employee productivity (Birr '000s)
Revenue per employee 890.6 910.1 736.3 703.6 671.6 937.3 849.9 482.3 1,788.7 886.0 1,072.0 572.6 559.4 1,169.3 1,819.7 952.4
Profit per employee 268.9 165.9 133.4 136.1 145.0 185.1 150.6 117.2 546.6 204.5 270.0 118.8 152.7 277.0 373.4 288.7
24
Private Banks: Summary Financials, Birr mn unless otherwise stated
2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19
Balance Sheet Balance Sheet Ratios (%)
Assets 155,097 190,510 259,716 348,597 447,000 Loans/Assets 47.3 48.3 49.4 50.0 54.1
Loans and Advances 74,595 91,386 132,579 178,801 251,483 Loans/Deposits 63.4 64.0 64.5 64.1 68.9
NBE Bills 36,276 41,739 53,568 71,262 89,951 Assets/Total Equity 674.3 686.5 741.3 750.4 739.9
Foreign Assets 6,419 8,871 10,999 10,959 11,104 Deposits/Liabilities 88.9 89.6 89.5 91.3 91.6
Liabilities Capital Ratio(%)
Deposits 117,946 146,547 201,839 278,532 359,629 Capital/Assets 15.6 15.5 14.4 14.1 14.2
Paid-up Capital 13,008 16,146 20,882 26,184 32,919
Total Capital 21,494 26,131 33,135 43,995 57,358
Deposit Composition
Deposits 117,946 146,547 201,839 278,532 359,629
Income Statement % Saving Deposits 56.4 56.2 56.9 57.9 59.8
Interest Income 9,300 12,241 16,369 25,871 35,603 % Checking Deposits 30.7 29.6 27.6 27.2 25.3
Interest Expense 3,589 4,729 6,392 10,344 14,620 % Time Deposits 12.8 14.1 15.6 14.9 14.9
Net Interest Income 5,711 7,512 9,977 15,527 20,983
Other Income 5,665 6,415 8,376 9,287 11,649
Expenses Incl provisions 5,943 7,858 10,994 14,440 18,568 Revenue Composition (%)
o/w: Salaries and Benefits 3,008 3,995 5,803 8,230 10,575 Net Interest Income/Income 47.6 51.5 50.8 57.9 59.7
o/w: Provisions 249 731 628 609 1,063 Non-interest-Income/Income 52.4 48.5 49.2 42.1 40.3
o/w: Admin and all other 2,686 3,250 4,564 5,602 6,930
o/w: Rent expenses 787 1,060 1,386 1,627 1,930
Profit before tax 5,433 5,808 7,605 10,483 13,999 Cost Ratios (%)
Tax 1,337 1,353 1,791 2,364 3,260 Costs (exc int)/Income 41.7 41.7 44.9 40.9 38.6
Profit after tax 4,094 4,456 5,739 8,119 10,739 Costs (exc int)/Avg Assets 4.7 4.9 5.2 4.9 4.8
Personnel Expenses/Total Exp 30.5 31.1 32.3 31.7 30.7
Rent Expenses/Total Exp 9.7 9.6 9.2 7.0 6.4
Key YOY growth rates Provision Expenses/Total Exp 3.2 5.8 3.5 2.7 3.1
Assets 35.8 30.2 40.5 35.8 30.6 Effective Tax Rate 24.0 21.7 22.7 22.7 22.1
Loans and Advances 55.8 35.0 43.4 38.2 41.1
Foreign Assets 153.7 64.4 111.4 21.6 123.6
NBE Bills 60.9 32.5 33.6 43.9 30.0 Margins
Deposits 40.4 31.1 42.3 39.0 30.9 Effective Deposit Rate 3.4 3.7 3.9 4.5 4.8
Paidup capital 23.6 27.3 32.9 29.8 25.3 Effective Lending Rate (incl Bills) 10.2 10.5 10.4 11.9 12.0
Total Capital 27.3 28.2 30.9 34.3 31.7 Spread 6.8 6.8 6.5 7.4 7.2
Total Income 41.7 37.0 34.0 44.9 36.5 NIM 6.3 6.5 6.2 6.9 6.8
Total Expenses 46.9 39.0 44.4 44.0 34.7
Profit before tax 36.3 33.8 60.5 49.7 38.3
RoAA 3.1 3.1 2.6 2.8 2.9
Per share data RoAE 19.7 20.3 17.8 20.2 20.4
Earnings per share (%) 30.8 29.5 28.4 31.2 33.7 EPS 30.8 29.5 28.4 31.2 33.7
Total Capital/Paid-up Capital 1.5 1.5 1.5 1.6 1.6
No. of: Efficiency Ratios

Branches 1,535 2,008 2,658 3,162 3,734 Branch productivity (Birr mns)
Employees 32,171 37,396 43,574 54,776 58,788 Deposit per branch 88.6 93.8 95.8 100.5 102.4
Revenue per branch 11.5 12.3 12.3 12.9 14.0
Compensation costs Profit per branch 3.2 3.2 3.0 3.0 3.4
Wages & Salaries, Birr mns 3,008 3,995 5,803 8,230 10,575 Employee productivity (Birr '000s)
Employees 32,171 37,396 43,574 54,776 58,788 Revenue per employee 548.9 608.4 677.1 787.5 937.6
Average monthly salary, Birr 7,792 8,902 11,098 12,521 14,991 Profit per employee 150.6 152.2 157.2 181.8 220.9
DATA IN USD TERMS:
Balance Sheet, USD mns 2014-15 2015-16 2016-17 2017-18 2018-19 Income Statement, USD mns 2014-15 2015-16 2016-17 2017-18 2018-19
Assets $ 7,541 $ 8,739 $ 11,239 $ 12,787 $ 15,462 Interest Income $ 462 $ 579 $ 729 $ 986 $ 1,266
Loans and Advances $ 3,627 $ 4,192 $ 5,737 $ 6,559 $ 8,699 Interest Expense $ 178 $ 224 $ 285 $ 394 $ 520
NBE Bills $ 1,764 $ 1,915 $ 2,318 $ 2,614 $ 3,111 Net Interest Income $ 284 $ 355 $ 444 $ 592 $ 746
Foreign Assets $ 312 $ 407 $ 476 $ 402 $ 384 Other Income $ 281 $ 303 $ 373 $ 354 $ 414
Liabilities Expenses Incl provisions $ 295 $ 371 $ 489 $ 551 $ 660
Deposits $ 5,735 $ 6,722 $ 8,735 $ 10,217 $ 12,440 Profit before tax $ 270 $ 275 $ 339 $ 400 $ 498
Paid-up Capital $ 633 $ 741 $ 904 $ 960 $ 1,139 Tax $ 66 $ 64 $ 80 $ 90 $ 116
Total Capital $ 1,045 $ 1,199 $ 1,434 $ 1,614 $ 1,984 Profit after tax $ 203 $ 211 $ 255 $ 310 $ 382
Exchange rate, end-period 20.6 21.8 23.1 27.3 28.9 Exchange rate, year-avg 20.1 21.2 22.5 26.2 28.1
25
Awash Bank: Summary Financials, Birr mn unless otherwise stated
2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19
Liabilities Capital Ratio (%)
Paid-up Capital 1,777 2,243 2,645 2,944 4,385
Total Capital 3,185 3,934 4,809 6,496 9,639
Deposit Composition
Deposits 18,520 22,832 30,591 43,451 59,616
Interest Expense 639 782 914 1,479 2,108 % Time Deposits 10.4 9.4 7.2 7.2 6.6
Net Interest Income 822 1,140 1,674 2,723 3,869
Other Income 839 901 1,176 1,206 2,079
Expenses Incl provisions 801 1,273 1,499 1,964 3,011 Revenue Composition (%)
o/w: Salaries and Benefits 467 615 848 1,234 1,633 Net Interest Income/Income 49.5 55.9 58.7 69.3 65.0
o/w: Provisions 8 236 94 5 407 Non-interest-Income/Income 50.5 44.1 41.3 30.7 35.0
o/w: Admin and all other 326 422 557 725 971
o/w: Rent expenses 93 116 145 182 221
Profit before tax 861 986 1,350 1,964 3,344 Cost Ratios (%)
Tax 216 244 347 472 912 Costs (exc int)/Income 34.8 45.1 39.8 36.3 37.4
Profit after tax 645 744 1,003 1,492 2,433 Costs (exc int)/Avg Assets 3.4 4.5 4.1 4.1 4.6
Key YOY growth rates (%) Provision Expenses/Total Exp 0.6 11.5 3.9 0.2 8.0
Foreign Assets (32.7) 55.0 40.9 19.9 13.9
NBE Bills 31.9 (1.1) 29.8 23.2 32.3 Margins (%)
Total Income 19.7 22.7 33.3 43.7 49.0 NIM 5.4 6.0 6.7 7.9 7.9
Total Expenses 31.7 42.7 17.4 42.7 48.6
RoAA 2.7 1.9 2.7 3.1 3.1
Per share data (ETB) RoAE 22.3 14.7 23.0 25.0 25.1

Branches 202 240 316 366 410 Branch productivity (Birr mns)
Wages & Salaries, Birr mns 467 615 848 1,234 1,633 Employee productivity (Birr '000s)
DATA IN USD TERMS:
Assets $ 1,226 $ 1,429 $ 1,816 $ 2,027 $ 2,582 Interest Income $ 73 $ 91 $ 115 $ 160 $ 213
Loans and Advances $ 596 $ 698 $ 963 $ 1,139 $ 1,621 Interest Expense $ 32 $ 37 $ 41 $ 56 $ 75
NBE Bills $ 261 $ 243 $ 298 $ 311 $ 388 Net Interest Income $ 41 $ 54 $ 75 $ 104 $ 138
Deposits $ 901 $ 1,047 $ 1,324 $ 1,594 $ 2,062 Profit before tax $ 43 $ 47 $ 60 $ 75 $ 119
Paid-up Capital $ 86 $ 103 $ 114 $ 108 $ 152 Tax $ 11 $ 12 $ 15 $ 18 $ 32
Total Capital $ 155 $ 180 $ 208 $ 238 $ 333 Profit after tax $ 32 $ 35 $ 45 $ 57 $ 87
Source: Awash Bank Annual Reports and Cepheus Research compilation
26
Dashen Bank: Summary Financials, Birr mn unless otherwise stated
2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19
Paid-up Capital 1,239 1,492 1,927 2,227 2,705
Total Capital 2,924 3,460 3,993 5,867 6,847
Deposit Composition
Deposits 19,814 22,758 27,782 35,987 59,616
Interest Expense 667 741 1,017 1,433 1,928 % Time Deposits 7.4 7.0 9.1 13.3 6.6
Net Interest Income 747 781 1,053 1,811 2,374
Other Income 1,101 1,212 1,344 1,186 1,277
Expenses Incl provisions 884 1,042 1,514 1,960 2,371 Revenue Composition (%)
o/w: Salaries and Benefits 501 569 788 1,095 1,394 Net Interest Income/Income 40.4 39.2 43.9 60.4 65.0
o/w: Provisions 13 29 132 105 (15) Non-interest-Income/Income 59.6 60.8 56.1 39.6 35.0
o/w: Rent expenses 94 121 193 241 265
Profit before tax 964 951 979 1,143 1,279 Cost Ratios (%)
Profit after tax 729 727 756 929 1,017 Costs (exc int)/Avg Assets 3.8 3.9 4.8 4.8 4.6
Foreign Assets (34.7) 20.4 20.1 (38.2) (14.4)
NBE Bills 42.1 10.7 27.8 23.8 20.9 Margins (%)
Total Income 17.2 8.7 24.9 29.8 25.9 NIM 4.9 4.3 4.7 6.1 7.9
Total Expenses 30.7 15.0 41.9 34.1 26.7
Profit before tax 0.6 (1.3) 2.9 16.8 11.9
RoAA 3.1 2.7 2.1 2.0 3.1

Wages & Salaries, Birr mns 501 569 788 1,095 1,394 Employee productivity (Birr '000s)
DATA IN USD TERMS:
Assets $ 1,204 $ 1,311 $ 1,498 $ 1,666 $ 1,945 Interest Income $ 70 $ 72 $ 92 $ 124 $ 153
Loans and Advances $ 551 $ 572 $ 767 $ 846 $ 1,120 Interest Expense $ 33 $ 35 $ 45 $ 55 $ 69
Deposits $ 963 $ 1,044 $ 1,202 $ 1,320 $ 1,547 Profit before tax $ 48 $ 45 $ 44 $ 44 $ 45
Source: Dashen Bank Annual Reports and Cepheus Research compilation
27
Bank of Abyssinia: Summary Financials, Birr mn unless otherwise stated
2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19
Foreign Assets 448 351 279 432 549 Deposits/Liabilities 93.8 92.7 92.3 93.0 93.6
Paid-up Capital 1,120 1,275 1,802 2,563 2,812
Total Capital 1,811 2,124 2,905 4,245 4,950
Deposit Composition
Deposits 11,118 13,635 20,701 25,795 32,146
Interest Income 854 1,098 1,590 2,721 3,504 % Checking Deposits 23.1 25.0 28.0 21.2 20.2
Net Interest Income 483 645 991 1,665 1,997
Other Income 352 536 789 553 784
Expenses Incl provisions 460 693 1,074 1,453 1,757 Revenue Composition (%)
o/w: Salaries and Benefits 239 389 615 863 984 Net Interest Income/Income 57.8 54.6 55.7 75.1 71.8
o/w: Provisions (2) 19 82 118 104 Non-interest-Income/Income 42.2 45.4 44.3 24.9 28.2
o/w: Rent expenses 74 112 146 183 216
Profit before tax 374 487 704 766 1,024 Cost Ratios (%)
Profit after tax 291 380 540 563 777 Costs (exc int)/Avg Assets 3.7 4.5 5.1 5.0 4.9
Key YOY growth rates (%) Provision Expenses/Total Exp -0.2 1.7 4.9 4.7 3.2
Foreign Assets (9.3) (21.7) (20.5) 54.8 27.0
Total Income 19.1 35.5 45.6 37.6 31.0 NIM 5.7 6.1 6.4 7.7 7.3
Total Expenses 25.7 37.9 46.0 50.0 30.1
RoAA 2.3 2.5 2.6 1.9 2.2

Wages & Salaries, Birr mns 239 389 615 863 984 Employee productivity (Birr '000s)
DATA IN USD TERMS:
Assets $ 665 $ 772 $ 1,096 $ 1,173 $ 1,359 Interest Income $ 42 $ 52 $ 71 $ 104 $ 125
Loans and Advances $ 287 $ 368 $ 603 $ 652 $ 810 Interest Expense $ 18 $ 21 $ 27 $ 40 $ 54
Deposits $ 541 $ 625 $ 896 $ 946 $ 1,112 Profit before tax $ 19 $ 23 $ 31 $ 29 $ 36
Source: Bank of Abyssynia Annual Reports and Cepheus Research compilation
28
Wegagen Bank: Summary Financials, Birr mn unless otherwise stated
2014-15 2015-16 2016-17 2017-18 2017-19 2014-15 2015-16 2016-17 2017-18 2018-19
Paid-up Capital 1,498 1,779 2,072 2,310 2,522
Total Capital 2,414 2,806 3,356 3,827 4,294
Deposit Composition
Deposits 10,218 11,866 15,624 20,506 23,545
Interest Expense 291 343 467 752 1,027 % Time Deposits 7.0 10.7 14.9 12.7 19.4
Other Income 473 509 798 972 690
Expenses Incl provisions 583 709 969 1,286 1,451 Revenue Composition (%)
o/w: Rent expenses 83 109 141 173 208
Profit before tax 453 478 708 1,050 735 Cost Ratios (%)
Foreign Assets (45.4) 64.7 (83.1) 67.5 (37.0)
Total Income 24.1 15.5 39.8 44.1 3.9 NIM 6.3 6.2 6.5 7.5 6.8
Total Expenses 33.6 20.4 36.5 41.9 21.6
Profit before tax 9.4 5.5 48.1 48.3 (30.0)
RoAA 2.8 2.5 2.9 3.3 2.2

DATA IN USD TERMS:
Assets $ 667 $ 743 $ 907 $ 1,005 $ 1,030 Interest Income $ 42 $ 48 $ 60 $ 81 $ 90

Deposits $ 497 $ 544 $ 676 $ 752 $ 814 Profit before tax $ 23 $ 23 $ 32 $ 40 $ 26
Source: Wegagen Bank Annual Reports and Cepheus Research compilation
29
Nib Bank: Summary Financials, Birr mn unless otherwise stated
2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19
Paid-up Capital 1,265 1,502 1,792 2,076 2,650
Total Capital 2,177 2,518 2,954 3,380 4,411
Deposit Composition
Deposits 9,774 12,423 16,416 21,619 27,664
Other Income 310 290 447 412 481
Expenses Incl provisions 456 579 735 950 1,198 Revenue Composition (%)
o/w: Provisions (11) 33 42 46 67 Non-interest-Income/Income 34.5 27.9 31.6 25.6 22.6
o/w: Rent expenses 78 94 120 139 163
Profit before tax 441 459 682 659 928 Cost Ratios (%)
Key YOY growth rates (%) Provision Expenses/Total Exp -1.5 3.4 3.3 2.5 2.8
Foreign Assets 75.6 502.1 (18.5) (93.2) (42.3)
Total Income 15.3 19.4 36.1 27.6 34.4 NIM 6.3 6.7 7.1 6.7 7.2
Total Expenses 21.2 28.4 30.4 44.2 32.2
Profit before tax 6.3 4.1 48.6 (3.4) 40.9
RoAA 2.8 2.5 2.8 2.2 2.4

DATA IN USD TERMS:
Assets $ 645 $ 726 $ 910 $ 979 $ 1,166 Interest Income $ 44 $ 54 $ 67 $ 79 $ 102

Source: NIB Annual Reports and Cepheus Research compilation
30
United Bank: Summary Financials, Birr mn unless otherwise stated
2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19
Paid-up Capital 975 1,252 1,558 1,781 2,257
Total Capital 1,686 2,072 2,516 2,954 3,860
Deposit Composition
Deposits 11,164 13,038 17,684 23,079 29,080
Other Income 386 448 462 623 661
o/w: Provisions 11 27 37 99 (84) Non-interest-Income/Income 40.7 39.0 33.6 33.5 28.3
o/w: Rent expenses 70 94 115 144 167
Key YOY growth rates (%) Provision Expenses/Total Exp 1.1 2.2 2.4 4.5 -3.1
Foreign Assets (34.0) 41.6 13.8 (6.4) (59.0)
Total Income 28.1 25.5 20.1 43.6 32.0 NIM 6.0 5.9 6.2 6.5 6.7
Total Expenses 43.7 27.7 22.2 43.5 25.8
Profit before tax (0.8) 19.8 14.0 44.6 38.6
RoAA 2.1 2.1 2.0 2.3 2.6

DATA IN USD TERMS:

Source: United Bank Annual Reports and Cepheus Research compilation
31
Cooperative Bank of Oromia: Summary Financials, Birr mn unless otherwise stated
2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19
Paid-up Capital 865 911 1,000 1,597 2,049
Total Capital 1,487 1,221 1,517 2,376 3,290
Deposit Composition
Deposits 7,368 8,488 14,277 25,808 36,168
Interest Income 702 864 1,117 1,850 2,813 % Checking Deposits 43.6 34.9 33.2 35.9 32.4
Other Income 524 255 409 658 900
o/w: Provisions 104 153 - (66) 36 Non-interest-Income/Income 48.1 28.7 34.4 34.9 33.6
o/w: Rent expenses 53 72 96 122 160
Tax 169 (2) 28 146 109 Costs (exc int)/Income 43.4 39.1 62.2 48.6 38.7
Key YOY growth rates (%) Provision Expenses/Total Exp 15.5 23.0 0.0 -3.6 1.4
Assets 57.0 (7.4) 65.8 68.6 39.8 Effective Tax Rate 30.3 -5.4 11.7 21.9 14.2
Loans and Advances 80.2 (10.9) 65.4 52.0 45.5
Foreign Assets 70.7 (53.8) 37.1 110.5 (45.1)
Total Capital 36.4 (17.9) 24.2 56.6 38.5 Spread 9.0 8.1 7.9 8.1 8.0
Total Income 39.0 (8.7) 36.4 64.4 48.1 NIM 9.0 8.1 7.6 7.5 7.1
Total Expenses 64.8 (0.4) 93.0 43.0 34.4
RoAA 4.1 3.1 1.5 2.2 3.2

DATA IN USD TERMS:

Paid-up Capital $ 42 $ 42 $ 43 $ 59 $ 71 Tax $ 8 $ (0) $ 1 $ 6 $ 4
Source: CBO Annual Reports and Cepheus Research compilation
32
Lion Bank: Summary Financials, Birr mn unless otherwise stated
2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19
Paid-up Capital 510 642 938 1,184 1,554
Total Capital 822 1,070 1,449 1,809 2,559
Deposit Composition
Deposits 4,457 6,334 8,775 11,640 16,397
Interest Income 327 527 764 1,173 1,673 % Checking Deposits 30.8 27.6 20.5 20.7 17.4
Interest Expense 107 170 241 424 610 % Time Deposits 10.5 8.3 11.4 8.6 7.8
Net Interest Income 220 357 523 749 1,063
Other Income 312 368 279 383 546
Expenses Incl provisions 256 376 451 652 913 Revenue Composition (%)
o/w: Rent expenses 33 46 59 - 86
Foreign Assets 581.1 (56.5) 19.2 (87.4) 3.1
Total Income 86.8 40.1 16.5 49.2 42.6 NIM 7.0 7.1 7.5 8.1 8.0
Total Expenses 68.8 50.4 26.7 55.4 41.5
RoAA 4.2 3.7 2.8 3.1 3.1

DATA IN USD TERMS:
Assets $ 285 $ 372 $ 475 $ 525 $ 705 Interest Income $ 16 $ 25 $ 34 $ 45 $ 59

Source: LIon Bank Annual Reports and Cepheus Research compilation
33
Zemen Bank: Summary Financials, Birr mn unless otherwise stated
2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19
Foreign Assets 444 1,075 1,133 1,463 1,465 Deposits/Liabilities 92.9 86.1 87.7 95.1 94.1
Paid-up Capital 500 650 850 1,125 1,412
Total Capital 765 1,002 1,315 1,697 2,333
Deposit Composition
Deposits 3,819 5,487 7,328 10,218 11,625
Interest Income 263 367 463 712 1,015 % Checking Deposits 26.7 28.2 26.4 29.0 34.1
Net Interest Income 126 160 168 270 484
Other Income 239 336 503 424 568
o/w: Provisions - 24 40 27 0 Non-interest-Income/Income 65.5 67.7 75.0 61.1 54.0
Foreign Assets (4.7) 142.1 5.4 29.1 0.1
Total Income 10.1 40.0 37.4 17.6 39.3 NIM 4.4 3.8 3.1 4.0 5.3
Total Expenses 4.5 34.4 50.4 30.0 19.5
RoAA 3.5 3.8 3.1 2.4 3.6

Employees 438 565 735 724 885 Deposit per branch 347.2 498.8 488.5 393.0 270.3
Employees 438 565 735 724 885 Revenue per employee 1,146.1 1,244.2 1,314.3 1,569.1 1,788.7
DATA IN USD TERMS:

Source: Zemen Bank Annual Reports and Cepheus Research compilation
34
Oromia International Bank: Summary Financials, Birr mn unless otherwise stated
2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19
Foreign Assets 193 248 1,102 1,287 1,291 Deposits/Liabilities 93.7 93.8 91.7 94.0 94.7
Paid-up Capital 679 921 1,168 1,607 2,386
Total Capital 993 1,318 1,666 2,591 3,713
Deposit Composition
Deposits 8,006 9,348 13,414 19,927 26,589
Net Interest Income 360 526 582 962 1,563
Other Income 333 400 583 963 832
Profit before tax 294 286 379 938 1,001 Cost Ratios (%)
Foreign Assets (22.8) 28.5 344.4 16.8 0.3
Total Income 56.0 36.8 28.5 65.2 30.9 NIM 6.8 7.4 6.5 7.6 8.4
Total Expenses 63.0 47.7 40.9 32.4 45.7
RoAA 2.8 2.7 1.8 3.6 2.7

DATA IN USD TERMS:
Assets $ 464 $ 518 $ 705 $ 873 $ 1,099 Interest Income $ 26 $ 36 $ 41 $ 57 $ 85

Source: OIB Annual Reports and Cepheus Research compilation
35
Bunna Bank: Summary Financials, Birr mn unless otherwise stated
2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19
Paid-up Capital 508 686 1,010 1,475 1,771
Total Capital 678 961 1,353 1,983 2,569
Deposit Composition
Deposits 3,501 5,385 7,479 9,947 10,587
Other Income 174 244 293 359 550
Foreign Assets (51.8) 130.2 109.8 (95.1) 1,802.0
NBE Bills 68.4 55.6 (36.3) 184.2 13.5 Margins (%)
Total Income 62.3 52.5 25.7 50.6 31.6 NIM 8.1 7.3 7.1 7.6 8.0
Total Expenses 60.1 60.8 41.9 40.4 25.2
RoAA 3.6 3.3 2.1 2.8 3.3

Employees 747 938 1,167 1,396 1,709 Deposit per branch 43.8 52.8 54.2 58.2 51.6
Employees 747 938 1,167 1,396 1,709 Revenue per employee 645.2 783.6 791.8 997.1 1072.0
DATA IN USD TERMS:

Source: Bunna Bank Annual Reports and Cepheus Research compilation 36
Berehan Bank: Summary Financials, Birr mn unless otherwise stated
2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19
NBE Bills 814 1,567 2,178 3,030 4,256 Assets/Total Equity 573.9 678.9 556.4 638.9 685.7
Paid-up Capital 573 731 1,396 1,709 2,000
Total Capital 727 1,060 1,885 2,202 2,796
Deposit Composition
Deposits 3,069 5,296 7,592 10,889 14,981
Other Income 163 326 477 435 670
o/w: Rent expenses 23 42 65 87 -
Foreign Assets 386.2 92.2 21.4 (23.4) 218.0
Total Income 24.7 110.7 48.2 32.9 42.5 NIM 6.2 8.2 7.2 7.9 7.6
Total Expenses 31.5 98.9 48.8 64.1 49.9
RoAA 3.0 4.1 4.0 2.7 2.3

DATA IN USD TERMS:

Source: Berhan Bank Annual Reports and Cepheus Research compilation
37
Abay Bank: Summary Financials, Birr mn unless otherwise stated
2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19
Paid-up Capital 551 719 1,000 1,325 1,671
Total Capital 716 961 1,328 1,803 2,457
Deposit Composition
Deposits 3,624 4,833 6,792 9,566 11,598
Interest Income 285 419 549 873 1,104 % Checking Deposits 25.5 24.1 21.5 21.7 21.8
Other Income 213 216 319 443 733
Foreign Assets 244.4 (46.5) 122.9 437.8 (66.9)
Total Income 70.0 27.5 36.7 51.6 39.6 NIM 6.5 6.8 6.0 6.9 6.5
Total Expenses 51.4 33.9 40.0 45.1 28.5
RoAA 3.2 2.7 2.6 3.0 3.7

Employees 876 1,058 1,249 2,689 3,284 Deposit per branch 40.3 43.9 47.2 59.0 60.4
Employees 876 1,058 1,249 2,689 3,284 Revenue per employee 568.5 600.2 695.0 489.4 559.4
DATA IN USD TERMS:

Source: Abay Bank Annual Reports and Cepheus Research compilation
38
Addis International Bank: Summary Financials, Birr mn unless otherwise stated
2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19
Loans and Advances 762 1,050 1,562 2,035 2,649 Loans/Deposits 68.6 67.2 68.8 68.5 67.1
NBE Bills 320 456 636 806 1,063 Assets/Total Equity 385.4 387.1 451.1 469.2 496.1
Paid-up Capital 366 516 609 710 831
Total Capital 445 636 757 897 1,112
Deposit Composition
Deposits 1,110 1,563 2,271 2,970 3,947
Interest Income 96 150 200 289 408 % Checking Deposits 29.6 27.0 29.5 33.0 23.7
Other Income 111 145 178 202 265
Foreign Assets 78.8 39.8 43.6 (20.3) 55.7
Total Income 41.8 42.5 28.1 29.8 37.1 NIM 6.1 6.7 6.1 6.1 6.1
Total Expenses 50.0 40.3 42.7 32.5 36.4
RoAA 3.9 4.2 3.2 3.0 3.3

Employees 290 360 431 516 575 Revenue per employee 713.8 819.4 877.0 950.6 1,169.3
DATA IN USD TERMS:

Source: Addis Bank Annual Reports and Cepheus Research compilation 39
Enat Bank: Summary Financials, Birr mn unless otherwise stated
2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19
NBE Bills 342 539 957 1,380 1,924 Assets/Total Equity 496.4 487.7 533.3 546.2 599.4
Paid-up Capital 384 565 764 971 1,194
Total Capital 445 666 909 1,187 1,535
Deposit Composition
Deposits 1,565 2,389 3,681 4,976 7,441
Other Income 72 132 183 262 240
Foreign Assets 1,300.0 166.7 44.6 (51.4) (47.5)
Total Income 110.6 59.1 53.0 55.9 30.8 NIM 6.0 4.4 3.5 4.4 4.4
Total Expenses 121.7 60.9 73.7 43.9 40.5
RoAA 3.0 2.8 2.0 2.8 2.6

Employees 195 288 402 468 540 Revenue per employee 1,015.4 1,093.8 1,199.0 1,605.3 1,819.7
DATA IN USD TERMS:

Source: Enat Bank Annual Reports and Cepheus Research compilation
40
Debub Global Bank: Summary Financials, Birr mn unless otherwise stated
2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19
Loans and Advances 335 591 781 1,554 2,401 Loans/Deposits 40.9 67.8 54.5 72.2 68.2
NBE Bills 155 288 420 686 1,089 Assets/Total Equity 522.4 401.2 487.7 478.1 551.9
Deposits 819 872 1,432 2,153 3,523 Capital/Assets 19.1 24.9 20.5 20.9 18.1
Paid-up Capital 198 262 351 580 722
Total Capital 219 322 423 682 994
Deposit Composition
Deposits 819 872 1,432 2,153 3,523
Other Income 63 97 136 207 374
o/w: Provisions - 6 6 10 16 Non-interest-Income/Income 70.8 62.2 67.7 60.8 67.8
Foreign Assets (41.7) (73.8) 1,081.8 25.2 169.0
Total Income 42.9 64.5 33.1 74.5 65.3 NIM 6.1 8.6 6.3 7.7 6.2
Total Expenses 47.5 25.3 58.5 61.2 47.7
Profit before tax 27.8 195.7 - 108.8 100.0
RoAA 1.8 4.6 3.1 4.0 4.8

Employees 376 478 533 551 730 Revenue per employee 292.6 378.7 452.2 763.2 952.4
DATA IN USD TERMS:

Source: DGB Annual Reports and Cepheus Research compilation 41

Ethiopia's Banking Sector Performance and Outlook

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Ethiopia's Banking Sector Performance and Outlook

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Ethiopia’s Banking Sector

With provisional 2019-20 results for Ethiopia’s banks recently becoming

§ Recent performance—positive results despite COVID: Ethiopia’s private banks

Fig 1: Deposits at Private Banks Fig 2: Loans at Private Banks

Deposits (Birr bns) Loans and Advances (Birr Bns)

Fig 3B: Total Capital at Private Banks

2,008 47,300 43,574

Recent Performance: Profits, Returns of Assets, and Return on Equity

Recent Performance: Underlying sources of strong performance

Loans to Deposits Ratio (Percent) Adjusted L/D Ratio* (Percent)

Recent Performance: Underlying sources of strong performance (continued)

Fig 13: Dupont Analysis for Private Banking Sector

Dupont Decomposition 2013 2014 2015 2016 2017 2018 2019

Profits-Before-Tax to Assets 3.8% 4.2% 4.1% 4.0% 3.4% 3.6% 3.1%

Source: Banks' Annual Reports

Banking Sector: Banking Sector Market shares

700 Deposit Market Share (Percent)

Source: Banks Survey data and NBE

Source: Banks Survey data and NBE

Banking Sector: Banking Sector Market shares (continued)

Fig 19: CBE Market Share (%)

Source: CBE Survey and Annual Reports

Banking Sector Outlook:—Macro Policy Reforms

Fig 20: Macroeconomic Reforms Affecting Banking Sector Operations

Area Issue Remarks

Source: Cepheus Research compilation

Banking Sector Outlook:—Changing Financial Sector Landscape

Fig 21: Ethiopia's Changing Financial Sector Landscape

Area Issue Remarks

Banking Sector Outlook:—Competitive Environment

Loans Deposits Capital

Source: Banks Survey data and NBE

Average EPS (Top 5 vs all others)

42.3 44.2 28.6

Source: Banks Survey data and NBE

Banking Sector Outlook:— Shareholder Returns

Fig 23A: EPS Trends at Private Banks, in percent

Earnings per share, in percent

Source: Banks Survey data and NBE

Fig 23B: EPS Trends in Real Terms at Private Banks

EPS in Real Terms*

Source: Banks Survey data and NBE

Banking Sector Outlook:—Performance across banks

Fig 24A: Profit share changes at private banks

Profit share changes across banks

5.0 1.4 1.5

Max Profit share Range in profit share Min profit share

Source: Banks Survey data and NBE

Fig 24B: EPS changes at private banks

EPS changes across banks

Max EPS Range in EPS Min EPS

Source: Banks Survey data and NBE

Banking Sector Outlook:—Forecasts for FY 2021 and FY 2022

Actuals Estimate Projections

Key Operating Metrics

Commercial Bank of Ethiopia

All Commerical Banks

Growth rates--all banks:

Ethiopia’s Private Banking Sector: Data Appendix

Sector-wide trends: data up to June 2020

1. Bank deposits by bank…………………………………………………………………………..………....…pg 15

Sector-wide trends: data up to June 2019

5. Balance Sheet ratios by bank……………………………………………………………………...………..pg 19