Bunna International Bank S.C. (BIB) 10 ANNUAL REPORT For the Year that Ended Addis Ababa on June 30, 2019 Ethiopia Bunna International Bank S.C. (BIB) Vision Statement “To become one of the top three commercial banks in Ethiopia by the year 2030.” Mission Statement “To provide commercial banking services to enhance values of key stakeholders and win public trust using professional employees and state- of- the- art technology” Core Value statements • WINNING: We have a strong conviction to outperform the banking competition in an ethical manner; by striving for excellence and exercising highest level of professionalism. • RESPECT: We respect each other’s value, differences and contributions to our customers, our shareholders, ourselves, our vendors, and our community. We also recognize that everyone is important and has a role to play. We focus on support, collaboration and care while we treat our customers, shareholders, regulatory body and the society. • RESPONSIBILITY: We act responsibly to balance the interest of our stakeholders. ANNUAL REPORT Bunna International Bank S.C. (BIB) ANNUAL REPORT For the Year that Ended on June 30, 2019 Addis Ababa Ethiopia 1 Bunna International Bank S.C. Bunna International Bank S.C. (BIB) 10 ANNUAL REPORT For the Year that Ended Addis Ababa on June 30, 2019 Ethiopia CONTENT The Board Chairperson’s Message ................................................................... 6 The Chief Executive Officer Message .............................................................. 8 The Board of Directors’ Report............................................................................ 10 Auditor’s Report........................................................................................................ 19 Income Statement .................................................................................................. 27 Balance Sheet............................................................................................................ 28 Statement of Change in Equity ......................................................................... 29 Statement of Cash Flows ...................................................................................... 30 Notes to the Financial Statements ................................................................... 31 Designed & Printed by አራት ኪሎ :. +251 111 557 788 ገርጂ :. +251 116 298 777 * 31362 አዲስ አበባ ኢትዮጵያ 2 Graph5: Foreign Currency Mobilization 250 194 200 150 121 98 98 100 80 In Million USD ANNUAL REPORT 44 53 33 50 19 25 Performance Highlights over 0 the Past TenYears Performance Highlights over the Past Ten Years June June June June June June June June June June (F.Y. 2009/10-2018/19)-­‐10 -­‐11 -­‐12 -­‐13 -­‐14 -­‐15 -­‐16 -­‐17 -­‐18 -­‐19 Performance Highlights(F.Y. 2009/10 over -­‐201 the 8/19) Past Ten Years Graph1: Graph1: Deposit Deposit (F.Y. 2009/10 -­‐2018/19) Graph6:Graph6: Branch Branch Network Network Graph1: Deposit 250 205 18000 200 16000 171 18000 14000 138 16000 12000 9947 10586 150 14000 10000 102 7532 10586 12000 8000 9947 5385 100 80 10000 6000 7532 60 In Million Birr 3501 8000 In Number 4000 2152 5385 6000 903 1548 50 33 In Million Birr In Million 21 2000 239 491 3501 11 4000 0 1548 2152 4 491 903 2000 June 239 June June June June June June June June June 0 0 -­‐10 -­‐11 -­‐12 -­‐13 -­‐14 -­‐15 -­‐16 -­‐17 -­‐18 -­‐19 June June June June June June June June June June June June June June June June June June June June -­‐10 -­‐11 -­‐12 -­‐13 -­‐14 -­‐15 -­‐16 -­‐17 -­‐18 -­‐19 -­‐10 -­‐11 -­‐12 -­‐13 -­‐14 -­‐15 -­‐16 -­‐17 -­‐18 -­‐19 -­‐50 Graph2: Loans & Advance Graph7: Paid-­‐Up Capital Graph2:Graph2: Loans Loans & & Advances Advance Graph7: Paid-Up Capital 12000 12000 2000 10000 1771 8281 1800 10000 1600 1475 8000 6942 8281 2000 1771 1400 8000 6942 1800 6000 5250 1600 1200 1475 2000 1010 5250 1771 6000 3675 1800 1400 1000 In Million Birr In Million 4000 686 2446 3675 1600 1200 800 1010 1475 In Million Birr In Million Birr 508 4000 1000 600 2000 950 1360 2446 1400 417 366.3 652 800 253 308 686 192.2 1360 1200 400 169 213 1010 2000 652 950 In Million Birr 508 0 192.2 366.3 1000 600 200 417 253 308 686 0 June June June June June June June June June June 800 400 0 169 213 In Million Birr In Million 508 June -­‐10 June -­‐11 June -­‐12 June -­‐13 June -­‐14 June -­‐15 June -­‐16 June -­‐17 June -­‐18 June -­‐19 600 200 June June June June 417 June June June June June June 0 253 308 -­‐10 -­‐11 -­‐12 -­‐13 -­‐14 -­‐15 -­‐16 -­‐17 -­‐18 -­‐19 400 169 -­‐10 213 -­‐11 -­‐12 -­‐13 -­‐14 -­‐15 -­‐16 -­‐17 -­‐18 -­‐19 200 June June June June June June June June June June 0 -­‐10 -­‐11 -­‐12 -­‐13 -­‐14 -­‐15 -­‐16 -­‐17 -­‐18 -­‐19 Graph8: Staff June June Strength June June June June June June June June Graph3: Graph3: Graph3: Gross Gross Profit Profit before Tax before Tax Graph8: Number-­‐10 -­‐11 of-­‐12 Permanent-­‐13 -­‐14 -­‐15 Staff-­‐16 -­‐17 -­‐18 -­‐19 Graph8: Staff Strength 2500 700 Graph8: Staff Strength 700 625 2500 2000 600 600 1709 2500 500 2000 500 427 1396 1709 1500 400 2000 1167 1396 400 294 1500 1709 294 938 1167 300 250 1000 300 In Number 182 747 938 1396 182 1500 1000 200 In Number 550 200 107.6 747 1167 80.3 107.6 385 In Million Birr 80.3 500 263 550 938 In Million Birr In Million 100 26.8 41.3 1000 208 385 100 0.05 41.3 In Number 747 0.05 26.8 500 119 263 0 208 550 0 119 June June June June June June June June June June 500 0 385 -­‐100 June June June June June June June June June June 208 263 -­‐100 -­‐10 -­‐11 -­‐12 -­‐13 -­‐14 -­‐15 -­‐16 -­‐17 -­‐18 -­‐19 0 119 June June June June June June June June June June -­‐10 -­‐11 -­‐12 -­‐13 -­‐14 -­‐15 -­‐16 -­‐17 -­‐18 -­‐19 June -­‐10 June -­‐11 June -­‐12 June -­‐13 June -­‐14 June -­‐15 June -­‐16 June -­‐17 June -­‐18 June -­‐19 -­‐200 0 -­‐200 -­‐10 -­‐11 -­‐12 -­‐13 -­‐14 -­‐15 -­‐16 -­‐17 -­‐18 -­‐19 June June June June June June June June June June Graph9: Number -­‐10 -­‐11 -­‐12 of -­‐13 Depositors -­‐14 -­‐15 -­‐16 -­‐17 -­‐18 -­‐19 Graph9: Number of Depositors Graph4: Graph4: AssetAsset Graph9:Graph9: Number Number of of Deposit Depositors Accounts Graph4: Asset 700 700 25000 541 25000 700 600 600 541 20000 600 500 500 541 20000 14495 500 400 400 349 349 15000 13021 14495 15000 13021 400 300 300 242 242 349 9841 9841 175 175 10000 300 200 200 242 10000 6830 124 124 In Million Birr 175 Number in Thousand 6830 Number in Thousand 77 77 In Million Birr In Million 4500 200 100 44 44 124 4500 100 13 13 25 25 5000 3012 Number in Thousand 77 5000 2129 3012 100 44 480 781.4 1365 2129 0 0 13 25 480 781.4 1365 0 0 June June June June June June June June June June June June June June June June June June 0 June June June June June June June June June June June -­‐11 -­‐11 June -­‐12 -­‐12 June -­‐13 -­‐13 June -­‐14 -­‐14 June -­‐15 -­‐15 June -­‐16 -­‐16 June -­‐17 -­‐17 June -­‐18 -­‐18 June -­‐19 -­‐19 June -­‐10 June -­‐11 June -­‐12 June -­‐13 June -­‐14 June -­‐15 June -­‐16 June -­‐17 June -­‐18 June -­‐19 -­‐11 -­‐12 -­‐13 -­‐14 -­‐15 -­‐16 -­‐17 -­‐18 -­‐19 -­‐10 -­‐11 -­‐12 -­‐13 -­‐14 -­‐15 -­‐16 -­‐17 -­‐18 -­‐19 Graph5: Foreign Currency Mobilization Graph5: Foreign Currency Mobilization 250 194 200 150 121 98 98 80 100 In Million USD 44 53 33 50 19 25 0 June June June June June June June June June June -­‐10 -­‐11 -­‐12 -­‐13 -­‐14 -­‐15 -­‐16 -­‐17 -­‐18 -­‐19 Graph6: Branch Network 250 3 205 200 171 138 150 102 100 80 60 In Number 33 50 21 4 11 0 June June June June June June June June June June -­‐50 -­‐10 -­‐11 -­‐12 -­‐13 -­‐14 -­‐15 -­‐16 -­‐17 -­‐18 -­‐19 Graph7: Paid-­‐Up Capital Board of Directors Sewale Abate (Dr) Chairperson W/ro. Demekech Gerawork Ato Zewdu Belete Ato Endeg Zegeye Ato Habtamu Ayele Vice Chairperson Director Director Director Ato Sangeorge Desalegn Ato Solomon Gebreyesus Ato Gedefaw Mehari W/ro Muludesta Workneh Director Director Director Director (Bunna Insurance Representative) Ato Mulatu Kibret Ato Molalegn Melese Ato Yigrem Kinde Ato Bekalu Ayalew Director Director Director Board Secretary 4 Executive and Senior Management Ato Mulugeta Alemayehu Chief Executive Officer Ato Demelash Demissie Ato Solomon Jebessa Ato Eskezia Mengestie Ato Wolelaw Birhane Chief Resource Management Officer Chief Strategy Officer Chief Operation Officer Chief Information Technology Officer Ato Gizachew Amare Ato Yohannes Gulelat Ato Yohannes Emiru Ato Wubetu Assefa Ato Tegenu Hailu Director, Human Resource Director, Finance Director, Internal Audit Director, Legal Service Director, Risk Management Management Directorate Directorate Directorate Directorate and Compliance Directorate Ato Binyam Tilahun Ato Tewodros Baleh Ato Tesfaye Gezahagn Ato Tadese Dabi Ato Emishaw Tefera Director, Credit Director, Core Application Director, Corporate Director, Infrastructure and Director, E-Banking Directorate Directorate Planning and Change SecurityDirectorate Directorate Management Directorate Ato Mekbib Tola Ato Tenna Hailemariam Ato Sewale Bitew Ato Lewtie Tirusew Director, Procurment Director, International Director, Marketing Director, Domestic and Facility Management Banking Directorate Directorate Banking Operations Directorate Directorate Ato Abebaw Zewdie Ato Abayneh Habtie Manager, Corporate Executive Assistant to CEO Communication & Promotion Division 5 Bunna International Bank S.C. The Board Chairperson’s Message Esteemed Shareholders a challenge to the national economy in general and business environment in particular. On behalf of the Board of Directors and myself, it is a great pleasure to share with you the commendable In addition, the competition within the domestic performance of our Bank for the year ended June banking industry, especially in-terms of financial 30, 2019. I would also like to seize this opportunity resource mobilization, securing branch office to congratulate our venerated Shareholders, the buildings and retaining capable staff has been Board of Directors, the Management, the staff stiffened further during the just concluded fiscal and the entire Bunna International Bank family on year.