Measured by total assets, the Ethiopian banking industry is still dominated by Commercial Bank of Ethiopia, which continues to make encouraging progress in addressing the formidable challenges of its non-performing loans. It is also modernizing its 172-branch network and has recently rolled out its first eight ATM machines.
Of the more nimble private sector operators, Bank of Abyssinia made spectacular progress in 2004, doubling its net interest revenue and lifting its net income from a meagre Br5.4 million in 2003 to Br38.2 million ($4.4 million) in 2004.
But of all the private banks, Dahsen Bank – which this year opened its thirty-fourth branch, in Addis Ababa – has once again proved to be the clear leader. In 2004 it increased its net income by 112% to Br56.3 million, with net interest revenue rising by 46% to Br75.8 million and loan-loss provisions falling by more than 30%.