Download the 2009/10 Annual Report

Download the 2007/08 Annual Report

Download the 2005/06 Annual Report

Message From The President
-----------------------------------------------------------------------------------------------------------------------

I am profoundly honored to present the Bank’s performance and financial report for the fiscal year ended June 30, 2010.

During the fiscal year ended June 30, 2010, we at CBB, have rolled our sleeves up and put everything to bring about institutional transformation that, we believe, will bear fruit for many years to come. As part of this transformation agenda, the Bank has also been engaged in a highly demanding state of the art core banking solution acquisition project for which we coin a name called “Banking Software Selection and Implementation (BSSI) Project”. While putting the future in a clear perspective and ensuring our destiny of becoming customers’ first choice bank, the Bank has also achieved a remarkable success in its operations during the fiscal year under review. Thus, in this regard, the bank has been able to withstand numerous challenges while it tries to capitalize on the opportunities in the banking industry in particular and in the overall economy in general.

Dear honorable readers, in this message, I will try to briefly review these important issues. During the entire fiscal year, the single most important task of the Bank has been finalizing and implementing the Business Process Reengineering (BPR) study that it has started to undertake towards the conclusion of the previous fiscal year. The BPR study has been conducted in such a way that all existing business and internal operation problems were  inked down, lessons from local and international best practices were drown and end to end process orientations were built as corner stones of the newly transformed CBB. Thus twelve identified business processes were redesigned and aligned to one another prior to embarking on pilot testing. In this relentless effort which has called for significant human and material resources, the Bank, prior to the conclusion of this reporting year, has succeeded to lay down the very foundation of its future commercial banking service excellence through introducing a radically new one-window  service, accordingly policies and procedures  are well suited to it.

The Bank has also recognized its status in the level of its automation and during the year under review, it has initiated, acquired, and introduced a new software solution so that our customers would  not wait to harvest the yield of our institutional transformation effort just for the lack of an interim software solution.

Despite this all, the Bank has no illusion of realizing all that it aspires for unless its business operations are powered and geared up by a modern core banking software solution. Through the acquisition of a state of the art core banking solution, the Bank targets to provide anywhere and anytime banking services to its esteemed customers as well as its “would be customers”. With that in mind, all the required leg work for this acquisition were concluded during this fiscal year under review, as  a result of which, I am able to proudly declare that its implantation work is now underway.

Coming to the last subject of my message, I am pleased to present a successful financial performance that we have registered during the year under review. In this fiscal year the Bank has earned a gross profit of Birr 130.9 million (before provision and tax).  Its deposit level has exhibited a rise of 28.4 percent over the presiding year balance and reached to the tune of Birr 2,354.5 million as at June 30, 2010. The outstanding balance of loans and advances grew by 10.6 percent and stood at Birr 1,748.8 million. Consequently, the total asset of the Bank has reached Birr 3,161.7 million, and showed a 22.1 percent increment over the preceding year balance of Birr 2,592 million. The level of capital and reserves also rose to Birr 321.2 million from its level of Birr 269.7 million in the previous year, exhibiting 18.7 percent growth.

The remarkable performance disclosed here in above can be viewed as a manifestation of the overall macroeconomic development of our country which has consistently registered fast economic development as exhibited in terms of acceptable economic development indicators such as real GDP and real per capita GDP. Thus the Bank’s ability to raise deposits, avail credits and facilitate international trade has been greatly favored by this upward economic development trend which has encompassed all economic sectors and which has also been another reality charactering this reporting year.

Nevertheless, the Bank has also taken a lesson from the other side of our country’s fast economic development. One of the major twin lessons is the challenge that CBB has to face from the high demand for credit and trade services which are, as a matter of fact, further pushed up by an all inclusion economic transformation as evidenced through a high rate of economic growth. Therefore, the Bank appreciates the extent of capabilities that our economic development demands from it and what this meant to the Bank which is vast business opportunities that yet calls for further capacity induction. This was also evident from the repercussions of NBE’s tightening liquidity measures aimed to combat the high rate of inflation which was another feature that come to pass during the reporting period.   

The other main lesson is the need to adjust CBB’s traditional housing finance business practice. In this regard, the Bank has learned that mortgage financing calls for alternative long term sources of fund and the adoption of modern mortgage banking practice in order to boost residential and commercial long term credit finance. Thus the Bank will continue to play its significant role in assisting the construction sector development through a pioneering response to this awakening call that we are now sure to recognize.

The journey has been about change, commitment, and institutional transformation. The effort made has been inspiring, challenging, at times very difficult, but deeply rewarding. Our customers are at the heart of what we do and we are grateful for their deepening trust and humbled by the lessons they have taught us. We believe the best is yet to come, and that the future is bright with Construction and Business Bank S.C.

Finally, I would like to take this opportunity to express my sincere gratitude to our customers whose strong backing and loyalty to our bank has been indispensable in achieving our success. I would also like to extend my appreciation to the Board of Directors and the Public Financial Enterprises Agency for their proper guidance, to the management for its strong leadership, and to the entire employees of the Bank for their devotion and hard work.

I thank you,