Interest Free Banking Directorate

Semi-annual Performance
Review Report

December 31, 2023

Table of Contents
1 RESOURCE MOBILIZATION........................................................................................................2
1.1 Deposit Mobilization......................................................................................................................2
1.2 Total deposit structure................................................................................................................2
1.3 Deposits achievement by Districts...............................................................................................3
1.3 Deposit achievement of Branches.............................................................................................3
1.4 Number of new accounts performance in the Month..............................................................4
1.5 Deposit Performance of Full Fledged Branches........................................................................5
1.6 Partitioned IFB branches deposit...............................................................................................5
1.7 Major achievements of IFB Directorate during the period under review....................................6
1.8 Limitations and challenges...........................................................................................................6
1.9 Way Forward...............................................................................................................................6
1 RESOURCE MOBILIZATION
Introduction
This report focus on the resource mobilization semi-annual activities employed by Interest free
banking directorate. The report has key areas which are about the resource mobilization
operational activities. The report analyse deposit mobilization by branch and districts, branch
productivities, IFB full fledge and partitioned branches performance. By thoroughly examining
these areas of interest free banking activities major achievement, limitations and challenges, and
way forwards are mentioned.

1.1 Deposit Mobilization

For the month ended December 31, 2023 the bank has managed to mobilize a cumulative
deposit of birr 2.361 Billion however the plan was to mobilize birr 2.827Billion.

Table 1.1 total deposit performance (in billions of Birr)

As at June 30, As at December 31, 2023

2023 Cumulative Performance Net Performance

Type Actual Plan Actual %ach plan Actual Actual

IFB Deposit 2.100 2.827 2.361 84% 0.732 0.263 36%

 Actual growth from the ended June 30, 2023 is recorded as 13% (br. 263,451,952) growth
from the total deposit.
 From 461 big transactions (more than 1 million) an amount of 1,214,654,974 birr had been
withdrawn.


1.2 Total deposit structure

plan in Actual in
Deposit type No of Act mill mill %ach
QARD 2,279 504 621 123%
WADIAH 336,396 2,034 1,679 83%
MUDARABAH-TIME
461 289 61 21%
DEPOSITS
Total 339,136 2,827 2,361 84%

2
 Deposit
3%
WADIAH
26% QARD
MUDARABAH

71%

1.3 Deposits achievement by Districts

 North A.A, and South A.A districts are achieved above 100% of their plan.
 Mekelle, Hawassa Diredawa, shire, and, west A.A districts registered positive result.
 Jimma and Bahirdar are registered under their June 30 2023 balance.

IFB Deposit Performance by District as at December -2023

(Amounts in Millions of Birr)
As at December 31, 2023 June 30-2022
Cumulative Net As of
S/No. Districts Performance Performance June 30, %
% age % age 2023 Growth
Plan Actual Plan Actual Actual
Achiev. Achiev.
1 Bahir Dar 149 88.3 59% 45 (15.7) -35% 104 -15%
2 Dire Dawa 496 402 81% 140 45.0 32% 357 13%
3 Eastern Addis 181 156 86% 46 21.1 46% 135 16%
4 Hawassa 161 130.7 81% 48 17.7 37% 113 16%
5 Jimma 198 144.7 73% 48 (5.3) -11% 150 -4%
6 Northern Addis 330 303 92% 39 39.0 100% 264 15%
7 Mekelle 103 87.2 85% 66 23.2 35% 64 36%
8 Shire 91 69.0 76% 29 7.0 24% 62 11%
9 Southern Addis 132 220.8 168% 39 127.8 328% 93 137%
10 Western Addis 986 759.4 77% 232 3.4 1% 756 0.4%
Total 2,827 2361.3 84% 732 263.2 36% 2,098 13%

1.3 Deposit achievement of Branches

 81 Branches Achieved 100% or above their target as of December 31, 2023.
 54 branches have a performed between 51% - 100%.
 102 Branches performed between 0% - 50%.
 187 branches have shown a performance that was below their June 30 2023 balance.

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 Performance of Branches in IFB deposit as at December - 2023

Total Target Achievement as of Dec 31 2023 Under

S/No. Districts Number of Above June 30
Branches 100% 74-100% 50 - 74% 25-49% 1 -24% 2021
1 Bahir Dar 28 3 1 0 0 6 18
2 Dire Dawa 21 2 1 3 4 1 10
3 Eastern Addis 46 14 2 5 3 3 19
4 Hawassa 42 15 5 0 1 6 15
5 Jimma 33 2 1 2 2 8 18
6 Mekelle 79 18 1 6 1 17 36
7 Northern Addis 29 6 1 1 4 8 9
8 Shire 55 7 3 7 7 11 20
9 Southern Addis 38 11 4 0 3 4 16
10 Western Addis 53 3 7 4 2 11 26
Total 424 81 26 28 27 75 187

1.4 Number of new accounts performance in the Month

 Target No of account: 48,689
 Net actual no of account:37,819
 Net achievement is 78% of the planned target.
 Total initial deposit of birr 382,776,745 has been mobilized from 37,819 new accounts during
the month ended Dec 31 2023.

New IFB Deposit Accounts opened by District as at December - 2023

Net performance as at Cumulati
Cumulative performance as at 2023
December -2023 ve as at
S/No. Districts
% age % age June - %growth
Plan Actual Plan Actual
Achiev. Achiev. 2023 June
3,6 28,0
1
Bahirdar 31,703 30,901 97% 38 2,836 78% 65 10%
7,7 83,7
2
Dire Dawa 91,517 91,254 100% 76 7,513 97% 41 9%
4,0 20,4
3
East AA 24,485 24,429 100% 02 3,946 99% 83 19%
5,1 36,3
4
Hawassa 41,498 40,575 98% 34 4,211 82% 64 12%
3,8 36,1
5
Jimma 39,979 38,820 97% 45 2,686 70% 34 7%
3,2 8,2
6
North A.A 11,179 12,397 111% 49 4,159 128% 38 50%
2,9 13,3
7
Mekelle 16,607 15,364 93% 41 2,006 68% 58 15%
8 Shire 78% 3,7 25% 8,9 11%

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 12,705 9,922 31 948 74
3,0 12,6
9
South AA 15,735 14,432 92% 56 1,753 57% 79 14%
11,3 53,2
10
West AA 64,598 61,042 94% 17 7,761 69% 81 15%

Total 341,732 339,136 99% 48,689 37,819 78% 301,317 13%

1.5 Deposit Performance of Full Fledged Branches

IFB Ful Fledged Branch Deposit Performance at December -2023 (Amounts in Millions of Birr)

Cumulative Performance Net Performance

June
S/No.
30 2023 % age % age
plan Actual plan Actual
Branch Achiev. Achiev.
1 Amana 127.2 172.1 165.2 96% 45 38 84%
2 AL-baraka 16.4 27.6 21.0 76% 11 4.6 41%
3 AL-nejashi 13.6 24.0 26.9 112% 10.4 13.3 127%
4 Worabe Amana 11.5 20.7 12.3 59% 9.2 0.8 9%
5 Khalid 3.5 3.8 13.8 363% 11.3 10.3 91%
6 Alembank Amana 0 0.9 2.5 291% 0.9 2.5 278%
7 Total 172.2 249.1 241.7 97% 88.0 69.5 79%

1.6 Partitioned IFB branches deposit

IFB portitioned branches and their deposit as of December 31 2023(in mill)

June 30 Cumulative Performance Net Performance

No Branches
actual
plan actual %ach plan actual %ach
1 Alem Bank 51.9 58.7 85.2 145% 6.7 33.3 497%
2 Merkato 26 32.8 24.3 74% 6.7 -1.7 -25%
3 T/Haymanot 35.5 42.3 31.2 74% 5.7 -4.3 -75%
4 Weyrabetel 109.1 115.8 51.9 45% 6.7 -57 -851%
5 Goffa 6.1 13.06 6.9 53% 3.1 0.8 26%
6 Lafto 5.4 6.4 4.3 67% 0.97 -1.1 -113%
7 Furi 14.2 20.9 13.8 66% 6.7 -0.4 -6%
8 Cathedral 21.7 27.8 26.7 96% 6.1 5 82%
9 Akaki 6 6.7 6.8 101% 0.68 0.8 118%
10 kombolcha 16.9 19.2 9.4 49% 2.3 -7.5 -326%
11 Jimma Abajifar 19.7 24.6 19.99 81% 4.8 0.29 6%
12 Haftissa 25.6 35.5 51.7 146% 9.9 26.1 264%
13 Dubitera 11.2 14.8 10 68% 3.6 -1.1 -31%
Total 349.3 418.56 342.19 82% 64.0 -6.81 -11%

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1.7 Major achievements of IFB Directorate during the period under review.

 15 new IFB saving account products were developed , tested and moved to the main
production of our core banking solution which can help increase the bank’s market share
and outreach to various segments of the society.
 Training were delivered for more than 330 graduate trainee staffs on Wegagen IFB product
and services.
 Agreement was made and starting collecting cash from all Zamzam bank branches and
mobilized birr 41 million.
 The new IFB guarantee (Kafalah) was tested launched
 We were able to generate an income of birr 2,062,849.00 and 13.2 million from guarantee
(Kafala) and Murabaha financing respectively.
 The Total outstanding financing balance had been increased by 128.1 million birr which in
turn increase our financing to deposit ratio by 3.3%.
 We were able to collect financing repayment more than 60 million birr
 We were able to mobilize more than 5.5 million USD through our exporter clients.
 6 new IFB partitioned branch has been started to give its operation.
 One new IFB full-fledged branch commenced operation and mobilize more than 2 million
birr within two weeks.

1.8 Limitations and challenges

 Due to the liquidity problem of other bank, we were unable to snatch resource even if our
customers gave an order.

 Delay in the construction of portioned branches by the contractor side.

 Delay in the bid process of the new cage for portioned branches.

 Unable to implement more than 10 new IFB products due to the process of system upgrading.

 Lack of qualified IFB human resource on the market

1.9 Way Forward

 Speed up the completion of portioned and full-fledged IFB branches to enhance resource
mobilization in collaboration with the respective concerned bodies

6
 Identify other location for full-fledged IFB branches
 Collaborate with the IT directorate in the system upgrading process to solve IFB related IT
issues
 Continue the promotion and advertising efforts with marketing directorate
 Continue Searching efforts for potential customers to create a positive impact the IFB resource
base
 Continue visit programs to top new and existing potential customers