Annual Corporate Performance - FY 202223 - PPT

ANNUAL
Corporate Performance
FY 2022/23
July 2023
CONTENTS
External Environmental Highlights Financial Resources Allocation
Industry Analysis Other Financials
Non-Financial Performance Asset Quality Management
Financial Resources Mobilization Functional Units Performance

Weaknesses and Challenges
Introduction
 Corporate performance report is the tool through which yearly operational plan and budget is
monitored for its effective execution.
 It provides an insight on how the organization is performing against the intended objectives and
key performance indicators.
 Periodic performance report enhances the communication among various stakeholders so that
up-to-date information is captured, better achievement is recognized and corrective actions
shall be taken for the observed limitations and bottlenecks that happened during specific period
of time.
 For the purpose of executing proper monitoring duties, comprehensive, accurate, and insightful
operational reports accompanied by detail analysis is fundamental so as to deliver valid
information that support the decision making organs of the bank.
 Commencing from global and domestic economic highlights, the report analyses the banking
industry performance and our banks performance in all parameters and finally the major
weaknesses observed and challenges encountered has been identified;
EXTERNAL ENVIRONMETAL
HIGHLIGHTS
Global and Domestic Economic Performance & Highlights
Global Economic Performance & Outlook
• As per WB June 2023 report, the global economy remains in a precarious state amid
the protracted effects of the overlapping negative shocks of the pandemic, the
Russian Federation’s invasion of Ukraine, and the sharp tightening of monetary
policy to contain high inflation.
• Global growth is forecast to slow from 3.1 percent in 2022 to 2.1 percent in 2023,
before edging up to 2.4 percent in 2024.
• Growth in EMDEs is expected to average just 3.4 percent, one of the weakest half-
decades of the past 30 years.
• Advanced economies: growth is projected to slow to an annual average of 0.7
percent in 2023.
• United States: Growth in US is expected to weaken significantly through 2023 and
early 2024, mainly as a result of the lagged effects of the sharp rise in policy rates;
• Euro area: Growth is forecast to slow to 0.4 percent in 2023, from 3.5 percent in
2022, owing mainly to the lagged effects of monetary policy tightening.
Global Economic…..Cont’d
 Japan: growth is expected to slow to 0.8 percent in 2023, as  The WB commodity price index declined by 32 percent from its
the lagged effects of synchronized monetary policy tightening historic peak in June 2022,
in major advanced economies weigh on external demand.  Energy prices were 20 percent lower in the first quarter of 2023
 China: Growth is projected to rebound to 5.6 percent in 2023, than in the final quarter of 2022.
 The Brent oil price is 35 percent below its recent record high in June
as the economic reopening drives consumer spending,
2022,
particularly on domestic services.
 The price of fertilizers, which use natural gas and coal as inputs,
 EMDEs: growth is expected to pick up in 2023 almost entirely
also declined sharply.
due to China’s economic reopening.  Agricultural prices were broadly unchanged between the final
 Excluding China, growth in EMDEs is set to slow markedly. quarter of 2022 and the first quarter of 2023-at 14 percent below
 In Low Income Countries: domestic vulnerabilities, increased their April 2022 peaks.
fragility, and persistently high poverty rates, will continue to  Grain prices fell 5 percent in the first quarter of 2023, while prices
weigh on economic recoveries. of most other food commodities rose slightly.
 Growth in Sub-Saharan Africa is projected to slow to 3.2  Nine out of ten low and middle-income countries face food price
percent in 2023, as external headwinds, persistent inflation, inflation above 5 percent.

 The metals and minerals price index rose 10 percent in the first
higher borrowing costs, and increased insecurity weigh on
quarter of 2023 from the final quarter of 2022.
activity.
Domestic Economic Highlight
• Ethiopia’s GDP growth for the fiscal year ending in June 2022 was 6.4 percent as per the government report,
• Growth was strongest in services (up 7.6% reflecting expansion in government spending and a post-COVID recovery in transport,
hotels, and tourism), followed by agriculture (6.1%).
• Growth was slowest in industry, reflecting bottlenecks in the dominant construction sector, which grew by only 5 percent (versus past
growth rates of above 20%) due to dysfunctional markets for cement and other inputs .
• According to MoPD Ethiopia’s economy will show a 7.5 percent growth in the current 2022/23 fiscal year.
• According to the MoPD Ethiopia’s economy will show a 7.5 percent growth in the current 2022/23 fiscal year.
Domestic Economic Highlight
Inflation
• For the past two years, Ethiopia has been experiencing prolonged inflation.
• According to the ESS, the annual inflation rate eased to 30.8 percent in May 2023 down from 33.5% from the previous
month,
• Food inflation rate declined to 28.5 percent from that 31.80 percent that was experienced in the preceding month.
• The magnitude of the General, Food and Non-Food inflation rate in May 2023 has showed a slight decline.
• The main factors contributing to the country’s high inflation rate include the two-year war in North Ethiopia, prolonged
drought in the southeast of Ethiopia, the rapid depreciation of the birr against major baskets of foreign currencies.
• Large price spikes seen in global commodities have also contributed to the high inflation of the country.
Export Performance
 The year-end report from MTRI witnessed that the export earnings of the country dropped by 22% from previous year
corresponding period, totalling to reach at $ 3.2 billion.
 Agricultural commodities, contributing $ 2.5 billion, with manufacturing and mining bringing in $ 370 million and $ 206 million
respectively.
 The double blow of increased production in Brazil and a global economic deceleration drove down prices, dashing Ethiopians’
hopes of capitalizing on the previously favorable market.
Implications of External Environment on banking industry
The external environmental analysis will have the following implications on the banking industry:
o The slowdown of global growth and the geo-political tensions had continued in the year. In Low Income Countries, domestic vulnerabilities, increased fragility, and
persistently high poverty rates, had continued to weigh on economic recoveries. Ethiopian economy is not out of this project. In Ethiopia as well, the economies were
challenged by the conflict, prolonged drought and high inflation.
o Measures taken by the government in the year to control inflation had some implication on the performance of the bank in the year. Fore instance, Measures that will
be continued to be taken by Ethiopian government to control the rise in inflation will negatively affect the lending capacity of the domestic banks and reduce interest
income and hence negatively affect the profitability of banks as the lion share of the banks’ income is gained from interest income.
o On the positive note, peaceful agreement reached between the federal government and Tigray Regional National state and the establishment of interim Tigray
regional government will have positive implications in stimulating the economic growth of the country. On the contrary, the political instability in some parts of the
country will negatively affect the country’s economy and impact the resources mobilization endeavours of commercial banks.
o The escalating war between Russia and Ukraine will remain negatively affecting the country’s economy in different aspects and consequently effect the financial
sector as well.
o Various regulatory organs directives will have negative impacts on the performances of commercial banks and thus mitigating mechanisms should be drawn to
withstand with the impacts that might be occurred
Implications of External Environment on banking industry
The external environmental analysis will have the following implications on the banking industry:
• The slowdown of global economic growth and high geo-political tensions were observed in the year. Furthermore, persistent inflation, higher borrowing costs, and increased
insecurity had highly challenged the low income countries. This had also affected the Ethiopian economy in the year, which has an implication for the financial sector in the
year;
• Prices of all major commodity groups and about four-fifths of individual commodities remain above their pre-Covid average levels. Fertilizer prices reached an all-time high
in real terms in 2022. This has highly challenged the Ethiopian economy
INDUSTRY ANALAYSIS
ASSETS
• Total asset of Banks

239.70
reached ETB
2,604.27 Billion; CEB
189.88 held 47% (ETB
1,322.55 billion) of
145.06 the total asset;
139.56
• Private banks asset
grew by 24%;
83.53 • Coopbank mkt share
65.85
56.37 54.42 52.85 from private
47.42 46.33 44.93
36.12 34.48 banks=10.9%
23.30 18.81
3.11
AB BOA DB Coopbank Hibret OB Tsedey Abay WB ZB Bunna Berhan LIB Siinqee Enat DGB Tsehay
Loans and Advances
160.99
• Total loans and
145.84
advances of Banks
reached ETB 1,397.8
102.05
100.66
Billion;
• Private Commercial
banks loans and
advances stretched to
56.83
54.18
ETB 961.76 billion,

42.30
39.66
37.87
35.58
35.46
31.83
depicted growth of
28.48
27.06
24.02
15.37
14.00
34.3%
7.59
• Coopbank mkt share
1.06
0.93
from private
banks=10.6%
31.78
AB
14.65
19.83
DB
9.34
19.69
BO A
11.90
15.08
10.02
12.68
9.83
C o o p b ank Ts e d e y
10.21
4.78
H ib r e t
9.26
ZB
5.00
9.13
OB
5.37
Capital
Total Capital
8.92
7.45
S i i nqe e
7.80
A b ay
4.73
6.92
Paid Up Capital
4.28
Bunna
6.65
WB
3.98
4.99
3.35
Be r han
4.80
LIB
2.63
3.89
E nat
2.54
3.05
D GB
2.03
1.09
1.09
Ts e hay
DEPOSIT
 The total deposit position of
182.0
banking industry surpassed 2
158.3 Trillion and reached ETB 2,150.45

Billion.
 CBE’s deposit, on the other hand
exceeded 1 Trillion and stood at
116.2
114.6 ETB 1,053.9 Billion, constitutes
49% of the banking industry
deposit;
 Commercial banks mobilized an
64.8
58.5 entire incremental deposit of ETB
53.9
441.17 Billion during the year
42.8 41.6
37.1 36.6 34.2 33.7 demonstrating 25.6% rise from
27.3 24.0
19.7 17.8 June 2022 balance;
14.0
8.9  CBE alone mobilized ETB 163.81
5.0 2.3 2.0
1.2
Billion (↑ 18.4%) whereas private
AB A k DB re
t
NI
B OB B ay ZB na ey n
LI
B e ra at B I B nk ay u a
BO an b W
Ab n ed r ha qe ha En DG Ad Ba eh ad am banks ETB 277.35 Billion (↑
op
b Hi Bu Ts Be S iin Am a Ts Ah
Si
d
Co jr
Hi 33.86%)
 Coopbank’s market share (from pvt
banks) stood at 10.6%
Incremental DEPOSIT
36.4
34.3
23.5
19.7 19.5
13.8
10.8 10.6 10.3
9.4 9.3 9.1 8.9
7.7
4.8
3.7 3.2
2.3 2.0 1.4 1.3 1.2
A AB DB ra k e
re
t
OB ZB na ay NI
B B an at nk B y u
LI
B I B a
BO ha b an qe b n Ab
W
rh En Ba DG eha ad Ad am
Am op S iin Hi Bu Be a Ts Ah
S i d
Co jr
Hi
31.34
20.86
15.46
13.15
12.57
7.75
7.11
5.22
4.64
4.54
3.95
Saving DEPOSIT (Incremental)
3.72
3.56
2.59
2.43
2.13
1.06
0.87
(1.40)
Saving DEPOSIT (Position)
124.1
111.6
72.4
66.7
35.9
32.8
28.3 26.0 25.5
22.9 21.8
19.8 17.2
16.5
13.1
8.7 6.5
5.0 4.7
1.3 1.1
BOA AB Coopbank DB NIB Hibret Bunna OB Abay WB Berhan LIB ZB Siinqee Amhara Enat DGB Hijra AdIB Ahadu Tsehay
19.42
CBO
3.21
18.07
BOA
6.04
15.65
AB
4.23
8.21
OB
1.59
8.11
DB
2.18
4.50
N IB
4.94
3.23
0.34
H ib re t
Position
IFB Deposit
2.30
Ab a y
0.66
Incremental
2.10
WB
0.49
1.63
0.16
Bunna
0.62
0.62
S in q e e
0.45
0.45
Am h a ra
0.18
DGB
0.13
0.12
0.08
Ts e h a y
Branch Network
Position Incremental
875
846 835
738
499 498
473 465
439
411
367
269 288
150 145 152

129 122
96 102
56 41
29 11 10 19
AB BOA DB Coopbank Siinqee OB Hibret Bunna NIB WB Berhan LIB DGB

2,241,697 11,203,797
C oopba nk
10,420,227
AB
2,655,544
10,275,940
B OA
2,761,603
5,288,498
DB
1,367,593
4,250,236
OB
1,066,134
3,050,253
Position
B unna 1,089,400
2,690,588
WB
422,140
Deposit Accounts
Incremental
2,634,478
N IB
513,618
2,479,475
600,566
H i br et
2,047,822
427,875
B er ha n
1,655,517
L IB
161,704
1,061,331
DG B
453,661
NON-FINANCIAL
PERFORMANCE
Branch Expansion
 During the fiscal year of 2022/23, the bank has planned to open 150
• Total Deposit mobilized by
branches to enhance its accessibility.
new branches= ETB 2,442.56
 Accordingly, our bank opened 145 (including Eco-friendly) branches, million;
exhibiting 97% achievement against the plan of the year. • Average Deposit per branch=
ETB16.85 million;
 In the year, 49 eco-friendly branches were opened in various
• Deposit collected by Eco-
localities of the country. friendly branches; ETB
483.36 million (ETB 9.86
 The total branch network of the bank reached 738.
million per Eco-branch)
 Composition wise, one fourth (25%) of our branches (188) are found • Contribution of new branches
in Finfinne city and 3/4th of them (550 branches) are located in to total deposit mobilized:
12.5%
outlying areas.
Customer Base Expansion…..Cont’d
By District
QIV Performance FY 2022/23 Performance
District Position
Actual Plan %age Actual Plan %age
Adama 40,530 55,032 73.65 163,184 202,000 80.78 941,135
Asella 39,520 47,923 82.47 138,999 178,098 78.05 804,542
Bale 25,274 57,127 44.24 80,077 144,340 55.48 460,153
Central Finfinne 38,367 41,215 93.09 142,610 160,964 88.60 616,243
Chiro 26,760 35,220 75.98 133,100 161,000 82.67 468,107
Diredewa 46,955 54,875 85.57 186,352 219,500 84.90 809,896
East Finfinne 52,862 52,500 100.69 185,794 210,098 88.43 751,636
Hawasa 37,829 42,511 88.99 148,043 163,501 90.55 622,049
Hosana 27,924 13,113 212.95 109,774 131,001 83.80 313,221
Jimma 45,417 55,766 81.44 147,880 225,500 65.58 753,940
Naqamte 13,781 32,727 42.11 67,190 153,000 43.91 968,442
North Finfinne 41,309 58,596 70.50 182,553 236,550 77.17 953,277
Shashemene 46,220 71,398 64.74 141,820 186,999 75.84 683,615
South Finfinne 48,512 56,582 85.74 186,875 228,499 81.78 854,318
West Finfinne 45,118 65,279 69.12 200,564 263,150 76.22 1,068,937
Bahirdar RO 6,174 10,618 58.15 24,757 42,499 58.25 102,889
Mekele RO 1,607 2,125 31,351
Trade Service - 46
Total 584,159 750,482 77.84 2,241,697 2,906,700 77.12 11,203,797
Account Opening Performance Threshold
District No. of branches ≥120% 100%≤X<120% 75%≤X<100% 50%≤X<75% 0<X<50%
Adama 50 4 7 18 14 7
Asella 39 4 23 11 1
Bale 27 1 3 13 10
Central Finfinne 48 7 13 18 5 5
Chiro 37 1 4 21 10 1
Dire Dawa 56 6 10 22 15 3
East Finfinne 61 9 9 32 9 2
Hawassa 42 5 10 15 9 3
Hosanna 34 5 6 18 5
Jimma 48 4 10 19 15
Naqamte 50 1 4 9 36
North Finfinne 65 2 8 27 22 6
Shashamanne 36 5 16 11 4
South Finfinne 62 7 10 30 12 3
West Finfinne 62 1 7 25 25 4
Bahirdar RO 15 3 8 4
Mekele RO 5 5
Total 737 47 99 290 197 104
CONVENTIONAL Account Opening Performance (By Districts)
District QIV Performance FY 2022/23 Performance Position
Adama 33,340 35,771 93.21 131,220 131,435 99.84 792,797
Asella 18,841 25,538 73.78 68,874 95,188 72.36 524,928
Bale 8,316 34,178 24.33 27,928 72,706 38.41 166,753
Chiro 5,073 7,044 72.02 23,423 32,290 72.54 102,495
Diredewa 9,460 10,975 86.20 33,667 43,900 76.69 168,969
East Finfinne 48,074 46,991 102.30 170,074 187,881 90.52 685,203
Hawasa 33,444 36,133 92.56 125,760 138,970 90.49 537,336
Hosana 21,975 10,500 209.28 91,533 104,898 87.26 255,559
Jimma 19,617 26,576 73.81 63,745 107,464 59.32 423,177
Naqamte 12,538 28,108 44.61 61,339 135,419 45.30 893,519
North Finfinne 38,960 52,736 73.88 173,167 212,858 81.35 910,316
Shashemene 21,263 39,564 53.74 58,065 97,090 59.81 341,559
South Finfinne 42,216 45,265 93.26 162,841 182,799 89.08 767,983
West Finfinne 38,725 55,451 69.84 171,060 223,625 76.49 975,911
Bahirdar RO 3,831 6,492 59.01 14,480 24,911 58.13 66,197
Mekele RO 1,529 2,038 29,098
Trade Service 46
Total 389,895 493,988 78.93 1,501,791 1,919,269 78.25 8,175,336
Coopbank Alhuda Account Opening Performance (By Districts)
District Position
Adama 7,190 19,261 37.33 31,964 70,565 45.30 148,338
Asella 20,679 22,385 92.38 70,125 82,911 84.58 279,614
Bale 16,958 22,949 73.89 52,149 71,633 72.80 293,400
Chiro 21,687 28,176 76.97 109,677 128,710 85.21 365,612
Diredewa 37,495 43,900 85.41 152,685 175,600 86.95 640,927
East Finfinne 4,788 5,509 86.91 15,720 22,217 70.76 66,433
Hawasa 4,385 6,378 68.75 22,283 24,531 90.84 84,713
Hosana 5,949 2,613 227.67 18,241 26,103 69.88 57,662
Jimma 25,800 29,190 88.39 84,135 118,036 71.28 330,763
Naqamte 1,243 4,619 26.91 5,851 17,582 33.28 74,923
North Finfinne 2,349 5,860 40.09 9,386 23,692 39.62 42,961
Shashemene 24,957 31,834 78.40 83,755 89,909 93.16 342,056
South Finfinne 6,296 11,317 55.63 24,034 45,701 52.59 86,335
West Finfinne 6,393 9,828 65.05 29,504 39,525 74.65 93,026
Bahirdar RO 2,343 4,126 56.79 10,277 17,588 58.43 36,692
Mekele RO 78 - 87 - 2,253
Total 194,264 256,494 75.74 739,906 987,430 74.93 3,028,461
Digital Banking Performance
Coopay E-Birr Customers
QIV Performance FY 2022/23 Performance Total Position

District Active
Actual Plan %age Actual Plan %age Total Recruited
Used
Adama 37,329 51,924 71.89 205,116 213,200 96.21 496,910 327,539
Asella 32,152 47,040 68.35 159,227 184,399 86.35 408,628 297,846
Bale 30,981 53,726 57.66 121,809 157,800 77.19 287,314 182,807
Central Finfinne 57,103 48,602 117.49 190,281 229,601 82.87 401,408 310,559
Chiro 28,881 42,467 68.01 164,116 167,662 97.88 354,530 291,617
Diredewa 41,025 61,393 66.82 238,338 245,200 97.20 585,829 431,364
East Finfinne 68,917 72,472 95.09 255,878 290,000 88.23 528,720 414,159
Hawasa 38,594 44,991 85.78 178,881 178,002 100.49 424,506 304,372
Hosana 32,655 35,008 93.28 136,381 141,600 96.31 296,181 223,076
Jimma 43,064 60,500 71.18 191,669 242,000 79.20 376,441 262,846
Naqamte 21,995 34,652 63.47 118,699 151,600 78.30 367,881 244,958
North Finfinne 54,867 70,612 77.70 241,932 281,600 85.91 523,887 377,830
Shashemene 60,836 65,710 92.58 210,300 204,998 102.59 429,218 298,054
South Finfinne 78,344 66,506 117.80 163,416 266,001 61.43 474,231 317,827
West Finfinne 61,257 73,279 83.59 201,415 300,800 66.96 692,673 470,024
Bahirdar RO 9,828 17,700 55.53 45,439 70,800 64.18 65,273 53,782
Mekele RO 14 21 2,037 169
Grand Total 697,842 846,582 82.43 2,822,918 3,325,262 84.89 6,715,667 4,808,829
Coopay Merchant Recruitment

District Total Active
Recruited used
Adama 671 649 103.39 2,894 2,720 106.38 7,780 5,580
Asella 555 592 93.75 2,442 2,359 103.50 6,218 4,799
Bale 752 644 116.84 2,106 1,953 107.86 4,382 3,002
Central Finfinne 1,114 1,071 103.99 5,393 5,059 106.60 10,070 7,797
Chiro 514 501 102.67 2,277 2,139 106.46 4,794 3,953
Dire Dawa 891 777 114.73 3,464 3,100 111.74 8,029 6,199
East Finfinne 1,466 1,464 100.14 6,446 5,999 107.45 10,726 8,354
Hawasa 548 519 105.59 2,482 2,260 109.82 5,485 4,124
Hossana 500 449 111.44 1,758 1,801 97.63 3,512 2,727
Jimma 764 770 99.22 3,145 3,080 102.11 5,534 4,217
Naqamte 320 368 86.96 1,732 1,999 86.64 4,284 3,092
North Finfinne 1,110 1,240 89.52 4,718 4,760 99.12 8,788 7,621
Shashamane 895 810 110.49 2,884 2,607 110.63 5,614 4,046
South Finfinne 1,449 1,171 123.74 4,643 4,631 100.27 9,143 7,687
West Finfinne 1,058 1,142 92.65 4,847 4,700 103.13 10,763 8,673
Bahirdar RO 185 213 86.85 901 901 100.00 1,412 1,291
Mekele RO 1 1 3 1
Total 12,793 12,379 103.35 52,133 50,068 104.12 106,537 83,163
Coopay Agents Recruitment

District Total Active
Recruited Used
Adama 157 173 90.75 834 707 117.98 1,261 1,047
Asella 104 152 68.42 652 612 106.58 1,246 992
Bale 181 151 119.56 542 461 117.47 1,089 772
Central Finfinne 151 135 111.87 604 491 122.96 1,151 988
Chiro 140 133 105.54 705 566 124.46 1,251 1,140
Dire Dawa 269 205 131.44 1,123 814 137.92 2,183 1,782
East Finfinne 192 149 128.86 951 650 146.31 1,475 1,292
Hawasa 156 134 116.42 753 590 127.63 1,488 1,131
Hossaina 111 118 94.07 682 471 144.80 1,263 1,045
Jimma 155 201 77.11 826 803 102.86 1,052 897
Naqamte 154 133 115.79 684 650 105.23 1,157 889
North Finfinne 139 186 74.79 896 776 115.41 1,559 1,398
Shashamane 231 176 131.25 813 601 135.28 1,451 1,078
South Finfinne 223 178 125.28 835 720 116.02 1,444 1,264
West Finfinne 165 203 81.47 1,082 882 122.64 1,999 1,669
Bahirdar RO 66 58 113.14 253 235 107.51 344 332
Mekele RO
Total 2,594 2,484 104.41 12,235 10,030 121.98 21,413 17,716
Michu Digital Lending
Customer On-Boarding
Actual Target %age=

42.26%
87,267 206,488
Loans Loans Income

Disbursed Disbursed: Gained
& Income ETB
1,063.84M ETB 52.2M
Gained
Digital Transactions
Digital Transactions for the period ended June 30, 2023
Type of Volume of
Ratio Total Amount Ratio Remark • During the financial year 2022/23, the
Transaction Transaction
Wallet 79,687,688.00 80.83% 348,527,097,631.71 67.48% volume of total transactions were 156.3
million out of which digital banking
Card 9,705,380.49 9.84% 5,052,444,706.30 0.98%
transactions reached 63.1%;
Wallet to act, Act
Coopay and Internet
8,619,358.00 8.74% 159,335,742,198.98 30.85% to act and act to • In terms of digital transactions,
Banking wallet
enormous size of the transactions were
Michu 364,516.00 0.37% 1,925,144,500.55 0.37%
conducted via Wallet which shares
Tele birr 202,483.00 0.21% 1,618,650,051.41 0.31% 80.83% followed by card transaction
with the share of 9.84% and Coopay
POS 4,130.00 0.004% 5,622,886.24 0.00%
and internet banking share 8.74%;
Total Digital
98,583,555.49 516,464,701,975.19 100.00%
Transaction (A) • In terms of amount the total digital
Total Conventional transaction from corporate transactions
57,713,459.00 4,329,277,871,574.08
Transaction (B)
Total Corporate was 10.7%, where the major share goes
Transaction 156,297,014.49 4,845,742,573,549.27 to Wallet transactions (67.48%)
(C=A+B)
Percentage of followed by Coopay and internet
Digital Transaction 63.1% 10.7%
(D=A/C) banking with the share of 30.85%
FINANCIAL RESOURCES
MOBILIZATION
Deposit, FX, Share Capital and Loan Collection
Deposit Mobilization
By Types In Millions
QIV Performance FY 2022/23 Performance % Accomp. Against
Particular Plan (4) LYSP (5) Position
Actual Plan %age Actual (1) Plan (2) LYSP (3)
4=1/2 5=1/3
Conventional
Demand (127.62) 3,032.00 (4.21) 1,082.70 11,232.07 8,113.64 9.64 13.34 30,591.93
Saving 1,279.62 4,971.00 25.74 11,929.24 18,767.93 11,004.43 63.56 108.40 56,162.54
Fixed Time 1,412.47 540.00 261.57 3,256.19 2,000.00 2,304.73 162.81 141.28 10,076.60
Sub-total 2,564.46 8,543.00 30.02 16,268.13 32,000.00 21,422.80 50.84 75.94 96,831.08
IFB
Wadia Current (118.39) 614.00 (19.28) (623.56) 2,307.93 888.30 (27.02) (70.20) 2,659.12
Wadia Saving 469.96 1,837.00 25.58 3,529.75 6,692.07 3,197.85 52.75 110.38 16,284.85
IFB Investment 196.62 266.00 73.92 304.66 1,000.00 141.36 30.47 215.52 473.02
Sub-total 548.19 2,717.00 20.18 3,210.85 10,000.00 4,227.51 32.11 75.95 19,416.99
Aggregate
Demand (246.01) 3,646.00 (6.75) 459.14 13,540.00 9,001.94 3.39 5.10 33,251.05
Saving 1,749.58 6,808.00 25.70 15,458.99 25,460.00 14,202.28 60.72 108.85 72,447.40
Fixed Time 1,609.09 806.00 199.64 3,560.85 3,000.00 2,446.09 118.69 145.57 10,549.62
Total 3,112.66 11,260.00 27.64 19,478.98 42,000.00 25,650.31 46.38 75.94 116,248.07
Deposit Mobilization…..Cont’d
Monthly Trends In Millions
5.24
4.64
2.99 3.14
3.06 2.88
2.82
2.52
3.03 2.06897738792999
1.581.48 1.76812606474999
0.87 0.88 1.17 0.53
0.6 0.84 0.64
0.27 0.37 0.29 0.310851323180001
0.1 0.5 0.15 0.38
Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 -0.06 Jan-23 -0.03 -0.14
-0.18 -0.3
-0.24 Feb-23 Mar-23 Apr,2023 May-23 Jun-23
-2.47
-2.74
Conv. IFB Total

Deposit Mobilization by Districts (in Millions) Conventional deposit mobilization:
FY 2022/23 Performance Conventional FY 2022/23 Performance Coop Alhuda  Two districts Central
District Actual Plan % Position Actual Plan % Position
Finfinne and Asella
Adama 1,609.12 2,550.00 63.10 8,285.77 347.07 550.00 63.10 1,287.95 surpassed their plan (meet
Asella 1,363.45 1,350.00 101.00 4,137.67 306.10 650.00 47.09 1,061.79 expectation);
Bale 685.59 903.35 75.89 1,776.70 527.72 696.65 75.75 1,320.04
 Bale district attained
Central Finfine 6,932.98 6,200.00 111.82 28,873.84 (138.86) 800.00 (17.36) 1,384.21
Chiro 157.98 800.00 19.75 894.53 569.89 1,100.00 51.81 2,193.17 satisfactory performance
Dire Dawa 365.24 950.00 38.45 2,295.74 802.16 1,850.00 43.36 5,427.32 level of 75.89%.
East Finfinne 402.50 4,599.99 8.75 13,026.30 446.68 399.53 111.80 798.53 Coop Alhuda:
Hawasa 78.63 1,400.00 5.62 2,875.60 43.33 400.00 10.83 461.88
 Only East Finfinne district
Hosana 388.90 1,000.00 38.89 1,238.45 65.54 200.00 32.77 243.14
Jimma 387.70 1,150.00 33.71 3,007.53 114.13 850.00 13.43 1,509.03 exceeded its target
Nekemte 317.90 1,197.75 26.54 4,896.33 1.26 102.25 1.23 316.91  Bale district achieved
North Finfine 290.04 3,000.00 9.67 5,577.27 (30.94) 300.00 (10.31) 186.04
satisfactory result of
Shashemene 379.50 1,148.91 33.03 2,321.86 204.68 851.08 24.05 1,059.40
South Finfinne 1,076.14 3,050.00 35.28 7,449.14 500.00 75.75%.
74.73 14.95 892.61
 Three districts namely
West Finfinne 752.77 2,500.00 30.11 6,713.71 (133.11) 600.00 (22.18) 993.53
Central Finfinne, West
Bahir Dar RO 31.09 200.00 15.54 359.18 11.72 150.00 7.81 278.70
Mekel RO 75.87 - - 200.08 (0.98) - - 3.34 Finfinne and North
HO & TS 972.49 - - 2,901.38 Finfinne registered under
16,267.88 32,000.00 50.84 96,831.08 3,211.10 10,000 32.11 19,418 June 2022
Accomplishment of branches (in Number)
District No. of branches ≥120% 100%≤X<120% 75%≤X<100% 50%≤X<75% 0<X<50% Below June 2022
Adama 50 6 8 6 8 19 3
Asella 39 2 3 4 11 19 0
Bale 27 2 4 6 9 6 0
Central Finfinne 48 8 1 3 5 18 13
Chiro 37 2 1 6 5 20 3
Dire Dawa 56 2 7 4 8 23 12
East Finfinne 61 4 1 8 12 25 11
Hawassa 42 2 3 1 5 20 11
Hosanna 34 1 3 9 19 2
Jimma 48 1 1 4 9 18 15
Naqamte 50 5 3 3 3 15 21
North Finfinne 65 4 1 4 2 37 17
Shashamane 36 3 2 2 22 7
South Finfinne 62 4 4 16 3 29 6
West Finfinne 62 3 4 6 8 33 8
Bahirdar RO 15 1 2 7 5
Mekele RO 5 5
Corporate 737 48 42 82 101 330 134
Foreign Currency Earnings
By Sources In Millions of USD
FY 2022/23
QIV Performance %age Accompl. against
FCY by performance FY 2021/22
Source Performance (3)
Actual Plan %ge Actual (1) Plan (2) Plan (4=1/2) LYSP (5=1/3)
Export 46.76 108.12 43.24 237.76 400.00 301.78 59.44 78.78

Remittance 1.50 18.70 8.04 10.08 70.00 16.93 14.40 59.56
SWIFT 45.93 34.19 134.34 126.87 130.00 113.45 97.59 111.82
Purchase 0.53 2.59 20.26 3.04 10.00 6.12 30.35 49.60
• As compared to the preceding year
Total 94.72 163.61 57.89 377.74 610.00 438.28 61.92 86.19
the country’s export earnings has
 With the exception of SWIFT sources, all the foreign
been declined by 22% which is
currency sources revealed less performance as
attributed to:
compared to the preceding year.
 Fluctuation of commodities
 Composition wise, export contributes the lion’s share
prices at the global market,
of 62.94% (USD 237.76 million) followed by SWIFT
 Illegal trade and contrabands,
transfer with USD 126.86 million (33.59%).
and
 Remittance contributed only 2.6% (USD 10.08 million)
 Various bottlenecks in the
to the total foreign currency earned by the bank.
nation’s trading system.
Foreign Currency Earnings…..Cont’d
FCY by Districts In Millions of USD
QIV Performance FY 2022/23 performance
District
Actual Plan %ge Actual (1) Plan (2) %age
Adama 0.77 5.98 12.88 5.51 21.90 25.16
Asella 0.23 1.42 16.53 1.42 5.45 26.13
Bale 0.08 0.74 10.66 0.44 2.12 20.73
Central Finfinne 28.75 52.73 54.52 153.16 177.00 86.53
Chiro 0.04 0.92 4.79 1.20 3.68 32.76
Dire Dawa 6.59 22.10 29.80 42.37 88.40 47.92
East Finfinne 46.42 39.50 117.52 116.51 158.00 73.74
Hawasa 0.36 0.79 45.51 1.41 3.10 45.48
Hossaina 0.10 0.23 45.69 0.60 2.15 28.16
Jimma 1.61 3.10 51.79 7.69 8.86 86.75
Naqamte 0.13 0.48 26.43 0.53 1.61 32.75
North Finfinne 3.06 9.55 32.00 15.91 38.60 41.21
Shashamane 0.17 1.99 8.69 1.20 5.68 21.17
South Finfinne 3.98 17.53 22.70 21.80 67.70 32.20
West Finfinne 2.10 6.40 32.86 7.46 25.13 29.69
Bahirdar RO 0.01 0.16 3.64 0.06 0.63 8.85
Mekele RO 0.00001 - - 0.0004 - -
Trade Service 0.20 - - 0.22 - -
Visa card 0.01 - - 0.07 - -
Master card 0.00003 - - 0.001 - -
Unionpay Card 0.00003 - - 0.00013 - -
Safari Pay 0.10 - - 0.19 - -
Total 94.70 163.61 57.88 377.74 610.00 61.92
Accomplishment level of branches in FCY (in Numbers)
District No. of branches ≥120% 100%≤X<120% 75%≤X<100% 50%≤X<75% 0<X<50%
Adama 50 1 1 48
Asella 39 1 38
Bale 27 1 21 5
Central Finfinne 48 7 2 2 7 30
Chiro 37 3 34
Diredewa 56 1 1 1 3 50
East Finfinne 62 4 3 6 4 45
Hawassa 42 3 1 1 37
Hosanna 34 2 32
Jimma 48 2 1 2 3 40
Naqamte 50 1 1 48
North Finfinne 65 1 2 2 60
Shashamenne 36 1 35
South Finfinne 62 2 60
West Finfinne 62 1 1 1 59
Bahirdar RO 15 15
Mekele RO 5 5
Total 738 22 10 23 47 636
FX Earnings by Sources
Remarks for other FX sources: SWIFT
Export  Coopbank gained USD 126.87 million from SWIFT
 The bank gained USD 273.76 million from export proceeds during the financial year 2022/23 depicting 97.59% and
depicting 59.44% achievement from the target.
111.82% against the target and last year same period
 About 88% of export earnings of the bank were obtained
from Central Finfinne, East Finfinne and Dire Dawa respectively.
districts.  Four districts (Assela, Bale, East Finfinne, Hosana, and
 Two districts, namely Asella and Hossaina, did not generate
any amount of FCY from export sector. Naqamte) achieved exceptional performance;
 More than 76.4% (USD 96.92 million) is contributed by
Remittance
 In comparison to the last year same period, remittance Central Finfinne and East Finfinne districts.
shows a deviation by 40.4% (less than LYSP by USD 6.85
million). Cash Purchase
 All district registered unacceptable result of below 50%;
 The bank earned total foreign currency of USD 3.04
 Reasons:
 Internally: Less emphasis given to remittance million from purchase that is 30.35% achievement
generation by concerned units: against the target of USD 10.00 million.
 Externally: the growing number of remittance
 Only Hawasa district achieved more than its target
recipients who are inclined towards informal channels
for receiving remittances. with 107.86% accomplishment;
Share Capital Mobilization
In Millions
 The total paid up capital of the bank reached

ETB 10,016 billion,
10,016  Incremental Share capital mobilized: ETB
2,284.3 million illustrating 29.54% growth from
end year June 2022.
7,732
 Over the last five years period, our bank’s paid-
up capital has been grown on average by 45%;
 Achieved 77% as compared to the plan of
4,651 reaching ETB 13,000 million for the year end

June 2023
3,000  Further efforts and strategic approaches are
2,049 required for mobilizing additional paid up

1,591 capital that commensurate with the asset
growth of the bank.
June -18 June-19 June-20 June-21 June-22 June-23

Loan Collection
In Millions
FY 2022/23
QIV Performance %age against
Performance FY 2021/22  About 33.59% has been
Sector
Actual
Actual Plan %age Actual Plan Plan LYSP collected from DTS
Agriculture 330.07 109.90 300.34 812.57 476.20 234.57 170.64 346.41
followed by international
Building and Construction 295.97 127.27 232.54 1,305.18 724.39 645.14 180.18 202.31
DTS 2,741.62 2,951.83 92.88 9,505.14 11,869.22 6,978.27 80.08 136.21 trade (30.63%) and
Hotel and Tourism 72.85 150.78 48.32 228.13 349.25 168.43 65.32 135.45
manufacturing (15.80%)
Manufacturing Production 1,493.75 630.90 236.76 4,469.89 4,019.18 2,934.36 111.21 152.33
Transport and
394.17 547.75 71.96 1,516.19 1,742.18 853.7 87.03 177.60 sectors
communication
International Trade 1,189.27 2,115.21 56.22 8,665.89 9,152.73 6,281.79 94.68 137.95  Ownership wise, about
Export 689.80 1,867.79 36.93 7,064.62 8,062.77 5,648.56 87.62 125.07
87% of loans (ETB
Import 499.47 247.42 201.87 1,601.27 1,089.96 633.23 146.91 252.87
Others Loan 450.62 469.44 95.99 1,792.77 1,759.21 1,060.87 101.91 168.99 24,603.69 million) were
Total 6,968.32 7,103.09 98.10 28,295.76 30,092.36 19,157.13 94.03 147.70
collected from private
Conventional: IFB Financing: and individuals, followed

by cooperatives with
• Actual; ETB 23,418.79 million • Actual; ETB 4,876.98 million
11.6% (ETB 3,271.78
• Plan: ETB 24,468.77 million • Plan: ETB 5,623. 59 million
million);
• %age: 95.71% • %age: 86.72%
FINANCIAL RESOURCES
ALLOCATION
Loan Disbursement and FX Payments
Loan Disbursement
In Millions
QIV Performance FY 2022/23 Performance %age against

FY 2021/22
Sector
Actual Plan %age Actual Plan Actual Plan LYSP
Agriculture 3.68 1,089.65 0.34 2,985.50 3,961.67 747.83 75.36 399.22

Building and Construction 41.59 677.89 6.14 1,266.51 3,228.22 1,657.32 39.23 76.42
Domestic Trade and Services 93.11 5,047.73 1.84 9,389.82 20,441.31 10,855.06 45.94 86.50
Hotel and Tourism 13.00 519.02 2.51 176.68 1,760.27 337.94 10.04 52.28
Manufacturing Production 0.00 3,587.72 0.00 2,856.77 14,413.68 5,094.86 19.82 56.07
Transport and Communication 0.00 624.13 0.00 1,379.61 3,110.38 1,857.82 44.36 74.26
International Trade 28.89 2,430.97 1.19 8,813.05 9,349.19 13,910.88 94.27 63.35
Export 28.90 1,938.86 1.49 7,847.10 7,415.33 10,517.04 105.82 74.61
Import - 492.11 - 965.96 1,933.86 3,393.85 49.95 28.46
Others Loan 179.37 1,251.55 14.33 4,129.76 4,702.93 3,146.13 87.81 131.26
Sub-Total 359.66 15,228.65 26.65 30,997.71 60,967.64 37,607.85 50.84 82.42
Conventional: IFB Financing:
• Actual; ETB 24,648.72 million • Actual; ETB 6,349 million
• Plan: ETB 48,468.77 million • Plan: ETB 12,498.88 million
• %age: 50.85% • %age: 50.80%
Loan Disbursement…..Cont’d
Loan Allocation by sectors In Millions

9,389.82
8,813.05  From the loans/financing disbursement,
DTS took the largest share of 30.3%
followed by international trade with
28.43% and 9.63% for agriculture sector
during the period;
4,129.76 Loans allocation by Ownership
550.0598 2978.644
2,985.50 2,856.77 5273; 2% 15213;
10%
Public En-
1,379.61 1,266.51 terprises
Cooperatives
Private & in-
176.68 27469.00 dividuals
DTS Inter, Others Agric. Manuf. Trans. & Bld & Hotel & 991107;
Trade Comm. Const. Tour. 89%
Foreign Currency Payments
In Millions of USD

FY 2021/22
Particular
Actual Plan %age Actual Plan Performance Plan LYSP
Import LC 9.18 36.81 24.95 115.71 137.25 216.69 84.31 53.40

CAD 0.96 3.93 24.51 11.05 14.64 26.25 75.49 42.10
Outgoing TT 3.71 2.94 125.88 24.93 10.98 20.44 227.02 121.95
Others 2.61 5.40 48.29 20.63 20.13 31.76 102.47 64.95
Total 16.46 49.08 33.53 172.32 183.00 295.15 94.16 58.38
OTHER FINANCIALS
Loan Book, Balance Sheet & Income Statement
Outstanding Loans/Financing
In Millions
Performance
Hotel & Tour. 1,455.41
 Actual; ETB 102,048.31 million,
Trans. &
Commun.
3,110.46  Plan: ETB 120,667.20 million;
 %age: 84.57%
Agric. 4,907.92
By Category
Blg & Const. 5,803.56  Conventional; ETB 85,542 million
(83.8%)
Others 10,450.93
 IFB Financings: ETB 16,506.31 million
(16.2%)
Manuf. 17,941.75
 The outstanding loan and advances
Inter. Trade 25,873.95 position have shown a growth of ETB
32,504.33 17,792.44 million or 21.12% as

DTS
compared to LYSP.
Outstanding Loans/Financing…..Cont’d
In Millions
Outstanding Loans/Financing by Ownership
Sectorial Wise 1897.56004654

; 2% 8536.82097253
 The largest portfolio (32%) ; 8%
of the bank is held by DTS

Public Enterprises
 International trade and Cooperatives
Private & individuals
manufacturing sectors 91613.933817
35; 90%
shares 25.4% and 17.6%
respectively
Balance Sheet
In Millions
Asset Growth:
Asset Liability Capital
22%
139.56 138.31 • Loans & IFB financing
133.14176965807
124.47
took 72% of the bank’s
124.55 121.72 114.36339009283
121.01642912975 asset
2
108.27824627119 105.71
102.08134437301 Liability:
94.26 • Rise by 21.93%;
• Major share goes to
Deposits (93%)
Capital:
• Surged by 22.76%
15.08
13.76 13.45 12.95763086283 11.45
12.12534052832 • Considerable share
Jun-23 Mar-23 Dec-22 Sep-22 Jun-22 LYSP

goes to Paid up capital
(66.4%)
Income
In Millions
FY 2021/22
Particular
Income -
Interest Income from loans 2,843.98 3,822.78 74.40 10,202.68 11,190.68 6,954.85 91.17 146.70
Interest Income Investment 228.91 211.48 108.24 770.61 845.35 692.09 91.16 111.35
Other Interest Income 370.17 250.96 147.50 925.41 298.47 270.81 310.05 341.72
Total Interest Income 3,443.05 4,285.22 80.35 11,898.70 12,334.50 7,917.75 96.47 150.28
IFB Profit Income
Profit Income Murabaha Finance 393.74 567.06 69.44 1,506.05 2,061.60 955.12 73.05 157.68
IFB Commission and Service Charge 355.91 47.94 742.48 372.18 190.40 171.35 195.47 217.20
Income from IFB 749.65 615.00 811.92 1,878.22 2,252.00 1,126.47 83.40 166.73
Charges and Commission Income
Com Income Trade Services 112.56 219.62 51.25 939.24 725.62 1,107.08 129.44 84.84
Com Income Dom Banking 293.98 241.01 121.98 730.74 742.81 418.64 98.37 174.55
Charge & Commis Income 406.55 460.63 173.24 1,669.98 1,468.43 1,525.72 113.73 109.46
Gain on Rate Dealings and
Revaluations
572.54 421.79 135.74 1,887.80 1,448.64 1,316.94 130.32 143.35
Other Income 30.24 20.16 149.98 77.22 51.41 52.55 150.21 146.96
Total Income 5,202.03 5,802.79 89.65 17,411.93 17,554.98 11,939.43 99.19 145.84
Expense
In Millions
FY 2021/22
Particular
Interest Expenses
Saving Deposits 728.86 807.10 90.31 2,745.82 2,872.12 1,911.56 95.60 143.64
Fixed Deposit 333.58 208.30 160.14 984.11 799.89 666.94 123.03 147.56
Other Interest Expense 143.31 4.08 3,513.20 285.59 16.32 122.25 1,750.26 233.61
Total Interest Expense 1,205.75 1,019.48 118.27 4,015.51 3,688.33 2,700.75 108.87 148.68
Total IFB Profit Expense 97.22 13.02 746.47 160.41 52.09 34.73 307.93 461.90
Total Salary & Benefit Expense 1,144.62 1,141.44 100.28 4,022.26 3,934.43 2,138.79 102.23 188.06
General Expenses
Administration Expense 265.78 315.67 84.20 1,041.94 868.96 525.08 119.91 198.43
Maintenance & Repair Expense 30.31 29.77 101.82 141.91 134.84 85.06 105.24 166.84
Depreciation and Amortization Expense 207.53 167.62 123.81 380.19 294.67 217.76 129.02 174.59
Outsource Service Expense 114.18 141.73 80.56 408.17 529.88 327.79 77.03 124.52
Fees & Pmt Expense 15.56 25.07 62.06 74.13 66.07 36.65 112.19 202.25
Insurance Expense 18.32 6.71 272.94 52.93 31.60 25.34 167.52 208.90
Rent Expense 181.55 153.58 118.21 593.28 512.98 388.12 115.65 152.86
Utility Expense 32.40 25.57 126.70 100.54 74.68 59.1 134.63 170.11
Other General Expense 70.76 65.08 108.73 226.85 125.06 90.24 181.40 251.40
Total General Expense 936.40 930.81 100.60 3,019.95 2,638.74 1,755.14 114.45 172.06
Loss on Dealing & Revaluation 584.47 494.62 118.16 1,960.03 1,888.47 1,573.73 103.79 124.55
Provision for Bad Loans -77.77 175.00 -44.44 288.79 700.00 597.81 41.26 48.31
Controllable Expense
In Millions
Particular
Maintenance & Repair Expense 30.31 29.77 101.82 141.91 134.84 105.24
Stationary & Printing Expense 31.64 45.18 70.04 119.87 142.95 83.86
Telephone 26.01 19.44 133.79 78.70 55.88 140.84
Petrol and Lubricant 14.31 14.50 98.71 49.85 41.90 118.97
Perdime Expense 8.28 8.84 93.69 39.61 30.68 129.10
Transportation Expenses 6.26 2.06 303.80 24.83 4.59 540.95
Sundary Expense 4.22 8.04 52.50 23.80 26.63 89.37
Water And Electricity 3.91 6.13 63.77 17.74 18.79 94.37
Entertainment Expense 5.08 9.08 55.92 17.25 13.79 125.12
Overtime Pay 1.36 2.79 48.76 8.78 7.72 113.63
Cleaning Supplies Expense 0.37 0.56 66.62 1.63 3.37 48.23
Total 131.77 146.40 90.00 523.96 481.15 108.90
GROSS Profit
In Millions

FY 2021/22
Particular
Total Income 5,202.03 5,802.79 89.65 17,411.93 17,554.98 11,939.43 99.19 145.84
Total Expense (before Provision and
Depreciation)
3,760.92 3,431.76 109.59 12,797.97 11,907.39 7,985.38 107.48 160.27
Provision Bad Loans - 77.77 175.00 -44.44 288.79 700.00 597.81 41.26 48.31
Provision for Bad Assets 500.17 23.97 2,086.90 1,078.33 95.87 76.69 1,124.81 1,406.01
Depreciation and Amortization
Expense
207.53 167.62 123.81 380.19 294.67 217.76 129.02 174.59
Gross Profit before Provision and
Depreciation
1,441.12 2,371.03 60.78 4,613.96 5,647.59 3,954.05 81.70 116.69
Gross Profit after Provision and
Depreciation
811.19 2,004.45 40.47 2,866.64 4,557.05 3,061.79 62.91 93.63
RATIO
Analysis
Loans to Deposit Ratio
100.1% 99.9% 99.1%

96.9%
92.7% 92.7% 92.1%
88.5% 87.9% 87.8% 87.6% 86.3% 85.8% 85.5% 85.0% 84.6%
78.5%
46.2% 45.9%
DGB Siinqee LIB Bunna WB NIB BOA AB DB Coopbank Hibret Enat ZB Abay AdIB Berhan OB Tsehay Ahadu
Average Deposit per BRANCH
AdIB 67.63
Bunna 78.71
Abay 86.22
Berhan 91.76
DGB 92.02
LIB 94.82
WB 104.06
OB 108.18
Enat 118.71
NIB 132.56
DB 137.20
Hibret 138.84
Coopbank 157.52
BOA 187.09
AB 207.99
ZB 363.84
Return on ASSET-ROA
7.2%
5.1% 5.0% 5.0% 4.8% 4.8% 4.7%

4.2% • Coopbank’s ROA is
3.6% 3.6%
3.3% 3.6% which is below
2.8%
the lower limit of 4%
set internally;
ZB AB Bunna Enat DB Abay Hibret OB Coopbank BOA LIB WB

Return on Equity
38.7% 37.9%
37.0% 36.5%
35.7%
33.7% 33.3% 33.1%
29.9%
26.1%
• Minimum limit; 23%
21.5%
AB Hibret DB ZB BOA Coopbank Bunna Abay OB LIB WB

Interest Income to Interest Bearing Asset
19.24%
17.59% 17.36%
16.14% 15.84% 15.72% 15.64% 15.34%
14.39%
13.66% • Minimum limit; 9%
Bunna Hibret Abay LIB OB DB BOA AB Coopbank WB

Other Ratios
Expense to Non-Interest Expense
Banks
Income Ratio to Total Expense
AB 62.2% 66.1%
DB 65.4% 66.4%
BOA 72.3% 61.2%
WB 89.8% 66.2%
Hibret 68.2% 57.3%
Coopbank 83.5% 71.3%
• Maximum
LIB 81.0% 49.4%
OB 72.3% 60.1% Limit; 56%
Bunna 76.2% 63.0%
Abay 73.2% 68.5%
Enat 70.5%
• Maximum Limit; 59%

ASSET QUALITY
NPL, Special Mention and Suspense Accounts
Non-Performing Loans
By Category In Millions
2,651 Sub-standard Doutful Loss Total
NPL Ratio: 2.6%;
2,573
Conventional Loans
2,103
 ETB 2241.21
Million;
1,474
 NPL Ratio: 2.62%
1,224
1,166
IFB Financings
1,073
979
955
 ETB 406.74 million

862
833
716
 NPF Ratio: 2.46%

639
632
622
488
418
306
184
153
June-23 Marc h-23 Dec -22 S ept -22 June-22
Non-Performing Loans
By Districts In Millions
Quarterly Status Change
District June 2023 vs
Jun-23 Mar-23 Dec-23 Sep-22 Jun-23
June 2022
Adama 136.40 237.81 207.25 113.03 79.05 57.35

Asalla 89.76 11.9 10.03 6.56 3.66 86.10
NPL Share by Districts:
Bale 19.58 10.05 13.61 8.23 7.43 12.15
• Central Finfinne: 41%
Central Finfinne 1,087.51 1,078.68 817.15 466.93 633.87 453.64
• South Finfinne; 13%
Chiro 10.50 12.92 11.85 7.15 5.28 5.22
Dire Dawa 147.37 168.13 154.17 201.7 94.51 52.86 • Hawasa: 9%
East Finfinne 127.00 222.35 81.04 90.95 36.23 90.77

Hawasa 243.11 180.09 304.46 153.93 57.93 185.18
Hosanna 2.73 6.84 4.16 9.07 2.14 0.59
Jimma 46.51 11.82 12.7 14.91 14.12 32.39
Naqamte 107.25 93.01 86.31 78.38 70.74 36.51
North Finfinne 59.87 48.26 44.35 57.14 35.74 24.13
Shashamane 41.15 115.07 48.2 56.71 51.43 (10.28)
South Finfinne 345.32 231.25 148.7 81.61 37.5 307.82
West Finfinne 66.55 23.87 50.99 16.11 14.78 51.77
Bahirdar RO 32.85 33.82 20.4 26.81 21.53 11.32
Mekelle RO 87.50 87.27 87.36 84.39 57.86 29.64
Special Mention
In Millions
District Total Share

ADAMA 79.82 1.70%
ASELLA 231.82 4.93%
BALE 4.36 0.09%
CENTRAL FINFINNE 1,429.19 30.38%
CHIRO 3.63 0.08%
DIRE DAWA 35.13 0.75%
EASTERN FINFINNE 481.45 10.24%
HAWASSA 973.66 20.70%
HOSSANA 2.99 0.06%
JIMMA 308.58 6.56%
NEKEMTE 44.22 0.94%
NORTH FINFINNE 538.41 11.45%
SHASHEMENE 111.98 2.38%
SOUTH FINFINNE 363.02 7.72%
WESTERN FINFINNE 86.01 1.83%
Bahirdar RO 9.34 0.20%
Total 4,703.62 100.00%
Suspense Accounts
In Millions
Age
Subsidiary June 30, 2022 Tracer Balance GL Balance as of Change
Account GL Balance 0 - 30 Days 30 - 90 Days 90 - 180 Days 180-360 Days Above 360 Days as of June 30,2023 June 30 ,2023 (2) (2-1)
Account Receivable 269.87 317.97 12.28 3.00 7.77 110.60 482.18 482.02 212.15
UED LOCAL 15.01 17.03 39.82 1.13 1.07 32.91 61.38 61.61 46.60
ODBP 1,133.23 149.28 64.41 1,572.56 1,565.89 - 3,352.13 3,457.38 2,324.15
TOTAL 1,418.11 484.27 116.50 1,576.69 1,574.73 143.50 3,895.69 4,001.01 2,583.00
Suspense Balance by Organs:
 About 86.5% of the bank’s suspense is found on TS (ETB 3,459.2 million),
 Category wise the major share goes to ODBP.
 Suspense balance specifically long-aged ones should be well managed as the
provision held for bad assets is huge (ETB 1,078.33 million) which affects the
profitability position of the bank.
Functional Units Performance
HCM, Capital Expenditure, Internal Audit and Risk &
Compliance
Human Capital Management
On-Boarding
Learning and Development
 During the year, our bank planned to recruit 2,568 employees so as to satisfy the
HR need of the bank’s different organ.
 During the period, the bank hired a total of 2,199 employees, demonstrating an
accomplishment level of 85.6% against the target for the year.  A total of 16,032 employees
took the training with
 Occupational Category wise, aggregate cost of 252.1
 Semi-professional; 84.3%, million;
 Managerial/supervisory 7.2%  Developmental training was
 Professional; 6% respectively offered to 5,005 employees
with total cost of ETB
 The total strength of the bank reached 8,152;.
193.45 million;
 Male employees constitute 81% (6,593) and female employees shares 19% (1,559).  Technical training was
 During the review period, 600 employees had resigned from our bank.
provided to 11,027
employees with total cost of
 Major reasons for termination: Personal case (532), disappearance (35), disciplinary ETB 58.62 million.
(17), end of contract (7), death (5), and retirement (4).
 The employee turnover rate: 6.96% which went above the target of keeping below
5%.
Capital Expenditure
Operational Fixed Asset:

 Computing, Networking and Accessories: 2,529 Computers, 322 lap top computers, 52 stabilizer, 100 Epson Printer, 306 canon
printer heavy, 300 two layer cisco switch and 340 patch panel were purchased among others,
 Office Equipment: 212 tellers note counting machine, 478 fire extinguisher, 70 Generators, 300 electrical Blower and 13 power
invertors were purchased;
 Office furniture and fittings: 23 cash safe vault big, 100 cash safe vault small, 1100 teller stool, 61 fireproof chubb, 302 single
pedestal table, 100 mesh medium back chair were procured during the year.
Vehicles:
 87 vehicles (Four V8 or V6 Toyota, 6 Prado, 9 Hard Top, 12 Rush Toyota, 30 Pick-up single Cab Toyota, 22 Pick-up double Cab Toyota,
2 Van HAICE Toyota, 2 ISUZU (FSR & Van)) and
 37 motorcycle were purchased
Investment on technologies, digital and Information system:

 The budget has been expended for various projects such as ATM/Hitach cash recycler, Soflet security, IPCOM (HCI solution and
others), hardware system module, Finmonitor, SDN solution and service level agreement,
Construction Projects
 Construction Projects: The execution of various construction projects (ongoing and new) has been underway
 Maintenance, layout enhancement and branch opening tasks were performed during the period under review.
Construction Projects
Project Physical Activities Executed
 THQ is substantially completed;
THQ
 Some activities delayed due to shortage of finance for operational and overhead cost.
Wolisso  Completed and inaugurated during February 2023.
Financial District  Agreement was signed on October 4, 2022,
Tower (FDT)  The Consultant is making the necessary preparations to come up with the presentation of Concept Design Development.
 Last minute design and BOQ amendments on sanitary and electrical were introduced by the Consultant;
 All final Design Documents and Construction Document are compiled and ready for the Regulatory Body’s review and approval,
Adama
 Bid for Contractor selection was floated on December 13, 2022,
 All required documents have been submitted to Oromia Investment and Industry Bureau for Title Deed acquisition,
 Bid processing commenced and completed,
 First Bid Opening (Technical Proposal Opening) was conducted,
Shashamane
 The Bid Organizer promptly commence with the Technical Evaluation and accordingly submitted the Technical Evaluation Report,
 The design approval process with the Regulatory Body is on the verge of being finalized.
Tor-Hayloch  Proposal for selling the plot has been presented to the Bank’s Construction Steering Committee and it was decided to sale the plot at once.
 Second Bid Opening (Financial Proposal Opening) was conducted, and Financial and Overall Evaluation Report was furnished and dispatched,
Harar
 Preparations are being made for Negotiations and Contract Signing with the Successful Bidder.
 Draft Consultancy Services Agreement was submitted by the Consultant.
Finfinne Tower  To proceed with site demarcation and acquire the corresponding Tittle Deed, lease advance payment has already been effected,
 Site clearing and compensation process has already commenced and is still under process;
Jimma Office  All the required document has been submitted to Oromia Investment and Industry Bureau and waiting for the board decision.
Building  Decision is not yet made due to delay in regular meetings of the cabinet;
Ambo Office  Project Agreement and Investment License has been obtained, lease and compensation fee have been effected and waiting for Lease Agreement and Title Deed at
Building Ambo town
Construction Projects-Active/Substantially Active Projects
Financial Status
Amount (ETB)
No. Project Physical Activity Description Previous (ETB) Current (ETB) Total (ETB) Remark
1. Cost Associated with the lease

1.1 Purchased Fee 12,000,000.00 - 12,000,000.00
2. Design Preparation Fee;
 Contractor on board; 2.1 Consultancy Fee
• December 19, 2017 2.1.1 Lump Sum Fee To be determined - -
2.1.2 Time-based Fee 5,946,075.00 217,350.00 6,163,425.00
 Status to date; 3. Construction Fee;
Transitional • Reaches 95.00% 3.1 Contract Amount 387,849,630.09
Head Quarter • Remaining activities – Some minor/corrective 3.2 Effected Amount 238,021,631.57 - 238,021,631.57
1.1 works, Testing, Commission, and corresponding
(Main) 4. Other Construction Fee – 14th floor (Terrace);
Provisional Acceptance.
4.1 Contract Amount 387,849,630.09
Advance
4.2 Effected Amount 3,722,313.68 - 3,722,313.68
Payment
Total amount to date; 259,907,370.25
1. Construction Fee;
Transitional 1.1 Contract Amount 79,739,400.68
Head Quarter Sup. No. 2 (IPC
1.2 Executed Amount 47,192,046.45 22,198,007.41 69,390,053.86
(Mechanical No. 02)
1.1.1  Fully completed.
Parking)
Total amount to date;
69,390,053.86
 Contractor on board; 1.1 Compensation 374,426.56 - 374,426.56
• July 25, 2019 2. Design Preparation Fee;
 Status to date;
2.1 Consultancy Fee 483,000.00 - 483,000.00
• Reaches 95.00%
2.2 Design Approval Fee 40,000.00 - 40,000.00
1.2 • Inauguration made on Feb. 04, 2023,
Wolliso Office • Some parts of the building start giving rental 3. Construction Fee;
Building operations. 3.1 Contract Amount 117,377,864.94
3.2 Effected Amount 107,303,356.39 - 107,303,356.39
 Land Acquired; 1. Cost Associated with the lease
• Through Purchase on March 30, 2015. 1.1 Purchasing cost 13,225,000 13,225,000
 Consultant on board; 1.2. Miscellaneous Fee 3,699,075.99 3,699,075.99
• Agreement with YEMA Architects PLC has been 2. Design Preparation Fee;
Harar Office extended 2.1 Consultancy Fee 1,044,200.00 1,044,200.00
1.3 Building Project  Contractor on board;
3. Construction Fee;
• Yirgalem General Contractor was selected.
 Status to date; 3.1 Contract Amount 316,716,729.64
• Contract agreement was signed on March 8, Advance
3.2 Effected Amount - 95,015,018.89 95,015,018.89
Construction Projects- Soon to be Active Projects
Financial Status
Amount (ETB)
No. Project Physical Activity Remark

Description Previous (ETB) Current (ETB) Total (ETB)
1. Land Acquisition process – 6,322 m2

1. Effecting Lease
Payment- the total lease amount is 44,009,191.60, and out of this, the first lease
 Land Acquired; payment has been effected. 8,801,838.31 - 8,801,838.31
• Completed 1. Per diem for municipal representatives - three person 7,700.00 - 7,700.00
Financial District  Consultant on board; 1. To change the title deed to digital 15,008.30 - 15,008.30
2.1 Tower (FDT) • Completed (DAR) 1. Payment for Police
• Concept Design Development is To be determined
station rent
completed.
ETB 6,268,634.56 ETB 6,268,634.56 Agreement Amount
2.1 Consultancy Fee -
USD 768,810.00 USD 768,810.00 (USD)=7,397,663.00
ETB15,093,181.17
Total amount to date; USD 768,810.00
 Land Acquired; 1. Cost Associated with the lease
• Regarding the Land Holding 1.1 Compensation 5,847,317.00 - 5,847,317.00
certificate, the case is with Oromia
1.2 EISA- Assessment 60,000.00 - 60,000.00
Investment and Industry Bureau,
Adama Office 2. Design Preparation Fee;
for subsequent Board approval
Building 2.1 Consultancy Fee 6,765,000.00 - 6,765,000.00
2.2 (1632m2)  Consultant on board;
• Jan. 03, 2021
 Contractor on board;
• Ready for Board Approval
1. Land Acquisition process
1.1 ESIA- Assessment 30,00.00 - 30,00.00
1.2 Effecting Compensation Fee 14,043,177.93 - 14,043,177.93
1.3 Effecting lease payment 810,804.17 - 810,804.17
1.4 Miscellaneous costs (Periderms) 27,200.00 - 27,200.00
 Land Acquired; 2. Design Preparation Fee;
• Completed Contract Amount
 Consultant on board; 2.1 Consultancy Fee (1st Interim Payment – Design Preparation) 1,051,050.00 - 1,051,050.00
(ETB) =6,107,075.00
Shashemenne
• Agreement has been signed with O 3. Design Approval Fee;
2.3 Office Building
on Voyage Consulting
3.1 Design
 Contractor on board;
documentation- 45,448.00 - 45,448.00
• Ready for Board Approval
A1 size blueprint
3.2 Banner and Billboard 24,480.00 - 24,480.00
4. Contractor Selection;
4.1 Construction Permit
288,018.00 - 288,018.00
and design approval
Construction Projects- Land Acquisition
Financial Status
Amount (ETB)
No. Project Physical Activity Description Previou Current (ETB) Total (ETB) Remark
s (ETB)
4.1 Finfinnee  Land Acquired; 1. Land Acquisition process - 11,244 m2

Tower • Clearing the site- has been started 1.1 Effecting Lease Payment- the
• Acquiring Ownership certificate- in progress total lease amount is
• Expansion Land Acquisition process- 7,990 m2 (The 439,340,297.64 ETB, and out of 65,901, - 65,901,044.65
plan format has been prepared and waiting for this the first lease payment (15%) 044.65
Approval) has been effected.
 Consultant on board; 2. Design Preparation Fee;
• Completed (ECG) - Contract Agreement was signed
2.1 Consultancy Fee - - Agreement Amount (USD)
on March 8, 2023.
=12,584,000.16
3. Site clearing and Fence work
3.1. Site clearing - 371,600.88 371,600.88 40% of the Contract amount has
been affected
3.2. Fence and other - 6,233,337.35 6,233,337.35 Material purchase costs
works
 Land Acquired; 1. Land Acquisition process
• Transferring Ownership certificate from Anan Selale 9,197,8 -
(20,000m2) – Completed (Changing the land use to 1.1 Effecting Lease Payment 66.25 9,197,866.25
Coop Bank mixed use remains).
Expansion Land Acquisition process- 20,000m 2 1.2 Tittle deed transfer
4.2 Training • 1,113,089.34 1,113,089.34
Center (Proposal submitted and EIA is in progress)
 Consultant on board;
(Sululta)
• OVID/Kling Consult (Schematic design prepared
and reviewed accordingly)
• Design fee and Construction lump sum fee under
review.
Construction Projects- Through Request with Regulatory Body
Financial Status
Amount (ETB)
No. Project Physical Activity Description Previous Current (ETB) Total (ETB) Remark
(ETB)
 Land Acquired;
• Regarding Land Holding
Jimma Office Building Certificate, the case is
4.3.1 (5000m2) with Oromia Investment
and Industry Bureau, for None
subsequent Board approval

 Land Acquired; 1.1 Compensation 3,203,000.00 - 3,203,000.00
• Land Holding Certificate –
Ambo Office Building Completed 1.2 EISA- Assessment 23,000.00 - 23,000.00
4.3.2 (1241m2) • Site Demarcation – under
1.3 Lease Payment 996,030.00 - 996,030.00
progress
2.1 Design Fee 69,000.00
4.3.3 Hawasa  Land Acquired;
• Under Progress None
• Requested area 5,000m2
4.3.4 Dire Dawa  Land Acquired;

• Under Progress None
• Requested area of
10,000m2
Construction Projects- Through Property Purchase
Financial Status
Amount (ETB)
No. Project Physical Activity Description Previous (ETB) Current (ETB) Total (ETB) Remark
4.4. Gulelle Store 1. Cost Associated with Purchase

1  Land Acquired; 1.1 Purchase Payment 190,000,000.00 - 190,000,000.00
• Through purchase 1.2 Land Holding Register Secure Fund “F” -0.3% of the Agreement Amount 570,000.00 - 570,000.00
• Preparation of property
acquisition proposal and 1.3 Property ownership transfer Payment - Ashura and Stamp duty and Govt. Engineer’s Service fee 11,401,100.00 - 11,401,100.00
approval from the Board
Purchase Agreement- on
November 15, 2022 1.4 Lease Payment 4,459,956.34 - 4,459,956.34
4.4. Kazanchis  Land Acquired; 1. Cost Associated with Purchase
2 (OPF) • Preparation of property 1.1 Purchase payment- total Contract amount is ETB 500 million, and half of the contract amount
acquisition proposal and has been effected. 250,000,000.00 - 250,000,000.00
approval from the Board
• Purchase Agreement- on
December 14, 2022
• The process of transferring
the property is in progress
4.4. Shashemene 1. Cost Associated with Purchase
3 new  Land Acquired; 1.1 Purchase Payment - Including
143,750,000.00 143,750,000.00
• Through purchase VAT
• Preparation of property 1.2 Property ownership transfer fee (Ashura and stamp duty) -
acquisition proposal and 7,502,620.00 7,502,620.00
approval from the Board. 1.3 Tax and lease payment - 214,044.56 214,044.56
Gofa Office 1.1 Purchase Payment (216m2 [Purchased]) 20,000,000.00 - 20,000,000.00
4.4. Building  Land Acquired; 1.2 Property ownership transfer Payment - Ashura and Stamp duty, Govt. Engineer’s Service, and
4 (216m2 • Under progress – Merging others (216m2 [Purchased])
[Purchased] and Extension 1,203,400.00 - 1,203,400.00
+344m2  Consultant on board;
• Preparing RFP to onboard 1.3 Lease Payment for purchased 331,291.00 - 331,291.00
[Existing]) =
a Consultant is in progress 1.4 Lease Payment for merged between plot lands (100%) -
560m2 60,439.75 60,439.75
1.5 Miscellaneous Fee - 7,916.64 7,916.64
Technologies and Digital Banking
Project/Initiatives Planned Milestones (deliverables) Progress Status %age Completion Notes/Remarks/Justifications
Requirement Gathering & Sign-off Completed All pre-requests from the bank side are completed, and
currently, the bank is agreed on a fast-track implementation
accordingly: -
Bank Pre-requisite (Test/Development Environment, Connectivity Track 1 implementation cascaded in to 2 waves, (Wave 1 and
Completed
readiness, Test ATM, HSM, VPN Setup) Wave 2),
Wave 1 cascaded in two drops (drop1 and drop2).
Network Certification - Ethio-Switch Completed Endpoint Connectivity established
Network Certification (Visa, Mastercard, Unionpay) Completed Endpoint Connectivity established
Build stage Completed
Integration stage On-Progress  Build / E2E Activities - Track 1/Wave 1/Drop 1 is in
Switch Implementation Project 42% progress. Specifically, the Perso center readiness and
System Setup and Configuration On progress CBS interface readiness are also in the progress
Ethio-switch testing – completed
System Integration Testing (SIT) On-Progress Integration with T24, Personalization, and On-us card testing is
in progress
Training Not started
User Acceptance Testing (UAT) Not started
Stress Testing Not started
Pilot Phase Not started
Go-live Not started
 The POS item is purchased and the procurement
Internal Minute Approval Completed process is finalized
Implementation scope agreement Completed  Requirement gathering is completed
Contract signing Completed  POS Application is ready for testing
 However, it needs integration with a payment switch
Agree on a draft project plan and Project Charter Completed for development and testing
 According to the switch project plan, this specific task
Smart POS Implementation Phase 1 - Build Stage completed is scheduled for phase 2 (After September)
43%
Project Phase 1 - Integration stage Not Started  Waiting for switch phase 2
Phase 1 - System Integration Test Not Started
Phase 1 - User Acceptance Testing Not Started
Phase 1 - Certification - Visa, Mastercard, China UnionPay Not Started
Phase 1 - Certification - Ethio Switch Not Started
Phase 1 - Go -live Not Started
Phase 2 - Build Stage Not Started
%age
Project/Initiatives Planned Milestones (deliverables) Progress Status Notes/Remarks/Justifications
Completion
Agree on a project plan Completed
Phase 1 - Build Stage Completed
Phase 1 - Integration stage On Progress
Phase 1 - System Integration Test On Progress The actual product is integrated with
Cash Recycler the Payment switch and the SIT (screen
Phase 1 - User Acceptance Testing Not Started 25%
Machine (CRM) flow, products and services, and
Phase 1 - Certification - Ethio Switch Not Started templates) is in progress
Phase 1 - Certification - Visa, Mastercard and China UnionPay Not Started
Phase 1 - Go -live Not Started
Phase 2 - Build Stage Not started
Requirement validation. Completed
Explore workshops and training completed Completed
Gaps& task Closure Completed
BBP (Business Blueprint) reviewed and validated. Completed
Functional specification validation Completed
Data Migration: Template filled; DR0& DR1 verified. Completed
ERP Project
SAP Configuration for Development Environment. Completed
Finalization And 95%
Key user training Completed
Implementation
Unit Tests Completed
Anomalies Revision and correction. Completed
Quality and production server installation and configuration…ongoing Completed
User Acceptance Test (End to end/Integration Test) Completed
End User Training (Head office, district and branches) sept Completed
Go-Live Completed
Requirement Gathering Stage and sign-off Completed
User Interface (UI) & Document preparation Completed
Phase 1 - Build Stage Completed
Phase 1 - System setup and Configuration completed
The major reason for the delayed
Phase 1 - Integration stage completed implementation of Phase 1:
Phase 1 - System Integration Testing completed Transact upgrade project delay.
Phase 1 - User Acceptance Testing On progress A module changes from the AA
Omni-Channel
Phase 1 - Penetration Testing Not Started module to the AC module, which
Phase I 46%
Phase 1 - Stress Testing Not Started resulted in redevelopment and
Implementation
Phase 1 - Go-Live Not Started system integration of all APIs
Phase 2 - Build Stage Not Started from scratch.
Phase 2 - System setup and Configuration Not Started Lack of dedicated API delivery
Phase 2 - Integration stage Not Started team.
Phase 2 - System Integration Testing Not Started
Phase 2 - User Acceptance Testing Not Started
Team establishment, ToR preparation ad approval Completed
Develop standards and requirements Completed
Digitize Discussion and Awareness creation with stakeholders Completed
95%
Cooperative Data Project Kick off Completed
Present the draft digitized data for stakeholders completed
Follow-up and monitoring Completed
Implementing Finalize Data collection from three SACCOs Completed
Revenue Compete the UAT of three SACCOs Completed The SACCO Link product is already
Development of Draft Operational Procedure and Checklists Completed operationalized. Therefore, it has to
Generating Digital 100%
be removed from the initiative list and
Solutions - SACCO Provide Training to SACCOs Completed
monitored through BSC.
Link Conduct Go live session in presence of key stake holders Completed
Project Team Formulation Completed
Solution Identification Completed
Develop Additional POC Completed
Revenue Generating Digital Proposal Development and Approval Completed 100%
Solutions Scope and Requirements Completed
Initial Contract and Price Negotiation Completed
Contract Finalization Completed
Discovery Session Completed
POC Completed
Scope and Requirements Completed
Customer Loyalty Program Initial Contract and Price Negotiation Completed 100%
Contract Finalization Completed
Project Team Formulation Completed
Project Kick off Completed
Vendor/solution identification and preliminary discovery Completed
Proof of Concept On Progress · The value proposition document is prepared for
Proposal and scope determination On Progress the use cases of Kiosks manufactured by EEG (Ethiopian
Negotiation and contract Not started Engineering Group);
Project Charter preparation and team formulation Not started The engagement with Axiom Ventures and STEMpower
Ethiopia on the deployment of Kiosks in universities has
Kiosk Branches 15%
progressed. A concept note is prepared to get a grant up
to 10 million euro. Value proposition is also prepared
Project kick-off and implementation Not Started • The proposal of Moti engineering for the deployment
of Kiosk terminals is submitted to Finance for
procurement.
Vendor/solution identification and preliminary discovery Completed •Discovery sessions are conducted;
Proof of Concept Not Started •Requirements and priorities of the bank are identified
•Solution Technical and Financial Proposals Submitted for
Proposal and scope determination Not Started
the decision of the Mgt.
Self-Service Branches 15%
Negotiation and contract Not Started •Branch Design alternatives are reviewed
Project Charter preparation and team formulation Not Started • The team is rechecking again on the feasibility of self-
service branches by considering the experience of the
Project kick-off and implementation Not Started
Bank of Abyssinia
Notes/Remarks/
Project/Initiatives Planned Milestones (deliverables) Progress Status %age Completion
Justifications
Finalize the in-house app development Completed · The in-house
Training and Pilot test on selected branches Completed developed onboarding
Implement app is developed and
Technologically tested. It's ready for
Assisted Customer 45% deployment;
On Boarding Fully implement across the bank On Progress The solution developed
Mechanism with Techurate is also
completed and tested on
2 branches
Stage 1: Project Initiation &Kick-Off Completed
Stage 2: Environment (Infrastructure Deliverables) Completed
Stage 3: Training –T24 R22 Familiarization/Induction Training, &Train-The –Trainer (Especially for the New
Completed
Modules)
Stage 4: Pain points Review &Business Requirement Gathering, Analysis &Design (Scoping) Completed
Stage 5: Technical Upgrade from T24 R16 to R22 (Upgrade and Conversion Service) Iteration 1 Completed
Stage 6: Pain points Resolution &Solution Build - R22 Environment Completed
Stage 7: Channels &Interface Build/Integration Testing Completed
Stage 8: AA Account Implementation Completed
Stage 9: Developer Testing Completed
Temonus Transect 95%
Stage 10: Resolution of Identified Issues Completed
Upgrade
Stage 11: Testing Phase ( SIT/UAT) Completed
Stage 15: End User Training (EUT) Completed
Stage 16: Mock Upgrade &Conversion Completed
Stage 17. Dress Rehearsal Completed
Stage 18: Performance Testing &Tuning - PRE Go-Live Completed
Stage 19: Go-Live on Upgrade &Cutover Completed
Stage 20: After Go live Support Completed
Information System
%Age Project
Completion
Design New Data Centre Network Completed
Requirement Specification & RFP

Development Financial evaluation completed and negotiation
Completed with solution vendor finalized.
Follow-up Floated Bid Completed
Implement THQ New Data Centre And The procurement team has awarded to the bid
Technical Evaluation Completed 45%
Enterprise Networking Infrastructure winner.
Follow-up Awarded Bid On-progress
Waiting for the supply of the solution
Equipment Acquisition Not-started The project is extended to next FY
Implementation and Commissioning Not-started
Assess Delivery Milestone and Inspection Not started
Requirement Specification & RFP Power servers & resource activation is awarded to
completed supplier.
Development
Follow-up Floated Bid The procurement team has awarded to the bid
Completed
Technical Evaluation winner of Intel based server and backup solution.
Followup Awarded Bid However, the backup system bid winner is
On-progress declining to accept the offer, but the team is
Computing, Storage And Backup Equipment Acquisition 45% negotiating on the way to go.
Infrastructure Expansion
Solution Implementation &
Commissioning Waiting for the supply of the solution
Negotiation with Storage solution bidder finalized,
Not-started bid has awarded and contract signed.
Assess Delivery Milestone & Inspection Waiting for the supply and implementation of
storage, and computing infrastructure.
The project is extended to next FY
Information System
%Age Project
Completion
Site Identification & Selection Onn progress
Requirement Specification & RFP Development On progress
Follow up Floated Bid Not started
Technical Evaluation Not started
Follow up Awarded Bid Not started
Implement New Tier III Data
Not started 6% Project delayed to next FY
Centre Equipment Acquisition
Not Started
Not started
Solution Implementation & Commissioning
Not started
Assess Delivery Milestone & Inspection
Completed
Conduct DR Site Assessment and Develop Co-Location Site DR site is commissioned and resumed
Specification operation from Ethio Telecom DC.
Identification, prioritization of services to
Acquire Co-Location Service for DR Site Completed
be deployed at DR and acquisition of
Migrate Active Devices Co-Location Site Completed
required resources are on progress
On progress
Enhance & Implement Identify and prioritize IS services to be deployed at DR Site
60%
Disaster Recovery Site
The team is identified some critical
Determine Resource Requirements and Acquire Computing & systems to be deployed at DR site.
On progress
Storage resources Additional systems to be prioritized by
Implement redundancies for prioritized critical systems at DR Site On progress the respective service owners
The project is extended to next FY.
Ensure redundancies are maintained at DR Site for prioritized
critical systems
Not-started
Information System
%Age Project
Project/Initiatives Plan Name Planned Milestones (deliverables) Progress Status Notes/Remarks/Justifications
Completion
Requirement Specification & RFP Development
Follow-up Floated Bid
Implement Main Data Centre And DR Technical Evaluation Devices acquired, deployed and
100%
Site Networking Upgrade Follow-up Awarded Bid commissioned
Equipment Acquisition & Deployment
Solution Implementation & Commissioning Completed
Optimize IS Infrastructure Resources
& Services Utilization
Conduct Resource Utilization Assessment Completed
· IBM Infrastructure End to End
Performance Tuning Service Continuous follow-up of System resource
Utilization and Proactively execute
Implement Optimal resource assignment On progress 66%
· VMW based Infrastructure appropriate measure/adjustments are
On progress
Resource Optimization continues activity.
Continuous followup of System resource Utilization
· HCI based Infrastructure
Resource Optimization Proactively execute appropriate measure/adjustments Continuous Activity
Conduct Current state analysis Completed
Conduct Situation Analysis Completed IS Functional strategy has already been
Draft IS Strategy Document Completed prepared and submitted for EM
IS Strategy Development 85%
Deliberate on the Draft IS Strategy with key stakeholders Completed presentation and subsequent approval by
Present to the management Not Started the BoD.
Get approval Not started
Conduct research on possible solutions Completed
RFP Development (Technical Specifications or Requirements) Completed
Initiate Procurement Process and Bid Document Opening Completed Rollout to 152 branches in the selected 5
Technical Evaluation Completed Finfinne districts, Chiro, Diredawa,
Acquire And Implement CCTV 88%
Financial Evaluation Completed Shashemene, Assela, Adama, Hosana and
Select Solution Provider, Bid Award, Contract Signing and Delivery Completed Bale districts completed so far.
Scheduling for Implementation Completed
Rollout to branches (Implementation) On Progress
Capital Expenditure Budget Utilization
S/N Activities Actual Plan %age Remark
1 Operational Fixed Asset 697.76 902.92 77.28

Reasons for under utilization:
Computing, Networking and
1.1 275.37 468.79 58.74
accessories • Though the procurement
1.2 Office and other equipment 67.34 145.11 46.41
Includes previous year process has already
budget (ETB 271.6 million)
1.3 Office furniture and fittings 355.04 289.02 122.84 for import of furniture by started, the payment is not
Techno. The payment
effected this year. yet effected and it shall be
2 Vehicle 752.24 872.00 86.27 treated in the coming
3 Construction 603.00 2,897.40 20.81
budget year as budget
Investment on IS and Digital
4 1,912.43 2,252.03 84.92
Projects carried forward.
Maintenance, Office layout
5 enhancement and Branch 201.94 699.10 28.89
Opening
Total 4,167.37 7,623.45 54.67
Internal Audit
In order to bring about the internal efficiency and operational excellence across the bank, various internal audit activities have
been performed during the budget year.
 429 regular audit on branches have been conducted against the plan of 416, showing 103.1%
achievement during the period.
 As compared to 56 regular audit planned to be executed at head office units, 61 were performed in the
same period depicting 109% accomplishment level.
 52 special investigation were done when compared with its target of 32, demonstrating an achievement
level of 156.2%.
 Irregularities Identified during Auditing:
 Cash management,
 expense management,
 variations on plan and actual performance,
 payment and negotiable instruments,
 suspense accounts,
 loan and advances,
 foreign banking transactions and
 daily tickets (Vouching).
 Audit Rectification rate: 92.7%
Risk and Compliance Management
The following major duties were accomplished by risk and compliance management process in the
review period.
 Four policy and procedures documents were prepared against the target of 6, showing an achievement
level of 67%;
 Two researches/studies were carried out on risk management as compared to the target of three,
demonstrating an accomplishment level of 67%;
 Five liquidity risk monitoring, market risk monitoring, Coop Alhuda risk monitoring, credit and portfolio risk
monitoring, AML/CFT, internal control progress reports were produced as per their plan set for the period;
 One strategic risk management report was prepared as per the plan;
 Two operational risk management were prepared when seen against the target of four, illustrating 50%
execution level during the period.
 Two operational risk assessment were produced against the plan of one which depicts 200% achievement
for the period;
 Ten loan review reports were produced against the plan of 8 (125% achievement);
Weaknesses and Challenges
WEAKNESSES AND CHALLENGES
Weaknesses
 Strategy Execution Gaps; Challenges
 Delay in the implementation of various
projects/initiatives as per set time frame  Persistent Inflation: For the last two years, the country
 Lack of Balanced Focus; is challenged with rise in major commodities which is
 Weak liquidity management; occurred due to the rise in global market and the
 Poor CRM practices; country’s internal problems;
 Cross-functional support and collaboration problem  Export: the export earnings of the country has been
(alignment problem); declining in the recent years
 Low level of relationships with existing customers;  Political instabilities in some parts of the country,
 Existence of deposit concentration risk;  Some stringent NBE directives and regulations,
 Inadequate asset quality management;  Expansion of informal market with respect to FCY
 Service Quality Gaps; remittance as well as cash purchase.
 Low level of branches and deposit accounts productivity;
 Low level of efficiency
Thank You!!
Cooperative Bank of Oromia

Committed to Breakthrough!
Comments and Questions on the annual Performance report of the FY 2022/23
Comments on the Documents:

• Recommendation missed from the document—Obbo Aman;
• Some grammatic approach on the document—E.g our---overall edition on the document---Obbo Desalegn
• Remark about the year is needed throughout the year needed to be included—Obbo Liko
• Amount should be better to be presented in billion---Obbo Liko
• Conclusion of executive summary is needed-----Obbo Liko
• Implication of the external assessment—eg inflationary pressure
• Writing format—all needs to be arial---Obbo Shimellis
• Executive summary missed the different investment undertaken in the year—Shimellis
• The operational performance of the back office processes are missed from the document—Shimellis
• Interventions taken by the management needs to be included in the document. In addition, the way forward should be included—
• As the document is presented in part, why chapter in the introduction;
Obbo Deribie
• The executive summary is not complete
• The global domestic part is present about the future (2.1 part)
• The forecast of the last year when we start the budget year and the major deviations observed at the end of the year
Obbo Deribie
• The assumptions at the beginning of the year and the reality at the end of the year;
• Implication of the global economic outlook (the implication of the economic activity in the year)
Industry Analysis Part (part 3)
• Capital of the bank (amount error);
• Capital of Bank of Abyssinia)
• Incremental deposit of Sinqee bank is not correct;
• Better to consider peer banks
Obbo Deribie
• The assumptions at the beginning of the year and the reality at the end of the year;
• Implication of the global economic outlook (the implication of the economic activity in the year)
Industry Analysis Part (part 3)
• Capital of the bank (amount error);
• Capital of Bank of Abyssinia)
• Incremental deposit of Sinqee bank is not correct;
• Better to consider peer banks
Obbo Aman
• The Coopay performance of super-agents are not included in the report
Obbo Liko
• Incremental deposit growth rate of our bank compared to others are;
• Digital part of the industry—channel shift of ATM, Smart branches
Obbo Desalegn
• Controllable expense by process needs to be included on the report;
Obbo Shimellis
• Overall conclusion and way forward (key intervention areas)----better to annex figures
Obbo Deribie
• The report is exhaustive, but the report of some functional units are missed
• The reasons for resignation of staff from the bank needs to be included (from exit interview)
• Training is above the budget, but the impact of the training is not now---the correlation between investment and the impact;
• HR competency issue
• Capital budget of Digital Banking and IS should be separated
• Construction expense should be updated---stage of the project is not up to date;
• The bank is better to invest on Digital and IS, rather than building construction;
• The Digital and IS report should not be in percentage, the evaluation should be more detail
• Our weaknesses are repeated for the last seven years and not solved yet, why part?
• The culture of synergy, shared mindset, shared vision----not created;
• Our real weaknesses are beyond the listed. Is it due to attitude, capacity or others;
• The major problem is failure to execute the strategy, reason---absence of shared goal, shared vision and others;
• Initiative implementation problem;
• Challenges—macro-economy imbalance, inflation, un-employment, the debt burden on the government, macroeconomic instability
Obbo Deribie
• Income from Michu is not correct---the income is not on the outstanding loan balance, as it revolve within short period of time.
• the michu performance should not be presented explicitly;
• Cost to income ratio is temporary as the amount on the bad asset is changed into income till the first quarter;
• Expense management is the major focus of the year;
• Controllable expense of processes should be included in the report and presented in the report;
• Fixed expense should be separated from controllable expense—up on the influencing principle;
• Proper PL segregation for each expense items depending on the nature of the expense
• How to manage our cost should be discussed in detail in our controllable expense plan
• Cost reduction as KPI to all process;
• Justification for above/below the target should be discussed in detail…
• Report is only from the Vise-president from this year onward
• Only those activities that require budget and needs high effort should be report, otherwise routine activities should not be included in the report;
About Segment
• Properly separating the GL line
• Segmentation definition
About annual report with branch

• Other report for branch in this month—July
• The report with the branch is more focused on digital banking
• Status of big projects to branch managers
Implication of the situational assessment on the performance of the bank in the year:
• The weak global economic growth observed in the year (mainly in the advanced economies) had affected the low
income countries. To control inflation, developed countries were implemented tight monetary policy, which in turn
increased the debt burden and cost of borrowing for the developing and low-income countries.
• To control inflation and cover budget deficit, the government forced all commercial banks to purchase treasury
bond of 20% of their monthly disbursement. This had an implication on the liquidity and profitability of the bank in
the year;
• The high rise in inflation leads to decrease in the saving capacity of the community on the one hand and increased
the bank’s operational cost in the year. This had affected the profitability of the bank and increased the cost to
income ratio of the bank in the year;
• Drought and political instability in some parts of the country was negatively affected the country’s economy and
hence impacted the resources mobilization endeavors of commercial banks;
• On the positive note, the peaceful agreement reached between the Federal Government and Tigray Regional
National state in the year had solved the immense humanitarian, social, and material losses that happened in the
last two years. It also eased the international pressure on the country and improved investment inflow in the year;
• The focus of the government to digitize the payment ecosystem of the country was also a good opportunity in the
ended year.
Major assumptions considered while preparing the operational plan that showed significant deviation in the year:
• The export earning of the country had been assumed to show a further growth in the year 2022/23. However, the
FCY generated via export was declined by 22% from the preceding year. Proportionally, the export earning of
Coopbank was also declined from the base year by 21.2%. Thus, the unexpected fall in the export proceeds of the
country affect the FCY earning of the bank;
• In the ended operational year, the security problems in different areas is assumed to be eased. However, the
problem was continued in different areas, which disrupted the business activities and leads to full/partial closure of
branches in some areas. This had its own negative impacts on the performance of the bank in the year;
• Regulatory organ’s policy change was not assumed in the annual operational plan preparation. But, before a mid-
year (effective starting from Nov 1, 2022) of the fiscal year, the National Bank of Ethiopia ordered all commercial
banks to purchase government treasury bonds by 20% of their monthly allotment. This had its own implication on the
liquidity and profitability of the bank in the year;
• New branches were assumed to be opened in the first and second quarter of the fiscal year, so that they can
significantly contribute to the financial and non-financial target achievement of the fiscal year. However, from the
total new branches planned for the year (200 branches), only 54 branches were opened in the first six months, while
91 branches are onboarded in the third and fourth quarter. Furthermore, from the total branches planned to be
opened in the year, 55 branches were not operationalized in the year due to different factors. This had also affected
the performance of the bank in both financial and non-financial parameters;
IS Performance in the Year
During the FY 2022/23, Coopbank had continued to invest on the different IT projects and initiatives to enhance the
internal process efficiency and deliver excellent services to the customers. Accordingly, the following major
projects/initiatives were finalized in the year:
• End-To-End, Real-Time Visibility Of the Bank's IS Infrastructure Systems- was completed which help as monitoring
dashboard
• Main Dc Fire Suppression System---the system was commissioned and is operational
• Application Delivery Controller (Load Ba-Lancer) System at Primary Data Center(DC)-- Software appliances were
deployed, activated and is in use.
• Main Data Centre and DR Site Networking Upgrade--- Devices were acquired, routers deployed and commissioned
• Completion & Commissioning of New Data Centre at THQ----Milestone delivery and Inspection was completed
• Segregate the main Data Center (DC) of the Bank from the other IS process Staff space---The project was
completed, and only branding and beatification remained
• Build Application Programming Interface (API) for integration with third-party systems----- All 3rd party
integrating APIs are developed and commissioned;
• Upgrade Database from 12C to 19C---Oracle Database 12C successfully upgraded to 19C and commissioned for T24
R22 (the core banking system).
• Temenos Transact Upgrade----- First phase Temenos transact system upgrade from R16 to R22 is successfully
completed
• Endpoint Security Solution Upgrade--- Upgrade the endpoint security from 4,000 to 10,000 devices;
IS project in progress and to be completed in the FY 2023/24:
• Implementation of Enterprise Networking Infrastructure at THQ: the project completion status reached 75%
• Implement Hyper-Converge Infrastructure (HCI) Infrastructure Upgrade: Project Completion status reached 60%:
• Computing, Storage And Backup Infrastructure Expansion-----Power Servers are supplied, and waiting for the
supply for the other computing and storage items. The project completion status reached 55%
• Implement Unified Communication Facility- Under implementation & it is delayed due to delivery of other solution
(project execution status-55%)
• Implementation of Messaging, Communication and Collaboration Facility: Software Licenses and user subscriptions
are acquired. The project completion status reached 90%.
• Implementation of Web Application Firewall (WAF) Solution: 71% completion status
• Building and Operationalizing Mini-SOC----SOC facility being constructed and the necessary accessories are
procured. Furthermore, some IS Security Operation partially started to run from the SOC. The project completion
status reached 80%
• Acquire and Implement CCTV_----Rolled out to 162 branches in Finfinne and Adama districts. Additionally, 100 Eco
branches CCTV procurement is on financial evaluation.
• Windows Active Directory Rollout---window rollout at HO, 12 districts and 604 branches were undertaken in the
year;
• Implementation of Asset and Risk Register----Asset classification and risk registration is in progress. The project
completion status reached 95%
IS project in progress and to be completed in the FY 2023/24:
• Acquire and implement Hardware Security Module (HSM) Solution: the bid winner has been supplied resources,
and the implementation is started. The project completion status reached 60%;
• Implementation of Communication and Collaboration solution
• Preparation of IS Strategy and Governance Framework---IS Functional strategy is developed and ready for EM
deliberation and subsequent approval by the BoD.
• Building a Security Operation Center
• Implementation of ITSM solution including IT Asset Management functionality---Project Completion status is
85%: Project kicked off, and implementation is started with remote team.
• Build Analytics Capability, Implement Temenos Data Hub and Data Analytics (T24 Analytics Implementation):

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ANNUAL

Financial Resources Mobilization Functional Units Performance

weigh on economic recoveries. of most other food commodities rose slightly.

percent in 2023, as external headwinds, persistent inflation, inflation above 5 percent.

• Total asset of Banks

ETB 961.76 billion,

158.3 Trillion and reached ETB 2,150.45

150 145 152

AB BOA DB Coopbank Siinqee OB Hibret Bunna NIB WB Berhan LIB DGB

QIV Performance FY 2022/23 Performance Total Position

QIV Performance FY 2022/23 Performance Total Position

QIV Performance FY 2022/23 Performance Total Position

Actual Target %age=

Loans Loans Income

Conv. IFB Total

Export 46.76 108.12 43.24 237.76 400.00 301.78 59.44 78.78

 The total paid up capital of the bank reached

4,651 reaching ETB 13,000 million for the year end

2,049 required for mobilizing additional paid up

June -18 June-19 June-20 June-21 June-22 June-23

Conventional: IFB Financing: and individuals, followed

QIV Performance FY 2022/23 Performance %age against

Agriculture 3.68 1,089.65 0.34 2,985.50 3,961.67 747.83 75.36 399.22

Loan Allocation by sectors In Millions

4,129.76 Loans allocation by Ownership

QIV Performance FY 2022/23 Performance %age against

Import LC 9.18 36.81 24.95 115.71 137.25 216.69 84.31 53.40

32,504.33 17,792.44 million or 21.12% as

Sectorial Wise 1897.56004654

of the bank is held by DTS

Jun-23 Mar-23 Dec-22 Sep-22 Jun-22 LYSP

QIV Performance FY 2022/23 Performance %age against

100.1% 99.9% 99.1%

5.1% 5.0% 5.0% 4.8% 4.8% 4.7%

ZB AB Bunna Enat DB Abay Hibret OB Coopbank BOA LIB WB

AB Hibret DB ZB BOA Coopbank Bunna Abay OB LIB WB

Bunna Hibret Abay LIB OB DB BOA AB Coopbank WB

• Maximum Limit; 59%

2,651 Sub-standard Doutful Loss Total

NPL Ratio: 2.6%;

 ETB 406.74 million

 NPF Ratio: 2.46%

Adama 136.40 237.81 207.25 113.03 79.05 57.35

East Finfinne 127.00 222.35 81.04 90.95 36.23 90.77

District Total Share

Operational Fixed Asset:

Investment on technologies, digital and Information system:

1. Cost Associated with the lease

No. Project Physical Activity Remark

1. Land Acquisition process – 6,322 m2

4.1 Finfinnee  Land Acquired; 1. Land Acquisition process - 11,244 m2

1. Cost Associated with the lease

4.3.4 Dire Dawa  Land Acquired;

4.4. Gulelle Store 1. Cost Associated with Purchase

Requirement Specification & RFP

S/N Activities Actual Plan %age Remark

1 Operational Fixed Asset 697.76 902.92 77.28

Cooperative Bank of Oromia