The Commercial Bank of Ethiopia (CBE) announced that more than 91 percent of the loans it disbursed in the first half of the 2018 Ethiopian fiscal year were directed to the private sector, underscoring a growing policy focus on private-led economic activity amid a challenging macroeconomic environment.
Speaking at the bank’s half-year performance review meeting, CBE reported that it extended a total of 321 billion birr in loans during the first six months of the fiscal year.
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Of this amount, 293.9 billion birr, over 91 percent, was allocated to private sector borrowers, including manufacturers, distributors, exporters, and firms operating across service and investment sectors.
The bank also disclosed that 51.3 billion birr of the total loans were provided to CBE Noor customers, its interest-free banking segment.
The update marks a notable shift for the state-owned bank, which has historically played a major role in financing large government-led development projects.
CBE indicated that it is now broadening access to credit by expanding loan products, including diaspora loans, during the current fiscal year.
Despite what it described as a volatile and challenging global economic environment, particularly affecting income flows and export trade, CBE said it delivered improved performance across key indicators.
Ato Ephraim Mekuria, the Bank’s Representative and Executive Vice President of Corporate Services, noted that total deposits rose from 1.6 trillion birr at the start of the fiscal year to 2.02 trillion birr by mid-year. Over the same period, the bank mobilized USD 2.39 billion in foreign exchange.
Operationally, CBE continues to expand its footprint. The number of deposit accounts has reached 45 million, while the bank’s branch network has grown to 1,918 branches nationwide.
Looking ahead, Ato Ephraim outlined priority areas for the coming months, including expanding deposit and foreign-exchange-earning products, strengthening customer relations through quality-based recruitment, reducing non-performing loans, accelerating the adoption of digital banking, enhancing customer service, and improving competitiveness in preparation for increased competition stemming from financial sector reforms.
The half-year performance review meeting for the 2017/18 financial year is expected to assess the implementation of the bank’s six-month plan, review achievements and challenges, and set strategic priorities for the next half of the year.
