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Dashen Bank

15

th

Annual Report for

the year ended June 30, 2011

October 18, 2011

DASHEN BANK ANNUAL REPORT 2010 -11

Table of Contents

Page

Statement of the Board Chairman

06 - 07

The Presidents Message

08 - 09

Board of Directors Report

10 - 17

Auditors Report

18 - 19

Balance Sheet

20

Profit and Loss Account

21

Cash Flow Statement

22

Notes forming part of the

Financial Statements

23 - 33

VISION
In as much as Mount Dashen excels all other mountains in Ethiopia,
Dashen Bank continues to prove unparalleled in banking services.

MISSION
Provide efficent and customer focused domestic and international
banking services, overcoming the continuous challenges for excellence
through the application of appropriate technology.

VALUE
* Develop banking habit in the community
* Assist continuous growth of customers
* Sustainable growth and stability
* High integrity and accountability
* Esteemed customers satisfaction
* Non-stop openness for community access
* Brightened and trained employees
* Attend customers constructive outlook
* Normative confidentiality
* Keen to consciously build professionalism and service quality

OUR SCORECARD
Total Capital & Asset Level (In millions of Birr)

Loans and Deposits (In billions of Birr)


14,660

12,353

11.8

10.1

9,733

7.9

7,840

6.2
6.1
1,396

1,123

731

909

2007/08

2008/09

2009/10

2010/11

4.4

4.9

4.5

2007/08

2008/09

2009/10

Year
Total Asset Level

Total Capital Level

Total Deposit

Number of Depositors (In thousands)

Total Loans & Advances

Number of Loanees
6,269

809

693

582

487

2010/11

Year

5,978
5,805
5,496

2007/08

2008/09

2009/10

2010/11

2007/08

2008/09

1,283

506

964
756

In millions of Birr

In millions of Birr

2010/11

Total Expense (including provisions)


652
(in millions of Birr)

Total Revenue (in millions of Birr)

670

2009/10

Year

Year

2007/08 2008/09 2009/10 2010/11

403

337

2007/08

2008/09

Year

2009/10

Gross Profit Before Tax (In millions of Birr)

Net Profit (In millions of Birr)


451

630
353

2007/08

2008/09

In millions of Birr

In millions of Birr

458
333

2010/11

Year

2009/10

2010/11

239

250

2007/08

2008/09

324

2009/10

2010/11

Year

Year

Earning Per Share & Paid-up Capital

Staff Strength

698,709,000
528,512,000

591,860,000

1,866

453,993,000

846

550

609

753

2007/08

2008/09

2009/10

2010/11

2,249

Year

Paid-Up Capital

No. of Bilateral Key Exchange


Arrangement & POS Terminals

No. of Area Banks, Forex Bureaux, & ATMs

669

70
58

52
47

2,826

2007/08 2008/09 2009/10 2010/11

Year
Earning Per Share

2,541

64

501
409

55

395

404

2009/10

2010/11

371

40

704

254

20
4
2007/08

5
2008/09

Number of Area Banks


Number of ATMs

5
2007/08

Year

2009/10

2010/11

Number of Forex Bureaux

2008/09

Year
No. of POS Terminals
No. of Bilateral Key Exchange Arrangement

DASHEN BANK ANNUAL REPORT 2010 - 11

BOARD OF DIRECTORS

Teklu Haile
Chairman

Melaku Beza
Director

Yilma Yemane-Berhan
Director

Ayele Demissie
Director

Ahmed Hassen
Director

Teka Asfaw
Director
4

DASHEN BANK ANNUAL REPORT 2010 - 11

POLICY DEVELOPMENT COMMITTEE

Lulseged Teferi
President

Berhanu W/Selassie
V/President - Systems &
Resources Management

Asfaw Alemu
V/President - Operations
Management

Abebe Girmay
Manager, Payment
Card Department

Abebe Teklu
Controller

Girma Tilaye
Manager, Engineering
Department
Messeret Taye
Manager, Human Resources &
Logistics Department

Esubalew Tekeste
Manager, International Banking
Department

Negussie Demie
Manager, Fund
Management & Accounts Department

Girma K/Michael
Manager, Information
Technology Department

Samuel Adane
Manager, Corporate Planning &
Development Department

Yonas Kidane
Principal Risk Management and
Compliance Officer

Tilahun Hailu
Manager, Credit Department

Yeshiwork Yimer
Manager, Legal Department

Yonas Abebe
Manager, Regional Office A/A
DASHEN BANK ANNUAL REPORT 2010 - 11

Statement of the Board Chairman


Honourable Shareholders,
On behalf of the Board of Directors and myself, I am pleased to
report on registering better results in the year ended June 30, 2011.
The fiscal year ended June 30, 2011 has encountered challenging
global and domestic phenomena that had direct and indirect
impacts on the performances of economies of the world in general
and on the domestic economy in particular. The domestic economy
continued to grow as measured by Sectoral performances and the
consequent GDP growth. The launch of the five-year Growth and
Transformation Plan of the Government has also set clear macro
directions that enable stakeholders to streamline their involvements
in respective areas of engagement. Among the domestic phenomena
that challenged the performance of the economy, the devaluation
of the Birr, high oil price and inflation were the major ones. The
financial sector, which is growing from time to time in terms of
financial deepening and outreach, has been hosting increasing
competition, which is an essential factor to enhance innovation and
availing alternatives to the public. The financial sector was faced
with fundamental challenges, and the sum of these was significant towards making progress and positive
results.
Despite the pressure faced by the domestic economy at large and the sector in particular, the Bank has
managed to sustain its profitability by achieving a record high profit of Birr 630 million before provision for
tax. This result has surpassed the last years performance by 38%. As a result, in the just ended year alone
the Bank has paid to the Government coffer Birr 179 million in the form of profit tax. The earnings per share
stood at 753, which hits a growth of 24% compared with that of last years earnings per share position.
There are no rules for success, but the team spirit, the banking skill that our management and staff have
developed, enabled us to plan right and hit our target.

The achievement once again proved the Bank is up to its commitment of registering sustainable and
consistent growth. As they say Time has no divisions to mark its passage. The Board, management and
employees accept travels, which open their minds for their dreams to come true.
Subsequent to the resolution passed by the far-sighted shareholders of the Bank, the paid-up capital of
the Bank has increased to Birr 698,709,000. Consequently, the primary capital of the Bank is raised to Birr
1,151,589,242. This has significant implications to pursuing the expansion plans ahead, maintaining steady
capital adequacy, increasing borrower limits and overall open foreign currency position. This is a window
of opportunity and at this juncture on behalf of the Board of Directors and myself, I would like to extend
my admiration to our shareholders and we need to build on this positive trend for the future.
In terms of improving service delivery efficiency, the Bank has tested the effectiveness of embarking upon
6

DASHEN BANK ANNUAL REPORT 2010 - 11

the One Window Service delivery model the practical result of which is proved to be effective and
encouraging.

The expansion plan in this regard will further be carried on to other Area Banks as well.

Moreover, in view of the growing operational and customer size of the Bank, a Regional Office for Addis
Ababa is established with the aim of enhancing efficiency and effectiveness in service delivery.
Investment on our own building has continued. The structural work of the Head Office building is now
completed and the finishing work will commence soon. Construction activities in Addis Ababa at the
Lideta area are also started. Plots at different locations both in Addis Ababa and upcountry areas are
secured and design works and acquiring of construction permits are in progress. Such strategic investments
in addition to easing office space and rental price problems have become sources of non-interest income
to the Bank.
Regarding corporate governance, which is a source of new ideas and fresh thinking, the Board has been
regularly meeting and overseeing the overall activities of the Bank. The roles of the Board Directors and
Board Committees established for specific tasks were indeed valuable to the oversight tasks of the Board.
The methodical risk management practice instituted is showing progress from time to time so that it will
further strengthen the Risk Governance of the Bank.
The annual financial results attained could not have been possible without the strategic leadership,
commitment and dedication of the overall staff of the Bank. The five-year strategic plan that has been a
powerhouse since July 2007 is approaching its culmination at the end of June 2012 and the necessary
preparations are underway to craft the fourth strategic plan for the period ahead.
The Bank always considers itself a learning institution.

Consequently, it has never given room for

complacency and will continue so in the future. Both the successive achievements attained and the
possible challenges to be faced shall never impede us from standing firm, undertaking new initiatives and
finding space to improve.

In this regard, by exploiting opportunities we are determined to remain

unparalleled and renew our commitment for a dedicated service to our esteemed customers and add
value for our shareholders investment. As Bankers, we know there are no short-cut formulas for success
except the public trust for which we are committed to quality care. Our Banking starts and ends with our
clients.
Lastly, on behalf of the Board of Directors and myself, I would like to take this opportunity to extend my
sincere appreciation to all stakeholders for their support, encouragement and assurance. Special gratitude
goes to our beloved customers for their increasing and solid confidence, tolerance, feedbacks and
backing; respected shareholders, for their confidence, encouragement, and insightful decisions; the
National Bank of Ethiopia for their well-timed and organized directives; the Board Directors for their
devotion, valuable contribution and forward-looking; the management and staff of the Bank for their
resolute effort, belongingness, strong financial performance and organizational commitment.
Thank you,

Teklu Haile
Chairman, Board of Directors
10 September 2011
DASHEN BANK ANNUAL REPORT 2010 - 11

The Presidents Message


The syndrome of the global financial crisis continued
reverberating during 2010/11 fiscal year. The debt crisis shed
a dark cloud on the credibility of some countries and led to
abrupt adjustment through austerity measures. During the
reporting

period,

the

world

has

also

experienced

unprecedented wide-ranging political deadlocks and costly


natural disasters. Inflation is also becoming a major challenge
in the global economy including those resilient emerging
economies. In general, the prevailing global socio-economic
and political quagmires are believed to have partly created
fluxes on the overall price level and wellbeing of the domestic
economy.
However, from the perspective of the second-generation
reform and development history, 2010/11 fiscal year clearly
marked an important turning point in Ethiopia. Major
development initiatives were the launching of the national
payment system and electronic payment proclamation as
relates to the banking sector, and the moving spirit of the
Growth and Transformation Plan, in particular, the resultant endeavor to construct the historical
Great Ethiopian Renaissance Dam on the Blue Nile River.
National Bank of Ethiopia started championing centralized, online, real-time electronic banking and
the National Payment System, which helps to use a shared platform to facilitate the payment services
in a more cost effective manner. With the potential for many more, the financial sectors gross value
added is believed to be growing and effectively plays a pivotal role in the enhancement of growth
and development of the country.
By and large, encouraging progress has been witnessed in the contribution of private banks to the
application of modern banking technology, stable deposit mobilization, extension of loans and
gaining impetus in financial leverage. We are then proud of the fact that in 2011, Dashen Bank
continued its leading role in this regard by all standards. We have also made significant strides in
leveraging our technology by upgrading our core banking solution to its latest version and enhanced
our bandwidth strength.

We continued capitalizing on the advantages of being the first mover and reaping the payoff for the
amount of enduring efforts that have been invested over the past years on our payment card
services. The increased volumes, registered in our non-credit related activities, substantiated that the

DASHEN BANK ANNUAL REPORT 2010 - 11

corporate income was well supplemented by a good performance; this is on our fee-based income.
If we look at our profitability, we have made a total of Birr 630 million, which increased by 38%
compared to last year performance; this is by far the largest amount in the Banks history and the
second private banks peer group maximum. We have been generating an impressive level of return
on equity, which helps to strengthen our capital buffers.
The past fiscal year has also given us the opportunity to witness notable achievements such as
successful implementation of a well-integrated One Window Service modality, partnership agreement
with UnionPay for card acquiring business, prestigious ceremony of our Banks 15th anniversary and
embarking of all our Area Banks into our Core Banking platform having withstood challenges in
infrastructure.
The constant focus on our customers, as a brand promise, enables us to thrive on competition. We
have continued working hard to create a vibrant working environment and to be a bank that
provides opportunities with an emphasis on knowledge-based and convenience banking, rooted in
our shared values and respect for all our customers. We persist in living with our values and remain
vigilant, prudent and focused on the sound management of our balance sheet. We thrive on further
deepening our sources of income-tapping niche markets and growth opportunities. Our commitment
for excellence will continue to guide as we go forward and continue building on our successes.
To conclude, our past years achievements would be hard even to think of without the meaningful
contributions and perseverance of our stakeholders. Hence, I would like to extend my sincere
gratitude to our esteemed customers who continued putting their confidence in us. The support and
guidance of the National Bank of Ethiopia also is highly appreciated. I would also like to express my
gratitude for the usual cooperation of the Ethio Telecom, the Board of Directors of Dashen Bank, the
Management Team and our energetic workforce also deserve special gratitude for their laudable
efforts.
I am confident that you will enjoy reading the Directors Report and the Annual Report in the following
pages.
There is no commitment without involvement.

Lulseged Teferi
President
10 September 2011

DASHEN BANK ANNUAL REPORT 2010 - 11

Board of Directors Report


The Board of Directors of Dashen Bank S.C. hereby presents the annual report of the Bank for
the fiscal year ended June 30, 2011. The performance of the Bank during 2010/11 fiscal year is
summarized hereunder.

1.

OPERATIONAL HIGHLIGHTS

1.1 Deposit Mobilization


Increasing accessibility and diversity of our banking services has enabled us to broaden our
customer base across the width and breadth of the Country. As a result, we have been able to
maintain the growth momentum observed in the past as regards to resource mobilization. By
the end of June 2011, aggregate deposits of the Bank amounted Birr 11.8 billion, representing a
16.8% growth over the Birr 10.1 billion achieved last year. The corresponding number of deposit
customers has also climbed by 16.8% over the preceeding years level and reached 809,093
as at June 30, 2011.

As a reflection of our growing market outreach and the confidence that the public has
bestowed in us, saving deposit took the lions share (65.84%) of the aggregate balance as at
June 30, 2011. The remaining 34.16% was shared by Demand and Fixed Time deposits, each
constituting for 28.7% and 5.46% respectively.

Shareholders Meeting in Session


10

DASHEN BANK ANNUAL REPORT 2010 - 11

1.2 Loans and Advances


To the dismay of our expectation, the credit-capping remained in place for much of the
fiscal year, which put a brake on credit expansion efforts. The challenge in this regard would
stay around as the newly-launched NBE bills, which we proudly subscribe for to support the
national development agenda, but the effect is that this will re-direct a considerable amount
from the loanable funds.
By the end of June 2011, outstanding loans and advances balance of the Bank scored Birr 6.1
billion, growing by 23.4 % over the previous years level. The distribution of loans and advances
covered all major economic sectors. Domestic Trade and Services ranked on top with 32.0%
share while the Manufacturing sector took the second spot comprising 23.2% of the aggregate
balance. Foreign Trade (Import and Export put together), Real Estate and Transport sectors
took the following spots with 15.2%, 9.7% and 7.1% shares respectively.

Sectoral Distribution of Loans & Advances


2,000

2009/10

In millions of Birr

1,750

2010/11

1,500
1,250
1,000
750
500
250

Others

Real Estate

Transport

Cons. &
W.Capital

Manufacturing

Import/Export

DTS

Agriculture

Others include advances on L/C, personal loans, loans under reactivation, staff housing loans and
loans in litigation.

Financed Project - Executive Hotel, Adama

Financed Project - Wossen Awoke Real Estate, A/A


DASHEN BANK ANNUAL REPORT 2010 - 11

11

1.3 International Banking


In its endeavor to come across with the best avenues for its customers engaged in international trade (importers and exporters), the Bank has expanded to 404 the number of
correspondent banks with whom it has exchanged SWIFT bilateral key exchange arrangements.
By the end of the reporting period, Dashen Banks correspondent banking relationship in SWIFT
covered 161 cities in 68 countries.
During the reporting period, the Bank has entered into agency agreement with VIGO
Remittance Corporation, a US-based Money Transfer Company, to provide customers with
an alternative channel for incoming international money transfers. As a continuation of our
endeavor to expand the global network for remittances, the Bank has also concluded an
agency deal with Xpress Money.

1.4 Payment Card Services


In the reporting period, the payment card services have witnessed significant strides. The
card acceptance network has expanded to 70 Automatic Teller Machines (ATMs) and 704
Point of Sale (POS) terminals. As a manifestation of the growing acceptance of the value
propositions bundled in our Payment Card Service, 48,402 additional customers have
subscribed to the VISA branded Dashen debit card, raising the total number of cardholders to
151,452. As a result, the volume and value of transactions entertained on our ATMs and POS
terminals have grown substantially. This business volume has remained pivotal in substantiating
the investment on the payment card system. In the reporting period, the Bank generated USD
75 million from international cards (VISA, MasterCard and Maestro), which rose by 14% from the
previous years level.

Financed Project - Ashraf Agri. & Ind. Plc, Bahir Dar


12

DASHEN BANK ANNUAL REPORT 2010 - 11

Financed Project - Admas University College

2.

FINANCIAL PERFORMANCE

2.1 Income Analysis


Total income of the Bank grew to Birr 1.3 billion in 2010/11, from Birr 964.3 million in 2009/10 (33%
rise). The sizable growth in total income was propelled by the rise in interest income earned
from loans and advances (Birr 115.3 million), gain from foreign exchange transactions (Birr 79.25
million), commission (Birr 48.35 million), L/C opening and service charge (Birr 46.6 million) and
Treasury Bills (Birr 11.7 million).

As regards to the composition of income, non-interest income took the upper hand over
interest income constituting for 52.1% of the aggregate income generated in 2010/11. In the
reporting period, earnings from international banking activities surged by Birr 168.6 million (39%)
on top of the level attained in 2009/10 to reach Birr 605.7 million, which represents 47.2% of the
total income.

2.2 Expense Analysis


The overall operating expense of the Bank soared to Birr 652.1 million, registering 28.8% growth

Training in Session
DASHEN BANK ANNUAL REPORT 2010 - 11

13

over the previous years level of Birr 506.1 million. Interest paid on savings deposits alone
grew by Birr 77.1 million (31%) as explained by the upward adjustment in interest rate and the
continued robust growth in deposits. General Expense and Staff Salaries and Benefits also went
high by 30.3% and 25.4% respectively. As regards to general expense, increasing volume of our
operation and the prevailing inflationary situation have contributed for the reported hike.

Comparative Expense by Type

General Expense

2009/10
2010/11

Salaries and Benefit

Interest Expense

50

100

150

200

250

300

350

In millions of Birr

2.3 Summary of Earnings


The operating profit of the Bank witnessed robust growth during the reporting period, mounting
to Birr 629.9 million, up by 37.4% from the preceeding years level of Birr 458.3 million.

The 15th Annual Managers Conference (July 22 - 23, 2011)


14

DASHEN BANK ANNUAL REPORT 2010 - 11

Income, Expense & Pre-tax Profit


1,300

In millions of Birr

800

126.3

526.8

Profit Before Tax


Interest Expense
General Expense

300

629.9

630.0

Salaries & Benefits


Commission

Expenses

(200)

Incomes

(144.7)

Interest Income

Profit Before Tax

Other Income

(181.1)
(325.3)

(700)

3.

MARKET EXPANSION

With the view to expand our market outreach, we have opened six more Area Banks during
2010/11, raising our network to 64. Two of the Area Banks opened in outlying towns are Humera
and Gambella; whereas, the rest went operational in different corners of the capital, namely,
Lebu, Bomb Tera, Gerji Mebrat Hail, and Piazza (in the locality of Taitu Hotel).
The drive to serve our customers 24/7 through payment card service is gaining impetus with
the expansion of our card acceptance network. By the end of June 2011, we had expanded
our ATM network to 70. So also, the number of POS terminals at various merchant locations had
reached 704.
As part of its continuous effort to improve counter service, the Bank has begun implementing
One-Window Service in selected Area Banks.

Inauguration of Humera & Gambella Area Banks


DASHEN BANK ANNUAL REPORT 2010 - 11

15

4.

RISK MANAGEMENT

The new dimension of risk management and compliance require reporting of the Banks
culture, processes, coordinated activities, and the structures that are directed towards
realizing potential opportunities and/or managing adverse effects. The Banks Board
defines tolerance limits for each risk level and key risk areas; the Bank has also updated its risk
registerby virtue of a monitoring and reporting program of risk management.
At last, we confirm that the Bank has had sustained no such risks of impairment and
maintained its integrity up to the interest of all stakeholders ensuring that all applicable laws,
rules and regulations are being complied with. Besides, in accordance to the directive issued
by the NBE; the Bank honoured all compliance duties with respect to customer due diligence,
Know Your Customers and Anti-Money Laundering/Counter Terrorist Financing.

5.

HUMAN RESOURCES

Upholding its conviction for growing own trees, the Bank strives to nurture its human capital
through continuous human resource development programs. In line with this, various in-house
and external trainings courses were arranged that benefited 1,554 staff in different capacities.
Furthermore, education assistance has also been given to 441 employees who have been
pursuing further education at different levels.
By the end of June 2011, the staff strength of the Bank, including short and long term contract
employees, stood at 2,826.

6.

CONSTRUCTION OF OWN BUILDINGS

The endeavor in this regard has enabled the Bank to contribute its due share to improve the
urban landscape of the Capital and several regional towns (including Adama, Awassa,
Jimma, Dilla, Wolayta Sodo, Woldia, and Bedelle). The construction of our own buildings, which

Dashen Dilla Area Bank Building


16

DASHEN BANK ANNUAL REPORT 2010 - 11

Dashen Wolayta Area Bank Building

we expect will pay in the form of secure and efficient customer service, convenient work
environment for staff that reinforces the aforementioned benefit and positive public image,
among others, has continued in full swing.

7.

INITIATIVES IN OPENING UP NEW PERSPECTIVES

The changing need of customers have always taken centre stage in Dashen Bank. We build
on our strength and start gearing our business model to a well integrated One-Window Service
through continuously upgrading our core banking system to its latest version. Besides, we have
signed partnership agreement in card-acquiring business with UnionPay resulting from our
strategic orientation and focus on further deepening of our Payment Card Service.

8.

CORPORATE SOCIAL RESPONSIBILITY

Besides providing reliable and accessible modern banking products and services up to the
highest expectation of our esteemed customers, we firmly intend to pursue our corporate
social commitment. In 2010/11 the value of donation and contribution for good social causes
was Birr 1.2 million. During the past five years, the Bank has donated a total of Birr 4.8 million.

9.

PROPOSED DIVIDEND

Subsequent to the decision at the 14th extraordinary meeting of the shareholders, the
paid-up capital of the Bank has grown to Birr 698,709,000 as depicted in the Balance Sheet. In
consideration of the sizable plough-back, the Board of Directors proposes a cash dividend
payment of Birr 225,000,000.
Thank You,

Teklu Haile
Chairman, Board of Directors
10 September 2011

Signing ceremony with UnionPay

Donation for Ethiopian Red Cross Society


DASHEN BANK ANNUAL REPORT 2010 - 11

17

Auditors Report
INDEPENDENT AUDITORS REPORT TO THE SHAREHOLDERS OF
DASHEN BANK SHARE COMPANY
We have audited the financial statements of Dashen Bank Share Company at 30 June 2011,
the Profit and Loss Account, the Cash Flow Statement, and the related notes for the year then
ended. These financial statements have been prepared under the accounting policies set out
therein.

Respective responsibilities of directors and auditors


The directors are responsible for preparing the financial statements in accordance with
applicable laws, regulations and Generally Accepted Accounting Principles. Their
responsibilities include: designing, implementing and maintaining internal control relevant
to the preparation and fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error, selecting and applying appropriate accounting
policies, and making accounting estimates that are reasonable in the circumstances.
Our responsibility is to audit the financial statements in accordance with relevant legal and
regulatory requirements and Generally Accepted Auditing Standards and to express an
opinion on these financial statements based on our audit and whether the financial
statements are properly prepared in accordance with the relevant provisions of the
Commercial Code of Ethiopia and the Banking Business Proclamation No. 592/2008. We also
report to you whether in our opinion the information given in the Directors Report is consistent
with the financial statements.
In addition we report to you if, in our opinion, the company has not kept proper accounting
records, if we have not received all the information and explanations we require for our audit,
or if information specified by law regarding directors remuneration and other transactions is
not disclosed.
We read the Directors Report and consider the implications for our report if we become aware
of any apparent misstatements within it.

Basis of audit opinion


We conducted our audit in accordance with Generally Accepted Auditing Standards. An
audit includes examination, on a test basis, of evidence relevant to the amounts and
disclosures in the financial statements. It also includes an assessment of the significant
estimates and judgments made by the directors in the preparation of the financial statements,

18

DASHEN BANK ANNUAL REPORT 2010 - 11

and of whether the accounting policies are appropriate to the companys circumstances,
consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and
explanations which we considered necessary in order to provide us with sufficient evidence to give
reasonable assurance that the financial statements are free from material misstatements,
whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated
the overall adequacy of the presentation of information in the financial statements.

Opinion
In our opinion:
-

the financial statements present fairly, in accordance with Generally Accepted


Accounting Principles, the state of the companys affairs as at 30 June 2011 and its
result for the year then ended;

the financial statements have been properly prepared in accordance with the
relevant provisions of the Commercial Code of Ethiopia, the Banking Business
Proclamation No. 592/2008 and the directives of the National Bank of Ethiopia.

the information given in the Directors Report is consistent with the financial
statements.

We have no comment to make on the report of your directors in so far as it relates to these
financial statements and pursuant to Article 375 of the 1960 Commercial Code of Ethiopia,
recommend approval of the above-mentioned financial statements.

A.W. Thomas L.P.


Chartered Certified Accountants

(Auditors of the Dashen Bank S.C.)

Addis Ababa
16 September 2011

DASHEN BANK ANNUAL REPORT 2010 - 11

19

DASHEN BANK S.C.


BALANCE SHEET
AS AT 30 JUNE 2011
Currency : Ethiopian Birr

Notes

ASSETS
Cash and balances with other banks
Cash on hand
3
772,178,086
Deposits with local commercial banks
4
290,336,840
Deposits with foreign banks
2,209,547,284
Deposits with National Bank of Ethiopia
5
2,953,682,255

6,225,744,465
Investments
6
1,697,875,795
Items in course of collection from
other banks
7
52,533,612
Loans and advances to customers
8
6,093,873,109
Other assets
9
395,641,060
Fixed assets
10
194,127,115
TOTAL ASSETS
14,659,795,156

LIABILITIES
Customers' deposits
Demand

3,408,063,676
Saving
7,797,453,958
Fixed
635,721,100

11,841,238,734
Margin held on letters of credit
384,572,562
Other liabilities
11
858,358,568
Provision for taxation
18
179,223,021

TOTAL LIABILITIES
13,263,392,885

SHAREHOLDERS FUNDS

Share capital
12
698,709,000
Legal reserve
452,880,242
Retained earnings
19
244,813,029


1,396,402,271
TOTAL LIABILITIES AND
SHAREHOLDERS FUNDS
14,659,795,156

20

DASHEN BANK ANNUAL REPORT 2010 - 11

2010

487,671,113
261,198,947
2,280,213,906
2,226,273,909
5,255,357,875
1,426,215,795
305,716,129
4,938,736,202
262,477,512
164,882,525
12,353,386,038

2,715,397,280
6,730,372,408
698,780,088
10,144,549,776
231,437,596
719,834,298
134,216,737
11,230,038,407

591,860,000
340,216,401
191,271,230
1,123,347,631
12,353,386,038

DASHEN BANK S.C.


PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2011
Currency : Ethiopian Birr

Notes

2010

INCOME
Interest income
Loans and advances
592,641,091
Fixed deposits
8,711,889

Foreign deposits
2,324,586
Total interest income
603,677,566
Interest expense
Interest paid on deposits
(325,272,464)

278,405,102
Less: Provision for doubtful loans
and advances
(17,060,555)

261,344,547
Other income
Service income
13
72,154,996
Letters of credit opening charges
46,136,425
Commissions
126,342,140
Gain on foreign exchange
14
388,908,319
Investment income
15
27,245,942
Sundry income
16
17,724,398

678,512,220
EXPENSES
Salaries and benefits
144,713,826
Rent
29,016,388
General and administrative

17
98,358,332
Depreciation
36,837,183
Directors remuneration
752,656
Audit fee and expenses
300,000

(309,978,385)
PROFIT BEFORE PROVISION
FOR TAXATION
629,878,382
Provision for taxation
18
(179,223,021)
NET PROFIT AFTER PROVISION
FOR TAXATION
450,655,361
Transfer to legal reserve (25%)
(112,663,840)
Transfer to retained earnings
19
337,991,521
Earnings per share

20

477,299,822
4,472,938
883,095
482,655,855
(248,187,407)
234,468,448
(11,361,495)
223,106,953
50,526,744
21,137,663
77,985,636
309,649,462
6,473,252
15,901,302
481,674,059
115,355,296
24,547,493
75,437,243
29,990,339
1,006,154
190,500
(246,527,025)
458,253,987
(134,216,737)
324,037,250
(81,009,312)
243,027,938

753

DASHEN BANK ANNUAL REPORT 2010 - 11

609
21

DASHEN BANK S.C.


STATEMENT OF CASH FLOW
FOR THE YEAR ENDED 30 JUNE 2011
Currency : Ethiopian Birr

Notes

Cash flows from operating activities


Operating profit before provision for taxation
Adjustments for:
Depreciation
Gain on disposal of fixed assets

Investment income
15

Decrease in items in course of collection
7
Increase in loans and advances to customers
8
Increase in other assets
9
Increase in demand deposits
Increase in saving deposits
Decrease in fixed deposits
Increase in margin held on letters of credit
Increase in other liabilities
11
Business profit tax paid
18
Directors bonus paid
19
Net cash inflow from operating activities
Cash flows from investing activities
Purchase of fixed assets
10
Disposal of fixed assets
Investment income
15
Increase in investment in Treasury & NBE bills
6
Net cash used for investing activities
Cash flows from financing activities
Proceeds from issue of share capital
Dividend paid
19
Net cash used in financing activities


Net increase in cash and cash equivalents

Cash and cash equivalents, opening balance

Cash and cash equivalents, closing balance

22

DASHEN BANK ANNUAL REPORT 2010 - 11

2010

629,878,382

458,253,987

36,837,183
(59)
(27,245,942)
639,469,564

29,990,339
(183,740)
(6,473,252)
481,587,334

253,182,517
(1,155,136,907)
(133,163,547)
692,666,396
1,067,081,550
(63,058,988)
153,134,968
138,524,270
(134,216,737)
(8,925,402)
1,449,557,682

37,995,300
(589,486,208)
(63,793,760)
525,647,944
1,696,865,594
(3,174,051)
71,797,741
83,407,727
(102,611,999)
(3,748,146)
2,134,487,475

(66,088,996)
7,282
27,245,942
(271,660,000)
(310,495,772)

(85,178,926)
230,700
6,473,252
(1,397,830,000)
(1,476,304,974)

7,030,000
(175,705,320)
(168,675,320)

3,492,000
(109,128,200)
(105,636,200)

970,386,590

552,546,301

5,255,357,875

4,702,811,574

6,225,744,465

5,255,357,875

DASHEN BANK S.C.


NOTES FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
1. ESTABLISHMENT

The Bank is a privately owned company established in 1995 in accordance with the Licensing and
Supervision of Banking Business Proclamation No. 84/1994 of Ethiopia to undertake commercial
banking activities.

The Bank obtained its license from the National Bank of Ethiopia on 20 September 1995 and started
normal business activities on 1 January 1996. It operates through its Head Office in Addis Ababa and
64 area banks, 5 Foreign Exchange Bureaux, 704 Point of Sale (PoS) terminals and 70 Automatic
Teller Machines (ATMs) located within and outside Addis Ababa.

2. ACCOUNTING POLICIES

The significant accounting policies adopted by the Bank are summarized hereunder:
(a)

Accounting convention

These financial statements are prepared under the historical cost convention and generally
accepted accounting principles.

(b)

Interest income and expenses

Interest income and interest expenses are accounted for on the accrual basis. However, no
interest is accounted for unpaid past due loans and advances.

(c) Other income


All other income is accounted for at the time of completion of related banking transactions.

(d) Conversion of foreign currencies


(i) Foreign currency denominated transactions are converted into Birr at the prevailing rates
of exchange and realized foreign exchange gains or losses are reflected in the profit and
loss account.
(ii) Yearend balances of foreign currencies on hand and with correspondent banks are
converted into Birr at the mean of the buying and selling rates ruling at the balance sheet
date.
(iii) During the fiscal year the mid-market rate of the ETB against the US Dollar has been within
the range of Birr 13.6696 to Birr 17.0772 to the US Dollar.

DASHEN BANK ANNUAL REPORT 2010 - 11

23

DASHEN BANK S.C.


NOTES FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
(e) Provision for doubtful debts

The provision for doubtful loans and other receivables is maintained at a level adequate to
cover possible losses. Management determines the adequacy of the provision based upon
reviews of individual credits and other related factors, and pursuant to the Directives of the
National Bank of Ethiopia.

(f) Fixed assets


Fixed assets are stated at cost, net of depreciation calculated on the following bases at their
respective rates per annum.
i) Buildings are depreciated based on the straight-line method at a rate of 5% per annum.
ii) The following categories of business assets are depreciated based on the declining
balance method:

Furniture and fixtures

20%

Office and other equipment

20%

Computer hardware and software

25%

Motor vehicles

20%

The depreciation base is the book value as recorded in the opening balance sheet of
the accounting period including assets acquired during the period and excluding net
book value of assets disposed of.

3. CASH ON HAND

Local currency

Foreign currency

Travelers cheques

Ethiopian Millennium commemorative coins

2010

692,586,107

451,569,197

76,306,986

32,619,847

2,862,993

2,528,469

422,000

953,600

772,178,086

487,671,113

116,070,533

75,310,168

4. DEPOSITS WITH LOCAL COMMERCIAL BANKS


Current accounts

ECX accounts

8,070,526

30,888,779

Fixed deposits

165,000,000

155,000,000

ATM inter-operability account*



24

1,195,781
290,336,840

261,198,947

* Dashen Bank made a bilateral agreement for ATM inter-operability with Zemen Bank on 17th
August 2010. This provides service execellence to customers of both Dashen and Zemen Banks.
DASHEN BANK ANNUAL REPORT 2010 - 11

DASHEN BANK S.C.


NOTES FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
Currency : Ethiopian Birr

5. DEPOSITS WITH NATIONAL BANK OF ETHIOPIA


2010

Statutory reserve


Payment and settlement account

1,800,000,000

1,525,000,000

1,153,682,255
2,953,682,255

701,273,909
2,226,273,909

698,390,000

1,397,830,000

971,100,000

6. INVESTMENTS

a) Short term investment is Treasury Bills

b) Long term investments

NBE Bills (i)


Tana Building (ii)
Nyala Insurance S.C. (iii)

22,801,795
5,584,000
1,697,875,795

22,801,795
5,584,000
1,426,215,795

(i) Following Directive No. MFA/NBE Bills/001/2011 to purchase government bonds to be



calculated at 27% of the loans disbursed from 1 July 2010, Dashen Bank S.C. purchased
bonds totalling Birr 971,000,000 during the year ended 30 June 2011.

(ii) The Bank and MIDROC Ethiopia PLC following their agreement on 5 October 2001 acquired

jointly the Tana Department Store Building in Addis Ababa, as a result of a tender procedure
instituted by the Commercial Bank of Ethiopia.

According to the terms of the agreement between the two joint venture parties:

a) The contributions for the acquisition are:

MIDROC Ethiopia PLC


Dashen Bank S.C.

60%
40%

34,202,693
22,801,795

34,202,693
22,801,795

57,004,488

57,004,488

b) Dashen Bank S.C. is appointed to manage and administer the affairs of the building.

c) The results of operations are to be shared pro-rata to the respective contributions.

(iii) The Bank has 5,584 shares at par value of Birr 1,000 each in Nyala Insurance S.C.

7. ITEMS IN COURSE OF COLLECTION FROM OTHER BANKS


Un-cleared local cheques (i)

Outward bills purchased

Outward documentary bills purchased

MoneyGram paid and outstanding

Western Union paid and outstanding

12,397,878

267,011,553

2,634,084

2,617,376

15,566,771

25,966,901

4,136,779

1,470,109

17,798,100

8,650,190

52,533,612

305,716,129

(i) I mplementation of the Ethiopian Automated Transfer System as a new inter-bank payment

system by the National Bank of Ethiopia and participant banks on 3 June 2011 caused the balance
of cheques in course of collection to decrease significantly.
DASHEN BANK ANNUAL REPORT 2010 - 11

25

DASHEN BANK S.C.


NOTES FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
Currency : Ethiopian Birr

8. LOANS AND ADVANCES TO CUSTOMERS


2010


Agriculture

124,681,876

Manufacturing

1,417,640,681

Domestic trade and services

1,980,205,381

Export

378,221,334

Import

546,488,378

Construction machinery and working capital
410,701,283

Transport

432,383,202

Advances on letters of credit

217,254,576

Personal

1,954,126

Loans in litigation

57,210,972

Loans under re-activation

Staff housing loans

58,369,314

Real estate

595,509,005

Less: Provision for doubtful loans and advances
(123,664,930)

Suspended interest account
(3,082,089)


6,093,873,109

139,429,906
1,136,637,857
1,498,239,365
452,324,704
470,436,746
399,698,555
317,079,960
58,347,487
1,018,780
97,510,944

49,505
49,871,256
428,197,540
(106,944,940)
(3,161,463)
4,938,736,202


8.1 The Bank is a party to various legal proceedings in relation to loans and advances, the
ultimate resolution of which is not expected to have a materially adverse effect on the

financial position of the Bank or the results of its operations.

9. OTHER ASSETS

Stocks of
- stationery, printing and computer supplies
- passbooks, drafts and CPOs
- cheque books
- fixed assets
- cleaning and sanitation
- entertainment supplies
- uniforms
- debit cards
- PIN mailers
- revenue stamps
- sundry materials













Outstanding rent deposit (National Trading Enterprise)
Prepayments
Staff advances
Purchase advances
Suspense account (National Bank of Ethiopia)
Other non-current assets (see below 1)
Sundry debtors (see below 2)
26

DASHEN BANK ANNUAL REPORT 2010 - 11

3,662,043
2,260,864
2,704,472
8,752,569
10,469
378,894
1,186,119
250,613
8,384
20,550
19,234,977
2,584,052
34,776,389
11,526,976
30,481,928
707,400
272,649,918
23,679,420
395,641,060

3,555,017
3,583,278
1,486,478
10,773,906
6,002
279
112,092
1,307,508
48,992
6,586
43,002
20,923,140
2,436,149
32,568,419
9,184,158
13,427,608
707,400
164,972,560
18,258,078
262,477,512

DASHEN BANK S.C.


NOTES FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
Currency : Ethiopian Birr

OTHER ASSETS(Contd)


Other non-current assets - above 1

Acquired properties
2,881,321

Blocked account for building constructions
9,095,917

Constructions in progress *
218,348,140

Cash collateral to VISA
3,433,498

Deposit for utilities and office rent
196,418

Deposit for signboards and logo
14,000

Suspense, fixed asset account **
25,223,106

Deferred land lease charges
13,457,518


272,649,918

2010
1,392,290
9,095,917
136,607,697
1,515,249
196,418
14,000
3,979,736
12,171,253
164,972,560

Unpaid capital commitments for constructions in progress at Bahir Dar and Lideta sites amounted
to approximately Birr 190,339,479.

**

The suspense account for fixed assets relates mainly to up-grading of the computerised banking
system.

Sundry debtors - above 2

Credit cards
Counterfeit cash notes (National Bank of Ethiopia)
Stolen money and related court fees
Wrong payments and overdrawn accounts
Charge-back in connection with foreign cards
2% withholding tax
Receivable from VISA
Payment cards
Receivable from MasterCard
Interest receivable on fixed deposits
Interest receivable on treasury bills
Interest receivable on NBE bills
Miscellaneous

7,631
75,781
1,758,091
245,639
3,246,766
130,921
188,534
1,259,610
1,320,579
4,726,575
862,500
5,487,649
4,369,144
23,679,420

7,631
1,826,886
22,331
3,707,948
116,313
38,360
1,296,471
5,051,817
3,480,774
1,066,154
1,643,393
18,258,078

DASHEN BANK ANNUAL REPORT 2010 - 11

27

DASHEN BANK S.C.


NOTES FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
Currency : Ethiopian Birr

10. FIXED ASSETS



Cost
01/07/10
Additions


Premises
79,552,588
11,012,245

Furniture and fixtures
34,716,742
6,902,578

Office and other equipment
37,599,251
9,149,513

Computer hardware and

Software
105,653,982
22,137,760

Motor vehicles
51,419,862
16,886,900
308,942,425
66,088,996

28

Accumulated depreciation
Premises
Furniture and fixtures
Office and other equipment
Computer hardware and
software
Motor vehicles

Net Book value


Premises
Furniture and fixtures
Office and other equipment
Computer hardware and
software
Motor vehicles

Adjustments / 30/06/11
Disposals
90,564,833
(5,840)
41,613,480
(5,080)
46,743,684
(11,980)
-
(22,900)

127,779,762
68,306,762
375,008,521

6,338,374
19,443,719
20,285,740

4,528,241
4,433,622
5,291,038

(5,466)
(1,015)

10,866,615
23,871,875
25,575,763

68,490,399
29,501,668
144,059,900

14,823,299
7,760,983
36,837,183

(9,196)
(15,677)

83,304,502
37,262,651
180,881,406

73,214,214
15,273,023
17,313,511

79,698,218
17,741,605
21,167,921

37,163,583
21,918,194

44,475,260
31,044,111

164,882,525

194,127,115

DASHEN BANK ANNUAL REPORT 2010 - 11

DASHEN BANK S.C.


NOTES FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
Currency : Ethiopian Birr

11. OTHER LIABILITIES

















Outstanding transfers
CPOs and certified cheques issued
Exchange payable to National Bank of Ethiopia
Mail and telegraphic transfers
Blocked current and saving accounts
Demand drafts payable
Accrued interest payable on fixed deposits
Accruals

Taxes
Unearned revenue
Special reserve, Article 21 of Proclamation 592/2008
Tana Department Store building
Cheques under special clearance (i)
Retention on construction work
Sundries (see below)

131,172,458
481,851,028
40,142,720
38,593,901
19,346,502
234,000
17,921,224
37,092,320
5,234,953
588,236
45,000,000
3,557,784
90,807
7,731,012
29,801,623
858,358,568

2010
148,875,207
243,053,653
25,576,672
33,416,148
11,381,874
146,629
20,178,833
25,661,757
2,890,887
1,461,690
35,000,000
5,137,028
148,388,230
7,862,639
10,803,051
719,834,298

(i)

Implementation of the Ethiopian Automated Transfer System as a new inter-bank payment


system by the National Bank of Ethiopia and participant banks on 3 June 2011, resulted in
significant decrease of cheques under special clearance as of 30 June 2011.
Sundries


National Motors Corporation

Refundable excess collection on property auctioned

Office rent payable

ATM rejected note control

Agent commission on credit cards

Payable to MIDROC Ethiopia PLC
Deposits for guarantees

Adjustment and refund account

Merchant control account

Charge-back for ATM/PoS

Loan repayment, suspense account

Payables to shareholders

Miscellaneous

126,500
13,931,435
258,232
16,510
18,744
70,838
1,156,013
28,870
24,768
1,605,419
1,758,062
4,174,448
6,631,784

29,801,623

126,500
330,306
136,658
8,914
64,698
635,769
34,188
152,204
1,646,964
2,637,540
5,029,310
10,803,051

DASHEN BANK ANNUAL REPORT 2010 - 11

29

DASHEN BANK S.C.


NOTES FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
Currency : Ethiopian Birr

12. SHARE CAPITAL


2010

Authorized capital 1,000,000 Ordinary Shares of


Birr 1,000 each
Paid-up capital 698,709 Ordinary shares of
Birr 1,000 each

1,000,000,000

1,000,000,000

698,709,000

591,860,000

The paid-up capital has been raised by Birr 106,849,000 during the fiscal year of which Birr
7,030,000 refers to new issued shares and Birr 99,819,000 represents stock dividend.

13. SERVICE INCOME



Service charges - local


Service charges - foreign

14. GAIN ON FOREIGN EXCHANGE

6,384,384
65,770,612
72,154,996

4,659,092
45,867,652
50,526,744

288,170,741
100,737,578
388,908,319

309,649,462
309,649,462

Other gains on foreign exchange


Windfall gain (net) (i)

(i)

Following the Birr devaluation at 1 September 2010, Dashen Bank S.C. obtained Birr 402,950,212
as Windfall Gain and paid 75% as Windfall Gain tax i.e. Birr 302,212,634 to the Ethiopian Revenue
and Customs Authority in accordance with Income Tax (amended) Proclamation No. 693/2010 and
Directive No. 29/2010. The balance of Birr 100,737,578, represents the net (25%), windfall gain
to the bank.

15. INVESTMENT INCOME


Treasury Bills

15,405,636

3,669,404

NBE Bills

5,487,649

Tana Building

4,626,498

1,548,297

Nyala Insurance S.C.

1,726,159

1,255,551

27,245,942

6,473,252

Telecommunications
Postage
Estimation fees
Correspondent bank charges
Legal fees
Miscellaneous

10,022,743
181,020
744,711
114,864
17,364
6,643,696

9,968,673
124,552
536,609
13,021
10,495
5,247,952

17,724,398

16. SUNDARY INCOME

30

DASHEN BANK ANNUAL REPORT 2010 - 11

15,901,302

DASHEN BANK S.C.


NOTES FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
Currency : Ethiopian Birr

17. GENERAL AND ADMINISTRATIVE EXPENSES


2010
Stationery, printings and computer supplies

9,644,500

8,537,916

Telecommunications

13,147,190

11,407,283

Postage

351,537

270,840

Advertisements

7,658,119

5,453,694

Entertainment

1,040,409

753,197

Insurance

2,611,566

1,977,535

Fuel and lubricants

4,187,073

2,970,181

Per-diems

2,108,073

1,351,734

Representation allowance

1,485,368

1,345,443

Transport

2,144,809

1,264,961

Water and light

2,476,915

1,800,634

Proclamation 592/2008

10,000,000

7,841,292

Maintenance and repairs

6,315,416

4,779,575

Donations and contributions

1,189,375

1,170,000

Professional fees

8,650,347

5,533,145

Bank charges

1,579,439

1,005,157

VISA charges

5,001,363

4,027,038

PoS reimbursement charges

4,364,763

6,109,879

Fixed assets

990,636

239,306

Cost of debit cards

1,905,370

1,504,606
-

Special reserve, Article 21 of

Cost of PIN mailers

42,526

Operating lease

249,212

480,833

MasterCard charges

7,488,189

2,539,541

Sundries

3,726,137

3,073,455

98,358,332

75,437,243

DASHEN BANK ANNUAL REPORT 2010 - 11

31

DASHEN BANK S.C.


NOTES FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
Currency : Ethiopian Birr

18. PROVISION FOR TAXATION



Profit before provision for taxation
629,878,382
Add: Depreciation as per banks policy
36,837,183
Representation in excess of 10% of
basic salary
57,068
Penalties
49,229

458,253,987
29,990,339

Entertainment
1,040,409

37,983,889
Less: Interest on Treasury Bills
15,405,636
Gain on disposal of fixed assets
59

Depreciation for tax purpose pursuant to

Proc. No. 286/2002
36,843,090

Interest on foreign deposits *
2,324,586

Interest on local deposits
8,711,889

Dividend earned on shares
1,726,159
Interest earned on NBE bills
5,487,649

Bad debts written off against

provision held before June 2002
340,565

70,839,633
Taxable profit
597,022,638
Taxation

(a) 597,022,638 @ 30%
179,106,792

(b) 2,324,586 @ 5% *
116,229

179,223,021

753,197
30,743,536
3,669,404
183,741

32

2010

29,954,579
883,095
4,472,938
1,255,551
1,336,275
(41,755,583)
447,241,940
134,172,582
44,155
134,216,737

Profit tax is computed at the rate of 5% on interest earned on deposit with foreign banks as
per Income Tax Proclamation No. 286/2002, Article 36, Sub Article 1.

DASHEN BANK ANNUAL REPORT 2010 - 11

DASHEN BANK S.C.


NOTES FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
Currency : Ethiopian Birr

19. RETAINED EARNINGS


2010


Balance, 1 July 2010
191,271,230

Add: Transfer of current year profit (2011)
337,991,521

529,262,751

Less: Dividend paid (2010)
175,705,320

Directors Bonus paid (2010)**
8,925,402

Transfer to paid-up capital (2011)
99,819,000
(284,449,722)

244,813,029
**

120,975,638
243,027,938
364,003,576
109,128,200
3,748,146
59,856,000
(172,732,346)
191,271,230

The resolution at the 14th ordinary meeting of the shareholders held on 6 November 2010 amended the decision
made on 30 October 2008 regarding the directors bonus wrongly minuted as 2% of profit after legal reserve
instead of after profit tax. As a result, arrears of directors bonus for the year 2008 Birr 1,195,275, for the year
2009 Birr 1,249,382 and for the year 2010 Birr 6,480,745 where paid during the current year.

20. EARNINGS PER SHARE


Earnings per share for the year are calculated on the basis of the average number of shares
outstanding during the year.

21. MEMORANDUM AND CONTINGENT ITEMS


(a) Memorandum and contingent assets
Interest on loans and advances in litigation
Interest on loans and advances under re-activation
Outward bills for collection
Inward bills for collection

37,892,852
28,228
3,001,638
224,244,022
265,166,740

35,794,440
69,358
1,441,154
109,537,112
146,842,064

(b)


Memorandum and contingent liabilities


Guarantees issued to customers
382,047,304
312,466,051
Letters of credit
1,246,883,190
713,766,269
Less: Margin held on letters of credit (384,572,561)
(231,437,596)

862,310,629
482,328,673

1,244,357,933 794,794,724
(c)

The un-utilized balances of overdraft facilities granted to customers as at 30 June 2011


amounted to Birr 556,575,000 (2010 Birr 479,623,000).

22. EMPLOYEES BENEFITS SCHEMES


Regarding the provident fund scheme, the Bank contributes 15% of basic salary while employees
contribute 7%. These contributions are held for each individual in saving accounts of the Bank. All other
employees benefits are in accordance with the Labour Proclamation No. 377/2003 and Labour
Amendment Proclamation No. 494/2006. Eligible staff also benefit from Housing Loans.

23. COMPARATIVE FIGURES


Some comparative figures have been reclassified for a better comparison.


DASHEN BANK ANNUAL REPORT 2010 - 11

33

Area Bank Managers Address


S/N

Area Bank

Manager

Telephone

Fax

P. O. Box

Addis Ababa City


1

Abakoran

Ato Assefa Ado

011-278 1118

011-278 1121

180281

Africa Andinet

Ato Getnet Dessie

011-416 7256

011-416 4177

41876

Airport

Ato Workaferahu Molla

011-663 8596

011-663 8595

110616

Arada

Ato Mulugeta Menberu

011-156 2657

011-156 2564

20314

Bisrate Gabriel

Ato Giragn Garo

011-320 3777

011-320 3737

1428/1033

Bole

Ato Ayele Teshome

011-552 1860

011-552 1858

62 /100

Bomb Tera

Wr/o Woinshet Girma

011-213 4338

011-213 4331

180023

City Councill

Ato Mesfin Bezu

011-111 4285

011-111 4379

54164

CMC

Ato Haileyesus Tesfaye

011-646 3918

011-646 3931

170831

10 Gerji Mebrat Hail

Ato Yihenalem Aknaw

011-629 2499

011-629 2543

46321

11 Goffa

Ato Addisu Ayalew

011-467 3202

011-467 0049

122770

12 Golla

Ato Hailu Bulbula

011-111 7490

011-155 9322

16132

13 Gullele

Ato Amare Melka

011-213 3995

011-213 3993

160389

14 Gurd Sholla

Ato Kassahun Tsegaw

011-646 6370

011-646 6367

2294 /1250

15 Kality

Ato Yohannes Meresa

011-439 3604

011-439 0888

13677

16 Kera

Ato Ashenafi Berhanu

011-467 0099

011-465 4788

13136

17 Kolfe

Ato Petros Moges

011-280 0125

011-279 6128

109/1022

18 Lagar

Ato Tilahun Kifle

011-550 8114

011-550 8113

21922 /1000

19 Lebu

Ato Tiruneh Getaneh

011-419 9604

011-419 9605

145249

20 Lideta

Ato Solomon Diriba

011-552 5645

011-552 5643

41288

21 Main

Ato Alemayehu Simie

011-467 0363

011-465 4772

12752

22 Megenagna

Ato Tamiru Girma

011-663 5663

011-663 2536

110470

23 Meskel Flower

Ato Mulugeta Negash

011-467 3794

011-467 3793

1274/1110

24 Messalemia

Ato Daniel Alemu

011-278 7190

011-276 7356

182452

25 Piazza

Ato Meseret Yazachew

011-157 2355

011-157 1388

57085

26 Saris

Ato Ephrem Setargew

011-442 0123

011-442 0118

123384

27 Sebategna

Wr/t Ketsela Lule

011-277 2890

011-277 2891

180169

28 Taitu

Ato Tesfaye Matiwos

011-155 1994

011-155 1990

25269

29 Tana

Ato Andualem Belete

011-275 3411

011-278 1253

182482

30 Tikur Anbessa

Ato Wossen Tegegn

011-554 2165

011-554 2163

2544

31 Wuha Limat

Ato Melkamu Asaminew

011-662 2157

011-662 2158

110379

32 Yerer Ber

Ato Amha Mulugeta

011-629 8146

011-629 8132

23498 /1000

34

DASHEN BANK ANNUAL REPORT 2010 - 11

Area Bank Managers Address


S/N

Area Bank

Manager

Telephone

Fax

P. O. Box

Up-Country
1

Adama

Ato Elias Hussien

022-111 3480

022-111 5644

13

Adigrat

Ato Yemane Teka

034-445 5064

034-445 2716

302

Alamura

Ato Demeke Tsegaye

046-220 5509

046-220 5528

1770

Arbaminch

Ato Asnake Demessie

046-881 1511

046-881 0685

2044

Assela

Ato Yalew Nigussie

022-331 7705

022-331 7704

1072

Awassa

Ato Alemu Abera

046-220 4967

046-220 4968

907

Bahir Dar

Ato Tilaye Eniyew

058-220 2166

058-220 1573

886

Bedelle

Ato Tariku Negash

047-445 1101

047-445 1311

138

Bensa

Ato Daniel Melkae

046- 337 0283

046-337 0201

10 Debre Berhan

Ato Yetwale Dessie

011-681 6376

011-681 6266

482

11 Debre Markos

Ato Zelalem Molla

058-771 7133

058-771 7135

399

12 Dessie

Ato Fitsum Yohannes

033-111 4400

033-111 9427

78

13 Dilla

Ato Manyahelhal Zewdie

046-331 0982

046-331 2215

427

14 Dire Dawa

Ato Dawit Ayalew

025-111 07 66

025-111 07 87

1391

15 Djibruk

Ato Zerihun Gessese

034-441 0851

034-441 3985

746

16 Dukem

Ato Daniel Assefa

011-432 0644

011-432 0359

1439

17 Gambella

Ato Ermias Mamo

047-551 0999

047-551 1118

306

18 Gondar

Ato Sissay Teferi

058-111 6000

058-111 4344

1085

19 Harar

Wr/o Nurit Mohammed

025-666 5958

025-666 3648

26

20 Hossaena

Ato Tadesse Kassahun

046-555 4226

046-555 4227

455

21 Humera

Ato Zewedie Mekonnen

034-448 1817

034-448 1678

139

22 Injibara

AtoTesfaye Mequanint

058-227 1239

058-227 1237

67

23 Jimma

Ato Samuel Midekssa

047-111 2931

047-111 2932

880

24 Kombolcha

Ato Habtamu Chanie

033-551 1500

033-551 1495

350

25 Mekelle

Ato Haile Kahsay

034-441 6781

034-441 0808

641

26 Nazareth Arada

Ato Feysel Omer

022-111 3263

022-111 1282

765

27 Sebeta

Ato Tesfaye Beyecha

011-338 3557

011-338 3556

358

28 Shashemene

Ato Yihenew Bizualem

046-110 0316

046-110 6036

118

29 Shire

Ato Halefom Seyoum

034-444 2480

034-444 2728

299

30 Wolayta Sodo

Ato Tesfaye Molla

046-551 5223

046-551 5222

223

31 Woldia

Ato Cherinet Tesfaye

033-331 2215

033-331 2217

216

32 Zeway

Ato Natnael Guta

046-441 4520

046-441 4523

440

DASHEN BANK ANNUAL REPORT 2010 - 11

35

LIST OF ATMs WITH THEIR LOCATION


S/N
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63

36

ATM Name
Sheraton Addis Hotel (2)
Hilton Hotel
Wabi Shebelle Hotel
Ethiopia Hotel
Lucy Gazebo Restaurant
Ras Hotel
Intercontinental Hotel
Harmony Hotel
Jupiter International Hotel
Honey Land Hotel
Getu Commercial Center
D.H. Geda Tower
Tk International Building
Kurtu International Building
Adams Pavilon Building
Edna Mall Building
Yoly Building
Addis Ababa University
Bahir Dar University
Bahir Dar University
Gondar University
Gondar University
Dire Dawa University
Haromaya University
Adama Uniiversity
Dashen Africa Andinet
Dashen Airport
Dashen Arada
Dashen Bisrate Gabriel
Dashen Bole
Dashen CMC
Dashen Goffa
Dashen Gullele
Dashen Gurd Sholla
Dashen Kality
Dashen Kera
Dashen Lideta
Dashen Main (2)
Dashen Megenagna (2)
Dashen Meskel Flower
Dashen Messalemia
Dashen Piassa (2)
Dashen Saris
Dashen Tana
Dashen Tikur Anbessa
Dashen Wuha Limat
Dashen Yerer Ber
Dashen Abakoran
Dashen Golla
Dashen Kolfe
Dashen Adama
Dashen Alamura
Dashen Awassa
Dashen Bahir Dar
Dashen Dessie
Dashen Dire Dawa
Dashen Djibruk
Dashen Dukem
Dashen Gondar
Dashen Harar
Dashen Jimma
Dashen Mekelle
Dashen Nazareth Arada

DASHEN BANK ANNUAL REPORT 2010 - 11

Specific Location
Sheraton Addis
Menilik II Avenue
Ras Abebe Aregay Street
Yohannes Street
National Museum
Gambia Street, Near to National Theatre
Guini Conacrai Street
Bole Medhanialem
Guini Conacrai Street, Kasanchis
Baron Business Building, Jimma
Africa Avenue
Africa Avenue
Africa Avenue
Ras Habtegiorgis Street
Pushkin Square, Sarbet
Bole Medhanialem
Mikili Land St., Near to Atlas Hotel
6 Killo Campus
At University Campus
Poly campus
Marakay campus
Medical college
At University Campus
At Haromaya Campus
At University Campus
AU Head Quarter,Yezelalem Building
Cameroon Street, Bright Tower Building
Belay Zeleke Road, Sor Amba Hotel
Adot Multplex Building
Bole Road,Garad Building
CMC , Four Y Building
Goffa Mazoria, Kebede Baye Building
Gullele, Martha Building
Gurd Sholla , Meher Building
Kality, Crown Hotel
Bulgaria Mazoria,G/Kidan T/Giorgies Building
Chad Street, Alsam Chelelek Building
Debrezeit Road, Garad Building
Equatorial Guinea Street, Lem Hotel
Gabon Street, Tebebu Budg.
Messalemia , near to Shewa Tsega Budg.
Deguel Square, infront of Oslo Caf
Saris , Dawi Building
Merkato,Tana Building
Tikur Anbessa Area, Dres Building
Haile G/Selasie Road, COMET Building
Around Imperial Hotel,Sami Building
Gojam Berenda, Yirga Haile Building
Tekle Haimanot , Garad Building
Kolfe Atana Tera , Berehan Chora Building
Dashen Adama Building
Dashen Alamura Area Bank , Awassa Town
Dashen Awassa Building
Protection House
Haji Mohammed Yasin Tower
Garad Budlding
Aregawi Hailu Building, Mekelle Town
Near to Werkamaw Hotel
Gondar Town
Garad Building
Dashen Jimma Building
Garad Building
Abdi Gudina Budg.,Adama Town

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Tel.: +251 11 663 3860/68, Fax: +251 11 663 3863, E-mail: mcbseth@ethionet.et, Addis Ababa, Ethiopia

Dashen Bank
Tel.: +251- 11-466 13 80
Fax.: +251- 11-465 30 37
P. O. Box: 12752, SWIFT: DASHETAA
E-mail:dashen.bank@ethionet.et
Website:www.dashenbanksc.com