List of banks in Ethiopia

From Wikipedia, the free encyclopedia

This is a list of banks in Ethiopia.[1]

Year No of Profit in EB
Bank Name Web Site SWIFT
Est. Branches (2013/14)

1 Abay Bank S.C. http://www.abaybank.com.et/ 2010 79 ABAYETAA 75,000,000.00

2 Addis International Bank http://www.addisbanksc.com/ 2011 18 ABSCETAA 60,000,000.00

3 Awash International Bank http://www.awashbank.com/ 1994 191 AWINETAA 1,856,300,000.00

4 Bank of Abyssinia http://www.bankofabyssinia.com/ 1996 111 ABYSETAA 351,300,000.00

5 Berhan International Bank http://berhanbanksc.com/ 2010 46 BERHETAA 131,000,000.00

6 Bunna International Bank http://www.bunnabanksc.com/ 2009 72 BUNAETAA 109,000,000.00

7 Commercial Bank of http://www.combanketh.et/ 1963 909[2] CBETETAA 9,700,000,000.00

 Year No of Profit in EB
Bank Name Web Site SWIFT
Est. Branches (2013/14)

Ethiopia

Construction and
8 http://www.cbb.com.et/Index.html 1983 106 COUUETAA 110,000,000.00
Business Bank

Cooperative Bank of
9 http://www.coopbankoromia.com.et/ 2005 144[3] CBORETAA 485,000,000.00
Oromia

1
Dashen Bank http://www.dashenbanksc.com 1996 align=right| 146[4] DASHETAA 928,000,000.00
0

11 Debub Global Bank http://www.debubglobalbank.com/ 2012 32 DEGAETAA 19,000,000.00

1 Development Bank of
http://www.dbe.com.et/home/ 1909 43 BEETETAA 491,000,000.00
2 Ethiopia
 Year No of Profit in EB
Bank Name Web Site SWIFT
Est. Branches (2013/14)

1
Enat Bank http://www.enatbanksc.com/ 2013 7 ENATETAA 39,000,000.00
3

1
Lion International Bank http://www.anbesabank.com/ 2006 67 LIBSETAA 128,000,000.00
4

1 http://www.nibbank-
Nib International Bank 1999 98 NIBIETTA 420,000,000.80
5 et.com/index.php

1
Oromia International Bank http://www.orointbank.com/ 2008 115 ORIRETAA 205,000,000.40
6

1
United Bank http://www.unitedbank.com.et/ 1998 108[5] UNTDETAA 350,000,000.00
7

1
Wegagaen Bank http://www.wegagenbanksc.com/ 1997 98 WEGAETAA 394 ,000,000.30
8
 Year No of Profit in EB
Bank Name Web Site SWIFT
Est. Branches (2013/14)

1
Zemen Bank http://www.zemenbank.com/ 2009 1 ZEMEETAA 131,000,000.00
9

14,425,000,000.00
Total 2357
Introduction to Financial Ratios
When computing financial ratios and when doing other financial statement
analysis always keep in mind that the financial statements reflect the accounting
principles. This means assets are generally not reported at their current value. It is
also likely that many brand names and unique product lines will not be included
among the assets reported on the balance sheet, even though they may be the
most valuable of all the items owned by a company.
These examples are signals that financial ratios and financial statement analysis
have limitations. It is also important to realize that an impressive financial ratio
in one industry might be viewed as less than impressive in a different industry.

Our explanation of financial ratios and financial statement analysis is organized

as follows:

 Balance Sheet
o General discussion
o Common-size balance sheet
o Financial ratios based on the balance sheet
 Income Statement
o General discussion
o Common-size income statement
o Financial ratios based on the income statement
 Statement of Cash Flows
Note: To assist you in understanding financial ratios, we developed business
forms for computing 24 popular financial ratios. They are included
in AccountingCoach PRO.

General Discussion of Balance Sheet

The balance sheet reports a company's assets, liabilities, and stockholders'
equity as of a specific date, such as December 31, 2014, March 31, 2014, etc.

The accountants' cost principle and the monetary unit assumption will limit the
assets reported on the balance sheet. Assets will be reported
(1) only if they were acquired in a transaction, and
(2) generally at an amount that is not greater than the asset's cost at the time of
the transaction.
This means that a company's creative and effective management team will not
be listed as an asset. Similarly, a company's outstanding reputation, its unique
product lines, and brand names developed within the company will not be
reported on the balance sheet. As you may surmise, these items are often the
most valuable of all the things owned by the company. (Brand names purchased
from another company will be recorded in the company's accounting records at
their cost.)

The accountants' matching principle will result in assets such as buildings,

equipment, furnishings, fixtures, vehicles, etc. being reported at amounts less
than cost. The reason is these assets are depreciated. Depreciation reduces an
asset's book value each year and the amount of the reduction is reported as
Depreciation Expense on the income statement.
While depreciation is reducing the book value of certain assets over their useful
lives, the current value (or fair market value) of these assets may actually be
increasing. (It is also possible that the current value of some assets—such as
computers—may be decreasing faster than the book value.)
Current assets such as Cash, Accounts Receivable, Inventory, Supplies, Prepaid
Insurance, etc. usually have current values that are close to the amounts
reported on the balance sheet.
Current liabilities such as Notes Payable (due within one year), Accounts Payable,
Wages Payable, Interest Payable, Unearned Revenues, etc. are also likely to have
current values that are close to the amounts reported on the balance sheet.
Long-term liabilities such as Notes Payable (not due within one year) or Bonds
Payable (not maturing within one year) will often have current values
that differ from the amounts reported on the balance sheet.
Stockholders' equity is the book value of the company. It is the difference between
the reported amount of assets and the reported amount of liabilities. For the
reasons mentioned above, the reported amount of stockholders' equity will
therefore be different from the current or market value of the company.
By definition the current assets and current liabilities are "turning over" at least
once per year. As a result, the reported amounts are likely to be similar to their
current value. The long-term assets and long-term liabilities arenot "turning over"
often. Therefore, the amounts reported for long-term assets and long-term
liabilities will likely be different from the current value of those items.
The remainder of our explanation of financial ratios and financial statement
analysis will use information from the following balance sheet:
To learn more about the balance sheet, go to:

 Explanation of Balance Sheet

 Quiz for Balance Sheet
 Crossword Puzzles for Balance Sheet
Common-Size Balance Sheet
One technique in financial statement analysis is known as vertical analysis.
Vertical analysis results in common-size financial statements. A common-size
balance sheet is a balance sheet where every dollar amount has been restated
to be a percentage of total assets. We will illustrate this by taking Example
Company's balance sheet (shown above) and divide each item by the total asset
amount $770,000. The result is the following common-size balance sheet for
Example Company:
The benefit of a common-size balance sheet is that an item can be compared to
a similar item of another company regardless of the size of the companies. A
company can also compare its percentages to the industry's average
percentages. For example, a company with Inventory at 4.0% of total assets can
look to its industry statistics to see if its percentage is reasonable. (Industry
percentages might be available from an industry association, library reference
desks, and from bankers. Many banks have memberships in Risk Management
Association (RMA), an organization that collects and distributes statistics by
industry.) A common-size balance sheet also allows two businesspersons to
compare the magnitude of a balance sheet item without either one revealing the
actual dollar amounts.

Financial Ratios Based on the Balance

Sheet
Financial statement analysis includes financial ratios. Here are three financial
ratios that are based solely on current asset and current liability amounts
appearing on a company's balance sheet:
Four financial ratios relate balance sheet amounts for Accounts
Receivable and Inventory to income statement amounts. To illustrate these
financial ratios we will use the following income statement information:

To learn more about the income statement, go to:

 Explanation of Income Statement

 Quiz for Income Statement
 Crossword Puzzle for Income Statement
The next financial ratio involves the relationship between two amounts from the
balance sheet: total liabilities and total stockholders' equity:
General Discussion of Income
Statement
The income statement has some limitations since it reflects accounting
principles. For example, a company's depreciation expense is based on the cost
of the assets it has acquired and is using in its business. The resulting
depreciation expense may not be a good indicator of the economic value of the
asset being used up. To illustrate this point let's assume that a company's
buildings and equipment have been fully depreciated and therefore there will be
no depreciation expense for those buildings and equipment on its income
statement. Is zero expense a good indicator of the cost of using those buildings
and equipment? Compare that situation to a company with new buildings and
equipment where there will be large amounts of depreciation expense.

The remainder of our explanation of financial ratios and financial statement

analysis will use information from the following income statement:
To learn more about the income statement, go to:

 Explanation of Income Statement

 Quiz for Income Statement
 Crossword Puzzle for Income Statement

Common-Size Income Statement

Financial statement analysis includes a technique known as vertical analysis.
Vertical analysis results in common-size financial statements. A common-size
income statement presents all of the income statement amounts as a
percentage of net sales. Below is Example Corporation's common-size income
statement after each item from the income statement above was divided by the
net sales of $500,000:
The percentages shown for Example Corporation can be compared to other
companies and to the industry averages. Industry averages can be obtained from
trade associations, bankers, and library reference desks. If a company competes
with a company whose stock is publicly traded, another source of information is
that company's "Management's Discussion and Analysis of Financial Condition
and Results of Operations" contained in its annual report to the Securities and
Exchange Commission (SEC). This annual report is the SEC Form 10-K and is
usually accessible under the "Investor Relations" tab on the corporation's
website.
Financial Ratios Based on the Income
Statement
Statement of Cash Flows
The statement of cash flows is a relatively new financial statement in
comparison to the income statement or the balance sheet. This may explain why
there are not as many well-established financial ratios associated with the
statement of cash flows.

We will use the following cash flow statement for Example Corporation to
illustrate a limited financial statement analysis:
The cash flow from operating activities section of the statement of cash flows is
also used by some analysts to assess the quality of a company's earnings. For a
company's earnings to be of "quality" the amount of cash flow from operating
activities must be consistently greater than the company's net income. The
reason is that under accrual accounting, various estimates and assumptions are
made regarding both revenues and expenses. When it comes to cash, however,
the money is either in the bank or it isn't.

What Can The Statement of Cash

Flows Tell Us?
Because the income statement is prepared under the accrual basis of
accounting, the revenues reported may not have been collected. Similarly, the
expenses reported on the income statement might not have been paid. You could
review the balance sheet changes to determine the facts, but the cash flow
statement already has integrated all that information. As a result, savvy
business people and investors utilize this important financial statement.

Here are a few ways the statement of cash flows is used.

1. The cash from operating activities is compared to the company's net income. If
the cash from operating activities is consistently greater than the net income, the
company's net income or earnings are said to be of a "high quality". If the cash
from operating activities is less than net income, a red flag is raised as to why
the reported net income is not turning into cash.
2. Some investors believe that "cash is king". The cash flow statement identifies the
cash that is flowing in and out of the company. If a company is consistently
generating more cash than it is using, the company will be able to increase its
dividend, buy back some of its stock, reduce debt, or acquire another company.
All of these are perceived to be good for stockholder value.
3. Some financial models are based upon cash flow.