Ethiopia’s giant bank expects profit from Juba branch

By Tesfa-alem Tekle

August 22, 2009 (ADDIS ABABA) — Despite the difficult situation of some banks in the semi-autonomous southern Sudanese region, the commercial bank of Ethiopia (CBE), says that it is optimist that its recently opened bank in juba will meet profit.

The state-owned commercial bank of Ethiopia’s remarks comes after concerns that the foreign based bank could end up in bankruptcy like the south Sudan Nile Commercial Bank.

The Nile commercial bank (NCB) in Juba is reportedly been shut down after it run out of cash to meet its obligations. For its closure, the Bank officials have blamed senior government officials who borrowed huge amount of money but failed to repay.

But despite the concerns, the Ethiopian commercial bank’s business and development director, Habtu Dimtsu has played it down saying “Our branch bank in Juba was not opened on empty trial bases.”

“We have made a deep feasibility study ahead of the move.”

“We expect a considerable out come in the coming two years” Habtu said adding, “one’s bank failure doesn’t necessarily implicate a similar fate to another.”

Named as CBE-southern Sudan limited, the branch bank, with an initial capital of 15 million Dollars, expects to generate 100 million dollars revenue in the upcoming two years. CBE’s south Sudan Branch is the first to operate outside Ethiopia after Djibouti branch was closed in 2004.

Last week the giant bank announced an all time high net profit of 1.9 Billion Birr. Following the profits it has also granted two-scale pay rise to it’s over 8000 employees working in 208 branches across the country.

(ST)