Enat Bank Annual Report For 2020 2021 FY Compressed 1

Annual Report
2020/21
Headquarter Building
Design
ራዕይ
በዋናነት የሴቶችን ኤኮኖሚ አቅም
በማገዝ በ2021 ዓ.ም. በኢትዮጵያ
ተመራጭ ባንክ መሆን፡፡
ተልዕኮ
ለስማችን ታማኝ በመሆን
ቴክኖሎጂን፤ ፈጠራንና ባለሙያ
ሠራተኞችን በመጠቀም በተለይም
በሴቶች ኢኮኖሚያዊ ፍላጎት ላይ
በማተኮር ጥራት ያለውና አካታች
የባንክ አገልግሎት በማበርከት
የባንኩን ባለአክሲዮኖች ዕሴት
ማሣደግ፡፡
ዕሴቶች
ለሥራ መሠጠት
ተግባቦተ
ወገንተኛ አለመሆን
ሐቀኝነት
ለሠራተኛ አሳቢነት
ለዕውቀት መትጋት
በቡድን መስራት
ሙያዊ ብቃት
Vision
To become a bank of choice in Ethiopia by 2030 mainly by maximising women’s economic
capabilities.
Mission
To remain true to our name , set a trend in the provision of excellent and inclusive banking
services mainly by focusing on women’s economic needs and taking advantage of the state-
of- art technology, innovation and professional workforce with the aim of maximising the
value of shareholders.
Core Values
Dedication
Approachable
Impartiality
Integrity
Teamwork
Professionalism
4 Annual Report 2020/21
Contents
Messsage from Chairperson of the Board of Directors 6
Messsage from the President 9
Major Financial Performance Highlights 12
Information Technology Development 13
Corporate Citizenship 13
Sponsorship Events 14
Promotion Activities and other Events 14
Investment Financing 16
Women Banking Solutions 17
Financial Performance 19
Auditors’ Report 22-74
የቦርድ ሰብሳቢ መልዕክት 78
የባንኩ ፕሬዚዳንት መልዕክት 80
የሴቶች የባንክ አገልግሎት 82
የሃብት እና ዕዳ መግለጫ 87
የትርፍ እና ኪሳራ መግለጫ 88
Annual Report 2020/21 5
PROMOTERS
Front: left to right Back: left to right

Sara Abera
Amelework Gidey
Meaza Ashenafi
Nigest Haile
Hadia M.Gonji
Askale Benti
Aster Solomon
Mekiya Mamiyu
Almaz Tseham
Hirut Alamerew
Rahel Zewdie
MESSAGE FROM BOARD OF

DIRECTORS CHAIRPERSON
Dear Shareholders:
I
am honoured to present the annual report
of the 2020/21 fiscal year to my fellow
esteemed shareholders. Although we began
the year with heightened hope and passion,
the global and domestic economic situations
were hardly encouraging to do business.
The covid-19 pandemic and resultant global

economic recession have posed their full
impact in the year of 2020/21. The hospitality
industries and tourism were one of the sectors
hit hard by the pandemic. As a result loans
disbursed to the adversely impacted sectors
were destined for failure. However, thanks to
the discovery of the vaccination and rise of
awareness among the people, businesses have
begun to recover in the last fiscal year.
Incidentally, the demand for goods has

increased globally during the lockdowns which
gave a boost to export of commodities like
coffee and sesame. This gave the opportunity
to generate high foreign currency nationwide.
As a result our Bank has been able to generate
more foreign currency than ever before.
The sad event of the conflict in Northern part

of Ethiopia has created another unwelcome
challenge to our business. These conflict and
resultant war has entailed loss of resources
and has also affected our bank by de-
operationalizing eight branches in Tigray
Regional state.
Despite the unfavourable internal and external

situations, the banking sector at large and Enat
Bank in particular has registered commendable
results both in terms of resource mobilisation, My dear fellow shareholders: The biggest
lending and branch expansion as well as challenge of the future is the imperative to
profitability. grow the paid-up capital of the Bank to 5 billion
within the next five years. I humbly urge you all
During the last quarter of the year, the Board to settle your subscribed amount and buy more
took major steps to restructure the Bank and shares so that the capital basis of our bank
assign a new, CEO and three new vice presidents. will be positioned on a solid ground. This will
In particular, the decision to reorganize the obviously save us from subsequent merger or
Information Technology Department at a Vice acquisition in case we fail to fulfil the required
President level, and assignment of a new Vice threshold of capital at the end of the deadline
President to Information System Development set by the National Bank of Ethiopia.
was a breakthrough. This assignment was made
in consideration of the need to spearhead Finally, I would like to thank the management
the technological business processes in the and employees of the Bank for the improved
banking industry. accomplishments. I also would like to extend
my thanks to our valued customers without
It is crystal clear that, external and internal whom these achievements would not have
challenges will continue to be tough. been possible. I also thank the National
Competition of existing and incoming Bank of Ethiopia for their cherished guidance
banks will also be a continual competitive throughout the year.
challenge. I, as a Board Chairperson, would
like to assure my confidence in the young and
creative leadership the Board put in place,
the commitment of the Board of directors, to
withstand the competition and thrive through
external shocks to make our Enat Bank
successful.
Frehiwot Worku
BOARD OF DIRECTORS
Ato Habtu Dimtsu Wro Shitaye Hussien

Deputy Chairperson
Wro Frehiwot Worku
Chairperson
Wro Yergedu Begashaw Ato Ayenew Wudu
Wro Roman Legesse

Wro Addis Zelekaw
Ass.Prof. Tewodro Wuhib Ato Eyobed Tibebu
Wro Nigist W/Selassie Ato Itana Ayana

MESSAGE FROM PRESIDENT

OF THE BANK
Dear Shareholders:
T
he 2020/21 year was under the heavy
burden of the hangover of the global
pandemic and a global recession. With
increased awareness to protect oneself against
the pandemic and the advent of vaccination,
however, the economies have begun to
recuperate. Following the effect of covid-19
the consumption of goods increased and, thus,
so did the export of primary commodities.
This helped our Bank to get a better slice of

the total foreign currency earned nationwide;
in fact the best ever since it went operational.
The number of our physical outlets reached 88

by opening an additional 31 branches in the
fiscal year. The big challenge that often halted
our progress in expanding physical outlets is
the unbearable high rent of buildings and
associated branch opening costs. We have,
thus, strategized to locate our branches in
small spaces and support them with electronic
banking.
Despite political and economic odds, deposit

mobilised from more than 180 thousand
different savers through our 88 branches
reached Birr 11.2 billion at the end of the year.
All the while maintaining credit discipline and a
fortress balance sheet, total loan and advances
granted to different borrowers amounted to
Birr 9 billion. Better result would have been
achieved, had it not been to the instability
in the northern part of the country which
completely cut us off from our eight branches
in the Tigray region.
We earned profit before tax of Birr 289 million, Finally, it is worthwhile to mention and thank
reflecting strong underlying performance our employees whose contribution is so
growth of 21% over the same period last fiscal immense, our esteemed customers whose
year by generating total revenue of 1.65 billion. loyalty and tenacity is so great to help us
The total expense, including interest expense, maintain our resilience in times of difficulties; I
paid on deposits stood at 1.32 billion with a also would like to thank you, our shareholders
26% profit margin before tax. as it is your trust in us that made Enat Bank a
reality and growing entity.
We generally worked towards growing our
market share by making continued efforts to Thank you
sell our services to new and existing customers
by deepening and expanding our reache
through investment in people and technology.
Ermias Andargie
MANAGEMENT TEAM
Ato Ermias Andarge Wro Tigist Abate Wro Genet Hagos Ato Tefera Tolessa
President VP. Operations VP. Corporate Sevices VP. Information System
Wro Bealemlay Ayenew Wro Aklil Girma Ato Belay Gezahegn Wro Lelise Temesgen Wro Lealem Getachew
Dir. Branch Operation & Dir. Marketing, Dir. Strategy and Dir. Credit Dir. Women Banking
Resouce Mobilization Dep’t Communications & Innovation Dep’t Management Dep’t Solution Dep’t
Customer Service Dep’t
Ato Tefera Gimbi Ato Haile Atfaye Wro Elizabeth Bedane Ato Melese Gizaw
Chief Information Dir HRM & SS A/Chief Audit Executive Dir. Risk &
Officer Dep’t Compliance Dep’t
Ato Henok Yilma Wrt Tadelech Shiferaw Ato Feyisa Tarekegn Ato Biruk Melaku
Dir. Finance Dir. International A/Dir. Legal Executive Assistant
& Accounts Dep’t Banking Dep’t Services Dep’t to the EMT
Highlights of Financial Performance (in million ETB)

Highlights
Highlights of Financial Performance
of Financial (in million
Performance (in millionETB)ETB)
Highlights
Highlights of Financial Performance (in million
of Financial Performance (in millionTotal
Total ETB)
Assets ETB)
Assets
■ TotalTotal
Deposits
Total Deposits
Total Deposits
Deposits
■ Total Assets
Total Assets
Total Assets 14,623 14,623
Total Deposits 14,623
11,237 11,237 14,623
11,237 11,166 11,166
11,237
8,346 8,346 11,166
7,118 7,118 11,166
9,201 9,201
8,346 9,201
8,346
7,118 9,201
7,118
4,976 4,976 6,482 6,482
3,762 3,762 4,875 4,875 6,482
4,976 6,482
4,976 4,875
3,762 4,875
3,762
FY FY FY FY FY FY FY FY FY FY
2016/17 2017/18 2018/19 2019/20 2020/21 FY FY FY FY FY FY FY FY FY FY
2016/17
FY 2017/18
FY 2018/19
FY 2019/20
FY 2020/21
FY
FY FY FY FY FY 2016/17 FY2017/18
2016/17 FY2018/19
2017/18 FY2019/20
2018/19 FY2020/21
2019/20 2020/21
FY
2016/17 2017/18 2018/19 2019/20 2020/21 FY FY FY FY FY
2016/17 2017/18 2018/19 2019/20 2020/21 2016/17 2017/18 2018/19 2019/20 2020/21
2016/17 2017/18 2018/19 2019/20 2020/21
Total Income
Total Income Total Expense
Total Expense
Total Income
■ Total Income
Total Income 1,655 1,655
Total■Expense
TotalExpense
Total Expense 1,366 1,366
1,655 1,655 1,366 1,366
1,328 1,328 1,088 1,088
1,328 1,328 1,088 1,088
983 983 751 751
750 983
750983 751
534 534 751
520 750
520750 374 534
374534
520 520
374 374
FY FY FY FY FY FY FY FY FY FY
2016/17 2017/18 2018/19 2019/20 2020/21 FY FY FY FY FY FY FY FY FY FY
Annual Report 2020/21
FY FY
FY 2016/17FY 2017/18 FY
FY 2018/19 FY
FY 2019/20 FY
FY 2020/21 2016/17 FY2017/18 FY2018/19 FY2019/20 FY2020/21 FY
2016/17
2016/17 2017/18
2017/18 2018/19
2018/19 2019/20
2019/20 2020/21
2020/21 FY 2016/17FY 2017/18FY 2018/19FY 2019/20FY 2020/21
2016/17
2016/17 2017/18
2017/18 2018/19
2018/19 2019/20
2019/20 2020/21
2020/21
Total Loans
Total Loans and Advances
and Advances
Total Loans and Advances Paid upPaid up
upcapital
capital
Paid capital
■ Total Loans and Advances 8,9658,965
8,965 ■ Paid up capital 1,5431,543
1,543
1,3801,380
1,380
1193 1193
1193
6,4266,426
6,426
971 971
971
5,0935,093
5,093
764 764
764
3,3133,313
3,313
2,4502,450
2,450
FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY
2016/17
2016/17 2017/18
2017/18
2016/17 2018/19
2018/19
2017/18 2019/20
2019/20
2018/19 2020/21
2020/21
2019/20 2020/21 2016/17
2016/17
2016/17 2017/18
2017/18
2017/18 2018/19
2018/19
2018/19 2019/20
2019/20
2019/20 2020/21
2020/21
2020/21
■ Staff
StaffStrength
Staff
StaffStrength
Strength (in
((in
( in Number)
Strength Number)
inNumber)
Number) 800 800
800 Net■profit
Net
Net Profit
Netprofit
before
profit Taxbefore
before
beforeTax
Tax Tax 289 289
289
240 240
240
653 653
653 231 231
231
216 216
216
540 540
540
468 468
468
402 402
402 146 146
146
FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY
2016/17
2016/17
2016/17 2017/18
2017/18 2018/19
2018/19
2017/18 2019/20
2019/20
2018/19 2020/21
2020/21
2019/20 2020/21 2016/17
2016/17
2016/17 2017/18
2017/18 2018/19
2018/19
2017/18 2019/20
2019/20
2018/19 2020/21
2020/21
2019/20 2020/21
Enat Bank Annual Report For the Year 2017/18

Enat Bank Annual Report For the Year 2017/18
I. Information Technology Development in customer services. To this end, we

have currently integrated our system with
Banking has become more dynamic than earlier Telebirr that facilitate diverse payments and
times because of information technology. transactions. An accountholder at Enat Bank
The occurrence of virtual banking has taken can buy airtime, send money and receive
banking service delivery to unimaginable payment as well as withdraw cash from her/his
higher level. Because of the advent of such Telebirr account.
service delivery, customers don’t need to go to
physical branches. ‘Anywhere anytime’ online Moreover, the link to Guzo Go has already been
banking is the driving force of the current completed. This integration assists customers
banking business and competition among to buy air ticket online with just clicks on their
commercial banks, Fintechs and others. mobile or computers. It is times saving and
economical.
In an effort to cop up with customer demands
and business requirements, our BankAnnual Report 2020/21
hasAnnual Report 2020/21
Tele-bill payment is another value added
identified value added services that need service that is integrated to our system to help
technological support to enhance excellence our customers pay tele bills through our Bank.
________________________________________________________________________________________
II. CORPORATE CITIZENSHIP
Most people think corporate responsibility

to be merely enhanced philanthropy. This
is understandable. But it is far harder
to understand what being a responsible
community citizen means in terms of macro
corporate responsibility. While we are devoted
to philanthropy – we spent a year on these
efforts-corporate is far more than that we
are fully engaged in trying to solve financial ü § Donated
Donated Birr. 5150 sheep
million for for 150 Lehager
Gebeta low
problems of women and other issues income mothers and Br. 50,000
Project for constructing and beautifying
recreational
each forcentres
threeat Gorgora,; Wonchi,
humanitarian
Based on our strong commitment for social Donated
§ and organizations on Easter Holiday low
Koisha. 150 sheep for 150
responsibilities, we made more than Birr 10 income mothers
and Mother’s day. and Br. 50,000
million financial and material supports for ü Donated 150 sheep for 150 low income
each for three humanitarian
different community groups. mothers and Br. 50,000 each for three
organizations
humanitarian on EasteronHoliday
organizations Easter
Made Birr one
ü million to Addis Ababa and Mother’s
Holiday day.
and Mother’s day.
City students on the event organized
under the motto of ‘One Shoe for One
Student’ organized by the Addis Ababa City
Administration.
§ Donated for Fana Hulegeb

Akalgudategnoch Mahiber
thatworks on the rights of people
with disabilities and creates an

ü Donated Fana Hulegeb Akal gudategnoch
Mahiber thatworks on the rights of people
with disabilities and creates an inclusive
III. Majorenvironment
Sponsorship Events
for disabled persons. The
Bank provided
The sponsorship the financial support
participation to the
described
association on International Day of Persons
with Disabilities.
below increased the brand awareness of the
Bank, and improved the Bank’s image.
§ We sponsored the 18th edition of the

▪ The Bank sponsored Tikur Fert program,
Women only 5km race which was which is a fashion designers’ competition
TV show transmitted weekly on Sunday
organized by The Ethiopian Great Run morning on Fana TV.
and Addis Ababa women saving and IV. Major Promotional Activities & other
Credit Cooperative. The Bank aims to events
III. Major Sponsorship Events
work with the association, especially 1. Marketing campaign
withThe sponsorship
the more thanparticipation
400,000 described
membersbelowof
To create brand visibility and promote
increased the brand awareness of the Bank,
the and improved
Addis the Bank’s
Ababa Womenimage. Association. Enat Bank products & services, the Bank
conducted teaser advertising campaign in
The ▪ Bank also sponsored
We sponsored an event
the 18th edition of collaboration with Medon Marketing plc
the Women only 5km race which was for 45 consecutive days. The campaign was
prepared by Kirkos
organized sub city
by The Ethiopian Education
Great Run and executed using Billboard Ad post, TV ad,
Addis sales person and social media engagements.
Bureau to Ababa women saving
recognize and Credit
students that The sales person activities were conducted
Cooperative. The Bank aims to work with
scoredthehigh resultsespecially
association, in thewith
8ththe&more12th into two phase in twenty selected high
than 400,000 members of the Addis human traffic sites in Addis Ababa. The
gradesAbaba
national exam, teachers
Women Association. and
The Bank also campaign improved the brand awareness &
sponsored an event prepared by Kirkos visibility of the Bank effectively.
staff. sub city Education Bureau to recognize
students that scored high results in the 8th 2. Enat Bank was awarded Arayasew Award
& 12th grades national exam, teachers and
staff. Enat Bank was given high recognition and
an award on the 6th ARAYA SEW AWARD
event. The main reason for nominating
the Bank for the award was because of
the initiative it took to name its branches
after honorable women who have made a
significant contribution to our country.
3. Farewell 5. Brand Ambassadors Event
A farewell dinner was held for the former Brand ambassadors event was conducted
members of the Board and Ex-president, to enhance Enat Bank’s image, brand and to
Ato Wondwosen Teshome, on July 22, 2021 promote its services. The event was held after
at Radisson Blu Hotel. Warm recognition selecting a number of well-respected women
was given at the farewell event for the engaged in the arts, business, and various
Annual Report 2020/21 professions to be Brand Ambassadors of the
contribution they made to the Bank during
their stay. Bank. It took place on April 13, 2021 at the
III. Major Sponsorship Events Hayat Regency Hotel.
The sponsorship participation described
below increased the brand awareness of the
Bank, and improved the Bank’s image.
§ We sponsored the 18th edition of the

Women only 5km race which was
organized by The Ethiopian Great Run
and Addis Ababa women saving and
Credit Cooperative. The Bank aims to
work with the association, especially 6. Headquarter Building Architectural Design
4. Annual Management Meeting
with the more than 400,000 members of Competition Award Ceremony
The
the AddisBank made
Ababa its annual
Women performance
Association.
meeting of 2020/21 FY and work plan The winner of the Bank’s future head office
The Bank also sponsored an event
for the next fiscal year in the presence of building architectural design was selected on
prepared by Kirkos Management,
all Executive sub city Education
Department March 13, 2021 at the Sheraton Addis Hotel.
Directors,
Bureau Division Managers
to recognize students and
that Branch Out of the 13 competing architectural designs,
Managers.
scored The event
high results in thewas
8thheld
& 12onthJuly 23, the winning design has 35 floors and 140
2021 at the Jupiter International Hotel in meters height.
grades national exam, teachers and
Addis Ababa.
staff.
architectural designs, the winning design
Mercy Corps and EIS Plc on May 10,
has 35 floors and 140 meters height.
16 2021 at Report
Annual the 2020/21
Bank’s Head Office. The
three parties will collaborate on
1. Double A Garment Factory
empowering young people and women,
Double A Garment Factory is one of those
and create private sector engagement
firms financed by the Bank. Woy Almaz
through connecting service users with founder & Managing Director of
Ezezew,
al Double A Garment, attested that had it not
home service providers through abeen digital
for Enat Bank’s financing her dream
y wouldn’t have come to reality. She explained
platform. In addition, the Bank also
that the Bank provided finance for purchase of
e signed MOU with Aim View. big textile machineries and equipment’s, raw
7. Enat Bank signed MOU materials (textile and other products), working
d capital & all the necessary support starting
s ▪ Enat bank signed a tripartite memorandum from nurturing the business idea until the
of understanding with Mercy Corps and EIS factory started production. The firm produces
g Plc on May 10, 2021 at the Bank’s Head different types of jeans for international market
Office. The three parties will collaborate to especially to the USA and sport wears like
. ___________________________________________________________________________________
n empower young people and women, and T-shirt, Polo Shirt, Long sleeve Shirt & Short for
create private sector engagement through both international & local markets.
connecting service users with home service
providers through a digital platform. In Presently, the firm has created job opportunity
addition, the Bank also signed MOU with for more than 80 persons out of which 95%
Aim View. are females. The jeans are new products for the
Ethiopian market that substitutes the imported
ones. When the firm operates at full scale in
the coming three years it will bring multiple
benefits for the country; like generating large
amount of foreign currency from the exported
Enat Bank Annual Report For the Year 2020/21 wears and helping to minimize the outflow of
foreign currency that could be spent to import
jeans.
V. Investment Financing
Enat Bank has been financing different types

of investments that range from medium scale
to large investments. These investments have
created job opportunities, generate foreign
currency and minimize the outflow of foreign
currency by producing import substitute
______________________________________________
products for local consumption. 2. Rich Land Biochemical Production PLC
Rich Land Biochemical Production PLC is

established for the purpose of engaging in the
production of biochemical and agro-processing
products. Rich Land’s first processing plant, must understand that there are caring people
located in Bure Industry Park (411 km from who volunteered to give away their money to
Addis Ababa) is on 21 hectares of land and serve as collateral fund. Loans to women under
projected to produce 96,000 metric tons of this scheme have never been granted on clean
soybean meal, 140,000 metric tons of starch, basis. It should be known that wilful default
22.5 million liters of edible oil, and 62,000 would mean to take money from someone
metric tons of animal feed annually. who takes part in this scheme to help women.
Moreover our shareholders that include

women shareholders with different income
profile have also been volunteering 3-5% of
their dividend every year. In other words, we
are implicitly taking away money from poor
women shareholders and securing the loan
granted to other poor women.
VI. WOMEN BANKING SOLUTIONS EXEMPLARY WOMEN

1. Sewasew Hailu
VI. WOMEN BANKING SOLUTIONS
Designer Sewasew Hailu is the founder and
The collateral fund scheme owner of Sewasew Design. She had a passion
for fashion design since childhood and entered
The basic objective of women banking solution fashion design in 2004. To make her dream
in general and the collateral fund scheme in come true, she made a small part of her yard
particular is to assist active and entrepreneur and joined the fashion industry using a sewing
women who have the ability and passion to machine.
have business of their own. The collateral
scheme fund mobilisation is started with the At the start, she and only a tailor were doing
objective of helping women that have the all the tasks as she explained. Later, she did
capacity, seed capital, capability and credit expand her business by employing two more
worthiness and lack collateral to have access weavers and renting a shop. As she became
to finance. It was designed in such a way to popular, she began to design different clothes
protect the Bank from loss emanating from for various celebrities, artists, and models.
unexpected default and facilitate access to Her design works mainly focus on promoting
finance for women eligible for loan but do not Ethiopian traditional clothing to the world in
have tangible collateral to offer to secure the blend with modern design. Sewasew has taken
loan. part in various local, international fashion
shows and used the platform to promote
There is a misrepresentation of facts about Ethiopian traditional clothing.
the collateral fund supported loan granted to
women that are covered under this scheme. It was unfortunate that her workshop was
Some women take it as aid and do not want demolished because of a new construction
to repay in accordance with their payment at the time when she got on the track. This
schedule. Still some think that it is a clean loan resulted in the closure of her shop. Meanwhile,
without collateral coverage. However, women because of space constraints and lack of funds,
under this scheme and customers in general she stopped working for a number of years
and lost everything at once. Her situation put 2. Helen Timmer

her in a very difficult position and affected her
personal life. The Government gave her a work Helen Timmer started a retail store in 2003,
place with a precondition that the workshop has and changed her business brand to Hela Sweet
to be functional on on-going basis. However, and Cookies in 2008. she had created an
she found it challenging to restart her previous employment opportunity to two employees
business because of the precondition posed with a capital of Birr 150,000. Helen heard
by the government as she was not confident about Enat Bank’s credit services from her
about her business sustainability because of brother and applied for a loan.
lack of working capital.
Then, Enat Bank granted her the loan that
All the while she was thinking how to resolve she applied for. It helped her to buy a baking
her working capital problem when it briskly equipment and variety of inputs. She started
came to her mind that she had to approach making bread in addition to cookies and now
Enat Bank as the last resort. Then she did it and has seven employees. Her sell is about 150-
managed to borrow some amount from Enat 200 kg of cookies per week to Supermarkets,
bank that assisted her to continue her business Cafeterias, and retail stores. Currently her
and be confident that the Government would capital has showed growth of 100% from Birr
not take her land again. 150,000 to 300,000. In addition to what she
currently offers to the market, Helen has a plan
The loan has helped her to grow her business to launch a cake supply and a variety of other
to a higher level. She now created employment desserts•
opportunity to 15 workers and increased her
capital to ETB 400 thousand. A her business
scale is growing she is looking forward to
joining the international market•
3. Emebet Solomon
Emebet Solomon entered the business world

in 1997/98 by selling used furniture with a
capital of Birr 200,000.
It was unfortunate that her first business

was unprofitable. Then, she converted it to a
restaurant. As there was no another competent
restaurant that serves traditional food and
a cultural night in the area she changed the VI. FINANCIAL PERFORMANCES
business by fully decorating it with traditional
Ethiopian objects and images and by including 1. DEPOSIT
a traditional dance performance.
Outstanding deposit amounted to Birr 11.2
billion at the end of June 30, 2021 with a
She has created jobs for 7 women and 3 men,
growth of Birr 2.9 billion or 35% compared
and provides food and shelter for her staff.
with last year same period. The steady growth
Woy Emebet has been able to increase her
of deposit mobilization has given assurance for
daily sales from Birr 2,000 to 10,000 Birr,
the maintenance of liquidity and enhancement
and increased her capital from 200,000 to 1
of profitability.
million birr through the use of special women’s
loans. In addition, she bought Toyota Corolla
Automobile. The advent of Covid 19 has taken 2. LOANS AND ADVANCES
a heavy toll on her business, but she was able The outstanding loans and advances stood at
to continue her business and is still profitable. Birr 8.97 billion, increasing by Birr 2.5 billion
or 40% at the end of June 30, 2021. The Bank
She said “Enat Bank is doing a great job of managed to maintain the quality of the loan
empowering women who are economically portfolio below the National Bank standard.
disadvantaged. I hope that just as the Bank
has benefited me and my business, it will reach 3. REVENUE
many more women who are looking forward
The revenue structure of the Bank depicts that
to this opportunity, and this idea will always
78% came from interest income indicates the
motivate me to pay my debts on time,” she
sustainability of the revenue source to enhance
said. Although the income from my work goes
the profitability of the Bank.
up and down, I know that another woman is
waiting for her turn to benefit from the scheme
and I think if I pay my debts on time, someone
4. PROFIT
will benefit soon.• Profit before tax reached Birr 289 million at the
end of June 2021. It grew by 20% as compared
with the same period of last fiscal year.
5. GROWTH OF EQUITY
Owners’ equity stood at Birr 1.5 billion at

the end of the reporting period. The balance
exhibited yearly growth of 12%. Total number
of shareholders approached 18,000. Women
shareholders represented 64% of the total
shareholders’ in the reporting period.
AUDITOR’S
REPORT
Enat Bank Share Company

IFRS
EnatFinancial
Bank Share Statements
Company
IFRS financial statements
For
Forthe Period
the period Ended
ended 30 2021
30 June June 2021
Corporate information
Corporate information
Company registration number

KK/AA/3/0006590/2006 E.C (Ethiopian Calender)
License number
LBB/019/12 G.C (Gregorian Calender)
Directors (As of 30 June 2021)
Frehiwot Worku Beyene Board of Director ( Chair Person) (Appointed May 2021)
Habtu Dimsu Werese Board of Director ( Vice Chair Person) (Appointed January 2018)
Addis Zelekaw Belete Board of Director (Member) (Appointed May 2021)
Nigist W/selassie W/kiros Board of Director (Member) (Appointed May 2021)
Aynew Wudu Azagew Board of Director (Member) (Appointed May 2021)
Eyobed Tibebu Lisanework Board of Director (Member) (Appointed January 2018)
Yirgedu Begashaw Habteyes Board of Director (Member) (Appointed May 2021)
Itana Ayana Leta Board of Director (Member) (Appointed January 2018)
Roman Legesse W/Gebreal Board of Director (Member) (Appointed January 2018)
Shitaye Hussien Ahmed Board of Director (Member) (Appointed January 2018)
Tewodros Wuhib W/mariam Board of Director (Member) (Appointed May 2021)
Executive management (As of 30 June 2021 )
Ermias Andarge Ayele President (Appointed January 2021)

Tigist Abate Damte Vice President, Operation (Appointed February 2021)
Genet Hagos Gebremedhin Vice President, Corporate Service (Appointed February 2021)
Tefera Tolessa Wakjira Vice President, Information System (Appointed July 2021)
Lealem Getachew Fikre Director, Wommen Baking Solution Department (Appointed January 2013)
Tefera Gimbi Debele Chief Information Officer (Appointed November 2020)
Lelise Temesgen Tucho Director,Credit Department (Appointed September 2012)
Melese Gizaw Desta Director, Risk & Compliance Department (Appointed September 2012)
Feyessa Tarekegne Gerbaba A/Director, Legal Services Department (Appointed May 2019 )
Haile Atfaye Ayele Director, Human Resource & Support Services Department (Appointed May 2014)
Elizabeth Bedane Guraro A/Director, Internal Audit Department (Appointed February 2021)
Belay Gezahegn Demeke Director, Strategy & Innovation Department (Appointed May 2015)
Henok Yilma Haileselassie Director, Finance and Accounts Department (Appointed May 2015)
Bealemlay Ayenew Feyissa Director, Branch Operation & Resource Mobilization Department (Appointed November 2020)
Aklil Girma T/Yohannes Director, Marketing Communications & Customer Service Department (Appointed November 2020)
Biruk Melaku Andualem Executive Assistant to EMT (Appointed November 2020)
Independent auditor
Tafesse, Shisema and Ayalew Certified Audit Partnership (TMS Plus)
Chartered Certified Accountants (UK)
PO Box 110690
Addis Ababa
Ethiopia
Corporate office
Kirkos sub-city,Woreda 08,Around Bambiss Bridge
P O Box 18401
Addis Ababa, Ethiopia
IFRS Financial Statements
For
Forthe Periodended
the period Ended 30 June
30 June 20212021
Report
Report of thedirectors
of the directors
The directors submit their report together with the financial statements for the period ended 30 June 2021, to
the members of Enat Bank (" the Bank"). This report discloses the financial performance and state of affairs of
the Bank.
Incorporation and address

Enat Bank was incorporated in Ethiopia in 2011 by eleven visionary Ethiopian women who envisioned of
creating a fully-fledged commercial bank with a special focus on women banking needs.
Principal activities
The mandate of the Bank is to provide banking services for all, with a special focus of faciltating greater access
to and use of financial services for women, and creating values for shareholders. The bank's inclusive business
model initiative involves women entrepreneurs in order to expand economic opportunities while creating value
for Ethiopia’s businesses, and society in general.
Results and dividends

The Bank's results for the year ended 30 June 2021 are set out on page 27. The profit for the year has been
transferred to retained earnings. The summarised results are presented below.
30 June 2021 30 June 2020

Birr'000 Birr'000
Net interest income 420,468 391,017
Profit / (loss) before tax 289,403 239,555
Tax (charge) / credit (59,702) (30,987)
Profit / (loss) for the year 229,700 208,569
Other comprehensive profit / (loss) net of taxes 492 6,779
Total comprehensive profit / (loss) for the year 230,192 215,348
Directors
The directors who held office during the year and to the date of this report are set out on page 22.
24IFRS financial
Annual Reportstatements
2020/21
For the period ended 30 June 2021
Enat BankofShare
Statement directors'Company
responsibilities
For
Forthe
(NBE) the Period
In accordance
may period
Ended
with the Banking 30
direct theended 30 June
Bank to prepare
June
Business 2021
Proclamation
2021
financial
No. 1159/2019, the National Bank of Ethiopia
statements in accordance with international financial
Statement
Statement
statements ofofdirectors’
directors'
standards, responsibilities
responsibilities
whether their designation changes or they are replaced, from time to time.
The Bank's president is responsible for the preparation and fair presentation of these financial
statements
In in conformity
accordance with accounting
with the Banking Business principles generally
Proclamation accepted in
No. 1159/2019, theEthiopia
Nationaland in the
Bank manner
of Ethiopia
required by the Commercial Code of Ethiopia of 2021, and for such internal control as management
(NBE) may direct the Bank to prepare financial statements in accordance with international financial
determines standards,
statements is necessary to enable
whether theirthe preparation
designation of financial
changes or theystatements that
are replaced, aretime
from free to
from material
time.
misstatement, whether due to fraud or error. The Bank is required keep such records as are necessary
to: Bank's president is responsible for the preparation and fair presentation of these financial
The
statements in conformity with accounting principles generally accepted in Ethiopia and in the manner
required by the Commercial Code of Ethiopia of 2021, and for such internal control as management
determines
a) exhibitisclearly
necessary to enablethe
and correctly the preparation
state of financial statements that are free from material
of its affairs;
misstatement, whether due to fraud or error. The Bank is required keep such records as are necessary
to: explain its transactions and financial position; and
b)
c) enable the National Bank to determine whether the Bank had complied with the provisions of the
a) exhibit clearly
Banking and Proclamation
Business correctly the state of its affairs;and directives issued for the implementation the
and regulations
aforementioned Proclamation.
b) explain its transactions and financial position; and
The Bank's president accepts responsibility for the annual financial statements, which have been
c) enable
prepared the appropriate
using National Bank to determine
accounting whether
policies the Bank
supported had complied
by reasonable andwith the provisions
prudent judgementsofand
the
Banking
estimates, in Business Proclamation
conformity and regulations
with International and directives
Financial Reportingissued for the implementation
Standards, Banking Businessthe
aforementioned
Proclamation, Proclamation.
Commercial code of 2021 and the relevant Directives issued by the National Bank of
Ethiopia.
The Bank's president accepts responsibility for the annual financial statements, which have been
The President
prepared usingisappropriate
of the opinion that the policies
accounting financialsupported
statementsbygive a true and
reasonable andfair view ofjudgements
prudent the state ofand
the
financial affairs of the company and of its profit or loss.
estimates, in conformity with International Financial Reporting Standards, Banking Business
Proclamation, Commercial code of 2021 and the relevant Directives issued by the National Bank of
The President further accept responsibility for the maintenance of accounting records that may be
Ethiopia.
relied upon in the preparation of financial statements, as well as adequate systems of internal financial
control.
The President is of the opinion that the financial statements give a true and fair view of the state of the
financial affairs of the company and of its profit or loss.
Nothing has come to the attention of the President to indicate that the company will not remain a going
concern
The for at least
President twelve
further months
accept from the date
responsibility for of this
the statement. of accounting records that may be
maintenance
relied upon in the preparation of financial statements, as well as adequate systems of internal financial
Signed
control.on behalf of the Directors by:
Nothing has come to the attention of the President to indicate that the company will not remain a going
concern for at least twelve months from the date of this statement.
Signed on behalf of the Directors by:
Frehiwot Worku Ermias Andargie

Board Chairperson President

4
IFRS
IFRSfinancial statements
financial statements
For
Forthe
the period ended3030
period ended June
June 2021
2021
Independent auditors’report
Independent auditors' report
INEDEPENDENT AUDITORS’ REPORT TO THE SHAREHOLDERS
ENAT BANK S.C.
Opinion
We have audited the financial statements of Enat Bank Share Company set out on pages 27-74 ,
which comprise the statement of financial position as at 30 June 2021, the statement of profit and
loss and other comprehensive income, the statement of cash flows and statement of changes in equity
for the year ended, and notes to the financial statements, including a summary of significant
accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material respects, the
financial position of the Company as at 30 June 2021, and its financial performance and its cash
flows for the year then ended in accordance with International Financial Reporting Standards
(IFRSs).
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Company in
accordance with the Ethiopian Code of Ethics for Professional Accountants, and we have fulfilled our
other ethical responsibilities in accordance with these requirements. We believe that the audit
evidence, we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial statements of current period. These matters were addressed in the context
of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters.
As described in notes 9 and 15 to the financial statements, the impairment losses have been
determined in accordance with IFRS 9 Financial Instruments. This was considered a key audit matter
as IFRS 9 is a complex accounting standard which requires significant judgment to determine the
impairment loss.
Also as stated on Note 34 the performance and advance payment guarantees issued to construction
companies which may also adversely affect the Bank financial situation unless the current situation in
the country resolved.

IFRS
IFRSFinancial Statements
For
Forthe
theperiod ended3030June
period ended June 2021
2021
Independent auditors' report
Independent auditors’ report
Responsibilities of Directors for the Financial Statements
The Directors are responsible for the preparation and fair presentation of the financial statements in
accordance with International Financial Reporting Standards (IFRSs), and for such internal control
as Directors determines is necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless Directors either intends to liquidate the Company
or to cease operations, or have no realistic alternative but to do so.
The Directors are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with ISAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken
on the basis of these financial statements.
Report on other Legal and Regulatory Requirement
We have no comment to make on the report of your Board of Directors so far as it relates to these
financial statements in accordance with the commercial Code of Ethiopia of 2021 (Proclamation No.-
1243/2021), recommend approval of the financial statements.
a & Aya
sem le
hi
,S
s ¬
Plu
Tafesse
Tafesse, Shisema and Ayalew Certified Audit Partnership (TMS Plus)

S
hip
TM
ers
41
¬
Chartered Certified Accountants (UK) Addis Ababa
rtn
C a
er
Authorized Auditors (ETH) tifi e tP October 28, 2021
d A u di
IFRSEnat
Financial Statements
Bank Share Company
For the Period Ended 30 June 2021
Statement of profit
Statement ororloss
of profit loss and othercomprehensive
and other comprehensive income
income
30 June 2021 30 June 2020

Notes Birr'000 Birr'000
Interest income 5 1,284,057 1,047,139

Interest expense 6 (863,588) (656,122)
Fee and commission income 7 222,701 222,804

Fee and commission expense 7 - -
Net fees and commission income 222,701 222,804
Other operating income 8 148,223 58,133
Total operating income 791,393 671,954
Loan impairment charge 9 (39,953) (37,337)

Impairment losses on other assets 10 (10,148) 73
Net operating income 741,292 634,690
Personnel expenses 11 (267,478) (188,059)

Amortisation of intangible assets 18 (10,757) (6,324)
Depreciation and impairment of property, 19 (25,170) (21,733)
plant and equipment
Other operating expenses 12 (148,485) (179,018)
Profit before tax 289,403 239,555
Income tax expense 13a (59,702) (30,987)
Profit after tax 229,700 208,569
Other comprehensive income (OCI) net on income tax
Items that will not be subsequently reclassified into profit or loss:
Remeasurement gain/(loss) on retirement 25b (3,584) 2,558

benefits obligations
Deferred tax (liability)/asset on 1,075 (767)
remeasurement gain or loss
Remeasurement gain / (loss) on fair value 4,287 7,127
of investment
Deferred tax (liability)/asset on (1,286) (2,138)
remeasurement of Investments
492 6,779
Total comprehensive income for the period 230,193 215,348

Basic and Diluted earnings per share (Birr) 26 158 161
The notes on pages 27 to 74 are an integral part of these financial statements.
7

IFRS
EnatFinancial
Company
As At 30 June 2021
As at 30 June 2021
Statement
Statement of financial
of financial position
position
30 June 2021 30 June 2020

ASSETS
Cash and balances with banks 14 2,966,715 2,305,098

Loans and receivables 15 8,965,488 6,426,052
Investment securities:
-Fair value through other comprehensive income 16 a 40,288 35,501
-Amortized cost 16 b 1,690,848 1,690,848
Other assets 17 403,666 257,411
Intangible assets 18 28,066 27,597
Property, plant and equipment 19 154,487 153,861
Construction in progress 20 2,497 571
The right of use asset 21 352,082 252,031
Assets held for sale 22 19,204 16,996
Total assets 14,623,342 11,165,965
LIABILITIES
Deposits from customers 23 11,237,087 8,383,812

Current tax liabilities 13c 60,646 31,546
Other liabilities 24 1,237,806 929,247
Retirement benefit obligations 25 16,125 10,431
Deferred tax liabilities 13d 11,574 12,456
Total liabilities 12,563,238 9,367,492
EQUITY
Share capital 26 1,542,532 1,380,251

Retained earnings 27 196,030 150,313
Legal reserve 28 264,891 207,431
Regulatory risk reserve 29 24,557 33,084
Special reserve 30 19,041 14,982
Other reserves 13,054 12,412
Total equity 2,060,104 1,798,473
Total equity and liabilities 14,623,342 11,165,965
The financial statements on pages 27 to 30 were approved and authorised for issue by the board of directors on November 2021
and were signed on its behalf by:

IFRS Financial
IFRS financial Statements
statements
For theperiod
For the Period Ended
ended 30 June30 June 2021
2021
Statement of changes in equity
Statement of changes in equity
Share Retained Other Legal Regulatory Special Total
capital earnings reserves reserve risk reserve
Notes Birr'000 Birr'000 Birr'000 Birr'000 reserve Birr'000
Birr'000 Birr'000
As at 1 July 2020 1,380,251 150,313 12,412 207,431 33,084 14,982 1,798,473
Profit for the period 229,700 229,700

Other comprehensive income: -
Fair Value Measurements of Equity 4,287 4,287
investments
Remeasurement gain/(loss) on (3,645) (3,645)
retirement benefits obligations
Contribution of equity net of 26 162,281 162,281
transaction costs
(145,803) (145,803)
Dividend paid for share holders
28 (57,460) 57,460 -
Transfer to legal reserve
29 16,862 16,862
Transfer to regulatory risk reserve
30 (4,509) 4,509 -
Transfer to special reserve
30 (451) (451)
Dividend tax paid - special reserve
(1,600) (1,600)
Directors share from the profit
(25,390) (25,390)
Transferred to Impairment allowance
Transfer from regulatory reserve loan 25,390 25,390
loss provision difference
-
Total comprehensive income for
162,281 45,717 642 57,460 (8,527) 4,058 261,631
the period
As at 30 June 2021 1,542,532 196,030 13,054 264,891 24,557 19,041 2,060,104

Enat
EnatBank ShareCompany
Bank Share Company
IFRS
IFRSFinancial Statements
For
Forthe
thePeriod Ended3030
period ended June
June 2021
2021
Statement of cash flows
Statement of cash flows
30 June 2021 30 June 2020

Cash flows from operating activities

Cash generated from operations 31 728,294 503,127
Withholding tax paid
Income tax paid (31,546) (38,432)
Net cash (outflow)/inflow from operating activities 696,748 464,694
Cash flows from investing activities

Purchase of investment securities 16 (500) 233,080
Construction in progress 20 (1,926) (571)
Purchase of intangible assets 18 (11,226) (19,726)
Purchase of property, plant and equipment 19 (26,590) (40,725)
Aquired asset (2,208) (5,877)
Net cash (outflow)/inflow from investing activities (42,451) 166,181
Cash flows from financing activities

Proceeds from issues of shares 26 162,281 186,495
Dividend paid (145,803) (139,001)
Directors profit share paid (1,600) (1,650)
Transferred to Special reserve 4,058 3,783
Prior period ajdustment - 163
Net cash (outflow)/inflow from financing activities 18,936 49,790
Net increase/(decrease) in cash and cash equivalents 673,233 680,665
Cash and cash equivalents at the beginning of the year 14 2,305,098 1,694,669
Foreign exchange (losses)/ gains on cash and cash
equivalents (11,616) (70,236)
Cash and cash equivalents at the end of the 14 2,966,715 2,305,098

year
0
For the Period
IFRS financial Ended 30 June 2021
statements
Notes to financial
Notes to the the financial statements
statements
1 General information
Enat Bank SC (" the Bank") is a private commercial Bank domiciled in Ethiopia. The Bank became operational on 5 March 2013 in accordance with
the provisions of the Commercial code of Ethiopia of 2021 and the Licensing and Supervision of Banking Business Proclamation No. 1159/2019. The
Bank registered office is at:

Kirkos sub-city,Woreda 08,Around Bambiss Bridge
P O Box 18401
Addis Ababa, Ethiopia
The bank is involved in provision of banking services for all, with a special focus of faciltating greater access to and use of financial services for
women, and creating values for shareholders. The bank's inclusive business model initiative involves women entrepreneurs in order to expand
economic opportunities while creating value for Ethiopia’s businesses, and society in general.
2 Summary of significant accounting policies
2.1 Introduction to summary of significant accounting policies
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently
applied to all the years presented, unless otherwise stated.
2.2 Basis of preparation
The financial statements for the period ended 30 June 2020 have been prepared in accordance with International Financial Reporting Standards
("IFRS") as issued by the International Accounting Standards Board ("IASB"). Additional information required by National regulations is included
where appropriate.
The financial statements comprise the statement of profit or loss and other comprehensive income, the statement of financial position, the statement
of changes in equity, the statement of cash flows and the notes to the financial statements.
The financial statements have been prepared in accordance with the going concern principle under the historical cost concept, except for the
following;
• available-for-sale financial assets, certain classes of property, plant and equipment and investment property – measured at fair value
• assets held for sale – measured at fair value less cost of disposal, and
• defined benefit pension plans – plan assets measured at fair value.
All values are rounded to the nearest thousand, except when otherwise indicated. The financial statements are presented in thousands of Ethiopian
Birr (Birr' 000).
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires
management to exercise its judgment in the process of applying the Bank’s accounting policies. Changes in assumptions may have a significant impact
on the financial statements in the period the assumptions changed. Management believes that the underlying assumptions are appropriate and that
the Bank's financial statements therefore present the financial position and results fairly. The areas involving a higher degree of judgment or
complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in Note 4.
2.2.1 Going concern

The financial statements have been prepared on a going concern basis. The management have no doubt that the Bank would remain in existence after
12 months.

For
IFRSthe Period
financial Ended 30 June 2021
statements
Notes
Notes toto
thethe financial statements
2.2.2 New standards and amendments to existing standards

The Bank has consistently applied the accounting policies to all periods presented in these financial statements. The below are amendments to
standards that are effective for annual periods beginning after 30 June 2021, and have not been applied in preparing these financial statements.
Standard Description Effective date Impact

IAS 1, IAS 1 "Presentation of Financial Statements" sets out The amendments are effective for The Bank has opted not adopt early.
Presentatio the overall requirements for financial statements, annual reporting periods beginning on No significant impact is expected.
n of including how they should be structured, the minimum or after January 1, 2022 and are to be
Financial requirements for their content and overriding concepts applied retrospectively. Earlier
Statements such as going concern, the accrual basis of accounting application is permitted.
and the current/non-current distinction. The standard
requires a complete set of financial statements to
comprise a statement of financial position, a statement
of profit or loss and other comprehensive income, a
statement of changes in equity and a statement of cash
flows
IAS 16, IAS 16 "Property, Plant and Equipment" outlines the Effective for interim and annual The Bank opted to adopt the
Property accounting treatment for most types of property, plant financial statements relating to fiscal amendments when due. But no
plant and and equipment. Property, plant and equipment is years beginning on or after January 1, significant change is expected.
equipment initially measured at its cost, subsequently measured 2011, earlier application is permitted.
either using a cost or revaluation model, and The amendments are effective for
depreciated so that its depreciable amount is allocated annual periods beginning on or after
on a systematic basis over its useful life. January 1, 2022. Early application is
permitted.
IAS 17, IAS 37 "Provisions, Contingent Liabilities and Effective for interim and annual The Bank opted to apply the
Provision, Contingent Assets" outlines the accounting for financial statements relating to fiscal amendments when due.
contingent provisions (liabilities of uncertain timing or amount), years beginning on or after January 1,
liabilities together with contingent assets (possible assets) and 2011, earlier application is permitted.
and contingent liabilities (possible obligations and present The amendments are effective for
contingent obligations that are not probable or not reliably annual periods beginning on or after
assets measurable). January 1, 2022. Early application is
permitted.
IAS 41, IAS 41 "Agriculture" sets out the accounting for Effective for interim and annual The standard is not relevant for the
Agriculture agricultural activity – the transformation of biological financial statements relating to fiscal Bank’s reporting purpose.
assets (living plants and animals) into agricultural years beginning on or after January 1,
produce (harvested product of the entity's biological 2011, earlier application is permitted.
assets). The standard generally requires biological The amendments are effective for
assets to be measured at fair value less costs to sell. annual periods beginning on or after
January 1, 2022. Early application is
permitted.
IFRS 3, IFRS 3 "Business Combinations" outlines the Effective for interim and annual The standard is not relevant for the
Business accounting when an acquirer obtains control of a financial statements relating to fiscal Bank’s reporting purpose as of now.
combinatio business (e.g. an acquisition or merger). Such business years beginning on or after January 1, The amendments shall be considered
n combinations are accounted for using the 'acquisition 2011, earlier application is permitted. when the Bank gets involved in a
method', which generally requires assets acquired and The amendments are effective for transaction that involve business
liabilities assumed to be measured at their fair values at annual periods beginning on or after combination
the acquisition date. January 1, 2022. Early application is
permitted if an entity also applies all
other updated references (published
together with the updated Conceptual
Framework) at the same time or
earlier.
IFRS 9, The final version of IFRS 9 "Financial Instruments" Effective for interim and annual The Bank shall apply the amendments
Financial issued in July 2014 is the IASB's replacement of IAS 39 financial statements relating to fiscal when due. The amendments are
Instrument "Financial Instruments: Recognition and years beginning on or after January 1, expected to have an impact on the
s Measurement". The Standard includes requirements 2011, earlier application is permitted. Bank’s financial statements.
for recognition and measurement, impairment, The amendments are effective for
derecognition and general hedge accounting. annual periods beginning on or after
January 1, 2022. Early application is
permitted.
For the Period
statements
Notes to the financial statements
2.3 SIGNIFICANT ACCOUNTING POLICIES

2.3.1 Financial assets and financial liabilities
a. Recognition and initial measurement
The Bank shall initially recognize loans and advances, deposits, debt securities issued and subordinated liabilities on the date on which they are
originated. All other financial instruments (including regular-way purchases and sales of financial assets) shall be recognised on the trade date, which
is the date on which the Bank becomes a party to the contractual provisions of the instrument.
A financial asset or financial liability shall be measured initially at fair value plus, for an item not at fair value through profit or loss (FVTPL),
transaction costs that are directly attributable to its acquisition or issue.
b. Classification and subsequent measurement

i) Financial assets
On initial recognition, a financial asset shall be classified either as measured at either amortized cost, fair value through other comprehensive income
(FVOCI) or fair value through profit or loss (FVTPL).
The Bank shall measure a financial asset at amortized cost if it meets both of the following conditions and is not designated at FVTPL:
— The asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and
— The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI). `
A debt instrument shall be measured at FVOCI only if it meets both of the following conditions and is not designated at FVTPL:
— The asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
— The contractual terms of the financial asset give rise on specified dates to cash flows that are SPPI.
On initial recognition, an equity investment that is held for trading shall be classified at FVTPL. However, for equity investment that is not held for
trading, the Bank may irrevocably elect to present subsequent changes in fair value in other comprehensive income (OCI). This election is made on an
investment-by-investment basis.
All other financial assets that do not meet the classification criteria at amortized cost or FVOCI, above, shall be classified as measured at FVTPL.
In addition, on initial recognition, the Bank may irrevocably designate a financial asset that otherwise meets the requirements to be measured at
amortized cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise (see 2.3).
- Business model assessment

The Bank shall make an assessment of the objective of a business model in which an asset is held at a portfolio level because this best reflects the way
the business is managed and information is provided to management. The information considered includes:
— the stated policies and objectives for the portfolio and the operation of those policies in practice. In particular, whether management’s strategy
focuses on earning contractual interest revenue, maintaining a particular interest rate profile, matching the duration of the financial assets to the
duration of the liabilities that are funding those assets or realizing cash flows through the sale of the assets;
— how the performance of the portfolio is evaluated and reported to the Bank’s management;
— the risks that affect the performance of the business model (and the financial assets held within that business model) and its strategy for how
those risks are managed;
— how managers of the business are compensated (e.g. whether compensation is based on the fair value of the assets managed or the contractual
cash flows collected); and
— the frequency, volume and timing of sales in prior periods, the reasons for such sales and its expectations about future sales activity. However,
information about sales activity is not considered in isolation, but as part of an overall assessment of how the Bank’s stated objective for managing the
financial assets is achieved and how cash flows are realized.
Financial assets that are held for trading or managed and whose performance is evaluated on a fair value basis shall be measured at FVTPL because
they are neither held to collect contractual cash flows nor held both to collect contractual cash flows and to sell financial assets.
Financial assets shall not be reclassified subsequent to their initial recognition, except in the period after the Bank changes its business model for
managing financial assets.

- Assessment of whether contractual cash flows are solely payments of principal and interest
For the purposes of this assessment, ‘principal’ shall be defined as the fair value of the financial asset on initial recognition. ‘Interest’ shall be defined
as the consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of
time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as profit margin.
In assessing whether the contractual cash flows are SPPI, the Bank considers the contractual terms of the instrument. This includes assessing
whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet
this condition. In making the assessment, the Bank considers:
— contingent events that would change the amount and timing of cash flows;
— leverage features;
— prepayment and extension terms;
— terms that limit the Bank’s claim to cash flows from specified assets (e.g. non-recourse loans); and
— Features that modify consideration of the time value of money (e.g. periodical reset of interest rates).
ii) Financial liabilities
The Bank shall classify its financial liabilities, other than financial guarantees and loan commitments, as measured at amortized cost or FVTPL. A
financial guarantee is an undertaking/commitment that requires the issuer to make specified payments to reimburse the holder for a loss it incurs
because a specified party fails to meet its obligation when due in accordance with the contractual terms.
Financial guarantees issued by the Bank are initially measured at their fair values and, if not designated as at FVTPL, are subsequently measured at
the higher of: the amount of the obligation under the guarantee, as determined in accordance with IAS 37 Provisions, Contingent Liabilities and
Contingent Assets; and the amount initially recognised less, where appropriate, cumulative amortization recognized in accordance with the revenue
recognition policies.
c. Impairment
At each reporting date, the Bank shall assess whether there is objective evidence that financial assets (except equity investments), other than those
carried at FVTPL, are impaired.
The Bank shall recognize loss allowances for expected credit losses (ECL) on the following financial instruments that are not measured at FVTPL:
— financial assets that are debt instruments;

— lease receivables;
— financial guarantee contracts issued; and
— Loan commitments issued.
No impairment loss shall be recognised on equity investments.
The Bank shall measure loss allowances at an amount equal to lifetime ECL, except for the following, which are measured as 12-month ECL:
— debt investment securities that are determined to have low credit risk at the reporting date; and
— Other financial instruments (other than lease receivables) on which credit risk has not increased significantly since their initial recognition.
Loss allowances for lease receivables shall always be measured at an amount equal to lifetime ECL.
12-month ECL is the portion of ECL that result from default events on a financial instrument that are possible within the 12 months after the
reporting date. Financial instruments for which a 12-month ECL is recognised are referred to as ‘Stage 1 financial instruments’.
Life-time ECL is the ECL that result from all possible default events over the expected life of the financial instrument. Financial instruments for
which a lifetime ECL is recognised but which are not credit-impaired are referred to as ‘Stage 2 financial instruments’.
i) Measurement of ECL
ECL is a probability-weighted estimate of credit losses. It shall be measured as follows:
— for financial assets that are not credit-impaired at the reporting date (stage 1 and 2): as the present value of all cash shortfalls (i.e. the
difference between the cash flows due to the Bank in accordance with the contract and the cash flows that the Bank expects to receive);
— for financial assets that are credit-impaired at the reporting date (stage 3): as the difference between the gross carrying amount and the present
value of estimated future cash flows;
— for undrawn loan commitments: as the present value of the difference between the contractual cash flows that are due to the Bank if the
commitment is drawn down and the cash flows that the Bank expects to receive; and
— For financial guarantee contracts: as the expected payments to reimburse the holder less any amounts that the Bank expects to recover.
For
IFRSthe Period
statements
ii) Restructured financial assets
Where the terms of a financial asset are renegotiated or modified or an existing financial asset is replaced with a new one due to financial difficulties
of the borrower, then the Bank shall assess whether the financial asset should be derecognized and ECL are measured as follows:
— If the expected restructuring will not result in derecognition of the existing asset, then the expected cash flows arising from the modified
financial asset are included in calculating the cash shortfalls from the existing asset
— If the expected restructuring will result in derecognition of the existing asset, then the expected fair value of the new asset is treated as the final
cash flow from the existing financial asset at the time of its derecognition. This amount is included in calculating the cash shortfalls from the existing
financial asset that are discounted from the expected date of derecognition to the reporting date using the original effective interest rate of the
existing financial asset.
iii) Credit-impaired financial assets

At each reporting date, the Bank shall assess whether financial assets carried at amortized cost, debt financial assets carried at FVOCI, and finance
lease receivables are credit‑impaired (referred to as ‘Stage 3 financial assets’).
A financial asset shall be considered ‘credit‑impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of
the financial asset have occurred.
Evidence that a financial asset is credit-impaired includes the following observable data:
— significant financial difficulty of the borrower or issuer;
— a breach of contract such as a default or past due event;
— the restructuring of a loan or advance by the Bank on terms that the Bank would not consider otherwise;
— it is becoming probable that the borrower will enter bankruptcy or other financial reorganization; or
— The disappearance of an active market for a security because of financial difficulties.
A loan that has been renegotiated due to a deterioration in the borrower’s condition shall be considered to be credit-impair unless there is evidence
that the risk of not receiving contractual cash flows has reduced significantly and there are no other indicators of impairment. In addition, a retail
loan that is overdue for 90 days or more shall be considered credit-impaired even when the regulatory definition of default is different.
iv) Presentation of allowance for ECL in the statement of financial position

Loss allowances for ECL shall be presented in the statement of financial position as follows:
— for financial assets measured at amortized cost: as a deduction from the gross carrying amount of the assets;
— for loan commitments and financial guarantee contracts: generally, as a provision;
— Where a financial instrument includes both a drawn and an undrawn component, and the Bank cannot identify the ECL on the loan
commitment component separately from those on the drawn component: the Bank presents a combined loss allowance for both components. The
combined amount is presented as a deduction from the gross carrying amount of the drawn component. Any excess of the loss allowance over the
gross amount of the drawn component is presented as a provision; and
— For debt instruments measured at FVOCI: no loss allowance is recognised in the statement of financial position because the carrying amount of
these assets is their fair value. However, the loss allowance shall be disclosed and is recognised in the fair value reserve.
v) Write-off
Loans and debt securities shall be written off (either partially or in full) when there is no reasonable expectation of recovering the amount in its
entirety or a portion thereof. This is generally the case when the Bank determines that the borrower does not have assets or sources of income that
could generate sufficient cash flows to repay the amounts subject to the write-off. This assessment shall be carried out at the individual asset level.
Recoveries of amounts previously written off shall be included in ‘impairment losses on financial instruments’ in the statement of profit or loss and
OCI.
Financial assets that are written off could still be subject to enforcement activities in order to comply with the Bank’s procedures for recovery of
amounts due.
vi) Non-integral financial guarantee contracts

The Bank shall assess whether a financial guarantee contract held is an integral element of a financial asset that is accounted for as a component of
that instrument or is a contract that is accounted for separately.
Where the Bank determines that the guarantee is an integral element of the financial asset, then any premium payable in connection with the initial
recognition of the financial asset shall be treated as a transaction cost of acquiring it. The Bank shall consider the effect of the protection when
measuring the fair value of the debt instrument and when measuring ECL.
Where the Bank determines that the guarantee is not an integral element of the debt instrument, then it shall recognize an asset representing any
prepayment of guarantee premium and a right to compensation for credit losses.

d. Derecognition
i) Financial assets
The Bank shall derecognize a financial asset when:
— The contractual right to the cash flows from the financial asset expires (see also (1.4)), or
— It transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the
financial asset are transferred; or
— Bank neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.
On derecognition of a financial asset, the difference between the carrying amount of the asset (or the carrying amount allocated to the portion of the
asset derecognized) and the sum of (i) the consideration received (including any new asset obtained less any new liability assumed) and (ii) any
cumulative gain or loss that had been recognised in OCI shall be recognised in profit or loss.
Any cumulative gain/loss recognised in OCI in respect of equity investment securities designated as at FVOCI shall not be recognised in profit or loss
on derecognition of such securities. Any interest in transferred financial assets that qualify for derecognition that is created or retained by the Bank
shall be recognised as a separate asset or liability.

The Bank shall derecognize a financial liability when its contractual obligations are discharged or cancelled, or expire.
e. Modifications of financial assets and financial liabilities

i) Financial assets
If the terms of a financial asset are modified, then the Bank shall evaluate whether the cash flows of the modified asset are substantially different.
If the cash flows are substantially different, then the contractual rights to cash flows from the original financial asset shall be deemed to have expired.
In this case, the original financial asset shall be derecognized (see 2.3) and a new financial asset shall be recognised at fair value plus any eligible
transaction costs. Any fees received as part of the modification shall be accounted for as follows:
— fees that are considered in determining the fair value of the new asset and fees that represent reimbursement of eligible transaction costs shall
be included in the initial measurement of the asset; and
— Other fees are included in profit or loss as part of the gain or loss on derecognition.
If cash flows are modified when the borrower is in financial difficulties, then the objective of the modification is usually to maximize recovery of the
original contractual terms rather than to originate a new asset with substantially different terms.If the Bank plans to modify a financial asset in a way
that would result in forgiveness of cash flows, then it shall first consider whether a portion of the asset should be written off before the modification
takes place.
Where the modification of a financial asset measured at amortized cost or FVOCI does not result in derecognition of the financial asset, then the Bank
shall first recalculate the gross carrying amount of the financial asset using the original effective interest rate of the asset and recognizes the resulting
adjustment as a modification gain or loss in profit or loss. Any costs or fees incurred and fees received as part of the modification adjust the gross
carrying amount of the modified financial asset and shall be amortized over the remaining term of the modified financial asset.
Where such a modification is carried out because of financial difficulties of the borrower, then the gain or loss shall be presented together with
impairment losses. In other cases, it shall be presented as interest income calculated using the effective interest rate method.
The Bank shall derecognize a financial liability when its terms are modified and the cash flows of the modified liability are substantially different. In
this case, a new financial liability based on the modified terms shall be recognised at fair value. The difference between the carrying amount of the
financial liability derecognized and consideration paid is recognised in profit or loss. Consideration paid shall include non-financial assets transferred,
if any, and the assumption of liabilities, including the new modified financial liability.
Where the modification of a financial liability is not accounted for as derecognition, then the amortized cost of the liability shall be recalculated by
discounting the modified cash flows at the original effective interest rate and the resulting gain or loss is recognised in profit or loss. Any costs and
fees incurred are recognised as an adjustment to the carrying amount of the liability and amortized over the remaining term of the modified financial
liability by re-computing the effective interest rate on the instrument.
f. Offsetting
Financial assets and financial liabilities shall be offset and the net amount presented in the statement of financial position when, and only when, the
Bank currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle
the liability simultaneously.
Income and expenses shall be presented on a net basis only when permitted under IFRS, or for gains and losses arising from a group of similar
transactions such as in the Bank’s trading activity.
For
IFRSthe Period Ended 30 June 2021
g. Designation at fair value through profit or loss

i) Financial assets
At initial recognition, the Bank may designate certain financial assets as at FVTPL because this designation eliminates or significantly reduces an
accounting mismatch, which would otherwise arise.
The Bank shall designate certain financial liabilities as at FVTPL in either of the following circumstances:
— the liabilities are managed, evaluated and reported internally on a fair value basis; or
— the designation eliminates or significantly reduces an accounting mismatch that would otherwise arise.
2.3.2 Net interest income

a. Effective interest rate and amortized cost
Interest income and expense are recognised in profit or loss using the effective interest method. The ‘effective interest rate’ is the rate that exactly
discounts estimated future cash payments or receipts through the expected life of the financial instrument to:
- the gross carrying amount of the financial asset; or
- the amortized cost of the financial liability.
When calculating the effective interest rate for financial instruments other than credit-impaired assets, the Bank estimates future cash flows
considering all contractual terms of the financial instrument, but not expected credit losses. For credit-impaired financial assets, a credit-adjusted
effective interest rate is calculated using estimated future cash flows including expected credit losses.
The calculation of the effective interest rate includes transaction costs and fees and points paid or received that are an integral part of the effective
interest rate. Transaction costs include incremental costs that are directly attributable to the acquisition or issue of a financial asset or financial
liability
b. Amortized cost and gross carrying amount

The ‘amortized cost’ of a financial asset or financial liability is the amount at which the financial asset or financial liability is measured on initial
recognition minus the principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between
that initial amount and the maturity amount and, for financial assets, adjusted for any expected credit loss allowance.
The ‘gross carrying amount of a financial asset’ is the amortized cost of a financial asset before adjusting for any expected credit loss allowance.
c. Calculation of interest income and expense

In calculating interest income and expense, the effective interest rate is applied to the gross carrying amount of the asset (when the asset is not credit-
impaired) or to the amortized cost of the liability.
However, for financial assets that have become credit-impaired subsequent to initial recognition, interest income is calculated by applying the
effective interest rate to the amortized cost of the financial asset. If the asset is no longer credit-impaired, then the calculation of interest income
reverts to the gross basis.
For financial assets that were credit-impaired on initial recognition, interest income is calculated by applying the credit-adjusted effective interest
rate to the amortized cost of the asset. The calculation of interest income does not revert to a gross basis, even if the credit risk of the asset improves.
d. Presentation
Interest income and expense presented in the statement of profit or loss and OCI include:
- interest on financial assets and financial liabilities measured at amortized cost calculated on an effective interest basis;
- interest on debt instruments measured at FVOCI calculated on an effective interest basis;
- the effective portion of fair value changes in qualifying hedging derivatives designated in cash flow hedges of variability in interest cash flows, in
the same period as the hedged cash flows affect interest income/expense; and
- The effective portion of fair value changes in qualifying hedging derivatives designated in fair value hedges of interest rate risk.
Interest income and expense on all trading assets and liabilities are considered to be incidental to the Bank’s trading operations and are presented
together with all other changes in the fair value of trading assets and liabilities in net trading income.
Interest income and expense on other financial assets and financial liabilities at FVTPL are presented in net income from other financial instruments
at FVTPL.

IFRS Financial
Enat Bank Statements
Share Company
For
IFRS the Period
statements
Notes
Notes toto
the the financial
statements
2.3.3 Foreign currency translation
a) Functional and presentation currency
Items included in the financial statements are measured using the currency of the primary economic environment in which the Bank operates ('the
functional currency'). The functional currency and presentation currency of the Bank is the Ethiopian Birr (Birr).
b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign
exchange gains and losses resulting from the settlement of foreign currency transactions and from the translation at exchange rates of monetary
assets and liabilities denominated in currencies other than the Bank's functional currency are recognised in profit or loss within other (loss)/income.
Monetary items denominated in foreign currency are translated using the closing rate as at the reporting date.
Changes in the fair value of monetary securities denominated in foreign currency classified as available for sale are analysed between translation
differences resulting from changes in the amortised cost of the security and other changes in the carrying amount of the security. Translation
differences related to changes in amortised cost are recognised in profit or loss, and other changes in carrying amount are recognised in other
comprehensive income.
Translation differences on non-monetary financial assets and liabilities such as equities held at fair value through profit or loss are recognised in
profit or loss as part of the fair value gain or loss. Translation differences on non-monetary financial assets measure at fair value, such as equities
classified as available for sale, are included in other comprehensive income.
2.3.4 Recognition of income and expenses
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Bank and the revenue can be reliably measured,
regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account
contractually defined terms of payment and excluding taxes or duty.
The Bank, earns income from interest on loans given for domestic trade and services, building and construction, manufacturing, agriculture and
personal loans. Other incomes includes margins on letter of credits and performance gaurantees.
2.3.5 Interest and similar income and expense
For all financial instruments measured at amortised cost and interest bearing financial assets classified as available– for–sale interest income or
expense is recorded using the Effective Interest rate (EIR), which is the rate that exactly discounts estimated future cash payments or receipts
through the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset or
financial liability. The calculation takes into account all contractual terms of the financial instrument (for example, prepayment options) and includes
any fees or incremental costs that are directly attributable to the instrument and are an integral part of the Effective Interest Rate (EIR), but not
future credit losses.
The carrying amount of the financial asset or financial liability is adjusted if the Bank revises its estimates of payments or receipts. The adjusted
carrying amount is calculated based on the original EIR and the change in carrying amount is recorded as 'Interest and similar income' for financial
assets and Interest and similar expense for financial liabilities.
Once the recorded value of a financial asset or a group of similar financial assets has been reduced due to an impairment loss, interest income
continues to be recognised using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss.
2.3.6 Fees and commission

Fees and commission income and expenses that are integral to the effective interest rate on a financial asset or liability are included in the
measurement of the effective interest rate. Other fees and commission income such as correspondent charges and estimation fees, are recognised as
the related services are performed.
When a loan commitment is not expected to result in the draw-down of a loan, loan commitment fees are recognised on a straight-line basis over the
commitment period.
Other fees and commission expenses relates mainly to transaction and service fees are expensed as the services are received.
For
2.3.7 Dividend income
This is recognised when the Bank’s right to receive the payment is established, which is generally when the shareholders approve and declare the
dividend.
2.3.8 Foreign exchange revaluation gains or losses
These are gains and losses arising on settlement and translation of monetary assets and liabilities denominated in foreign currencies at the functional
currency’s spot rate of exchange at the reporting date. This amount is recognised in the income statement and it is further broken down into realised
and unrealised portion.
The monetary assets and liabilities include financial assets within the cash and bank balances, foreign currencies deposits received and held on behalf
of third parties .
2.3.9 Cash and cash equivalents
Cash and cash equivalents comprise balances with less than three months’ maturity from the date of acquisition, including cash in hand, deposits
held at call with Banks and other short-term highly liquid investments with original maturities of three months or less.
For the purposes of the cash flow statement, cash and cash equivalents include cash and restricted balances with National Bank of Ethiopia.
2.3.10 Property, plant and Equipment
Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the
cost of replacing part of the property, plant and equipment if the recognition criteria are met. When significant parts of property, plant and
equipment are required to be replaced at intervals, the Bank recognises such parts as individual assets with specific useful lives and depreciates them
accordingly. All other repair and maintenance costs are recognised in income statement as incurred.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. The carrying amount of the
replaced part is derecognised.
Depreciation is calculated using the straight-line method to allocate their cost to their residual values over their estimated useful lives, as follows:
Asset category Years Residual values

Buildings 50 5% of cost
Computer and Hardwares 7 1% of Cost
Motor vehicles 10 5% of cost
Furniture and fittings

Short-lived 5 1% of Cost
Medium -lived 10 1% of Cost
Other and office equiment
Short-lived 5 1% of Cost
Medium -lived 10 1% of Cost
Long-lived 20 1% of Cost
The Bank commences depreciation when the asset is available for use.
Capital work-in-progress is not depreciated as these assets are not yet available for use. They are disclosed when reclassified during the year.
An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic
benefits are expected from its use disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in income statement when the asset is derecognised.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted
prospectively, if appropriate.

For
IFRS the Period
statements
Notes
Notes toto
the the financial
statements
2.3.11 Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less
any accumulated amortisation and accumulated impairment losses, if any. Internally generated intangibles, excluding capitalised development costs,
are not capitalised and the related expenditure is reflected in income statement in the period in which the expenditure is incurred .
The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets with finite lives are amortised over the useful
economic life. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at each
financial year-end. Changes in the expected useful life, or the expected pattern of consumption of future economic benefits embodied in the asset, are
accounted for by changing the amortisation period or methodology, as appropriate, which are then treated as changes in accounting estimates. The
amortisation expenses on intangible assets with finite lives is presented as a separate line item in the income statement.
Amortisation is calculated using the straight–line method as below
Description Years Residual value

Software 6 Nil
2.3.12 Non-current assets (or disposal groups) held for sale and discontinued operations
Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction
rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value
less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits, financial assets and investment property that are
carried at fair value and contractual rights under insurance contracts, which are specifically exempt from this requirement.
An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal group) to fair value less costs to sell. A gain is
recognised for any subsequent increases in fair value less costs to sell of an asset (or disposal group), but not in excess of any cumulative impairment
loss previously recognised. A gain or loss not previously recognised by the date of the sale of the non-current asset (or disposal group) is recognised at
the date of derecognition.
Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while they are classified as held for sale.
Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognised.
Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented separately from the other
assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the balance
sheet.
A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale and that represents a separate major
line of business or geographical area of operations, is part of a single co-ordinated plan to dispose of such a line of business or area of operations, or is
a subsidiary acquired exclusively with a view to resale. The results of discontinued operations are presented separately in the statement of profit or
loss.
For
IFRSthe Period
statements
Notes
Notes toto
thethe financial statements
2.3.13 Impairment of non-financial assets
The Bank assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual
impairment testing for an asset is required, the Bank estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an
asset’s or cash-generating unit’s (CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset,
unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount
of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market
transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are
corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.
The Bank bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Bank’s CGUs
to which the individual assets are allocated. These budgets and forecast calculations generally cover a period of five years. For longer periods, a long-
term growth rate is calculated and applied to project future cash flows after the fifth year.
For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognised
impairment losses no longer exist or have decreased. If such indication exists, the Bank estimates the asset’s or CGU’s recoverable amount. A
previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable
amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable
amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset
in prior years. Such reversal is recognised in the income statement.
2.3.14 Other assets
Other assets are generally defined as claims held against other entities for the future receipt of money. The other assets in the Bank's financial
statements include the following:
(a) Prepayment
Prepayments are payments made in advance for services to be enjoyed in future. The amount is initially capitalized in the reporting period in which
the payment is made and subsequently amortised over the period in which the service is to be enjoyed.
(b) Other receivables
Other receivables are recognised upon the occurrence of event or transaction as they arise and cancelled when payment is received.
The Bank's other receivables are rent receivables and other receivables from debtors.

For
IFRS the Period
statements
Notes
Notes toto
the the financial statements
2.3.15 Fair value measurement
The Bank measures financial instruments classified as available-for-sale at fair value at each statement of financial position date. Fair value related
disclosures for financial instruments and non-financial assets that are measured at fair value or where fair values are disclosed are, summarised in
the following notes:
• Disclosures for valuation methods, significant estimates and assumptions Notes 3 and Note 4.6.1
• Quantitative disclosures of fair value measurement hierarchy Note 4.6.2
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place
either:
• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible to by the Bank.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability,
assuming that market participants act in their economic best interest.
The Bank uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value,
maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy,
described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable.
• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Bank determines whether transfers have occurred
between Levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a
whole) at the end of each reporting period.
The Bank’s management determines the policies and procedures for both recurring fair value measurement, such as available-for-sale financial
assets.
For
2.3.16 Employee benefits
The Bank operates various post-employment schemes, including both defined benefit and defined contribution pension plans and post employment
benefits.
(a) Defined contribution plan
The Bank operates two defined contribution plans;
i) pension scheme in line with the provisions of Ethiopian pension of private organisation employees proclamation
715/2011. Funding under the scheme is 7% and 11% by employees and the Bank respectively;
ii) provident fund contribution, funding under this scheme is 2% by only the Bank ;
Both schemes are based on the employees' salary. Employer's contributions to this scheme are charged to profit or loss and other comprehensive
income in the period in which they relate.
(b) Defined benefit plan
The liability or asset recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation
at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries
using the projected unit credit method.
The liability recognised in the statement of financial position in respect of defined benefit pension plans is the present value of the defined benefit
obligation at the end of the reporting period less the fair value of plan assets.
The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the
defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that
are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension
obligation.
The current service cost of the defined benefit plan, recognised in the income statement in employee benefit expense, except where included in the
cost of an asset, reflects the increase in the defined benefit obligation resulting from employee service in the current year, benefit changes
curtailments and settlements.
Past-service costs are recognised immediately in income.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other
comprehensive income in the period in which they arise.
(c ) Termination benefits
Termination benefits are payable to executive directors when employment is terminated by the Bank before the normal retirement date, or whenever
an employee accepts voluntary redundancy in exchange for these benefits. The Bank recognises termination benefits when it is demonstrably
committed to either: terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal; or
providing termination benefits as a result of an offer made to encourage voluntary redundancy.
(d ) Profit-sharing and bonus plans
The Banks recognises a liability and an expense for bonuses and profit-sharing based on a formula that takes into consideration the profit attributable
to the company’s shareholders after certain adjustments. The Bank recognises a provision where contractually obliged or where there is a past
practice that has created a constructive obligation.

ForIFRS
thefinancial
Period Ended 30 June 2021
statements
Notes
Notesto thefinancial
to the statements
2.3.17 Provisions
Provisions are recognised when the bank has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of
resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
When the Bank expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a
separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in income statement net of any
reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as other operating expenses.
2.3.18 Share capital
Incremental costs directly attributable to the issue of new shares or options or to the acquisition of a business are shown in equity as a deduction, net
of tax, from the proceeds.
2.3.19 Legal reserve
The legal reserve which is a statutory reserve to which no less than 25% of the net profits after taxation shall be transferred each year until such fund
is equal to the capital. When the legal reserve equals the capital of the bank , the amount to be transferred to the legal reserve account shall be 10% of
the annual net profit.
2.3.20 IFRS 16 - Leases
It sets out the principles for the recognition, measurement, presentation and disclosure of leases. The objective is to ensure that lessees and lessors
provide relevant information in a manner that faithfully represents those transactions. The standard introduces a single lessee accounting model and
requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. A
lessee is required to recognise a right-of-use asset representing its right to use the underlying leased asset and a lease liability representing its
obligation to make lease payments.
It also elected to apply the practical expedient that allows entities to rely on its assessment of whether leases were onerous by applying IAS 37
Provisions, Contingent Liabilities and Contingent Assets immediately before the date of initial application as an alternative to performing an
impairment review.
The effect of initially applying IFRS 16 is mainly attributed to:

_ an increase in non-current assets as obligations to make future payments under leases previously classified as an operating lease were recognized
on the balance sheet, along with the corresponding asset: right-of-use asset.
_ Expenditure on operation has decreased and finance cost have increased, as operating lease costs have been replaced by depreciation and interest
expense on lease liabilities.
The adoption of IFRS 16 requires the Bank to make a number of assumptions, estimations and judgments that includes:
_ lease liabilities were determined based on the value of the remaining lease payments, discounted by an appropriate incremental borrowing rate.
_ term of each arrengment was based on the original lease term.
_ The discount rate used to determine lease liabilities was the Bank's incremental borrowing rate. It was calculated based on observable inputs.
At the commencement date, the Bank recognized:

_ a lease liability at the present value of the lease payments that are not paid at that date. Present value of lease payments will be determined by
discounting future lease payments at the interest rate implicit in the lease arrangement, if it is readily determined or at Bank's incremental
borrowing rate.
After the commencement date, the Bank masures:
_ right-of-use assets using cost model, i.e. cost at initial recognition less accumulated depreciation (in line with IAS 16: Property, plant and
Equipment) and accumulated impairment losses (in line with IAS 36: Impairment of Assets).
_ lease liability by increasing its carrying amount to reflect interest on the lease liability and by reducing its carrying amount to reflect lease
payments made.
Interest incurred on lease liability will be recognized in the statement of profit and loss as a finance cost.
Determination of whether an arrangement is a lease, or contains a lease

The determination of whether an arrangement is a lease, or contains a lease, is based on the substance of the arrangement and requires an
assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets or whether the arrangement conveys a
right to use the asset.
Bank as a lessor
Leases where the Bank does not transfer substantially all of the risk and benefits of ownership of the asset are classified as operating leases. Rental
income is recorded as earned based on the contractual terms of the lease in Other operating income. Initial direct costs incurred in negotiating
operating leases are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income.
Contingent rents are recognised as revenue in the period in which they are earned.
IFRSEnat
Bank Share Company
For IFRS
the financial
statements
Notes totothe
Notes financial
the financial statements
statements
2.3.21 Income taxation
a) Current income tax
The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate for
each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in
Ethiopia. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to
interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
b) Deferred tax
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial
statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill; deferred tax is not accounted for
if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects
neither accounting nor taxable profit or loss.
Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the balance sheet date and are expected to
apply when the related deferred tax asset is realised or the deferred tax liability is settled.
Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary
differences can be utilised.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when
the deferred taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different
taxable entities where there is an intention to settle the balances on a net basis.
Deferred tax assets and liabilities are only offset when they arise in the same tax reporting group and where there is both the legal right and the
intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
3 Significant accounting estimates and assumptions

The preparation of the Bank’s financial statements requires management to make judgements, estimates and assumptions that affect the reported
amount of revenues, expenses, assets and liabilities, and the accompanying disclosures, as well as the disclosure of contingent liabilities. Uncertainty
about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities
affected in future periods.
Other disclosures relating to the Bank’s exposure to risks and uncertainties includes:
• Capital management Note 4.5
• Financial risk management and policies Note 4
• Sensitivity analyses disclosures Note 4.2.7
a) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation at the reporting date, that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Bank based its assumptions and
estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments,
however, may change due to market changes or circumstances beyond the control of the Bank. Such changes are reflected in the assumptions when
they occur.
b) Impairment losses on loans and receivables
Regarding impairment of financial instruments the bank needs to do the detail presented in Note 2.3.1 of this financial statement.
3.1 Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in the statement of financial position cannot be measured based on quoted
prices in active markets, their fair value is measured using valuation techniques including the discounted cash flow (DCF) model. The inputs to these
models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values.
Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect
the reported fair value of financial instruments. See Note 4.6 for further disclosures.
3.2 Depreciation and carrying value of property, plant and equipment
The estimation of the useful lives of assets is based on management’s judgement. Any material adjustment to the estimated useful lives of items of
property and equipment will have an impact on the carrying value of these items.

For
IFRSthe Period
statements
3.3 Impairment of non-financial assets
Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less
costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions,
conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation
is based on a DCF model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Bank is
not yet committed to or significant future investments that will enhance the asset’s performance of the CGU being tested. The recoverable amount is
sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash-inflows and the growth rate used for
extrapolation purposes.
In assessing whether there is any indication that an asset may be impaired, the Bank considers the following indications:
(i) External information

•there are observable indications that the asset's value has declined during the period significantly more than would be expected as a result of the
passage of time or normal use.
•significant changes with an adverse effect on the Bank have taken place during the period, or will take place in the near future, in the technological,
market, economic or legal environment in which the Bank operates or in the market to which an asset is dedicated.
•market interest rates or other market rates of return on investments have increased during the period, and those increases are likely to affect the
discount rate used in calculating an asset's value in use and decrease the asset's recoverable amount materially.
(ii) Internal information

•evidence is available of obsolescence or physical damage of an asset.
•significant changes with an adverse effect on the Bank have taken place during the period, or are expected to take place in the near future, in the
extent to which, or manner in which, an asset is used or is expected to be used. These changes include the asset becoming idle, plans to discontinue or
restructure the operation to which an asset belongs, plans to dispose of an asset before the previously expected date, and reassessing the useful life of
an asset as finite rather than indefinite.
•evidence is available from internal reporting that indicates that the economic performance of an asset is, or will be, worse than expected.
3.4 Taxes
Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and timing of future taxable
income. Given the wide range of international business relationships and the long-term nature and complexity of existing contractual agreements,
differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future
adjustments to tax income and expense already recorded. The amount of such provisions is based on various factors, such as experience of previous
tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority.
Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses
can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the
likely timing and the level of future taxable profits together with future tax planning strategies.
For the Period
IFRS financial statementsEnded 30 June 2021
Notes tofinancial
the financial
statements statements
Notes to the
4 Financial risk management
4.1 Introduction
Risk is inherent in the Bank’s activities, but is managed through a process of ongoing identification, measurement and monitoring, subject to risk limits and other
controls. This process of risk management is critical to the Bank’s continuing profitability and each individual within the Bank is accountable for the risk exposures
relating to his or her responsibilities. The Bank is exposed to credit risk, liquidity risk and market risk. It is also subject to country risk and various operating risks.
The independent risk control process does not include business risks such as changes in the environment, technology and industry. The Bank's policy is to monitor
those business risks through the Bank’s strategic planning process.
4.1.1 Risk management structure
The Board of Directors has overall responsibility for the establishment and oversight of the Bank’s risk management framework.
The Board has established the Loan Review and Risk sub-Committee, which are responsible for developing and monitoring Bank’s risk management policies.
The Bank’s risk management policies are established to identify and analyze the risks faced by the Bank, to set appropriate risk limits and controls, and to monitor
risks and adherence to limits.
Risk management policies and systems are reviewed regularly to reflect changes in the regulation, market conditions, products and services offered. The Bank,
through its training and procedures and policies for management, aims to develop a constructive control environment, in which all employees understand their roles
and obligations.
The Bank’s Board of Directors is responsible for monitoring compliance with the Bank’s risk management policies and procedures, and for reviewing the adequacy of
the risk management framework in relation to the risks faced by the Bank. The Bank’s Board of Directors is assisted in these functions by the Risk and Compliance
Department.
The Risk and Compliance Department undertakes both regular and ad-hoc reviews of risk management controls and procedures, the results of which are reported
to the Risk sub Committee.
4.1.2 Risk measurement and reporting systems
The Bank’s risks are measured using a method that reflects both the expected loss likely to arise in normal circumstances and unexpected losses, which are an
estimate of the ultimate actual loss based on statistical models. The models make use of probabilities derived from historical experience, adjusted to reflect the
economic environment. The Bank also runs worst-case scenarios that would arise in the event that extreme events which are unlikely to occur do, in fact, occur.
Monitoring and controlling risks is primarily performed based on limits established by the Bank. These limits reflect the business strategy and market environment
of the Bank as well as the level of risk that the Bank is willing to accept, with additional emphasis on selected regions. In addition, the Bank’s policy is to measure
and monitor the overall risk bearing capacity in relation to the aggregate risk exposure across all risk types and activities.
4.1.3 Risk mitigation
Risk controls and mitigants, identified and approved for the Bank, are documented for existing and new processes and systems. The adequacy of these mitigants is
tested on a periodic basis through administration of control self-assessment questionnaires, using an operational risk management tool which requires risk owners
to confirm the effectiveness of established controls. These are subsequently audited as part of the review process.
4.2 Credit risk
Credit risk is the risk of financial loss to the Bank if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises
principally from the Bank’s loans and advances to customers and other banks and other financial assets.
Exposure to credit risk is managed through periodic analysis of the ability of borrowers and potential borrowers to determine their capacity to meet principal and
interest thereon, and restructuring such limits as appropriate. Exposure to credit risk is also mitigated, in part, by obtaining collateral, commercial and personal
guarantees.
The Bank structures the levels of credit risk it undertakes by placing limits on the amount of risk accepted in relation to one borrower, or groups of borrowers, and
to term of the financial instrument and economic sectors.
The National Bank of Ethiopia (NBE) sets credit risk limit for a single borrower, one related party and all related parties to not exceed 25% and 35% of Bank’s total
capital amount as of the reporting quarterly period respectively.
Credit management is conducted as per the risk management policy and guideline approved by the board of directors and the Risk Management Committees. Such
policies are reviewed and modified periodically based on changes and expectations of the markets where the Bank operates, regulations, and other factors.

For the Period
IFRS financial statementsEnded 30 June 2021
Notes tofinancial
Notes to the the financial
4.2.1 Credit quality analysis
The following table sets out information about the credit quality of financial assets measured at amortised cost, FVOCI debt investments (2021) and available-for-
sale debt assets (2020). Unless specifically indicated, for financial assets, the amounts in the table represent gross carrying amounts.
For loan commitments and financial guarantee contracts, the amounts in the table represent the amounts committed or guaranteed, respectively
In Birr'000 2021 2020
Loans and advances to

Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
customers at amortised cost
Stage 1 – Pass 8,370,543 - - 8,370,543 5,710,376 - - 5,710,376
Stage 2 – Special mention - 528,999 - 528,999 - 612,250 - 612,250
Stage 3 - Non performing - - 244,519 244,519 - - 180,131 180,131
Total gross exposure 8,370,543 528,999 244,519 9,144,061 5,710,376 612,250 180,131 6,502,757
Loss allowance (58,597) (6,824) (51,237) (116,658) (39,114) (9,286) (28,305) (76,705)
Net carrying amount 8,311,945 522,175 193,282 9,027,403 5,671,262 602,964 151,826 6,426,052
In Birr'000 2021
2020
Net
Gross Loss Net carrying Gross Loss
Other financial assets carrying
exposure allowance amount exposure allowance
amount
Cash and balances with banks 2,709,230 (135) 2,709,094 2,014,006 (101) 2,013,905
Investment securities (debt instruments)

1,690,848 (85) 1,690,763 1,690,848 (85) 1,690,763
Other receivables and financial assets 106,650 (5) 106,644 105,454 (5) 105,449
Totals 4,506,727 (225) 4,506,502 3,810,307 (191) 3,810,117
Credit Quality Analysis Disclosures for On Balance Sheet facilities.
2021
Title 12 month Lifetime Lifetime ECL Total
ECL ECL not credit
credit impaired
impaired
Normal 8,370,543 - - 8,370,543
Watch - 528,999 - 528,999
Non-Performing - - 244,519 244,519
Total Exposure 8,370,543 528,999 244,519 9,144,061
Loss Allowance - - - -
Carrying Amount 8,370,543 528,999 244,519 9,144,061
Credit Quality Analysis Disclosures for On Balance Sheet facilities.
2020
Title 12 month Lifetime ECL Lifetime ECL Total
ECL not credit credit impaired
impaired
Normal 5,710,376 - - 5,710,376
Watch - 612,250 - 612,250
Non-Performing - - 180,131 180,131
Total Exposure 5,710,376 612,250 180,131 6,502,757
Loss Allowance (39,114) (9,286) (28,305) (76,705)
Carrying Amount 5,671,262 602,964 151,826 6,426,052

For
IFRSthe Period
statements
Notes
Notes toto
the the financial
financial
4.2.2 Collateral held
The Bank holds collateral against certain of its credit exposures. The following table sets out the principal types of
Nature of security in respect of loans and receivables
Secured Bank Equitable Mortgage Shares Others

against real guarantees
estate
30 June 2021 Birr'000 Birr'000 Birr'000 Birr'000 Birr'000
Agriculture 56,745
Construction ϯ͕ϭϱϬ 1,128,153 3,208 343,249
Domestic trade and services 1,623 1,352,556 3,964 276,974
Emergency staff loan 37,241
Export 2,744,174
Import 1,031,308 17,724.58 89,440
Industry 1,395,014 97,628
Personal 55,570
Staff residential loan 300,295
Staff vehicle loan 17,868
Transport 34,496 293,762
- 4,772 8,042,742 24,896 1,211,731
Other financial assets 2021 2020

In Birr'000 Cash and Investment Emergency Other Total Cash and Investment Emergency
balances securities staff loans receivables balances securities staff loans
with banks (debt and with banks (debt
instruments financial instruments)
) assets
Balance as at 1 July 101 85 1 5 191 68 96 0

Net remeasurement of loss allowance 35 - 1 - 36 32 (12) 1
New financial assets originated or purchased - - - - - - - -
Balance as at 30 June 135 85 2 5 227 101 85 1
Other assets
in Birr in Birr
Financial Asset 2021_ECL 2020_ECL 2021_ECL 2020_ECL 2021_Gross Exposure 2020_Gross Exposure
Receivables 5 5 5,332 5,273 106,644,349 105,454,093
NBE bills and bonds 85 85 84,542 84,542 1,690,763,058 1,690,847,600
Bank balances 135 90 135,461 89,815 2,709,094,170 1,796,301,693
4.2.3 Investment securities designated as at FVTPL

At 30 June 2021, the Bank had no exposure to credit risk of the investment securities designated as at FVTPL
4.2.4 Amounts arising from ECL

i) Inputs, assumptions and techniques used for estimating impairment
See accounting policy in Note 2.3.1
ii) Significant increase in credit risk

When determining whether the risk of default on a financial instrument has increased significantly since initial recognition, the Bank considers reasonable and
supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based
on the Bank’s historical experience and expert credit assessment and including forward-looking information.
The objective of the assessment is to identify whether a significant increase in credit risk has occurred for an exposure by comparing:
— the remaining lifetime probability of default (PD) as at the reporting date; with
— the remaining lifetime PD for this point in time that was estimated at the time of initial recognition of the exposure (adjusted where relevant for changes in
prepayment expectations).
— the Bank uses three criteria for determining whether there has been a significant increase in credit risk:
— quantitative test based on movement in PD;
— qualitative indicators; and
— a backstop of 30 days past due,
iii) Credit risk grades

The Bank allocates each exposure to a credit risk grade based on a variety of data that is determined to be predictive of the risk of default and applying experienced
credit judgement. Credit risk grades are defined using qualitative and quantitative factors that are indicative of risk of default. These factors vary depending on the
nature of the exposure and the type of borrower.
Credit risk grades are defined and calibrated such that the risk of default occurring increases exponentially as the credit risk deteriorates so, for example, the
difference in risk of default between credit risk grades 1 and 2 is smaller than the difference between credit risk grades 2 and 3. Each exposure is allocated to a credit
risk grade on initial recognition based on available information about the borrower. Exposures are subject to ongoing monitoring, which may result in an exposure
being moved to a different credit risk grade. The monitoring typically involves use of the following data;

For
Enatthe
Bank Period Ended 30 June 2021
Share Company
Notes
For the to the financial
30 June 2021 statements
period ended
a. Term loan exposures

— Information obtained during periodic review of customer files – e.g. audited financial statements, management accounts, budgets and projections. Examples of
areas of particular focus are: gross profit margins, financial leverage ratios, debt service coverage, compliance
— Data from credit reference agencies, press articles, changes in external credit ratings
— Actual and expected significant changes in the political, regulatory and technological environment of the borrower or in its business activities
— Internally collected data on customer behaviour – e.g. utilisation of credit card facilities
— Affordability metrics
b. Overdraft exposures
— Payment record – this includes overdue status as well as a range of variables about payment ratios
— Utilisation of the granted limit
— Requests for and granting of forbearance
— Existing and forecast changes in business, financial and economic conditions
i) Generating the term structure of PD
Credit risk grades are a primary input into the determination of the term structure of PD for exposures. The Bank collects performance and default information
about its credit risk exposures analysed by type of product and borrower as well as by credit risk grading. The Bank employs statistical models to analyse the data
collected and generate estimates of the remaining lifetime PD of exposures and how these are expected to change as a result of the passage of time.
ii) Determining whether credit risk has increased significantly
The Bank assesses whether credit risk has increased significantly since initial recognition at each reporting date. Determining whether an increase in credit risk is
significant depends on the characteristics of the financial instrument and the borrower. What is considered significant differs for different types of lending.
As a general indicator, credit risk of a particular exposure is deemed to have increased significantly since initial recognition if, based on the Bank’s quantitative
modelling:
The credit risk may also be deemed to have increased significantly since initial recognition based on qualitative factors linked to the Bank’s credit risk management
processes that may not otherwise be fully reflected in its quantitative analysis on a timely basis. This will be the case for exposures that meet certain heightened risk
criteria, such as placement on a watch list. Such qualitative factors are based on its expert judgment and relevant historical experiences.
As a backstop, the Bank considers that a significant increase in credit risk occurs no later than when an asset is more than 30 days past due. Days past due are
determined by counting the number of days since the earliest elapsed due date in respect of which full payment has not been received. Due dates are determined
without considering any grace period that might be available to the borrower.
If there is evidence that there is no longer a significant increase in credit risk relative to initial recognition, then the loss allowance on an instrument returns to being
measured as 12-month ECL. Some qualitative indicators of an increase in credit risk, such as delinquency or forbearance, may be indicative of an increased risk of
default that persists after the indicator itself has ceased to exist. In these cases, the Bank determines a probation period during which the financial asset is required
to demonstrate good behaviour to provide evidence that its credit risk has declined sufficiently. When contractual terms of a loan have been modified, evidence that
the criteria for recognising lifetime ECL are no longer met includes a history of up-to-date payment performance against the modified contractual terms.
The Bank monitors the effectiveness of the criteria used to identify significant increases in credit risk by regular reviews to confirm that:
- the criteria are capable of identifying significant increases in credit risk before an exposure is in default;
- the criteria do not align with the point in time when an asset becomes 30 days past due;
- the average time between the identification of a significant increase in credit risk and default appears reasonable;
- exposures are not generally transferred directly from 12-month ECL measurement to credit- impaired; and
- there is no unwarranted volatility in loss allowance from transfers between 12-month PD (Stage 1) and lifetime PD (Stage 2).
iii) Definition of default

The Bank considers a financial asset to be in default when:
- the borrower is unlikely to pay its credit obligations to the Bank in full, without recourse by the Bank to actions such as realising security (if any is held);
- the borrower is more than 90 days past due on any material credit obligation to the Bank.
- Overdrafts are considered as being past due once the customer has breached an advised limit or been advised of a limit smaller than the current amount
outstanding;
- or
it is becoming probable that the borrower will restructure the asset as a result of bankruptcy due to the borrower’s inability to pay its credit obligations.
In assessing whether a borrower is in default, the Bank considers indicators that are:
- qualitative: e.g. breaches of covenant;
- quantitative: e.g. overdue status and non-payment on another obligation of the same issuer to the Bank; and
- based on data developed internally and obtained from external sources.
- Inputs into the assessment of whether a financial instrument is in default and their significance may vary over time to reflect changes in circumstances.
The definition of default largely aligns with that applied by the Bank for regulatory capital purposes incorporation of forward-looking information
The Bank incorporates forward-looking information into both the assessment of whether the credit risk of an instrument has increased significantly since its initial
recognition and the measurement of ECL.
For each segment, the Bank formulates three economic scenarios: a base case, which is the median scenario, and two less likely scenarios, one upside and one
downside. For each sector, the base case is aligned with the macroeconomic model’s information value output, a measure of the predictive power of the model, as
well as base macroeconomic projections for identified macroeconomic variables for each sector. The upside and downside scenarios are based on a combination of a
percentage error factor of each sector model as well as simulated optimistic and pessimistic macroeconomic projections based on a measure of historical
macroeconomic volatilities.
In line with the expected, as well as experienced, Expected Credit Loss forward - looking volatility arising from the economic impact of the Covid 19 global crisis, the
Bank has conducted, and overlaid, additional scenario analysis on the macroeconomic overlay model. This includes application of higher probability weights on the
downside scenario, lower probability weights on the upside scenario, as well as stress tests on macroeconomic projections. The Bank continues to monitor the
economic impact of Covid 19 on it's credit risk profile as well as forward - looking Expected Credit Loss estimates and shall update the same on it's IFRS 9 forward -
looking estimates as and when significant changes in the overall macroeconomic environment are experienced.
External information considered includes economic data and forecasts published by Business Monitor International, an external and independent macroeconomic
data body. This is in addition to industry – level, semi – annual NPL trends across statistically comparable sectors.
Periodically, the Bank carries out stress testing of more extreme shocks to calibrate its determination of the upside and downside representative scenarios. A
comprehensive review is performed at least annually on the design of the scenarios by a panel of experts that advises the Bank’s senior management.
The Bank has identified and documented key drivers of credit risk and credit losses for each portfolio of financial instruments and, using an analysis of historical
data, has estimated relationships between macro-economic variables and credit risk and credit losses.
IFRS Financial
IFRS financial statementsStatements
For
For
Enat
Notes the
to the Period
theBank
periodShare
financial
endedCompany
30 June 2021
statements
statements
The key drivers for credit risk for each of the Bank’s economic sectors is summarized below:
Sector/Product
Agriculture, Personal loans and Staff loans
The key drivers
Domestic Trade for credit risk for each of the Bank’s economic sectors is summarized below:
& Services
Sector/Product
Building & Construction and Manufacturing & Production
Agriculture,
Export Personal loans and Staff loans
and Import
Domestic Trade & Services
Building & Construction and Manufacturing & Production
Export and Import GDP
INFLATION:
EXPENDITURE DEBT: STRATIFICATI
Consumer EXCHANGE
Agriculture, Personal) loans and Staff GDP: Exports of Government ON: Household
price index,
INFLATION: RATE:
loans goods and
EXPENDITURE domestic debt,
DEBT: Spending,
STRATIFICATI
2010
Consumer= 100, ETB/USD,
EXCHANGE ave
Agriculture, Personal) loans and Staff services,
: Exports of USD Government
ETBbn ON:ETBbn
Household
ave
price index, RATE:
loans per capita
goods and domestic debt, Spending,
2010 = 100, ETB/USD, ave
services, USD ETBbn ETBbn
ave GDP per capita
EXPENDITUR INFLATION:
EXCHANGE
Domestic Trade & Services and GDP: GDP perGDP E: Imports of Consumer price FISCAL: Total
RATE:
Transport capita, USD EXPENDITUR
goods and index, 2010 =
INFLATION: revenue, USDbn
ETB/USD, ave
EXCHANGE
Domestic Trade & Services and GDP: GDP per E:services,
Imports of Consumer
100, eopprice FISCAL: Total
RATE:
Transport capita, USD goods
USDbnand index, 2010 = revenue, USDbn
ETB/USD, ave
GDP services, 100, eop
FISCAL:
USDbn
DEBT:
EXPENDITU
Construction, Industry and Hotel & GDP Current Government
RE: Exports ofFISCAL: - -
Tourism, EXPENDITU expenditure, DEBT: domestic debt,
Construction, Industry and Hotel & goods and Current Government
RE: Exports of USDbn ETBbn - -
Tourism, services, USD expenditure, domestic debt,
goods and
GDP USDbn ETBbn
services, USD GDP EXCHANGE GDP
EXPENDITU
GDP EXPENDITUR RATE: Real EXPENDITUR DEBT: Total
RE: Exports ofGDP EXCHANGE GDP
Export and Import EXPENDITU E: Imports of effective E: Private final government
goods and EXPENDITUR RATE: Real EXPENDITUR DEBT: Total
RE: Exports of goods and exchange rate, consumption, debt, USDbn
Export and Import services, E: Imports of effective E: Private final government
goods and services, ETBbn index USDbn
ETBbn goods and exchange rate, consumption, debt, USDbn
services,
services, ETBbn index USDbn
ETBbn
The economic scenarios used as at 30 June 2020 included the following key indicators for Ethiopia for the years 2021 to 2023:
The economic scenarios used as at 30 June 2020 included the following key indicators for Ethiopia for the years 2021 to 2023:
Macro-economic factor 2021 2022 2023
Macro-economic factor 2021 2022 2023
INFLATION: Consumer price index, 2010 = 100 470.4 517.4 517.4
GDP: GDP per capita, USD 889 1004 1004
GDP:EXPENDITURE:
GDP GDP per capita, USD
Exports of goods and services, USD per 889 1004 1004
72.1 80.3 80.3
capita
GDP EXPENDITURE: Exports of goods and services, USD per
72.1 80.3 80.3
capita
GDP EXPENDITURE: Exports of goods and services, ETBbn 291.7 342.9 342.9
GDP EXPENDITURE: Exports of goods and services, ETBbn 291.7 342.9 342.9
EXCHANGE RATE: ETB/USD 34.31 35.34 35.34
EXCHANGE RATE: ETB/USD 34.31 35.34 35.34
GDP EXPENDITURE: Imports of goods and services, USDbn 31.4 35.9 35.9
GDP EXPENDITURE: Imports of goods and services, USDbn 31.4 35.9 35.9
FISCAL: Current expenditure, USDbn 9.6 10.9 10.9
FISCAL: Current expenditure, USDbn 9.6 10.9 10.9
GDP EXPENDITURE: Imports of goods and services, ETBbn 1077.9 1270.6 1270.6
GDP EXPENDITURE: Imports of goods and services, ETBbn 1077.9 1270.6 1270.6
DEBT: Government domestic debt, ETBbn 872.3 1003.1 1003.1
DEBT: Government domestic debt, ETBbn 872.3 1003.1 1003.1
EXCHANGE RATE: Real effective exchange rate, index 124.12 122.16 122.16
EXCHANGE RATE: Real effective exchange rate, index 124.12 122.16 122.16
GDP EXPENDITURE: Private final consumption, USDbn 81.9 95 95
GDP EXPENDITURE: Private final consumption, USDbn 81.9 95 95
STRATIFICATION: HouseholdSpending,
STRATIFICATION: Household Spending,ETBbn
ETBbn 2503.8 2991.5 2991.5
2503.8 2991.5 2991.5
FISCAL:
FISCAL: Total
Total revenue, USDbn
revenue, USDbn 10.3
10.3 11.611.6 11.6 11.6
DEBT:
DEBT: Total
Total government debt,USDbn
government debt, USDbn 67.1
67.1 77 77 77 77
Predicted
Predicted relationships betweenthe
relationships between thekey
keyindicators
indicatorsand
anddefault
default rates
rates onon various
various portfolios
portfolios of financial
of financial assets
assets havehave
beenbeen developed
developed basedbased on analysing
on analysing semi –semi – annual
annual
semi – annual historical
historical data
data over the
the past
past 55years.
years.
Scenario
Scenario probability weightings
probability weightings
Asat
As at June
June 2021
2021 2020
2020
Upside
Upside Median/Central
Downside
Downside Upside
Median/Central Upside Median/Central
Downside
Median/Central
Downside
Cluster 11
Cluster 0%
0% 50%
50% 50%
50% 0% 0% 50%50% 50% 50%
Cluster 22
Cluster 0%
0% 50%
50% 50%
50% 0% 0% 50%50% 50% 50%
Cluster 33
Cluster 0%
0% 50%
50% 50%
50% 0% 0% 50%50% 50% 50%
Cluster 44
Cluster 0%
0% 50%
50% 50%
50% 0% 0% 50%50% 50% 50%
Predicted relationships
Predicted relationships between
betweenthe
thekey
keyindicators
indicatorsand
anddefault
defaultrates onon
rates various portfolios
various of financial
portfolios assets
of financial havehave
assets beenbeen
developed basedbased
developed on analysing semi –semi
on analysing annual
– annual
historical data over the past 5 years.
semi – annual historical data over the past 5 years.

For the Period
statements
4.2.5 Modified financial assets
The contractual terms of a loan may be modified for a number of reasons, including changing market conditions, customer retention and other factors not related to
a current or potential credit deterioration of the customer. An existing loan whose terms have been modified may be derecognised and the renegotiated loan
recognised as a new loan at fair value in accordance with the accounting policy set out.
When the terms of a financial asset are modified and the modification does not result in derecognition, the determination of whether the asset’s credit risk has
increased significantly reflects comparison of: its remaining lifetime PD at the reporting date based on the modified terms; with the remaining lifetime PD estimated
based on data on initial recognition and the original contractual terms.
When modification results in derecognition, a new loan is recognised and allocated to Stage 1 (assuming it is not credit-impaired at that time).
The Bank renegotiates loans to customers in financial difficulties (referred to as ‘forbearance activities’) to maximise collection opportunities and minimise the risk
of default. Under the Bank’s forbearance policy, loan forbearance is granted on a selective basis if the debtor is currently in default on its debt or if there is a high
risk of default, there is evidence that the debtor made all reasonable efforts to pay under the original contractual terms and the debtor is expected to be able to meet
the revised terms.
The revised terms usually include extending the maturity, changing the timing of interest payments and amending the terms of loan covenants. Both retail and
corporate loans are subject to the forbearance policy. The Bank Credit Committee regularly reviews reports on forbearance activities.
For financial assets modified as part of the Bank’s forbearance policy, the estimate of PD reflects whether the modification has improved or restored the Bank’s
ability to collect interest and principal and the Bank’s previous experience of similar forbearance action. As part of this process, the Bank evaluates the borrower’s
payment performance against the modified contractual terms and considers various behavioural indicators.
Generally, forbearance is a qualitative indicator of a significant increase in credit risk and an expectation of forbearance may constitute evidence that an exposure is
credit-impaired. A customer needs to demonstrate consistently good payment behaviour over a period of time before the exposure is no longer considered to be
credit-impaired/in default or the PD is considered to have decreased such that the loss allowance reverts to being measured at an amount equal to Stage 1.
4.2.6 Measurement of ECL
The key inputs into the measurement of ECL are the term structure of the following variables:
- probability of default (PD);
- loss given default (LGD); and
- exposure at default (EAD).
ECL for exposures in Stage 1 is calculated by multiplying the 12-month PD by LGD and EAD. Lifetime ECL is calculated by multiplying the lifetime PD by LGD and
EAD.
The methodology of estimating PDs is discussed above under the heading ‘Generating the term structure of PD’.
LGD is the magnitude of the likely loss if there is a default. The Bank estimates LGD parameters based on the history of recovery rates of claims against defaulted
counterparties. The LGD models consider the structure, collateral, seniority of the claim, counterparty industry and recovery costs of any collateral that is integral
to the financial asset.
For loans secured by retail property, LTV ratios are a key parameter in determining LGD. LGD estimates are recalibrated for different economic scenarios and, for
real estate lending, to reflect possible changes in property prices. They are calculated on a discounted cash flow basis using the effective interest rate as the
discounting factor.
EAD represents the expected exposure in the event of a default. The Bank derives the EAD from the current exposure to the counterparty and potential changes to
the current amount allowed under the contract and arising from amortisation. The EAD of a financial asset is its gross carrying amount at the time of default. For
lending commitments, the EADs are potential future amounts that may be drawn under the contract, which are estimated based on historical observations and
forward-looking forecasts. For financial guarantees, the EAD represents the amount of the guaranteed exposure when the financial guarantee becomes payable. For
some financial assets, EAD is determined by modelling the range of possible exposure outcomes at various points in time using scenario and statistical techniques.
As described above, and subject to using a maximum of a 12-month PD for Stage 1 financial assets, the Bank measures ECL considering the risk of default over the
maximum contractual period (including any borrower’s extension options) over which it is exposed to credit risk, even if, for credit risk management purposes, the
Bank considers a longer period.
The maximum contractual period extends to the date at which the Bank has the right to require repayment of an advance or terminate a loan commitment or
guarantee.
ForIFRS
the Period Ended 30 June 2021
Notes
Notes to
to thethe financial
financial
'However, for overdrafts that include both a loan and an undrawn commitment component, the Bank measures ECL over a period longer than the maximum
contractual period if the Bank’s contractual ability to demand repayment and cancel the undrawn commitment does not limit the Bank’s exposure to credit losses to
the contractual notice period. These facilities do not have a fixed term or repayment structure and are managed on a collective basis. The Bank can cancel them with
immediate effect but this contractual right is not enforced in the normal day-to-day management, but only when the Bank becomes aware of an increase in credit
risk at the facility level. This longer period is estimated taking into account the credit risk management actions that the Bank expects to take, and that serve to
mitigate ECL. These include a reduction in limits, cancellation of the facility and/or turning the outstanding balance into a loan with fixed repayment terms.
Where modelling of a parameter is carried out on a collective basis, the financial instruments are grouped on the basis of shared risk characteristics that include:
- instrument type;
- credit risk grading;
- collateral type;
- LTV ratio for retail mortgages;
- date of initial recognition;
- remaining term to maturity;
- industry; and
- Geographic location of the borrower.
The groupings are subject to regular review to ensure that exposures within a particular group remain appropriately 'homogeneous.
4.2.7 Concentrations of credit risk
The Bank monitors concentrations of credit risk by economic sector. An analysis of concentrations of credit risk from loans and advances, loan commitments,
financial guarantees and investment securities is shown below;
Amount
Note
Millions of
Carrying amount 15 8,965,488
Amount committed/guaranteed 9,082,146
Concentration by sector
Agriculture 98,441
Industry 1,443,020
Construction 1,749,696
Domestic Trade and Services 1,266,482
Personal loans 65,439
Export 2,873,081
Import 774,530
Transportation 521,480
Emergency Staff Loan 28,489
Staff Residential Loan 248,053
Staff Vehicle Loan 13,435
4.2.8 Offsetting financial assets and financial liabilities
The Bank does not offset financial assets against financial liabilities.
Net interest income

In millions of ETB 2021 2020
Interest income 1,302,827 1,043,176
Interest expense (863,588) (656,122)
4.3 Liquidity risk
Liquidity risk is the risk that the Bank cannot meet its maturing obligations when they become due, at reasonable cost and in a timely manner. Liquidity risk arises
because of the possibility that the Bank might be unable to meet its payment obligations when they fall due as a result of mismatches in the timing of the cash flows
under both normal and stress circumstances. Such scenarios could occur when funding needed for illiquid asset positions is not available to the Bank on acceptable
terms.
Liquidity risk management in the Bank is solely determined by Asset and Liability Committee, which bears the overall responsibility for liquidity risk. The main
objective of the Bank's liquidity risk framework is to maintain sufficient liquidity in order to ensure that we meet our maturing obligations.
4.3.2 Management of liquidity risk
Cash flow forecasting is performed by the finance department. The finance department monitors rolling forecasts of liquidity requirements to ensure it has sufficient
cash to meet operational needs.
The Bank has incurred indebtedness in the form of borrowings. The Bank evaluates its ability to meet its obligations on an ongoing basis. Based on these
evaluations, the Bank devises strategies to manage its liquidity risk.
Prudent liquidity risk management implies that sufficient cash is maintained and that sufficient funding is available o meet its liabilities when due, under both
normal and stressed conditions, without incurring unacceptable losses or risk damage to the Bank’s reputation.
4.3.2 Financing arrangements
The Bank has access to the following undrawn borrowing facilities at the end of the reporting period:
30 June 30 June
2021 2020
Birr'000 Birr'000
Expiring within one year (borrowings) - -

Expiring beyond one year (borrowings) 967,557 343,393
967,557 343,393
33

Notes to the
For the period endedfinancial
30 June 2021 statements
4.3.3 Maturity analysis of financial liabilities
The table below analyses the Bank’s financial liabilities into relevant maturity groupings based on the remaining period at the statement of financial position date to
the contractual maturity date. The cash flows presented are the undiscounted amounts to be settled in future.
0 - 30 days 31 - 90 days 91 - 180 days 181 - 365 days Over 1 year

Deposits from customers 2,199,538 432,435 1,475,596 467,832 6,609,578

Debt securities issued - - - - -
Borrowings - - - - -
Other liabilities 1,148,907 191,041 120,297 92,606 2,217,794
Total financial liabilities 3,348,446 623,477 1,595,893 560,438 8,827,372
0 - 30 days 31 - 90 days 91 - 180 days 181 - 365 days Over 1 year

Deposits from customers 2,492,116 205,983 1,039,133 2,265,829 2,380,751

Debt securities issued - - - -
Borrowings - - - - 967,557
Other liabilities 25,900 52,582 - 1,074,342 84,982
Total financial liabilities 2,518,016 258,565 1,039,133 3,340,170 3,433,290
4.4 Market risk
Market risk is defined as the risk of loss risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market risk factors
such as interest rates, foreign exchange rates, equity prices, credit spreads and their volatilities. Market risk can arise in conjunction with trading and non-trading
activities of a financial institutions.
The Bank does not ordinarily engage in trading activities as there are no active markets in Ethiopia.
4.4.1 Management of market risk
The main objective of Market Risk Management is to manage and control market risk exposures within acceptable parameters, while optimising the return on risk.
4.4.2 Management of market risk
Market risk is monitored by the risk management department on regularly, to identify any adverse movement in the underlying variables.
For the Period
statements
Notes tofinancial
(i) Interest rate risk
Interest rate risk is the risk that the value of a financial instrument will be affected by changes in market interest rates. Borrowings obtained at variable rates give
rise to interest rate risk. The Bank’s exposure to the risk of changes in market interest rates relates primarily to the Bank’s obligations and financial assets with
floating interest rates. The Bank is also exposed on fixed rate financial assets and financial liabilities. The Bank’s investment portfolio is comprised of treasury bills,
Ethiopian government bonds and cash deposits.
The table below sets out information on the exposures to fixed and variable interest instruments.
Non-
interest
30 June 2021 Fixed Floating bearing Total
Birr'000 Birr'000 Birr'000 Birr'000
Assets
Cash and balances with banks 1,826,098 257,485 883,131 2,966,715
Loans and receivables - - - -
Total 1,826,098 257,485 883,131 2,966,715
Liabilities
Deposits from customers 5,062,704 - - 5,062,704
Debt securities issued
Other liabilities 1,052,539
Total 6,115,243 - - 5,062,704
30 June 2020 Fixed Floating Non- Total

interest
Birr'000 Birr'000 bearing
Birr'000 Birr'000
Assets
Cash and balances with banks 1,182,704 292,446 829,948 2,305,098
Loans and receivables - - - -
Total 1,182,704 292,446 829,948 2,305,098
Liabilities
Deposits from customers 6,299,665 1,141,476 - 7,441,141
Debt securities issued - - - -
Other liabilities - - 166,763 166,763
Total 6,299,665 1,141,476 166,763 7,607,904
(ii) Foreign exchange risk
Foreign exchange risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to the changes in foreign exchange rates.
The Bank is exposed to exchange rate risks to the extent of balances and transactions denominated in a currency other than the Ethiopian Birr. The Bank’s foreign
currency bank accounts act as a natural hedge for these transactions. Management has set up a policy to manage the Bank's foreign exchange risk against its
functional currency.
The table below summarises the impact of increases/decreases of 10% on equity and profit or loss arising from the Bank's foreign denominated borrowings and cash
and bank balances.
Foreign currency denominated balances

30 June
2021 1 July 2020
Birr'000 Birr'000
Cash and bank balances 470,577 110,658

Deposit from customers 55,745 377,104
526,322 487,762

For the Period
statements
Notes tofinancial
4.5 Capital management
The Bank’s objectives when managing capital are to comply with the capital requirements set by the National Bank of Ethiopia, safeguard its ability to continue as a
going concern, and to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business.
4.5.1 Capital adequacy ratio
According to the Licensing & Supervision of Banking Business Directive No SBB/50/2011 of the National Bank of Ethiopia, the Bank has to maintain capital to risk
weighted assets ratio of 8% at all times, the risk weighted assets being calculated as per the provisions of Directive No SBB/9/95 issued on August 18, 1995.
The capital adequacy ratio is the quotient of the capital base of the Bank and the Bank’s risk weighted asset base.
Capital includes capital contribution, retained earnings, legal reserve and other reserves .
30 June 2021 1 July 2020
Birr'000 Birr'000
Capital
Capital contribution 1,542,532 1,380,251
Retained earnings 196,030 150,313
Legal reserve 264,891 207,431
Other reserve 56,651 60,478
2,060,104 1,798,473
Risk weighted assets
Risk weighted balance for on-balance sheet items 7,323,700 6,134,290
Credit equivalents for off-balance sheet items 1,780,920 1,445,130
11,164,724 9,377,893
Risk-weighted Capital Adequacy Ratio (CAR) 18% 19%

Minimum required capital 8% 8%
Excess 10% 11%
4.6 Fair value of financial assets and liabilities
IFRS 13 requires an entity to classify measured or disclosed fair values according to a hierarchy that reflects the significance of observable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, which comprises of
three levels as described below, based on the lowest level input that is significant to the fair value measurement as a whole.
4.6.1. Valuation models
IFRS 13 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable input
reflect market data obtained from independent sources; unobservable inputs reflect the Bank's market assumptions.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows,
based on the lowest level input that is significant to the fair value measurement as a whole.
● Level 1: Inputs that are quoted market prices (unadjusted) in active markets for identical assets or liabilities.
●Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived
from prices) .This category includes instruments valued using: quoted market prices in active markets for similar instruments; quoted prices for identical or similar
instruments in markets that are considered less than active, or other valuation technique in which all significant inputs are directly or indirectly observable from
market data.
In conclusion, this category is for valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly
observable.
● Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs). This category includes all assets and liabilities for
which the valuation technique includes inputs not based on observable date and the unobservable inputs have a significant effect on the asset or liability's valuation.
This category includes instruments that are valued based on quoted prices for similar instruments for which significant unobservable adjustments or assumptions
are required to reflect differences between the instruments.
Notes to the
For the period endedfinancial
30 June 2021statements
4.6.2 Financial instruments not measured at fair value - Fair value hierarchy
The following table summarises the carrying amounts of financial assets and liabilities at the reporting date by the level in the fair value hierarchy into which the fair
value measurement is categorised. The amounts are based on the values recognised in the statement of financial position.
Carrying Fair value

amount
30 June 2021 Birr'000 Birr'000
Financial assets
Cash and balances with banks 2,966,715 2,966,715
Loans and receivables 8,965,488 8,965,488
Investment securities 1,731,136 1,731,136
Total 13,663,339 13,663,339
Financial liabilities
Deposits from customers 11,237,087 11,237,087
Debt securities issued - -
Borrowings 967,557 967,557
Other liabilities 270,248 270,248
Total 12,474,893 12,474,893
Carrying Fair value

amount
30 June 2020 Birr'000 Birr'000
Financial assets
Cash and balances with banks 2,305,098 2,305,098
Loans and receivables 6,426,052 6,426,052
Investment securities 1,726,349 1,726,349
Total 10,457,499 10,457,499
Deposits from customers 8,383,812 8,383,813
Debt securities issued - -
Borrowings 343,393 343,393
Other liabilities 585,854 585,854
Total 9,313,059 9,313,059
The bank Equity investment in Eth-Switch s.c with a cost of 12.503 million and in United Insurance s.c with a cost of 3.9 million have been measured for Fair value.
Due to non availablity of stock market we can't measure it with first hand information. However,the consultant measured it some other methods and the
measurement resultedin the following.
As the financial report for United Inurance s.c for the fiscal year ended 2021 was not ready during the evaluation time fair value of 2021 has ben taken for 2020 also.
Carrying Fair value

amount
Cost: Birr'000 Birr'000
United Insurance s.c 3,900 5,291
Eth-Switch s.c 12,002 30,210
Fair value As at 30 June 2020 15,902.00 35,501
Fair value
Gain or loss on Fair value measurement as at 30 june 2021 Birr'000
United Insurance s.c (248)
Eth-Switch s.c 4,535
Carrying Fair value

amount
Cost: Birr'000 Birr'000
United Insurance s.c 3,900 5,043
Eth-Switch s.c 12,502 34,745
Fair value As at 30 June 2021 16,402.45 39,788

IFRSfinancial
statements
Forthethe
For Period
period endedEnded
30 June30 June
2021
2021
30 June 2021 30 June 2020
Birr'000 Birr'000
5 Interest income
Interest on term loans 943,799 727,249

Interest on import and export facilities 530 3,824
Interest on overdraft 192,960 173,885
Interest on deposits with domestic banks 83,132 72,184
Interest on NBE bills 63,636 69,661
Interest earned on correspondents - 336
1,284,057 1,047,139
30 June 2021 30 June 2020

Birr'000 Birr'000
6 Interest expense
Interest on certificate of deposits (517,378) (386,141)

Interest on customer savings (294,348) (246,781)
Interest on Borrowing (51,863) (23,200)
(863,588) (656,122)
30 June 2021 30 June 2020

Birr'000 Birr'000
7 Net fees and commission income
Fee and commission income
Financial guarantee contracts issued 168,944 199,079

Commission on letters of credit 53,347 23,212
Cashier payment order 206 426
Commission on managed funds 204 87
222,701 222,804
Fee and commission expense

- -
Net fees and commission income 222,701 222,804
30 June 2021 30 June 2020

Birr'000 Birr'000
8 Other operating income
Net gain on foreign exchange - -

Service charge 124,045 41,898
Other income 21,226 14,412
Correspondent charges 553 417
Dividend income 1,220 813
Postage and processing fees 2 2
Swift charges 292 231
Penalty Charge Income 765 360
Gain on on disposal of property, plant and equipment 120 -
148,223 58,133
IFRS Enat
Bank Share Company
For the Period
IFRS financial Ended
statements30 June 2021
NotesNotes
to the financial
to the statements
30 June 2021 30 June 2020

Birr'000 Birr'000
9 Loan impairment charge
Loans and receivables - charge for the year (39,953) (37,337)

Loans and receivables - reversal of provision - -
(39,953) (37,337)
30 June 2021 30 June 2020

Birr'000 Birr'000
10 Impairment losses on other assets
Other assets - charge for the year (10,148) -
Other assets - reversal of impairment losses - 73
(10,148) 73
30 June 2021 30 June 2020

Birr'000 Birr'000
11 Personnel expenses
Short term employee benefits :
Salaries and wages (162,420) (116,747)
Staff allowances (34,306) (17,739)
Overtime (1,140) (545)
Bonus (28,971) (18,407)
Pension costs – Defined contribution plan (20,069) (13,956)
Other staff expenses (18,462) (17,652)
(265,368) (185,045)
Long term employee benefits :
Pension costs - Defined benefit plans (2,110) (3,014)
(2,110) (3,014)
(267,478) (188,059)
30 June 2021 30 June 2020

Birr'000 Birr'000
12 Other operating expenses
Deprciation expenses - office rent (55,960) (49,605)
Office supplies and sundry (9,399) (8,178)
Advertisement and Publicity (7,155) (7,288)
Commissions (109) -
Electricity, telephone and internet (6,739) (5,947)
Travelling expenses (16) (12)
Repairs and maintenance (6,702) (7,785)
Event organization expense (910) (1,172)
Fuel and lubricants (1,883) (1,700)
Per diem administration (2,195) (3,021)
Represenation allowance (2,196) (1,479)
Insurance (1,203) (1,435)
Legal and professional fees (12,619) (6,105)
Entertainment (1,166) (1,107)
Director fees (1,335) (1,338)
Correspondent costs (275) (196)
Bank charges (1,025) (860)
Subscription and Publication (157) (92)
Wages for non employees (741) (438)
Women loan expense (1,208) (182)
Audit fees (113) (345)
Donations (12,806) (2,411)
Postage and stamps (120) (85)
Security expenses (9,160) (6,909)
Net loss on foreign exchange (11,616) (70,236)
Deprciation expense for Land lease (1,678) (942)
Loss on on disposal of property, plant and equipment - (149)
(148,485) (179,018)
39

ForIFRS
thefinancial
statements
Notes
Notestoto the financial statements
the financial statements
30 June 2021 30 June 2020

Birr'000 Birr'000
13 Company income and deferred tax
13a Current income tax
Company income tax 60,646 31,546
Prior year (over)/under provision - -
Deferred income tax/(credit) to profit or loss (944) (558)
Total charge to profit or loss 59,702 30,987
Tax (credit) on other comprehensive income 61 2,905
13b Reconciliation of effective tax to statutory tax
The tax on the Bank’s profit before income tax differs from the theoretical amount that would arise using the statutory income
tax rate as follows:
30 June 2021 30 June 2020

Birr'000 Birr'000
Add:Disallowed expenses
Donation 4,306 2,411
Leave pay Accrual 9,878 -
Entertaiment 1,166 1,107
Severance pay temporary difference 2,110 3,014
Provision for loans and advances as per IFRS 39,953 37,337
Deprciation for accounting purpose 25,170 21,733
Amortization for accounting purpose 10,757 6,324
Other Provision IFRS 10,148 -
Share Selling Agent Payment 109 -
Penality 100 -
Employe benefit loan 2,027 -
Women benefit loan 1,208 -
Total disallowable expenses 106,931 71,926
Less: Allowable
Deprciation for tax purpose 35,040 31,187
Interest income on deposit with other bank 83,132 72,184
Interset income on NBE Bills 63,636 69,661
Provision for loans and advances for tax NBE 80% 11,650 32,411
Dividend taxed at source 719 813
Backed provision - 73
Total allowable expenses 194,179 206,329
Taxable profit 202,155 105,153
Current tax at 30% 60,646 31,546
30 June 2021 30 June 2020

13c Current income tax liability Birr'000 Birr'000
Balance at the beginning of the year (31,546) (38,432)

Current year provision (60,646) (31,546)
WHT Notes utilised - -
Payment during the year 31,546 38,432
Balance at the end of the year - (60,646) (31,546)

IFRS Financial
Enat Bank Share Statements
Company
Notes
Notes toto
thethe financial
statements
13d Deferred income tax
Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit will be available against
which the temporary differences can be utilised.
30 June 2021 30 June 2020

Birr'000 Birr'000
The analysis of deferred tax assets/(liabilities) is as follows:

To be recovered after more than 12 months (11,574) (12,456)
To be recovered within 12 months - -
(11,574) (12,456)
13e Deferred income tax assets and liabilities, deferred income tax charge/(credit) in profit or loss ("P/L), in equity and other
comprehensive income are attributable to the following items:
Effect of
Deferred income tax At 1 Credit/ Credit/ 30 June 2021
opening
assets/(liabilities): July (charge) (charge) to
balance
2020 to P/L equity
restatmen
t
Birr'000 Birr'000 Birr'000 Birr'000 Birr'000
Property, plant and equipment (9,706) 311 - - (9,395)

Post employment benefit obligation 3,129 633 - 1,075 4,837
Equity Securities (5,880) - - (1,136) (7,016)
Total deferred tax assets/(liabilities) (12,455) 944 - (61) (11,574)
30 June 2021 30 June 2020

Birr'000 Birr'000
14 Cash and balances with banks
Cash in hand 257,485 292,446

Balance held with National Bank of Ethiopia 883,131 829,948
Deposits with local banks 1,305,178 1,072,046
Deposits with foreign banks 520,920 110,658
2,966,715 2,305,098
Maturity analysis 30 June 2021 30 June 2020

Birr'000 Birr'000
Current 2,429,285 1,887,668

Non-Current 537,430 417,430
2,966,715 2,305,098

IFRSBank
Enat Financial Statements
Share Company
Forthethe
For Period
period endedEnded
30 June30 June 2021
2021
Notestoto
Notes thethe financial
statements
30 June 2021 30 June 2020

Birr'000 Birr'000
15 Loans and receivables
Agriculture 98,441 42,027

Industry 1,443,020 1,101,376
Construction 1,749,696 1,455,010
Domestic Trade and Services 1,266,482 965,452
Personal loans 65,439 37,517
Export 2,873,081 1,485,351
Import 774,530 896,824
Transportation 521,480 323,852
Emergency Staff Loan 28,489 19,026
Staff Residential Loan 248,053 174,141
Staff Vehicle Loan 13,435 2,181
Gross amount 9,082,146 6,502,757
Less Less: Impairment allowance (note 4.2.1) 116,658 76,705
8,965,488 6,426,052
30 June 2021 30 June 2020

Birr'000 Birr'000
16 Investment securities
16a Fair value through other comprhensive income

Equity Investments 40,288 35,501
40,288 35,501
16b Amortised cost
NBE bills 1,690,848 1,690,848
Gross amount 1,690,848 1,690,848

Less individual allowance for impairment - -
1,731,136 1,726,349

Birr'000 Birr'000
Current - -
Non-Current 1,731,136 1,726,349
1,731,136 1,726,349
The Bank hold equity investments in Eth-switch of 2.71% (of the subscribed capital of the investee as of June 30, 2021) and
United Insurance Share Company of 0.8% (30 June 2020 of the total subscribed capital of the investee). These investments are
unquoted equity securities measured at cost.
IFRSEnat
Financial
Company
NotesNotes
to the
to thefinancial statements
30 June 2021 30 June 2020

Birr'000 Birr'000
17 Other assets
Financial assets
Items in course of collection 46,271 6,177

Uncleared effects 117,500 14,937
163,771 21,115
Non-financial assets
Prepaid staff benefit 64,701 44,075

Prepaid Assets Women loans benefit 40 284
Deposit and Prepayments 30,120 7,113
Sundry receivables 151,162 180,905
Inventory and office supplies 4,228 4,129
250,252 236,506
Less :
Impairment allowance on other assets (10,357) (209)
Gross amount 403,666 257,411

Birr'000 Birr'000
Current 153,414 20,906

Non-Current 250,252 236,506
Impairment allowance on other assets
403,666 257,411
17a Impairment allowance on other assets
A reconciliation of the allowance for impairment losses for other assets is as follows:
30 June 2021 30 June 2020

Birr'000 Birr'000
Balance at the beginning of the year 209 282
(Reversal)/charge for the year (note 10) 10,148 (73)
Balance at the end of the year 10,357 209
17b Inventory
A breakdown of the items included within inventory is as follows:

30 June 2021 30 June 2020
Birr'000 Birr'000
Stationary stock account 1,535 1,421

Other stock 597 1,186
Stock accounts 311 726
Uniform stock 152 183
Cheque book stock 1,161 426
Revenue stamp loans 11 10
Revenue stamp accounts 12 0.1
ATM Debit Card (ENAT Card) 448 178
4,228 4,129
43

IFRSEnat
Financial
Company
For For
thethe
period ended 30 June 2021
Notes to tothe
Notes thefinancial statements
18 Intangible Assets
Purchased
software
Birr'000
Cost:
As at 1 July 2020 53,757
Acquisitions 11,226
Reclassifications -
As at 30 June 2021 64,983
Accumulated amortisation and impairment losses
As at 1 July 2020 (26,160)

Amortisation for the year (10,757)
Impairment losses -
As at 30 June 2021 (36,917)
Net book value

As at 30 June 2020 27,597
As at 30 June 2021 28,066
44
IFRS
EnatFinancial
Company
For
For the Period
the period Ended
ended 30 2021
30 June June 2021
Notes to the
Notes to thefinancial
statements
Motor Premises Office and Furniture Computer Total

vehicles other and fittings and
equipment accessories
Birr'000 Birr'000 Birr'000 Birr'000 Birr'000 Birr'000
19 Property, plant and equipment
Cost:
As at 1 July 2020 45,108 31,673 54,907 44,840 60,549 237,078

Additions 96 - 6,523 8,803 11,169 26,590
Disposals (907) - (12) - (15) (934)
Reclassification - - - - - -
As at 30 June 2021 44,297 31,673 61,418 53,642 71,703 262,734
Accumulated depreciation
As at 1 July 2020 19,998 1,443 20,183 17,474 24,119 83,217

Charge for the year 4,189 600 6,258 4,914 9,208 25,170
Disposals (117) - (9) - (14) (140)
Reclassification - - - - - -
As at 30 June 2021 24,070 2,043 26,432 22,388 33,313 108,247
Net book value As

at 30 June 2020 25,111 30,230 34,725 27,366 36,430 153,861
Net book value As

at 30 June 2021 20,228 29,630 34,986 31,254 38,389 154,487
20 Construction in progress
Birr'000
Cost:
As at 1 July 2020 571
Acquisitions 1,926
Reclassifications -
As at 30 June 2021 2,497

IFRS
EnatFinancial
Bank ShareStatements
Company
For
IFRSthe Period
statements
Notes tothe
Notes to thefinancial
statements
21 The right of use asset

Land Lease
Birr'000
Cost:
As at 1 July 2020 100,653
Acquisitions
Accumulated deprciation (2,620)
As at 30 June 2021 98,033
Office Rent
Birr'000
Cost:
As at 1 July 2020 152,321
Acquisitions 101,728
Reclassifications
As at 30 June 2021 254,049
Net book value as at 30 June 2021 352,082
30 June 2021 30 June 2020

Birr'000 Birr'000
22 Assets held for sale
Balance as at the beginning of the year 16,996 11,119

Transfer from property, plant and equipment - -
Addition 2,208 5,877
Disposals - -
Fair value gain/(loss) on assets held for sale - -
Balance at the end of the year 19,204 16,996
Enat bank took over collateral of some customers and these were recorded in the books as Assets classified as held for sale as
the Bank had no intention to make use of the property for administrative use. Management initiated a plan to dispose of these
assets to willing buyers and expects to have completed the transaction before the end of the next financial period.
These assets have been valued by in-house engineers responsible for collateral valuation using the market approach
determined using Level 3 inputs.
There is no cumulative income or expenses in OCI relating to assets held for sale.
30 June 2021 30 June 2020

Birr'000 Birr'000
23 Deposits from customers
Demand deposits 1,620,751 907,165

Savings deposits 5,062,704 3,837,182
Time deposits 4,553,633 3,601,964
Retentions payable on letters of credit - 37,500
11,237,087 8,383,811
IFRS Financial
Enat Bank ShareStatements
Company
Notes
Notes totothe
the financial
statements
30 June 2021 30 June 2020

Birr'000 Birr'000
24 Other liabilities
Unearned Income 12,331 6,867

Audit fee 113 345
Borrowing 967,557 343,393
980,001 350,605
Non-financial liabilities
Other payable 107,765 457,215

Blocked current account 26,420 2,398
Tax payable 6,869 6,078
Sales tax on interest paid 3,613 3,170
VAT Payable 218 1,823
Dividend payable 623 -
Defined contribution liabilities 2,326 2,678
Payable to withdrawing shareholders - -
Witholding tax payable 657 -
Graduate Tax 9 319
Incoming 205 Payable - 28
Capital gain tax - -
Director fees payable 1,650 1,650
Leave days accrual 21,084 12,744
Stamp duty payables 1,588 682
Lease Liabilities 84,982 89,859
257,804 578,642
Gross amount 1,237,806 929,247
24 a Lease Liablity
30 June 2021 30 June 2020
Birr'000 Birr'000
Cost:
Land lease 80,522 80,522
Office rent 4,460 9,337
As at 30 June 2020 84,982 89,859

Birr'000 Birr'000
Current 185,266 585,854

Non-Current 1,052,539 343,393
1,237,806 929,247

IFRS
Enat Financial
Bank ShareStatements
Company
For
IFRSthe Period
statements
Notes
Notes totothe
thefinancial
statements
30 June 2021 30 June 2020

Birr'000 Birr'000
25 Retirement benefit obligations
Defined benefits liabilities:

Severance pay Note 24(a) 16,125 10,431
Liability in the statement of financial position 16,125 10,431
Income statement charge included in personnel expenses:

Severance costs Note 24(a) (2,110) 3,014
Total defined benefit expenses (2,110) 3,014
Remeasurements for:
Remeasurement (gains)/losses Note 24(a) (3,584) 2,558
Deffered tax liablity (asset)/ on remeasurement (gains)/losses 1,075 767
` (2,509) 3,325
The income statement charge included within personnel expenses includes current service cost, interest cost, past service costs
on the defined benefit schemes.

Birr'000 Birr'000
Current - -
Non-Current 16,125 10,431
16,125 10,431
25a Severance pay
The Bank operates an unfunded severance pay plan for its employees who have served the Bank for 5 years and above and are
below the retirement age (i.e. has not met the requirement to access the pension fund). The final pay-out is determined by
reference to current benefit’s level (monthly salary) and number of years in service and is calculated as 1 month salary for the
first year in employment plus 1/3 of monthly salary for each subsequent in employment to a maximum of 12 months final
monthly salary.
Below are the details of movements and amounts recognised in the financial statements:
30 June 2021 30 June 2020

Birr'000 Birr'000
A Liability recognised in the financial position 16,125 10,431
30 June 2021 30 June 2020

B Amount recognised in the profit or loss Birr'000 Birr'000
Current service cost 1,549 1,648

Interest cost 561 1,366
2,110 3,014
IFRS Financial
Company
Notes
Notes totothe
the financial
statements
25b Retirement benefit obligations (Contd) 30 June 2021 30 June 2020

Birr'000 Birr'000
C Amount recognised in other comprehensive income:
Remeasurement (gains)/losses arising from changes in
demographic assumptions - -
Remeasurement (gains)/losses arising from changes in
the financial assumptions (393) (3,422)
Remeasurement (gains)/losses arising from loss
experience 3,977 864
3,584 (2,558)
The movement in the defined benefit obligation over the years is as follows:
30 June 2021 30 June 2020

Birr'000 Birr'000
At the beginning of the year 10,431 9,975

Current service cost 1,549 1,648
Interest cost
Remeasurement (gains)/ 561 1,366
losses (393) (3,422)
Benefits paid
Actuarial(Gains/Losses on experience Liablities 3,977 864
At the end of the year 16,125 10,431
The significant actuarial assumptions were as follows:
i) Financial Assumption Long term Average

30 June 2021 30 June 2020
Birr'000 Birr'000
Discount rate 15.20% 14.90%
Inflation rate 10.00% 10.00%
Salary Increase rate 12.00% 12.00%
Net pre-retirement rate 2.86 2.59
ii) Mortality in Service
The rate of mortality assumed for employees are those according to the British A49/52 ultimate table published by the
Institute of Actuaries of England. These rates combined are approximately summarized as follows:
Age Mortality rate Mortality rate
Male Females
20 0.00306 0.00223
25 0.00303 0.00228
30 0.00355 0.00314
35 0.00405 0.00279
40 0.00515 0.00319
45 0.00450 0.00428
50 0.00628 0.00628
55 0.00979 0.00979
60 0.01536 0.00536

IFRSEnat
Bank Share Company
For the
IFRSPeriod Ended 30 June 2021
NotesNotes
to to
the
thefinancial statements
25c Retirement benefit obligations (Contd)
iii) Withdrawal from Service
The withdrawal rates are as summarised below :
Age Annual rate of resignation

Less than 20 0.00%
21-25 5.40%
26-30 2.91%
31-35 3.43%
36-40 4.51%
Above 41 5.17%
The sensitivity of the overall defined benefit liability to changes in the weighted principal assumption is:
Impact on defined benefit obligation
30-Jun-21 Base DBO DBO on % change

changed
Sensitivity Birr'000 Birr'000
Discount rate + 1% 16,125 14,880 -7.7%

Discount rate - 1% 16,125 17,487 8.4%
Salary increase + 1% 16,125 17,514 8.6%

Salary increase - 1% 16,125 14,835 -8.0%
30-Jun-20 Base DBO DBO on % change

changed
Sensitivity Birr'000 Birr'000
Discount rate + 1% 10,431 9,585 -8.1%

Discount rate - 1% 10,431 11,361 8.9%
Salary increase + 1% 10,431 11,377 9.1%

Salary increase - 1% 10,431 9,557 -8.4%
The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice,
this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the
defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation
calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the
pension liability recognised within the statement of financial position.
30 June 2021 30 June 2020

Birr'000 Birr'000
26 Ordinary share capital
Authorised:
Ordinary shares of Birr 1000 each 5,000,000 2,000,000
Issued and fully paid:

Ordinary shares of Birr 1,000 each 1,542,532 1,380,251
Earning per share

Basic earnings per share(EPS) is calculated by dividing the profit after taxation by weighted average number of ordinary shares in issue
during the year.
30 June 2021 30 June 2020
Birr'000 Birr'000
Profit attriutable to shareholders 229,700 208,569
Weighted average number of ordinary shares in issue 1,457 1,299
Basic and diluted earnings per share (Birr) 158 161
50
IFRS Financial
Company
For
IFRSthe Period
statements
Notes
Notes totothe
the financial
statements
30 June 2021 30 June 2020

Birr'000 Birr'000
27 Retained earnings

Profit/ (Loss) for the year 229,700 208,569
Transfer to legal reserve (57,460) (52,142)
Transfer to special reserve (4,509) (4,203)
Transfer to regulatory reserve suspended interest difference - (2,081)
Transfer to regulatory reserve loan loss provision difference - (2,383)
Dividend provided for share holders (145,803) (136,448)
Directors share on profit (1,600) (1,650)
Transfer from regulatory reserve loan loss provision difference 25,390 -
Prior period djustment - -
30 June 2021 30 June 2020

Birr'000 Birr'000
28 Legal reserve

Transfer from profit or loss 57,460 52,142
The NBE Directive No. SBB/4/95 states requires the Bank to transfer annually 25% of its annual net profit to its legal reserve
account until such account equals its capital. When the legal reserve account equals the capital of the Bank, the amount to be
transferred to the legal reserve account will be 10% (ten percent) of the annual net profit.
30 June 2021 30 June 2020

Birr'000 Birr'000
29 Regulatory risk reserve

Transfer (from) retained earnings 16,862 4,463
Trnansfered to loan provision (25,390) -
The Regulatory risk reserve is a non-distributable reserves required by the regulations of the National Bank of Ethiopia(NBE)
to be kept for impairment losses on loans and receivables in excess of IFRS charge as derived using the incurred loss model.
Where the loan loss impairment determined using the National Bank of Ethiopia (NBE) guidelines is higher than the loan loss
impairment determined using the incurred loss model under IFRS, the difference is transferred to regulatory risk reserve and it
is non-distributable to the owners of the Bank.
Where the loan loss impairment determined using the National Bank of Ethiopia (NBE) guidelines is less than the loan loss
impairment determined using the incurred loss model under IFRS, the difference is transferred from regulatory risk reserve to
the retained earning to the extent of the non-distributable reserve previously recognised.

For
IFRSthe Period
statements
30 June 2021 30 June 2020
Birr'000 Birr'000
30 Special reserve

Transfer (from) / to retained earnings 4,509 4,203
Dividend tax paid on last year resereve (451) (420)
30 June 2021 30 June 2020

31 Cash generated from operating activities
Adjustments for non-cash items:

Depreciation of property, plant and equipment 19 25,170 21,733
Amortisation of intangible assets 18 10,757 6,324
Gain/(Loss) on disposal of property, plant and equipment 19 794 149
Impairment on loans and receivables 15 39,953 37,337
Retireent Benefit liability 17 2,110 2,558
Suspended interest 16,862 (7,516)
Impairment on other asset 148 -
Provision on other asset 10,000 -
Net gain or loss on foreign exchange 8 11,616 70,236
Change in working capital

-Decrease/ (Increase) in loans and advances to customer 15 (2,579,389) (1,369,840)
-Decrease/ (Increase) in other asset 17 (256,453) (208,746)
-Decrease/ (Increase) in other liablities 24 308,559 762,506
-Decrease/ (Increase) in deposits from customer 23 2,853,276 942,671
-Decrease/ (Increase) in remeasurement (4,511) 6,158
728,294 503,127
In the statement of cash flows, profit on sale of property, plant and equipment (PPE) comprise:
30 June 2021 30 June 2020

Birr'000 Birr'000
Proceeds on disposal 934 595

Net book value of property,
plant and equipment disposed
(Note 19) 140 446
Gain/(loss) on sale of property, plant and equipment 794 149

IFRSEnat
Financial
Company
Notes to the
Notes to thefinancial statements
32 Related party transactions
A number of transactions were entered into with related parties in the normal course of business. These are
disclosed below:
30 June 2021 30 June 2020
Birr'000 Birr'000
32a Transactions with related parties
Loans disbursed to :
Key management 5,946 3,582
5,946 3,582
32b Key management compensation
Key management has been determined to be the members of the Board of Directors and the Executive
Management of the Bank. The compensation paid or payable to key management for is shown. There were no
sales or purchase of goods and services between the Bank and key management personnel as at 30 June 2020.
30 June 2021 30 June 2020

Birr'000 Birr'000
Salaries and other short-term employee benefits 4,043 5,235

Post-employment benefits 445 431
Termination benefits - -
Sitting allowance (Representation Allowance) 240 156
Other expenses (Provident fund contribution) 81 78
4,488 5,665
Compensation of the Bank's key management personnel includes salaries, non-cash benefits and contributions to
the post-employment defined benefits plans.
33 Directors and employees
i) The average number of persons (excluding directors) employed by the Bank during the year was as follows:
30 June 2021 30 June 2020

Number Number
Professionals and High Level Supervisors 83 83

Semi-professional, Administrative and Clerical 542 513
Technician and Skilled 57 57
682 653
ii) The table below shows the number of employees (excluding directors), who earned over Birr 10,000 as
emoluments in the year and were within the bands stated.
30 June 2021 1 July 2020

Birr'000 Birr'000
10,000 - 30,000 353 337

30,001 - 50,000 107 39
50,001 - 100,000 10 4
Above 100,000 3 3
473 383
53

IFRS Financial
Enat Bank Share Statements
Company
ForIFRS
the financial
Period statements
Ended 30 June 2021
Notes to tothe
Notes thefinancial statements
34 Contingent liabilities
34a Claims and litigation
The Bank has no contingent liabilities as at the date of this report. (30 June 2021)
34b Guarantees and letters of credit
The Bank conducts business involving performance bonds and guarantees. These instruments are given as a
security to support the performance of a customer to third parties. As the Bank will only be required to meet these
obligations in the event of the customer's default, the cash requirements of these instruments are expected to be
considerably below their nominal amounts.
The table below summarises the fair value amount of contingent liabilities for the account of customers:
30 June 2021 30 June 2020

Birr'000 Birr'000
Guarantees Issued 3,618,281 3,336,054

Letters of credit 760,268 72,156
4,378,550 3,408,210
Performance and advance Guarantees issued to construction companies
Performance 582,289
Advance 2,293,194
2,875,483
Others
Suppliers 241,628
Retention 36,761
Customs 87,108
Bid bond 377,301
742,798
3,618,281
Some of the guarantees and advances cast significant uncertainity which may adversely affect the Bank Financial
situation unless current situation in the country is resolved.
35 Commitments
The Bank has commitments, not provided for in these financial statements being unutilised facilities.
30 June 2021 30 June 2020

Birr'000 Birr'000
Loans approved but not - -

Unutilized facilities 208,704 225,790
208,704 225,790
36 Events after reporting period
In the opinion of the Directors, there were no significant post balance sheet events which could have a material
effect on the state of affairs of the Bank as at 30 June 2021 and on the profit for the period ended on that date,
which have not been adequately provided for or disclosed.
54
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የዳይሬክተሮች ቦርድ ሰብሳቢ መልዕክት
ውድ ባለ አክሲዮኖች
የባንካችንን የ2013 ዓ.ም. ዓመታዊ ሪፖርት
ሣቀርብ ከፍተኛ ክብርና ደስታ ይሠማኛል፡፡ እንደ
ቀድሞው ዓመታት ሁሉ ውጫዊ ሁኔታዎች
በባንካችን ላይ ያሳደሩት ተፅዕኖ ቀላል አልነበረም::
ከኮረና ወረርሽኝ መከሰት ጋር ተያይዞ የዓለም
ኤኮኖሚ ክፉኛ መቀዛቀዙ ይታወሣል፡፡ የክትባት
መገኘት ተስፋ ሰጭ ቢሆንም ክትባቱ ለሁሉም
እኩል ባለመዳረሱና የሰዎችም በተፈለገው ደረጃ
ያለ መከተብ በሽታው እየተስፋፋ እንዲሄድ
አድርጎታል፡፡ ምንም እንኳን አሁን ባለው ሁኔታ
የሥራ እንቅስቃሴው መልካም ነው ቢባልም ቀደም
ብሎ የተጎዱት እንደ ሆቴልና ቱሪዝም ያሉ
ክፍለ ኤኮኖሚዎች አሁንም ከችግር አልወጡም::
ባንካችን ለነዚህ ክፍለ ኤኮኖሚ የሠጣቸው ብድሮች
ታማሚ ወይንም የመከፈል ዕድላቸው ቀንሷል
ማለት ነው፡፡
ይሁን እንጂ የኮሮና ቫይረስ መከሰት ጋር

ተያይዞ የሸቀጥ ፍጆታ በመጨመሩ የአገራችን
የወጭ ንግድ እምብዛም ጉዳት አልደረሰበትም፡፡
የቡና፤ የሠሊጥና ሌሎችም ጥራጥሬዎች ፍላጎት
በዓለም አቀፍ ደረጃ በመጨመሩ በአገር ደረጃ
ከነዚህ የተገኘው የውጭ ምንዛሬ ከምንጊዜውም
የተሻለ ነው፡፡ ባንካችን ይህን ዕድል ለመጠቀም
ያስችለው ዘንድ በወጭ ንግድ ላይ ለተሠማሩት
ግለሰቦች የተሻለ የፋይናንስ አገልግሎት በመስጠት
ከምንጊዜውም በላይ የውጭ ምንዛሬ ለማሰባሰብ
ችሏል፡፡
በአገራችን ያለው የፖለቲካ ሁኔታ እና በሰሜኑ ከወዲሁ ተነሳስተን የተከፈለ ካፒታላችን ማሳደግ
የአገራችን ክፍል የተከሠተው ግጭት በኮሮና ይኖርብናል፡፡ ስለዚህ ቃል ገብታችሁ እስከ አሁን
ወረርሽኝ ጋር ተደርቦ በባሰ ደረጃ ኢኮኖሚያችንን ያልከፈላችሁ እንድትከፍሉ፣ ተጨማሪ አክሲዮን
እየጎዳ ይገኛል፡፡ በተለይ በትግራይ ክልል ውስጥ እንድትገዙ እንዲሁም አዲስ አክሲዮን ገዥ
የሚገኙ ስምንት ቅርጫፎቻችን ሥራ ማቆም እንድታመጡ በአክብሮት እጠይቃለሁ፡፡
ትልቅ ጉዳት ነው፡፡ ይህ ባይከስት ኖሮ ባንካችን
አሁን ከተመዘገበው በላይ ውጤት ማስመዘገብ በመጨረሻም መልዕክቴን ከማጠቃለሌ በፊት
በቻለ ነበር፡፡ ለተገኘው ውጤት ለእናንተ ለውድ ባለአክሲዮኖች፣
ለባንካችን ደንበኞች እንዲሁም ለባንካችን
ይሁን እንጂ ባንካችን በተገባደደው የበጀት ዓመት ሠራተኞች ጥልቅ ምስጋናዬን ማቅረብ እወዳለሁ::
ከምንጊዜውም በበለጠ በሁሉም ረገድ ማለትም ዘወትር ህጋዊነት ጠብቀን እንድንሠራ ክትትል
በሀብት ማሰባሰብ፣ በብድር መስጠትና በትርፋማነት ለሚያደርግልንና ብዙ ዕለታዊ ዕገዛዎችን
የተሻለ ውጤት አስመዝግቧል፡፡ ለሚለግሰን ለብሔራዊ ባንክም ተመሣሣይ ምስጋና
ማቅረብ እወዳለሁ፡፡
ብሔራዊ ባንክ በሰጠው መመሪያ መሠረት
ሁሉም ባንኮች በአምስት ዓመት ጊዜ ውስጥ 5
ቢሊዮን የተከፈለ ካፒታል ማስመዝገብ አለባቸው
ይህን ያልፈፀመ ባንክ ዕድል ፈንታው ከሌላ
ባንክ ጋር መጣመር ወይም መሸጥ ይሆናል፡፡
ስለዚህ ይህ ሁኔታ እናትን ባንክን እንዳያጋጥማት
ፍሬሕይወት ወርቁ
የባንኩ ፕሬዚደንት መልዕክት
ውድ ባለ አክሲዮኖች
የ2013 ዓ.ም የእናት ባንክ የሥራ አፈፃፀም

ሪፖርት ሣቀርብ በታላቅ ደስታ ነው፡፡ በተገባደደው
የበጀት ዓመት የተለያዩ ውጫዊ ችግሮች እንደ
ነበሩ ይታወሣል፡፡ የኮሮና ወረርሽኝና የፖለቲካና
ኤኮኖሚ ሁኔታዎች በአገራችን ላይ እያሣረፉት
ያለው አሉታዊ ተፅዕኖ ቀላል አይደለም፡፡
ባንካችን በነዚህ ሁኔታዎች ውስጥ እየተንቀሣቀሰ

መልካም የሚባሉ ውጤቶችን አስመዝግቧል::
ተቀማጭን ሂሳብን ከማሰባሰብ አንፃር የበጀት
ዓመቱ መዝጊያ ላይ ተቀማጭ ሒሳብ 11.2 ቢሊየን
ደርሷል፡፡ ይህ አኃዝ ከአምናው ጋር ሲመዘን
የ34 በመቶ ዕድገት አሣይቷል፡፡ ውጭ ምንዛሪ
ለማሰባሰብ በተደረገ ጥረት 73 ሚሊየን ማሰባሰብ
የተቻለ ሲሆን ይህም ካምናው ተመሣሠይ ወቅት
ጋር ስናወዳድር ከ40 በመቶ በላይ ጭማሪ
አሣይቷል፡፡ ጠቅላላ ገቢያችን 1.7 ቢሊየን ግድም
የደረሰ ሲሆን ከዓምና ተመሣሣይ ወቅት የ 25
በመቶ ብልጫ አለው::
የተከፈለ ካፒታል 1.54 ቢሊየን የደረሰ ሲሆን
ከዓምና ተመሣሣይ ወቅት አንፃር 12 በመቶ
ዕድገት አሣይቷል፡፡ የባንካችን ጠቅላላ ሀብት 14.6
ቢሊየን ከዓምናው 11.2 ቢሊየን አንፃር የ31
በመቶ ዕድገት አስመዝግቧል፡፡
ከብድር ስርጭት አንፃር በመዝገብ ላይ የሚታየሁ

የብድር መጠን 9 ቢሊየን ግድም ሲሆን ይህም
ከዓምና ተመሣሣይ ወቅት አንፃር 40 በመቶ ዕድገት
አሣይቷል፡፡ የተመዘገበው ዕድገት ትልቅ ነው፡፡
የዚህ ዕድገት ዋነኛ መንስዔ ባንካችን በተቀማጭ
መልክ የሰበሰበውን ገንዘብ ገቢ ወደሚያስገኝ ሀብት
እየቀየረው መሆኑን የሚያስረዳ ነው፡፡
የባንካችን ትርፍ ብር 289 ሚሊየን ከዓምናው የባንካችን ዕድገት ከዓመት ዓመት እየተሻሻለ
ተመሣሣይ ወቅት አንፃር 20 በመቶ እድገት ነው፡፡ ውጫዊ ሁኔታዎች ቢፈቅዱ ኖሮ ባንካችን
አሣይቷል፡፡ በበጀት ዓመቱ ወለድን ጨምሮ ከዚህ የተሻሉ ውጤቶችን ማስመዘገብ በቻለ
ባንካችን ብር 1.4 ቢሊየን ወጪ ያደረገ ሲሆን 26 ነበር፡፡ አሁንም ውጫዊ ሁኔታዎች ተስፋ ሰጭ
በመቶ ዓመታዊ ጭማሪ አለው፡፡ ከሆኑና የእናንተ ውድ ባለአክሲዮኖቻችን እገዛ
ከታከልበት በሚቀጥለው ዓመት የተሻለ ውጤት
ባንካችን የሥራ ዕድል ከመፍጠር አንፃር እያደረገ እንደምናስመዘግብ ተስፋ አለን፡፡
ያለው አስተዋፅዖ ቀላል አይደለም፡፡ የባንካችን
የሠራተኛ ቁጥር 800 የደረሰ ሲሆን ከዓምናው 653 በመጨረሻም ባንካችንን ዕውን ላደረጋችሁ
አንፃር የ23 በመቶ ዕድገት ተመዝግቧል፡፡ ባንካችን ባለአክሲዮኖቻችንና እንዲሁም በዘላቂነት ከኛ
በበጀት ዓመቱ ውስጥ 31 ቅርንጫፎችን በመክፈት ጋር በመስራት የስኬታችን መንስዔ ለሆናችሁ
የቅርንጫፋችንን ብዛት 88 አድርሠናል፡፡ ደንበኞቻችን ታላቅ ምስጋናዬን ማቅረብ
እወዳለሁ፤፤ በአስቸጋሪ ሁኔታ ውስጥ ለባንካችን
ስኬት ደፋ ቀና በማለት ለዚህ ውጤት ለባቃችውን
የባንኩ ሠራተኞች በመላ ታላቅ የሆነ ምስጋናዬን
አቀርባለሁ፡፡
ኤርምያስ አንዳርጌ
የሴቶች የባንክ አገልግሎት

እንግዲህ መታወቅ ያለበት ሁሉም የባንካችን
ባለአክሲዮኖች ሀብታሞችና ገንዘብ የተረፋቸው
ዋስትና የማይጠየቅበት የሴቶች ብድር አይደሉም፡፡ አንዳንድ ባለአክሲዮኖች ገቢያቸው
አገልግሎት (Collateral Fund scheme) እምብዛም ሆኖ ሣለ ከዕለት ገቢያቸው ላይ ቀንሰው
አክሲዮን የገዙበት ዋናው ምክንያት የተሻለ ጥቅም
ይህ የብድር መላ ትርፋማ ንግድ ላይ ለተሠማሩት ለማግኘት ነው፡፡ ሆኖም ለዚህች ባለአክሲዮን
እና ሥራ ፈጣሪ ሆነው ራሳቸውን ችለው ከሚደርሣት ዓመታዊ የትርፍ ድርሻ ላይ በመቀነስ
የመሥራት ዓቅም ላላቸው ነገር ግን ቤት ወይንም ዋስትና በመያዝ የተሠጠን ብድር አለመክፈል
መኪና አስይዘው መበደር ለማይችሉ ሴቶች ማለት የምስኪኗን ሴት ገንዘብ ያለ አግባብ እንደ
የተዘጋጀ የብድር ዓይነት ነው፡፡ ይሁን እንጂ ይህ መውሰድ ይቆጠራል፡፡
ብድር በአንዳንዶች ዘንድ እንደ ዕርዳታ በመታየቱ
ምክንያት ሴት ተበዳሪዎቻችን ብድራቸውን በአግባቡ በሌላም በኩል ይህ ዕድል እንዲደርሣቸው
ለመክፈል ወደ ኋላ የማለት ሁኔተ ያሣያሉ፡፡ ተመዝግበው ተራ በመጠባበቅ ላይ ያሉ ሴቶች
ብድር እንዳያገኙ ዕድል መንሣትና ዕንቅፋት
ነገር ግን ይህ ብድር ዋስትና የለውም የሚለው መሆንም ጭምር ነው፡፡
ግንዛቤ ከመጀመሪያው ስህተት ነው፡፡ ምክንያቱም
መልካም ሀሳብ ያላቸው ግለሰቦች ራዕይ ያላቸውን ስለዚህ በዚህ የብድር መርሐግብር ሥር ታቅፋችሁ
ሴቶች ከማገዝ አንፃር ገንዘባቸውን በባንካችን የብድር ተጠቃሚ የሆናችው ሴቶች ከአቅማችው
በማስቀመጥ ለጠንካራ ሴቶች ለሚሰጥ ብድር በላይ የሆነ ነገር ካላጋጠማችው በስተቀር
ዋስትና ሆኖ እንዲያገለግል በመፍቀዳቸው ነው፡፡ ብድራችውን በትክክል መክፈል አለባችው፡፡
እንግዲህ ባንኩ በዚህ መርሐግብር ሥር የሚሠጠው
ብድር መያዣ እንደሌለው መቁጠር ከግንዛቤ ማነስ ብድር የማያስከፍል ችግር ቢያጋጥማችው እንኳን
ነው የምንለው በዚህ ምክንያት ነው፡፡ ስለዚህ ሳይረፍድ በጊዜ ባንካችንን በማሳወቅ ተገቢው
አንዲት ሴት ተበዳሪ ብድርዋን ካልከፈለች ባንካችን ዕገዛ እንዲያገኙ እና ብድሩ እንዲከፈል ማድረግ
የእነዚህን ደግ ሀሳቢ ግለሰቦች ገንዘብ በመውሰድ ያስፈልጋል፡፡
ያልተከፈለውን ብድር ይከፍልበታል እንጂ
አይከስርም ማለት ነው፡፡ በዚህ ምክንያት ኪሣራ አብነቶች
ላይ የሚወድቁት ዋስትና የሰጡ ደጋግ ግለሰቦች
እንጂ ብድሩን የሠጠው ባንካችን አይደለም፡፡
1. ሰዋሰው ኃይሉ
ዲዛይነር ሰዋሰው ኃይሉ የሰዋሰው ዲዛይን

ስለሆነም እያንዳንዷ የዚህ ዕድል ተጠቃሚ ሴት
መስራች እና ባለቤት ናት፡፡ ሰዋሰው ከልጅነቷ
ተበዳሪ ለዚህ ለብድር ያበቃት ሌላ ሰው ከጀርባው
ጀምሮ የፋሽን ዲዛይን ፍቅር ስለነበራት ወደ ፋሽን
መኖሩን በማወቅ ብድሯን በትክክል ለመክፈል
ዲዛይን የገባቸው በ2004 ዓ.ም ነበር፡፡ ህልሟን
መትጋት አለባት ማለት ነው፡፡
ለማሳካት ግቢዋ ውስጥ ትንሽዬ ክፍል ቆርቆሮ
በቆርቆሮ ሰርታ አንድ የስፌት ማሽን በመጠቀም
በሌላ በኩል የባንካችን ባለአክሲዮኖች ዓመታዊ
የፋሽን ኢንደስትሪውን ተቀላቀለች ፡፡
ጉባዔ ላይ ከሚደርሳቸው የትርፍ ድርሻ ላይ ከ3-5
በመቶ እንዲቀነስ በመፍቀድ በመርሐግብሩ ለታቀፉ
ሰዋሰው ስራዋን ስትጀምር እሷ እና አንድ የስፌት
ሴቶች ብድር ዋስትና እንዲሆን ይፈቅዳሉ፡፡
ባለሞያ እንደነበሩ ትናገራለች፡፡ ከጊዜ በኃላ
ስራዋን እያስፋፋች ተጨማሪ ሁለት ሸማኔዎችንና ኮረና ከገባ ቦኋላ ስራ ሲቀዘቅዝ በተጨማሪ ማስክ
በተጨማሪም ሱቅ ለመከራየት በቅታለች፡፡ በመስራት በትንሹ መንቀሳቀስ ጀመረች፡፡ ንግዷም
ለውጥ እያሳየ መጣ፡፡ በአሁኑ ጊዜ መስራት
የሰዋሰው ዲዛይኖች ተወዳጅነት ሲያገኙ ለተለያዩ የምትወደውን የጋቢ ጨርቅ በመጠቀም የተለያዩ
ታዋቂ ግለሰቦች አርቲስቶች ሞዴሎችም ዲዛይን ጃኬቶች፣ ሁዲዎች፤ ጋዋን የመሳሰሉ አልባሳትን
ማድረግ ጀመረች፤ አብዛኛው ሥራዎቿ በተለያየ ዘመናዊ ዲዛይን እየሰራች በመሸጥ ላይ
የኢትዮጵያን ባህላዊ አልባሳትን ከዘመናዊ ዲዛይን ትገኛለች፡፡
ጋር በመቀላቀል ለአለም ማስተዋወቅ ላይ ያተኮሩ
ናቸው፡፡ ሰዋሰው ለሴቶች የሚሰጠውን ብድር በመጠቀም
ንግዷን ካጋጠመው ውድቀት በማንሳት በትልቁ
ሰዋሰው በተለያዩ የአገር በቀል እና አለም አቀፍ በመንቀሳቀስ ላይ ትገኛለች፡፡ አሁን ላይ መልሳ 15
የፋሽን ትዕይንቶች ላይ በመሳተፍ የኢትዮጵያን ያህል ሰራተኞችን መቅጠር ችላለች፡፡ ካፒታሏን
ባህላዊ አልባሳት ማስተዋወቅ ጀመረች፡፡ እስከ 15 400 ሺ አድርሳለች፡፡ በተጨማሪም እንደ ጋቢ
የሚደርሱ ሠራተኞችን በመቅጠር ከባህል እና ጨርቅ ያለ ጥሬ እቃ ለሚያቀርቡላት ሰዎችም
ቱሪዝም ጋር ኢትዮጵያን ወክላ ወደ የተለያዩ ጠቃሚ ገቢ ማስገኘት ችላለች፡፡
ሀገራት በመጓዝ የኢትዮጵያን ባህል እንዲሁም
ሥራዎቿን አስተዋውቃለች፡፡ ሰዋሰው ሥራዋን ከልጆቿ ጋርም እየሰራች ሲሆን
ኦንላይን ሽያጭ ላይ እና ማርኬቲንግ ላይ ልጆቿ
የሠዋሰው ስራ ጥሩ ለውጥ እያሳየ በነበረበት እጅግ ጉልህ ሚና እየተጫወቱ ይገኛሉ::
ወቅት የምትሰራበት ቦታ በግንባር ምክንያት
በመፍረሱ እና ሱቅ የከፈተችበት ህንፃ በመሸጡ ሠዋሰው የጀመረችው አዲስ ምርት በደንበኛ
ሱቁንም ለመዝጋት ተገደደች፡፡ በዚህ መሀል በቦታ ዘንድ በጣም ተወዳጅነት አግኝቶላታል፡፡ በቅርቡም
ችግር እና በገንዘብ እጥረት ለተወሰኑ ዓመታት Annual Report 2020/21
የኤክስፖርት ገበያውን ለመቀላቀል እየሰራች ነው::
ያክል ስራ አቆመች፡፡ ሰዋሰው በወቅቱ ሁሉን
ነገር በአንድ ጊዜ እንዳጣች ትናገራለች፡፡ ይህ ልዩ የብ
ሁኔታ ሥራዋንና የግል ህይወቷን እጅግ ፈታኝ ወስዳ ያ
ሁኔታ ውስጥ ጣላቸው፤ መንግስት የምትሰራበት
የብድሩ
የስራ ቦታ ቢሰጣትም ሁሉም ነገር ወደነበረበት
መመለስ በጣም አስቸጋሪ እና ፈታኝ ሆነባት፡፡ ሔለን በ
ለብዙ ጊዜ ባለመስራቷ ምክንያት የስራ ማስኬጃ እና አራ
ያስፈልጋትም ነበር፡፡ የመስራያ ቦታዋ ሲሰጣት
እንዲሁም
መንግስት ካልሰራችበት እንደሚወስድባት ቅድመ
ብድሩን
ሁኔታ በማስቀመጡ አስጨናቂ ሁኔታ ውስጥ
ዳቦ ምር
ገብታ ነበር:: በዚህ መሀል ነበር እንግዲህ
ሰዋሰው ወደ እናት ባንክ የመጣችው፤ ለልዩ ሥራዋ
የሴቶች ብድር ተመዝግባና ስልጠና ወስዳ የብድሩ
አሮጌው የስፌት ቦታ ሠባት
ተጠቃሚ በመሆኗ መንግስት የሰጣትን የስራ ቦታ
ካፒታሏን
እንዳይወስድባት ማድረግ ችላለች::
ብር ማሳ
አሮጌው የስፌት ቦታ
ኩኪስ እ
ሲቆች
በመከራየ
1. ሔለን ቲመር
ችላለች፡
2. ሔለን ቲመር
ሔለን በብድር ባገኘቸው ብር ሊጥ ማቡኪያ
ሔለን ቲመር እ.ኤ.አ. በ 2003 የችርቻሮ ሱቅ እና አራት ፓትራ ያለው መጋገሪያ በመግዛት
ሥራ የጀመረች ሲሆን በ2008 የንግድ ስሟን ወደ እንዲሁም ጥሬ እቃዎችን ማስገባት ችላለች፡፡
ሔላ ጣፋጭ እና ኩኪስ በመቀየር በ150,000ብር ብድሩን ከወሰደች በኃላ ከኩኪስ ምርት በተጨማሪ
ካፒታል ሁለት ሠራተኞችን በመቅጠር ስራዋን ዳቦ ምርት ጀመረች፡፡
ጀመረች ፡፡
ሥራዋ በመስፋፋቱ ምክንያት በአሁኑ ወቅት ሠባት
ቀየረችው፡፡
ያገለገለ የቤት ዕቃዎችን
ሲገነባ
የብድሩን
ገበያ
እያሽቆለቆለ መጣ፡፡ በዚህን ጊዜ እናት ባንክ
በመጠቀም የቀን
መልካም አጋጣሚ በመጠቀም ነበር
እና
ሽያጯን ሁለት ሺህ ብር ወደ 10 ሺህ ብር
ማሳደግ ችላለች፡፡ ከዚህ በተጨማሪም ካፒታሏ
አትራፊ ሆኖ
አራት ሠራተኞች እና በ 200000 ብር ካፒታል
ልዩ የብድር
ወደ
ባህላዊ ምግብ ቤት አዞረች። አካባቢዋ ላይ ባሕላዊ
አለም
ባህላዊ ቤቱ ሙሉ በሙሉ በኢትዮጵያ ባህላዊ

ባህላዊ
ሥልጠና ወስዳ ያዋጭነት
ምግብ እና የባህል ምሽት ያለው ሌላ ምግብ ቤት
የዳንስ ትርኢትን ያጠቃልላል ፡፡ ወ/ሮ እመቤት

ለ ሰባት ሴቶች እና ሦስት ወንዶች የስራ እድል
የእናት
በላይ
ሔለን በሳምንት ከ150-200 ኪ.ግ ኩኪሶችን ሠራተኞች ቀጥራ እየሠራች ነው፡፡ ካፒታሏንም
ትሸጣለች፡፡ ሥራዋን ለማስፋፋት እና ለማስቀጠል ከ 150፣000 ሺብር ወደ 300,000 ብር ማሳደግ
ጥሩወርቅ ባር እና ሬስቶራንት በሚል ስያሜ
ቤቱን
ምግብ
የሆቴሉ
ብር
በተለይ ጥሬ እቃ በብዛት ገዝቶ ለማስቀመጥ ችላለች በየሳምንቱ ከ 300-400 ኪ.ግ ኩኪስ እና
ንግዱ
እመቤት
እንደገና
እቃዎች እና ምስሎች ያሸበረቀ ሲሆን

እና ከኩኪስ በተጨማሪ ሌላ የምርት ዓይነት 3000 ዳቦ አዲስ አበባ ውስጥ ላሉ ሲቆች እና
ሚሊየን
በማስገባት
ምግብ
ቤት
ለመጨመር ሃሳብ የነበራት ቢሆንም በነበረባት ሱፐር ማርኬቶች በየቀኑ መኪና በመከራየት
ለሴቶች በተመቻቸው
ለሠራተኞቿም
በመሸጥ ነበር፡፡ በወቅቱ ሥራው
ስለከፈለው
ወደ
የስራ ማስኪሄጃ እጥረት እንደ ልቧ ለመንቀሳቀስ ምርቶቿን ለደንበኞች ማከፋፈል ችላለች፡፡
ወ/ሮ
መንገድ
ባንክ ልዩ የሴቶች ብድርን

ምግብ
የባህል ቤቱን የከፈተችው ፡፡

እና ያሰበችውን ተጨማሪ ከፍ ያለ የማምረት
በኋላም
ከአንድ
ሠለሞን
ተጠቃሚ መሆን ችላለች።
ዓቅም ያለውን መጋገሪያ ማሽን ለመግዛት ተቸግራ የሔለን ደንበኞች ከአብዛኞቹ የችርቻሮ ሱቆች፣
ባንክ
ታቀርባለች፡፡
ነበር፡፡ ሱፐርማርኬቶች እና አንዳንድ ካፌዎች ናቸው::
ፕሮግራም ተመዝግባ
የገባችው በ1997/98
ለሁለት
ወደ
ከወሰደች
ከዚህ በተጨማሪ ገቢዋን ለማሳደግ በአሁኑ

ያለ
ወደ
ለእናት
ሲሆን
እመቤት
ሔለን ስለ እናት ባንክ የብድር አገልግሎት እና ወቅት ሔለን ምርቶቿን በቀጥታ ለደንበኞች
ሺህ
የምታደርስበት የችርቻሮ መሸጫ ሱቅ ከፍታለች፡፡
ያለመኖሩን
ለሴቶች የሚሰጠውን ዕገዛ በመጀመሪያ ከወንድሟ

አካባቢውን
በመምጣት
በአካባቢው
ስላላገችው
ጀመች ።
የከፈተች
መጠለያ
ሔለን አሁን ከምታቀርበው ምርቶች በተጨማሪ
ብድሩን
ሰማች፤ ከዚያ ወዲያውኑ ከእናት ባንክ ዋናው

እቅድ
በ200
የኬክ አቅርቦትና ሌሎች የተለያዩ ጣፋጮችንም
ወ/ሮ
መሥሪያ ቤት በመምጣት ለሴቶች በተመቻቸው

ልዩ የብድር ፕሮግራም ተመዝግባ ሥልጠና 2. ወ/ሮ
ለመጀመር እመቤት
እቅድ ሠለሞን
አላት፡፡
ወስዳ ያዋጭነት -እቅድ ለእናት ባንክ በማስገባት ወ/ሮ እመቤት ሠለሞን ወደ ንግዱ አለም
የብድሩ ተጠቃሚ መሆን ችላለች። የገባችው በ1997/98 ያገለገለ የቤት ዕቃዎችን
በመሸጥ ነበር፡፡ በወቅቱ ሥራው አትራፊ ሆኖ
ስላላገችው ወደ ምግብ ቤት ቀየረችው፡፡
ጥሩወርቅ ባር እና ሬስቶራንት በሚል ስያሜ በ
አራት ሠራተኞች እና በ 200000 ብር ካፒታል
ጀመች ።
በአካባቢው ያለ መንገድ እንደገና ሲገነባ
አካባቢውን ለሁለት ስለከፈለው የሆቴሉ ገበያ
እያሽቆለቆለ መጣ፡፡ በዚህን ጊዜ እናት ባንክ
በመምጣት ለሴቶች በተመቻቸው ልዩ የብድር
ፕሮግራም ተመዝግባ ሥልጠና ወስዳ ያዋጭነት
እቅድ ለእናት ባንክ በማስገባት የብድሩን
ተጠቃሚ መሆን ችላለች።
ብድሩን ከወሰደች በኋላም ምግብ ቤቱን ወደ
አሮጌው የመሥሪያ ቦታ
ያለመኖሩን መልካም አጋጣሚ በመጠቀም ነበር
3. እመቤት ሠለሞን እመቤት “እናት ባንክ በኢኮኖሚ የተጎዱ ሴቶችን

በማጎልበት ትልቅ ነገር እያደረገ ነው፣ ልክ ባንኩ
እመቤት ሠለሞን ወደ ንግዱ አለም የገባችው እኔን እንደጠቀመኝ እና ሥራዬን እንደቀየረ
በ1997/98 ያገለገለ የቤት ዕቃዎችን በመሸጥ ሁሉ ለሌሎችም ይህን ዕድል ለሚጠባበቁ
ነበር፡፡ በወቅቱ ሥራው አትራፊ ሆኖ ስላላገችው ሴቶች እንደሚደርስ ተስፋ አደርጋለሁ እናም
ወደ ምግብ ቤት ቀየረችው፡፡ ጥሩወርቅ ባር እና ይህ ሃሳቤ ሁልጊዜ ዕዳዬን በወቅቱ እንድከፍል
ሬስቶራንት በሚል ስያሜ በ አራት ሠራተኞች ይገፋፋኛል። ዕዳዬን በወቅቱ ከከፈልኩ አንዲት
እና በ 200ሺ ብር ካፒታል ጀመረች። ሴት በቅርቡ ጥቅሙን ታገኛለች ብዬ አስባለሁ።
የባንኩ ባለአክሲዮኖች እና ሰራተኞችን ማመስገን
በአካባቢው ያለ መንገድ እንደገና ሲሠራ አካባቢውን እፈልጋለሁ፡፡” በማለት ምስክርነቷን ሰጥታለች፡፡
ለሁለት ስለከፈለው የሆቴሉ ገበያ እያሽቆለቆለ
ሄደ፡፡ በዚህን ጊዜ እናት ባንክ በመምጣት ለሴቶች
በተመቻቸው ልዩ የብድር ፕሮግራም ተመዝግባ
ሥልጠና ወስዳ ያዋጭነት እቅድ ለእናት ባንክ
በማስገባት የብድሩን ተጠቃሚ መሆን ችላለች።
ብድሩን ከወሰደች በኋላም ምግብ ቤቱን ወደ
ያለመኖሩን መልካም አጋጣሚ በመጠቀም ነበር
የባህል ቤቱን የከፈተችው፡፡
ባህላዊ ቤቱ ሙሉ በሙሉ በኢትዮጵያ ባህላዊ

እቃዎች እና ምስሎች ያሸበረቀ ሲሆን ባህላዊ
የዳንስ ትርኢትን ያጠቃልላል ፡፡ እመቤት ለሰባት
ሴቶች እና ሦስት ወንዶች የስራ እድል የፈጠረች
ሲሆን ለሠራተኞቿም ምግብ እና መጠለያ
ታቀርባለች:: እመቤት የእናት ባንክ ልዩ የሴቶች
ብድርን በመጠቀም የቀን ሽያጯን ከሁለት ሺህ
ብር ወደ 10 ሺህ ብር ማሳደግ ችላለች፡፡ ከዚህ
በተጨማሪም ካፒታሏ ከ200 ሺህ ወደ አንድ
ሚሊየን ብር በላይ አድጓል፡፡ ባሁኑ ሠዓት ወይዘሮ
እመቤት ከየትኛውም የፋይናንስ ተቋም የብድር
አገልገሎት ማግኘት ዓቅሟ ከፍ በማለቱ በሌሎች
ባንኮች ጭምር ተፈላጊ ባለሀብት ሆናለች፡፡
እመቤት ኮሮና በኢትዮጵያ የተከሰተ ሰሞን

ከባድ እንደ ነበር ትናገራለች:: ባሁኑ ሠዓትም
እንቅስቃሴው ወደ ቀድሞው ቦታው ባይመለስም
ብድሯን እየከፈለች ሥራዋን ማስቀጠል ችላለች፡፡
REWARDING YOUR LOYALITY

Every time you remit via Enat Bank you are empowering women.
እናት ባንክ አክሲዮን ማህበር

እናት ባንክ ዕዳ
የሃብትና አክሲዮን ማህበር
መግለጫ
የትርፍ እና ኪሳራ መግለጫ
ሰኔሰኔ23 ቀን
23 ቀን 2013
2013 ዓ.ም
ዓ.ም ላለቀው ዓመትላለቀው ዓመት
ሰኔ 23 ቀን 2013 ሰኔ 23 ቀን 2012
Notes ብር'000 ብር'000
ከወለድ የተገኘ ገቢ 5 1,284,057 1,047,139

የወለድ ወጪ 6 (863,588) (656,122)
የተጣራ የወለድ ገቢ 420,468 391,017
ከአገልግሎትእና ከኮሚሽን 7 222,701 222,804

የአገልግሎት እና የኮሚሽን ወጪ 7 - -
የተጣራ ከአገልግሎት እና ከኮሚሽን የተገኘ ገቢ 222,701 222,804
ልዩ ልዩ ገቢዎች 8 148,223 58,133
ጠቅላላ የአገልግሎት ገቢ 791,393 671,954
ለአጠራጣሪ ብድሮች መጠባበቂያ 9 (39,953) (37,337)

ለሌሎች አጠራጣሪ ተሰብሳቢዎች መጠባበቂያ 10 (10,148) 73
የተጣራ የአገልግሎት ገቢ 741,292 634,690
የሰራተኛ ወጪዎች 11 (267,478) (188,059)

ህልዎታዊ ግዝፈት የሌላቸው ቅናሽ 18 (10,757) (6,324)
ከቋሚ ንብረት የተደረገ የዕርጅና ቅናሽ 19 (25,170) (21,733)
ለሌሎች ወጪዎች 12 (148,485) (179,018)
ትርፍ ከግብር በፊት 289,403 239,555
የግብር ወጪ 13a (59,702) (30,987)
ትርፍ ከግብር በኋላ 229,700 208,569
ተጨማሪ ገቢዎች ተገቢው የግብር ዕዳ ከተቀነሰ በኋላ
በቀጣይ ወደ ትርፍ እና ኪሳራ መግለጫ የማይዞሩ
በሰራተኞች ጥቅማ ጥቅም ላይ በተሰላ የድጋሚ ልኬት የተገኘ ገቢ

(3,584) 2,558
ወይም ወጪ 25b
በድጋሚ ልኬቱ ላይ የተገኘ የዘገየ የታክስ ሃብት ወይም ዕዳ 1,075 (767)
በባንኩ ኢንቨስትመንቶች ላይ በተሰላ የገበያ ዋጋ የተገኘ ገቢ ወይም
4,287 7,127
ወጪ
በገበያ ዋጋ ላይ የተገኘ የዘገየ የታክስ ሃብት ወይም ዕዳ (1,286) (2,138)
492 6,779
የባንኩ የተጣራ ትርፍ 230,193 215,348

ባለአክሲዮኖች በአንድ አክሲዮን የሚያገኙት ትርፍ 26 158 161

እናት ባንክ አክሲዮን ማህበር

እናት ባንክ አክሲዮን ማህር
የትርፍ እና
የሃብት እና ዕዳ ኪሳራ
መግለጫ መግለጫ
ሰኔሰኔ23 ቀን
23 ቀን 2013
2013 ዓ.ም
ዓ.ም ላለቀው ዓመትላለቀው ዓመት
ሰኔ 23 ቀን 2013 ሰኔ 23 ቀን 2012
Notes ብር'000 ብር'000
ሃብት
በእጅ ያለ ገንዘብ እና በባንክ ያለ ተቀማጭ 14 2,966,715 2,305,098

በብድር እና ለሌሎች ተሰብሳቢዎች 15 8,965,488 6,426,052
ኢንቨስትመንት
- የገበያ ዋጋ ልኬቱ በተጨማሪ ገቢዎች የሆነ 16 a 40,288 35,501
- የብሄራዊ ባንክ ቢል 16 b 1,690,848 1,690,848
ለሌሎች ሃብቶች 17 403,666 257,411
ህልወታዊ ግዝፈት የሌላቸው ንብረቶች 18 28,066 27,597
ቋሚ ንብረት 19 154,487 153,861
በግንባታ ላይ ያለ ህንፃ 20 2,497 571
ሀብት የመጠቀም መብት 21 352,082 252,031
የተወረሱ ንብረቶች 22 - 19,204 16,996
ጠቅላላ ሃብት - 14,623,342 11,165,965
ዕዳ
የደንበኞች ተቀማጭ ገንዘብ 23 11,237,087 8,383,812

የግብር ዕዳ 13 60,646 31,546
ሌሎች ዕዳዎች 24 1,237,806 926,247
የሰራተኞች አገልግሎት ክፍያ ዕዳ 25 16,125 10,431
ወደፊት የሚከፈል የግብር ዕዳ 13d 11,574 12,456
ጠቅላላ ዕዳ - 12,563,238 9,367,492
ካፒታል እና መጠባበቂያ
የተከፈለ ካፒታል 26 1,542,532 1,380,251

ያልተከፈለ ትርፍ 27 196,030 150,313
ህጋዊ የመጠባበቂያ ሂሳብ 28 264,891 207,431
ለኢትዮየያ ብሄራዊ ባንክ መጠባበቂያ 29 24,557 33,084
ለልዩ የመጠባበቂያ ሂሳብ 30 19,041 14,982
ለሌሎች መጠባበቂያ ሂሳብ 13,054 12,412
ጠቅላላ ካፒታል እና መጠባበቂያ - 2,060,104 1,798,473
ጠቅላላ ዕዳ እና ካፒታል - 14,623,342 11,165,965
በገፅThe notesያለው
27-74 on pages 27 to 74የሒሳብ
ማብራሪያ are an integral
መግለጫዎቹ part of አንድ
these financial
አካል ነው:: statements.
ከገፅThe
27-30 የሰፈሩት
financial የሒሳብ
statements on መግለጫዎች ለህዝብ
pages 26 to 30 እንዲገለፁ and
were approved ጠቅላለ ጉባዬውን
authorised በመወከል
for issue ህዳር
by the 2014
board በእናት on
of directors ባንክ ቦርድ
ተፈርሟል።
November 2021 and were signed on its behalf by:
ፍሬህይወት ወርቁ ኤርሚያስ አንዳርጌ

የቦርድ ሊቀመንበር ፕሬዝዳንት
TELEPHONE
S.N BRANCH NAME የቅርንጫፍ ስም EMAIL ADDRESS (የኢሜል አድራሻ) ADDRESS
(የስልክ አድራሻ)
1 ETEGE-TAITU- MAIN እተጌ ጣይቱ- ዓብይ [email protected] 0115 500683
2 NIGIST-SABA BOLE-MEDEHANEALEM ንግስተ ሣባ ቦሌ-መድኅንዓለም [email protected] 0116 180461
3 ABEBECH-GOBENA MEGENAGNA አበበች ጎበና- መገናኛ [email protected] 0116 674002
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7 CATHRIN HAMLIN MESKEL FLOWER ካትሪን ሐምሊን-መስቀል ፍላወር [email protected] 0114 700933
8 MEKELLE መቀሌ- ዋና [email protected] 034 2415195
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14 YEKAKE WORDOT GOJAM BERENDA የቃቄ ወርደውት-ጎጃም በረንዳ [email protected] 0112 732735
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17 FATUMA ROBA- FURI ፋጡማ ሮባ-ፉሪ [email protected] 0113 802123
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21 SHASHEMENE ሻሽመኔ [email protected] 046 2119894
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24 TSION MICHAEL ANDOM LIDETA ፅዮንሚካዔል አንዶም-ልደታ [email protected] 0115 579013
25 ADI- HAKI- MEKELLE ዓዲ-ሐቂ-መቀሌ [email protected] 034 2411240
26 PROF. YALEMTSEHAY MEKONNEN 4 KILO ፕር የዓለምፀሐይ መኮንን [email protected] 0111 263884
27 DR. WIDAD KIDANEMARIAM AYAT ዶር ውዳድ ኪዳነማርያም-አያት [email protected] 0116 390419
28 ARBEGNA KEBEDECH SEYOUM GERJI አርበኛ ከበደች ሥዩም-ገርጂ [email protected] 0116 395487
29 LEGETAFO ለጋጣፎ [email protected] 0116 683033
30 EMAHOY ZEMZEM GERBI CINEMA RAS እማሆይ ዘምዘም ገርቢ-ሲኒማ ራስ [email protected] 0112 735482
31 DR. BOGALECH GEBRE IMPERIAL ዶር ቦጋለች ገብረ-ኢምፔሪያል [email protected] 0116 684392
32 ADAMA ARADA አዳማ አራዳ [email protected] 022 2114855
33 SHAMBEL SISTER ASTER AYANA -AKAKI ሻምበል ሲስተር አስተር አያና-አቃቂ [email protected] 0114 716907
34 TIRHAS MEZGEBE GOFA ትርሐስ መዝገበ-ጎፋ [email protected] 0114 702241
35 GONDAR ጎንደር [email protected] 058 2117795/96
36 SHASHEMENE SUB BRANCH ሻሽመኔ- ንዑስ ቅርንጫፍ [email protected] 046 2112143

EMAHOY WELETEMARIAM GELAW እማሆይ ወለተማርያም ገላው
37 [email protected] 0118 723313
YEKABADO የካባዶ ኮንዶሚንየም
38 DEBREBRHAN ደብረ-ብርሀን [email protected] 0116 37 55 53
39 KURIFTU ኩርፍቱ [email protected] 0114 308624
40 MEKHONI መኾኒ [email protected] 0346 647655

TELEPHONE
41 YETNEBERSH NIGUSSIE JAKROS የትነበርሽ ንጉሤ-ጃክሮስ [email protected] 0116 671697

EMAHOY TSIGIEMARIAM GEBRU HAILE እማሆይ ፅገማርያም ገብሩኃይለ-
42 [email protected] 0118 723356
GARMENT ጋርመንት
43 ZEWDIE ABEGAZ ATIKILT TERA ዘውዴ አበጋዝ-አትክልት ተራ [email protected] 0111 267814
44 DIRE DAWA SABIAN ድሬደዋ - ሣቢያን [email protected] 0254 115385/86
45 SR.BIRKNESH KEBEDE BOLE BULBULA ሲር ብርቅነሽ ከበደ-ቦሌ ቡልቡላ [email protected] 0114 714001
46 ADIGRAT አዲግራት [email protected] 0342 450540
47 HUMERA ሑመራ [email protected] 0342 484083
48 TOGOWUCHALE ቶጎ-ውጫሌ [email protected] 0258 820521
49 TSEHAY YITBAREK LEBU ፀሐይ ይትባረክ-ለቡ [email protected] 0114 625125
50 BISHOFTU ቢሾፍቱ [email protected] 0114 302026
51 AXUM አክሱም [email protected] 0342 756621
52 SHIRE ሽሬ [email protected] 0342 443622
53 HARAR ሐረር [email protected] 0254 667908
54 ADWA አድዋ [email protected] 0342 719522/23
55 JIGJIGA ጅግጂጋ [email protected] 025 278 26 32

034-2408871
56 MEKELE KEDAMAY WOYANE መቀሌ-ቀዳማይ ወያኔ [email protected]
034-2409836
ድሬዳዋ ግሪክ ካምፕ ንዑስ
57 DIREDAWA GREEK CAMP SUB BRANCH 025-2113246
ቅርንጫፍ
58 MARTHA GEBRETSADIK (WOLLO SEFER) ማርታ ገብረፃዲቅ-ወሎ ሰፈር [email protected] 011-4700918
011-6680467
59 SR.ZENAWIT AYELE (WOSSEN) ሲስተር ዜናዊት አየለ-ወሰን [email protected]
011-6680933
058-3208747
60 TANA BRANCH ጣና [email protected]
058-3208748
61 JEMO ጀሞ [email protected] 011-4625815
011-6688038
62 LAUREATE SR.TIBEBE MACO (SUMMIT) ሎሬት ሲስተር ጥበበ ማኮ-ሰሚት [email protected]
011-6688581
022-2230370
63 ARERTI አረርቲ [email protected]
022-2230684
LAUREATE ARTIST DESTA HAGOS ሎሬት አርቲስት ደስታ ሀጎስ-ብስራተ 011-3692443
64 [email protected]
(BISRATE GEBRIEL) ገብርኤል 011-3692446
65 MARIA MUNIR (BOLE MICHAEL) ማሪያ ሙኒር-ቦሌ ሚካኤል [email protected]
058-2252455
66 CHAGNI ቻግኒ [email protected]
058-2252454
058-3201479
67 ABAY MADO አባይ ማዶ [email protected]
058-3204979
LAUREATE DR. ASTER SHEWAAMARE ሎሬት ዶ/ር አስቴር ሸዋአማረ- 011-3809077
(SARBET) ሳርቤት 011-3809046
011-3302998
69 WOLKITE ወልቂጤ [email protected]
011-3300971
CAPITAIN AMSALE GUALU (AFRICA 011-5583054
70 ካፒቴን አምሳለ ጓሉ-አፍሪካ ጎዳና [email protected]
AVENUE) 011-5584820
022-2389907
71 ASSELA አሰላ [email protected]
022-2385147
011-2735263
72 ETEGE MINTEWAB (EHIL BERENDA) እቴጌ ምንትዋብ-እህል በረንዳ [email protected]
011-2734958
011-2737520
73 ASTER GANNO (GULLELE) አስቴር ጋኖ-ጉለሌ [email protected]
011-2737855
011-2739701
74 NIGIST ZEWDITU (KOLFE ATENA TERA) ንግስት ዘውዲቱ-ኮልፌ አጠና ተራ [email protected]
011-2739661
011-6663503
75 DR.MULUALEM GESSESE (22 LEM) ዶ/ር ሙሉአለም ገሰሰ-22 ለም [email protected]
011-6663965
TELEPHONE
76 HOSSANA ሆሳዕና [email protected]
77 DESSIE ደሴ [email protected] 033-3216441

HON.DR.ASEGEDECH ASFAW (AYAT የክብር ዶ/ር አሰገደች አስፋው-አያት 011-6390976
TAFO) ጣፎ 011-6391731
79 INJIBARA እንጅባራ [email protected] 058-2271432
80 DEBRE BIRHAN TEBASSIE ደብረ-ብርሃን ጠባሴ [email protected]
0221180690
81 MEKI መቂ [email protected]
022-1181830
0222364132
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022-2367963
83 TULU DIMTU ቱሉ ዲምቱ [email protected]

ENGIDAZER NEGA 011-5578808
84 እንግዳዘር ነጋ-ተክለሃይማኖት [email protected]
(TEKLEHAIMANOT) 011-5578602
85 WORETA ወረታ [email protected] 058-4461318
86 JIMMA ጅማ [email protected] 047-1122419
87 HOLETA ሆለታ [email protected] 011-2610873
88 HANAMARIAM ሐና ማርያም [email protected]
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Enat Bank Annual Report For 2020 2021 FY Compressed 1

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Enat Bank Annual Report For 2020 2021 FY Compressed 1

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Annual Report

Front: left to right Back: left to right

MESSAGE FROM BOARD OF

The covid-19 pandemic and resultant global

Incidentally, the demand for goods has

The sad event of the conflict in Northern part

Despite the unfavourable internal and external

Ato Habtu Dimtsu Wro Shitaye Hussien

Wro Yergedu Begashaw Ato Ayenew Wudu

Wro Roman Legesse

Ass.Prof. Tewodro Wuhib Ato Eyobed Tibebu

Wro Nigist W/Selassie Ato Itana Ayana

MESSAGE FROM PRESIDENT

This helped our Bank to get a better slice of

The number of our physical outlets reached 88

Despite political and economic odds, deposit

Highlights of Financial Performance (in million ETB)

Enat Bank Annual Report For the Year 2017/18

I. Information Technology Development in customer services. To this end, we

II. CORPORATE CITIZENSHIP

Most people think corporate responsibility

§ Donated for Fana Hulegeb

Annual Report 2020/21

§ We sponsored the 18th edition of the

3. Farewell 5. Brand Ambassadors Event

§ We sponsored the 18th edition of the

Enat Bank has been financing different types

Rich Land Biochemical Production PLC is

Moreover our shareholders that include

VI. WOMEN BANKING SOLUTIONS EXEMPLARY WOMEN

and lost everything at once. Her situation put 2. Helen Timmer

Emebet Solomon entered the business world

It was unfortunate that her first business

Owners’ equity stood at Birr 1.5 billion at

Enat Bank Share Company

Company registration number

Directors (As of 30 June 2021)

Executive management (As of 30 June 2021 )

Ermias Andarge Ayele President (Appointed January 2021)

Incorporation and address

Results and dividends

30 June 2021 30 June 2020

Signed on behalf of the Directors by:

Frehiwot Worku Ermias Andargie

Frehiwot Worku Ermias Andargie

INEDEPENDENT AUDITORS’ REPORT TO THE SHAREHOLDERS

ENAT BANK S.C.

Basis for Opinion

Key Audit matters

Enat Bank Share Company

Responsibilities of Directors for the Financial Statements

Auditor’s Responsibilities for the Audit of the Financial Statements

Report on other Legal and Regulatory Requirement

Tafesse, Shisema and Ayalew Certified Audit Partnership (TMS Plus)

30 June 2021 30 June 2020

Interest income 5 1,284,057 1,047,139

Net interest income 420,468 391,017

Fee and commission income 7 222,701 222,804