AIB 27th Annual Report 2021..22 Compressed

Nurturing Like the River
2021/22
ANNUAL
REPORT
Annual Report 2021/22 1
The Bank that

NURTURES
Your Life!
2 Annual Report 2021/22

Annual Report
for Financial Year
Ended 30 June 2022

Vision, Mission & Values
VISION MISSION
“To be the first choice “To provide innovative,
competitive and diversified
world class banking services accessible to
Bank.” the society with qualified and
dedicated staff in a profitable and
socially responsible manner.”
CORE VALUES
A- Accessibility
W- Wisdom
A- Accountability
S- Socially Responsible
H- Honesty

TABLE OF
CONTENTS
BOARD CHAIRMAN’S MESSAGE 10
CHIEF EXECUTIVE OFFICER’S

STATEMENT 21
BOARD OF DIRECTORS’ REPORT 27
AUDITOR’S REPORT 47
FINANCIAL HIGHLIGHTS 145
ATMs LOCATIONS 146
AWASH BANK BRANCH ADDRESS 149

Highlight of Major Performances
Deposit Loans Advances

160,000
152,007 140,000
129,244
140,000
In Millions Of Birr
120,000
In Millions Of Birr
120,000 108,074
100,000
87,539
100,000
80,000
80,000 70,578
62,464 60,000 57,274
60,000 47,262
45,906 40,000
40,000 31,304
20,000
20,000
0 0 2017/18 2018/19 2019/20 2020/21 2021/22

2017/18 2018/19 2019/20 2020/21 2021/22
Financial Year Financial Year
Total Assets Capital Reserve

200,000
183,391
24,000
180,000
21,000 20,951
160,000
In Millions Of Birr
128,695 18,000
In Millions Of Birr
140,000 15,852
120,000 15,000
89,288 11,968
100,000 12,000
9,640
80,000
74,635
9,000
6,496
60,000 55,268 6,000
40,000 3,000
20,000
0
0 2017/18 2018/19 2019/20 2020/21 2021/22 2017/18 2018/19 2019/20 2020/21 2021/22
Profit Before Tax Number of Branches

9,000
800
8,000 7,453 725
In Millions Of Birr
700
7,000
6,000
4,823 600 566
In Number
5,000 3,600 500

466
4,000 3,344 400
410
3,000 300 366
2,000
1,964
200
1,000 100
0 2017/18 2018/19 2019/20 2020/21 2021/22 0 2017/18 2018/19 2019/20 2020/21 2021/22

Responding To Changing Life
725
Online AwashBirr 725 Branches
Banking
2,355
2355
POS Machines 565
Card Banking ATMs
Agents

THE BOARD OF DIRECTORS
Ambassador Dr.Dibaba Abdeta

Chairman
Gure Kumssa Abaynesh Bekele Abaynesh Merga

V/Chairman Director Director
Alemu Tita Beza Tadesse Getachew Olana

Director Director Director

Girma Guluma(Eng) Gudissa Legesse Kedeme Teshome

Director Director Director
Roba Arega Yoseph Yonas

Director Director

BOARD CHAIRMAN’S
MESSAGE
Ambassador Dr.Dibaba Abdeta

Chairman
Ladies and Gentlemen!! Directors elected by the General Assembly and the
Management team comprising of the Chief Executive
T
his is a moment of great felicity for me in Officer(CEO), Chief & Deputy Chief Officers, Directors
warmly welcoming you all, on behalf the Board and Deputy Directors. With these compositions,
of Directors and on my own behalf to the 27th Awash Bank showed a continued progress in building a
Awash Bank’s Shareholders’ Annual General Meeting stronger and safer Bank that is capable of delivering
(AGM) of the FY 2021/22. I would also like to convey higher returns to its shareholders. Particularly, over
my sincere gratitude to our respected clientele for the the past ten years, the Bank has recorded an amazing
esteemed cooperation, continued trust and support result that shown an augmented income and earning
extended to enable Awash Bank to score yet another per share, with a track record of creating a significant
astonishing result in all of the banking operation value for its owners.
parameters during the FY 2021/22. The devotion and
The FY 2021/22 was characterized by significant socio-
the hardworking commitment of the Management and
economic and geopolitical challenges particularly
the entire employees of the Bank is also incomparable
to the banking industry with stagnant global trade,
and extraordinary that deserves honorary recognition.
disrupted lively hoods, subdued investments and
I am also confident that this multidimensional support
uncertainties. The major challenges of the year at
from all stakeholders will also continue to make the
global level were the negative impacts of the Russia-
Bank remain the pioneer leading private bank in the
Ukraine war and the consequent high inflation. The
country as well as realizing of its future ambition of
war has also caused major supply disruptions which
achievement.
led to higher prices for a number of commodities. It
Awash Bank is committed to maintaining & upholding also affected global economic prospects and according
good corporate governance in order to protect to the World Bank Report of June 2022, the global
the interests of shareholders, customers and the growth is projected to slow down from 5.7 percent in
employees. The Bank is governed by twelve Board of 2021 to 2.9 percent in 2022 and average of 3 percent

in 2023/24. When coming to the domestic economy, dedication of the entire employees and the overall
the political instability in some parts of the country, strong efforts made by the Bank-wide community to
the effect of COVID 19, drought, inflation, a sharp fall maximize the wallet share of the Bank.
in donor financing, foreign exchange shortages and
stiff competitions among the banks were the major Though the year was turbulent and daunting, it is
challenges. Despite of these considerable hurdles, worth mentioning to raise one miraculous victory
however, the year was an exciting year enabling the which the Bank enjoyed during the year under review.
Bank to operate efficiently and once again record a This amazing event was that a well-known world-wide
commendable result which is unique of its kind. Finance Magazine named ‘’Global Finance Magazine’’
has chosen Awash Bank, as one of the World’s Best
The major and key financial and non-financial Bank in the year 2022. In connection with this
highlights for the year ended June 30, 2022 can be particular selection, the Bank was recognized during
summed up as under: the IMF/World Bank Annual Meeting which was held in
Washington DC on October 15,2022. This has changed
● The aggregate deposit increased by 41percent the history of Awash Bank and repositioned it to
from last year same period and reached Birr 152 another higher growth level of the world standard.
billion including L/C margin and deposit from IFB,
At this point, it should be noted the Board is always
● Loans and Advances surged up by 47.6 percent as committed to ensuring that Awash Bank is a resilient
compared to last year same period and reached organization with a focus on long-term value creation.
Birr 129.2 billion, The fast-track actions taken by the Board during the
year, for fundamental changes & ensuring sustainable
● Total income of the Bank escalated by 50.2 percent & profitable growth through excellence in operation,
from last year same period and arrived at Birr 20.6 technology & ultimately customer experience have all
billion, contributed to the success of the Bank.
● The total expense of the Bank stood at Birr 13.2 Awash Bank is engaged in many different project
billion as at June 30, 2022, up by 47.9 percent activities, such as Corporate Strategy Development
from previous year similar period, by a well-known international consultant, McKinsey &
Co., IT Projects and the construction of own building
● The profit grew by 54.5 percent over previous year projects at different parts of the country.
and reached Birr 7.45 billion, as at ended June
2022, To make the future IT Platform more user-friendly
for the clients and also to go abreast along with the
● Total Foreign Currency generated during the year unprecedented surge in the digitalization of financial
crossed one Billion and stood at USD 1.25 billion services, the Bank has planned to review the current
surpassing the amount generated last year same technology system and replace some of them with
period by USD 343.5 million or 38 percent, modern and standardized technology.
● The aggregate deposit customer base rose to 7.8 Concerning the Human Capital Management, the
million, Board believes that having an engaged & motivated
workforce & a sound governance & risk management
● The branch network as at June 30, 2022 has are pivotal to attain the sustainable growth and
reached 725. the vision that the Bank aspires for. In this regard,
the Bank is crafting a strategy that enables attract,
The increments registered in the major performances motivate and retain qualified and skilled manpower.
is exceptional in the history of the private banks Concurrent with this, steps were taken to improve
and the history of Awash Bank itself, reflecting the staff productivity, focusing on optimizing the existing
underlying strengths of the AB’s business. resource through internal job postings, transfers and
skill development/capacity building initiatives.
The other major contributory factors for the growth
are the efforts exerted in the resource mobilization In connection with the capital structure, the payment
activities and the continuous hard work applied in the of the Birr 12 billion paid up capital of the Bank would
collection of loans and advances, as a result of which be completed before June 2023. The strategic growth
the status of the Non-Performing Loans (NPLs) has aspiration of the Bank, which is to become one of
shown a significant reduction to less than 1.5 percent the top ten African Banks by the year 2030 have to
as at the end of June 30, 2022. be backed by a solid capital base. On top of that,
the capital adequacy ratio of the Bank also should
In general, the overall success of the Bank is coiled comfortably be above the regulatory requirement
on the wise guidance of the Board of Directors, the and should provide strong foundation for the
prudent and coordinated quality leadership of the CEO, company. Furthermore, it is worth mentioning that
the Management Members as well as the unreserved the growth of the Bank itself entails capital growth.

Therefore, in consideration of the above points, the In conclusion, on behalf of the Board of Directors, I
Board solicits the Shareholders to approve a new paid would like to express my honest appreciations to all
up capital proposed by the Board as included in the shareholders, loyal customers and the public at large
extra-ordinary agenda items to maintain the Bank for their unwavering and indispensable support and
with a strong capital position for the coming years. the confidence they have on our Bank. I look forward
to their continuous and renewed commitment to work
Moreover, the Board and the Management are still with the Bank in the future to come.
courageous to work hard during the FY 2022/23, in
spite of the entry of foreign banks and consequent My special thanks goes to the Management Members
fierce competition amongst Banks, the persistence and the entire employees for their passion and
of the impacts of living costs and political instability commitment, belongingness and hard work to upswing
globally and domestically. Given the dedication of the their Bank, in delivering commendable results and
Board, the commitment of the Management Team, the enabling the Bank to maintain its leading position
competency of the entire employees and the results among the private commercial banks in the country.
registered to date, the attainment of the new vision I would also like to commend the National Bank of
of becoming One of the Top Ten African Banks by 2030 Ethiopia (NBE) for providing our Bank a constructive
is inevitable. The Bank will continue to deliver on its guidance and enthusiastic support.
strategic commitments, which drive the operational
performances and create value for the shareholders Finally, recalling that the Bank has come a long
as well as the communities at large. way so far, and has still a long way to go, I want
to assure you that in the years to come, our Bank
On top of its corporate objectives, the contribution will strongly scrutinize the laid down new vision
of the Bank to the growth of the national economy of and strategy to bring about further excellence by
the country and the wellbeing of its citizens during exploiting opportunities and vigilantly withstanding
the year under review is eye-catching as observed the challenging environment.
from the annual tax paid, the financial contributions
made for the national development projects as well
as the various financial supports given to the disaster
victims. During the year under review, Awash Bank
has provided financial support to the displaced and
drought stricken people of Oromia and Somali Regional Thank You!
States. It also supported the flood victims in the
Amhara Regional State, during the reporting period.

EXECUTIVE MANAGEMENT
Tsehay Shiferaw
Chief Executive Officer
Yohannes Merga Tadesse Gemeda Henock Tessema

Chief, Information Officer Chief, Wholesale Banking Chief, Retail & SME Banking
Officer Officer
Tilahun Geleta Abebe Deressa Dessalegn Tolera Tilahun Temotewos

Chief, Finance & Facilities Chief, Corporate Strategy Chief, Credit Operations Chief, Technology Officer
Management Officer Officer Officer

Abdella Adem Kefyalew Shiferaw Lamessa Soboka

Interest-Free Banking D/Chief, Digital Banking D/Chief, Regional Operations
Operations Officer Officer
Netsanet W/Kidan
D/Chief, Trade Services Temesgen Busha Temesgen Workineh
D/Chief, Strategy Innovation D/Chief, Human Capital
Officer
& Transformation Officer Management Officer

Senior Management Nurturing Like the River
Members
Abebe Tadesse Beyene Dekeba Birhanu Balcha

Director, Corporate Banking Director, IT Infrastructure Director, Finance Management
Directorate Directorate Directorate
Dereje Getachew Desalegne Assefa Ebisa Deribie

Director, Business Banking Director, Transformation & Director, Marketing &
Directorate Change Management Directorate Communication Directorate
Ephrem Bogale Fikru Gebrewold Gacho Wara

Director, Personal & SME Banking Director, Construction Project & Director, Enterprise Risk &
Directorate Property Admin.Directorate Complaince Management
Directorate
Gutama Tesfa Hailu Meskala Hailu Woldegebriel

Director, Information Security Director, Learning & Talent Executive Assistant to the CEO
Directorate Development Directorate
Kelemu Amha Lemessa Bulti Lemi Furgassa

Director, Mobile, Agent & Director, Internal Audit Director, Credit Analysis &
Internet Banking Directorate Directorate Appraisal Directorate
Melkamu Tadesse Mohammed Kedir Nurfeta Legesse

Director, Card Banking Director, IFB Finance & Director, System Development &
Directorate Investment Directorate Customization Directorate

Olani Tabor Samson Hussein Solomon Jebessa

Director, Import & Payment Director, IFB Operation & Director, Strategy
Service Directorate Supervision Directorate Implementation & Monitoring
Directorate
Soressa Alemu Takele Arega Tegene Tesfaye

Director, Procurement & Supplies Director, Legal Services Director, Institutional Banking
Management Directorate Directoarte Directorate
Tesfaye Seifu Tewodros Hailu Tusi Mendido

Director, IT Service Management Director, Strategy Initiation Director, Portfolio Management
Directorate Directorate Directorate

Tsehay Getachew Wendimagegnehu Birhanu Yohannes Tsegaye

Director, Talent Acquisition & Director, Human Resource Director, Customer Experience
Onboarding Directorate Operation Directorate Directorate
Yonas Atomsa Yonas Kumera Zebene Kaba

Director, General Technical & Board Secretary Director, Branch Affairs
Security Service Directorate Directorate

REGIONAL OFFICE
DIRECTORS
Aweke Shegu Elias Eshetu Merga Atnafu

Director, South Addis Ababa Director, Dessie Region Director, Adama Region
Region
Meseret Ambelu Tadele Alemayehu Teferi Bekele

Director, North West Region Director, North Addis Ababa Director, West Addis Ababa
Region Region

Tilahun Dejene Wegayehu Teshome Yadesa Miressa

Director, East Addis Ababa Director, East Region Director, South Region
Region
Yirga Yigezu Zelalem Bekele

Director, South West Region Director, Wolayita Region

CHIEF EXECUTIVE OFFICER’S

STATEMENT
Tsehay Shiferaw
Chief Executive Officer
O
n behalf of the entire Management of as it used to be. The war between Russia and
Awash Bank and on my own behalf, I would Ukraine has seriously affected the economic and
like to sincerely congratulate all respected political situations of the world and its impact is
Shareholders, Board of Directors, hard-working still being felt by many countries.
and committed Management and staff members
and above all, most loyal and valued customers Domestically, the war in the northern part of
of the Bank on an unprecedented operational our country is utterly affecting the national
and non-operational performance your Bank has economy in general and the banking business in
registered for the financial year ended June 30, particular. The instability in the western part and
2022. All other stakeholders of the Bank would subsequent intermittent closure of branch offices
also deserve due recognition and appreciation for has negatively affected our day-to-day operations
their relentless support rendered to us to enable and undesirably restricted our endeavor in
us achieve this extra-ordinary performance in the reaching the unbanked and under-banked parts
history of our Bank as well as in the industry of of the society.
private banks of the country.
Apart from the above, the following were some
The financial year just ended was challenging. of the most visible hurdles that we were exposed
COVID-19, which was declared as a global to during the financial year:
pandemic, has still been a concerning health
problem world-wide. As a result, movement to 1. During the year, month-to-month inflation rate
and from countries has not been as wide-open peaks at above 30%, showing an increase from

similar periods of last year. Both food and non- revenue. Coffee remained the most valuable
food parts of the index showed an upward export item, generating USD 1.4 Billion by
momentum and sometimes, it has reached exporting close to 300,000 tons. As a result,
to the level of 42.9% compared to the same the foreign currency generated by our Bank
period of last year. As it goes without saying, through different sources, which was USD 1.25
this inflationary situation nation-wide has Billion, was by far higher than last year same
similarly escalated the various expenses of the period of USD 902 Million.
Bank.
2. Memorandum of Understanding (MoU) has been
2. In January 2022, the central bank slashed signed with various organizations during the
foreign currency retention rates by half year. These organizations have been channeling
to 20%. Thus, foreign account holders can a good sum of local and hard currencies
only retain 20% of their transfers in foreign through our Bank and that has enabled us to
currencies, and they shall surrender only 10% address the demands of our customers as much
to the commercial banks. More significantly, as possible.
the surrender requirement has been changed
3. As a result of the strength of our Bank in terms
from 50% to 70%. Thus, the majority (70%)
of its total asset, capital, branch network and
forex earnings from exports, remittances, and
other financial parameters, local prominent
transfers to non-governmental organizations
giant organizations have chosen Awash Bank as
(NGOs) were being surrendered to the central
their business partner. As a result, substantial
bank. This has significantly eroded the foreign
amount of local deposits has been mobilized
currency position of the Bank and we faced
during the year. Our business relationships
challenges to address the high demand of our
with these strategic partners will be reinforced
importers satisfactorily.
with greater vigor and enthusiasm in the times
3. In line with the letter of the Ministry of Finance, to come.
public institutions were instructed to close
4. Customers’ Week of the Bank was colorfully
their accounts at private banks and transfer
celebrated and successfully concluded in
their resources to the coffer at public bank,
March 2022. The celebration of the program
which has been assigned by the central bank to
has enabled us to renew our commitment to
manage public money on its behalf. Apparently,
serving our customers diligently and taking a
this will affect the deposit balance of private
lesson from the program, it has been resolved
banks in the short and long term and will make
to conduct such type of program bank-wide
doing business with public institutions in the
every year.
future uncertain.
5. For the first time in the industry, our Bank has
The impact of the above and other factors on
introduced an innovative payment solution
our business was substantial. However, our Bank
known as Awash E-School Management System to
has been and is still putting in place different
various local schools, colleges and universities
strategies to withstand the circumstances and
free of charge. The solution will basically
be able to sustain our businesses.
provide parents and students a wide-range
The above being the facts on the ground, of payment options, ensuring the payment of
however, the following prospects were also the fees timely, efficiently and conveniently.
available during the year and our Bank was This will definitely avoid the burden of manual
able to make use of the opportunities to the collection and the risks associated with it and
fullest extent possible. help the Bank in its resource mobilization
endeavor.
1. Nation-wide, the export of goods over the
2021/22 financial year brought in USD 4.12 6. In an effort to expand business relationship
Billion, nearly 14% higher than the revenue and thereby enhance the foreign exchange
generated last year. Agricultural commodities stock of the Bank, our Bank has officially
accounted for close to three-quarters of the started relationship with Swiss Remit, Thunes
and Remitly remittance companies during the
year.

7. As a result of an impressive growth of our The paid-up capital has reached Birr 10.29 Billion
Bank in deposits, loans and advances, assets, from Birr 8.19 Billion of last year same period;
profit, capital, branch network, customer that is, an increment of Birr 2.1 Billion or 25.65%.
base expansion, product innovation and digital In spite of the capital increment, the pace of the
banking expansion efforts over the last ten growth of profit was even higher and as a result,
years, the Global Finance Magazine has earnings per share (EPS) has shown a significant
named our Bank as the Best Bank of Ethiopia growth from 470 in 2021 to 570 in 2022 for a
for the Year 2022 in its May 2022 Edition of the par value of Birr 1,000 which, I believe, is very
Best Bank Awards. This will definitely enhance lucrative to the shareholders.
the reputation of our Bank world-wide.
As a result of, among others, enhanced operation
8. Our Bank has become a member of Small and of the Bank and inflationary situation for goods
Medium Enterprises (SME) Financing Forum. and services, total expense of the Bank, including
The Forum has 240 member banks and fintech interest expense, has gone up from Birr 8.40
companies. The Forum will enable to promote Billion in 2021 to Birr 12.33 Billion in 2022. Of
members’ best practices, transfer knowledge the total expense items, personnel expenses,
among members and to foster cooperation. interest expense, and other operating expenses
No doubt, being a member of the Forum will took the highest share in their order.
enhance the reputation of our Bank in the
times to come. Total deposit as at June 30, 2022 stood at Birr
151.64 Billion and that was the highest deposit
9. In May 2022, an Entrepreneurship Competition balance ever registered in our Bank as well as in
coined under the name Tatariwochu was the history of private banks. The deposit balance
launched with a primary objective of grew by Birr 43.87 Billion or 41% in 2022 as
empowering the visionaries. The project will compared to 2021.
provide training, business development support
and access to finance for entrepreneurs with Total asset significantly grew from Birr 128.70
innovative and problem-solving business ideas Billion in 2021 to Birr 183.4 Billion in 2022; i.e.,
and it is expected to play its role in nation- a growth of Birr 54.70 Billion or 42.51%, and that
building activities and last, but not least, was the highest figure by all standards. Loans
and advances took the biggest share of the total
10.Our Bank has signed loan agreement with asset accounting for Birr 126.9 Billion or 69.20%
Nine Private Micro-Finance Institutions of the total asset of the Bank.
(MFIs) to bridge reaching out to the under-
served segment of the market through these The NPLs ratio as at June 30, 2022 stood at 1.2%
institutions. The Bank has made Br. 5.5 Billion and this was far below the threshold; i.e. 5%, set
available in credit for small enterprises and by the NBE. The NPLs ratio in comparison with the
farmers to be disbursed through these MFIs total loan portfolio was not as such a concerning
in the coming three years. This will somehow issue but still all possible effort will be exerted
address the access to finance of the under- to keep it at the lowest possible limit.
financed groups of the society and at the same
time bring in the money in circulation to the Our Bank has opened 159 branches in the fiscal
banking system. year and the total number of branches as at end
of June 2022 reached 725.
Exploiting the available opportunities and learning
from drawbacks, our Bank, with a coordinated Despite the ups and downs, the financial year
effort of all, has performed remarkably well 2021 was thriving in many aspects to the banking
in all parameters during the year. Accordingly, industry in general and to our Bank in particular.
profit before tax stood at Birr 7.45 Billion from Some of the major success stories were the
Birr 4.82 Billion of last year same period; i.e. Birr following:
2.6 Billion or 54.5 percent growth. This is the
1. For the sixth time, our Bank has successfully
highest profit ever registered in the history of our
achieved all the targets set in the Grand
Bank as well as in the history of private banks.

Strategy. Hence, our journey framed six years iv. Country-level double-digit inflation rate
before to “Become One of the Top Ten East for food and non-food items is expected
African Commercial Banks by the Year 2025” is to escalate the expenses of the Bank.
likely to be attainable and Thus, cost minimization strategies have to
be devised internally and put in place to
2. Our Bank has entered into a contractual tackle the problem, etc…
agreement with an internationally renowned
strategy development company named I am, however, very optimistic that things will
McKinsey and Company for the development settle down in due course of time and Awash will
of a Corporate Strategy. Once everything keep on doing even better to satisfy the interests
is finalized, the recommendations of the of its stakeholders. I believe that with our
consultancy company will be put in place and renewed commitment and concerted effort, we
that will enhance the competitive position of can succeed in our business objectives as success
our Bank in the industry. is nothing but it’s all about Seeing our ultimate
goals, Understanding the obstacles, Creating a
Going forward, the year 2022/23 and ahead positive mental picture, Clearing our mind of
are expected to be very challenging. Banks are self-doubt, Embracing the challenges, Staying on
especially expected to be challenged with the track and Showing the world that we can do it!
following realities:
Taking this opportunity, I would like to extend my
i. The Council of Ministers of the F.D.R.E. has heart-felt appreciation once again to our valued
approved a new policy that will open up the customers for their loyalty, and committed
banking industry to foreigners. Thus, a lot Management and hardworking staff members
of foreign banks are expected to join the for the remarkable performance registered in
industry which will make the competition 2021/22.
more stiff.
Finally, I would like to extend my gratitude
ii. A number of new local banks have joined to all Shareholders, Board of Directors, our
the industry in the fiscal year. Thus, Correspondent Banks, Federal and Regional
business will not be as usual from now on Government Offices and particularly the National
and we need to tighten our belts for the Bank of Ethiopia and Financial Intelligence Center
upcoming fierce competition between local for their unreserved support, advice and guidance
and foreign banks. rendered to us in our day-to-day activities.
iii. The 70% foreign currency surrender

requirement will erode the foreign currency
stocks of banks and as a result, the ever- God bless you all and our country!
increasing demands of importers may not
be satisfactorily addressed and finally,

PICTORIAL PRESENTATION OF
SHAREHOLDERS’ MEETING
Partial View of 26th Ordinary Shareholders’ Meeting

PICTORIAL PRESENTATION OF
MANAGEMENT MEETING, 2021/22
Partial View of Management Meeting, 2021/22
Awarded Best Performing Regions, RMs & Branches Picture with the
Bord of Director & Management, 2021/22
REPORT OF THE BOARD OF

DIRECTORS
1. OPERATIONAL
PERFORMANCES
T
he Board of Directors of Awash Bank Awash Bank has registered another set of
is honored to present the Bank’s impressive operational and financial results
Annual Report and Audited Financial during FY 2021/22, indicating the fact
Statements for the Financial Year ended June that the Bank is on the right track towards
30, 2022 to the 27th Annual General Meeting attaining its aspiration of becoming “One
of its esteemed Shareholders. of the Top Ten Private Banks in East Africa
by 2025”. Indeed, the Bank has cemented
During the reporting period, Awash Bank its leading position in key performance
continued to deliver superior operational and areas such as total deposits, total loans and
financial performances, in spite of slowdown advances, total assets, profit and capital
in global economic growth and challenging base.
domestic economic environments.
1.1 Deposits Mobilization
During the financial year 2021/22, the world
Total deposits of the Bank, including L/C
economy has been suffering from a series of margin and deposits from Interest Free
destabilizing shocks. After more than two Banking (IFB) rose to Birr 152 billion at
years of Covid 19 pandemic, the war between the end of June 30,2022, up by Birr 43.9
Russia and Ukraine and its global effects on billion (41 percent) from last year same
commodity markets, supply chains, inflation, period. This commendable and consistent
and financial conditions have steepened the deposit growth of the Bank is attributed
slowdown in global growth. In particular, the to the implementation of various strategic
Ukraine-Russia war has soared energy and initiatives including expansion of service
agricultural commodity prices, exacerbating delivery channels and customer base, and
food insecurity and extreme poverty in many offering of different deposit products to
emerging markets and developing economies different customer segments. During FY
(EMDEs). 2021/22 alone, more than 2.6 million new
customers have opened deposit accounts at
The domestic macroeconomy was also Awash Bank.
challenged by double-digit inflation, shortage
of foreign currency and internal conflicts in Deposits mobilized from Interest Free
some parts of the country. Banking line of business has witnessed
encouraging performance and reached Birr
Similarly, the banking industry has faced 11.4 billion as at June 30, 2022; registering a
various challenges during FY 2021/22, net increment of Birr 3.9 billion (52 percent)
including stiff competition among existing over previous year same period.
and new entrant banks, weak business
environment and stringent policies by the Based on the strategic direction of the Bank to
National Bank of Ethiopia (such as provisional focus more on stable and low-cost deposits,
suspension of collateral-based loan saving deposits continued to account for
disbursements for about four months and 70% the lion’s share (59.7 percent) of the total
foreign exchange surrender requirements). deposit, followed by demand deposits (32.7
percent), time deposits (5 percent) and
letter of credit margin (2.6 percent).

Table 1: Deposit Composition by Type (In Millions of Birr)
Financial Year Growth Share (%)

Descriptions
2020/21 2021/22 Absolute % 2020/21 2021/22
Saving deposits 63,269 90,720 27,451 43 59 59.7
Demand deposits 32,874 49,770 16,896 51 30 32.7
Time deposit 6,138 7,538 1,400 23 6 5
L/C Margin 5,793 3,978 (1,815) (31) 5 2.6
Total deposits 108,074 152,006 43,932 41 100 100
1.2 Loans and Advances

The total outstanding loans and advances extended to different sectors of the economy
reached Birr 129.2 billion at the end of June 2022, up by 47.6 percent vis-à-vis the same
period of the previous year.
All sectors of the economy have benefited from the loans and advances availed by the Bank.
Accordingly, loans and advances extended to domestic trade and services accounted for
the lion’s share (23 percent), followed by export (21 percent), building & construction (18
percent), import (13 percent), manufacturing (12 percent), personal loans (8 percent), staff
loans and transport (3 percent each), and other sectors (0.4 percent).

Table 2: Loans and Advances by Economic Sectors (In Millions of Birr)
Financial Year Growth

Descriptions 2020/21 2021/22 Absolute %
Domestic Trade and Services 18,317 29,237 10,920 59.6
Export 18,221 27,605 9,383 51.5
Building and Construction 18,431 22,786 4,354 23.6
Import 10,212 16,335 6,123 60.0
Manufacturing 10,626 15,550 4,924 46.3
Personal Loans 6,274 9,758 3,484 55.5
Staff Loans 2,754 4,168 1,414 51.3
Transport 2,314 3,316 1,002 43.3
Other 390 490 100 25.7
Total 87,536 129,244 41,705 47.6
Figure 2: Sectoral Distributions of Loans and Advances as at June 30, 2022
During the reporting period, the Bank has made concerted efforts to maintain its asset
quality, conducting close follow-up of the borrowes situation and taking corrective measures
before the loans slip into non-performing status. As a result of these efforts, the Non-
Performing-Loans (NPLs) ratio was maintained at 1.2 percent, which is significantly below
the NBE’s 5 percent maximum limit.

Some of the Investments (Businesses)

Financed by Awash Bank
Adama Steel Factory

MDM Developers

1.3 International Banking and recipient of remittances to conduct

Services transactions through Awash Bank and win
the lottery prizes. Accordingly, the Bank
Awash Bank continues to play a key role in has colorfully awarded the 9th round lottery
supporting the international trade activities winners and launched the 10th round lottery
by providing diversified trade finance services scheme during FY 2021/22. Moreover, the
to both exporters and importers. Moreover, Bank has strengthened its strategic alliance
in order to enhance the foreign exchange with various international organizations,
earning capacity of the country, the total religious institutions and correspondent
loans and advances availed to export sector banks in a bid to increase foreign exchange
soared to Birr 27.6 billion at the end of June earnings.
30,2022.
The effort of the Bank to enhance its
On the other hand, as a mechanism of foreign exchange earnings through different
boosting inward remittances through mechanisms has culminated in earnings
international money transfer agents and of a record high USD 1.25 billion during FY
bank to bank transfers, the Bank continued 2021/22. Awash Bank was, in fact, not only
to use the lottery-based scheme dubbed the first but also the only Ethiopian private
“ይቆጥቡ፣ ይቀበሉ፣ ይሸለሙ”-meaning “Save, bank to surpass the one billion USD mark in
Receive and Win” to motivate both savers total foreign currency generation at the end
of the reporting period.
9th Round Lottery Winners Award

1.4 Total Assets

During FY 2021/22, the total asset size of the Bank grew significantly and stood at Birr 183.4
billion by the end of June 30,2022; up by Birr 54.7 billion (42.5 percent) over last year same
period. The exhibited surge in asset size was largely attributed to the increase in loans and
advances and investment on fixed assets, which is a foundation for sustainable growth in the
long run.
Figure 3: Trends in Total Assets (In Billions of Birr)
1.5 Capital
During the financial year 2021/22, the paid-up capital of the Bank grew substantially by Birr
2.1 billion and stood at Birr 10.3 billion at the end of June,2022. This significant growth
manifests the determination of the shareholders to raise the paid-up capital of the Bank to
Birr 12 billion by the end of June 30,2023.
Awash Bank is not only the most capitalized private bank in Ethiopia but also the Bank whose
paid-up capital double of the minimum statutory requirement of Birr 5 billion set by the NBE,
which all existing commercial banks operating in Ethiopia are required to meet by June 30,
2026. Nevertheless, in line with the strategic aspirations of the Bank to become One of the
Top Ten Banks in East Africa by 2025, the need to build its new Headquarter’s Complex, and
to withstand competitions from foreign banks, Awash Bank has to increase its paid-up capital
commensurate with its fast growth.
2. FINANCIAL PERFORMANCE
During the period under consideration, Awash Bank has once again registered a record
high financial result and sustained its leadership position among private banks operating in
Ethiopia.

2.1 Income
Awash Bank generated a total income of Birr 20.6 billion during financial year 2021/22,
from Birr 13.7 billion a year earlier, indicating a growth of Birr 6.9 billion (50.2 percent)
as compared with the same period of last year, driven by a remarkable increase in all
components of income. Interest income rose by 42.8 percent and stood at Birr 14.2 billion,
attributed to the significant increases in loans and advances. Similarly, income from fees
and commissions as well as other operating incomes grew by 89.4 percent and 25.9 percent,
respectively, indicating a surge in income associated with foreign currency transactions,
issuance of letters of credit and gains on foreign currency dealings.
In terms of composition, interest income took the lion’s share of total income (69 percent),
followed by fees and commission income (24 percent) and other operating income (7 percent).
Following the strategic direction of the Bank to diversify its source of income, the share of
non-interest income soared to 31 percent at the end of June 2022, from 28 percent a year
ago.
Table 3 Components of Income (In Millions of Birr)
Financial Year Growth Share(%)

Descriptions
2020/21 2021/22 Absolute % 2020/21 2021/22
Interest Income 9,916 14,160 4,244 43 72 69
Fee & Commission Income 2,620 4,961 2,342 89 19 24
Other Operating Income 1,209 1,522 313 26 9 7
Total Income 13,744 20,643 6,899 50 100 100
Figure 4: Income Composition as at June 30,2022

2.2. Expenses
The total expenses of the Bank surged to Birr 13.2 billion by the end of June 2022, up by 47.9
percent from previous year similar period. This surge in total expense of the Bank was mainly
derived by an increase in personnel and interest expenses.
Personnel expenses increased by Birr 2.2 billion (62.9 percent) and reached Birr 5.7 billion as
at June 30, 2022, mainly driven by significant branch expansions during the year (opening up
of 159 new branches) and staff salary increment. Similarly, interest expenses increased by
Birr 1.1 billion (32.3 percent) and reached Birr 4.4 billion, on account of growth in interest
bearing saving and time deposits.
Expense structure of the Bank was dominated by personnel expenses, which accounted for
43 percent of the total expenses, followed by interest expenses (33 percent) and other
operating expenses (11 percent). The remaining 13 percent of total expenses was accounted
by loss allowance on financial assets (7 percent) depreciation and amortization expenses (6
percent).
Table 4 Composition of Expense (In Millions of Birr)
Financial Year Growth Share(%)

Descriptions
2020/21 2021/22 Absolute % 2020/21 2021/22
Interest Expense 3,307 4,377 1,069 32 37 33
Personnel Expense 3,485 5,677 2,192 63 39 43
Other Operating Expense 1,035 1,469 434 42 12 11
Depreciatin & Amortization 577 807 230 40 6 6
Loss allowance on financial 517 860 344 67 6 7
assets
Total Expense 8,921 13,190 4,269 48 100 100
Figure 5: Components of Expense as at June 30, 2022
Other Operating Depreciation &

Expense Amortization
6% Loss allowance on
11%
financial assets
7%
Interest Expense
33%
Personnel Expense
43%

2.3 Profit
Awash Bank registered a recorded high profit before tax of Birr 7.45 billion during financial
year 2021/22; up by 54 .5 percent over previous year. This performance was not only a
record high in the history of Awash Bank but also in the history of private banks operating
in Ethiopia. Similarly, profit after tax surged to Birr 5.34 billion during the financial year
2021/22. Subsequently, earnings per share also significantly increased to 570 per 1,000 par
value during the financial year 2021/22 from 470 in previous year. This increase in earnings
per share is commendable given the significant increase in paid-up capital of the Bank during
the period under review.
Table 5 Trends in Profit (In Millions of Birr)
Descriptions Financial Year

Percentage Change
2020/21 2021/22
Profit Before Tax 4,823 7,453 55
Profit After Tax 3,396 5,341 57
2.4. Proposal on Dividend Payout

Out of the total appropriable Net profit of Birr 5,341,230,596 (Five Billion Three Hundred
Forty-One Million Two Hundred Thirty Thousand Five Hundred Ninety Six ) after considering
deductions in legal reserve and other allowances, the Board of Directors of Awash Bank
recommended that a divided of Birr 3,891,646,220 ( Three Billion Eight Hundred Ninety One
Million Six Hundred Forty Six Thousand Two Hundred Twenty) be paid to shareholders in cash
or for purchasing of the Bank’s shares, depending upon the choice of each shareholders.

3. VISION 2025 STRATEGY IMPLEMENTATION STATUS AND

OTHER DEVELOPMENTS
3.1 Strategy Implementation Status
Awash Bank believes that success comes manual process of the functions of
from a careful choice among the different various Head Office Organs;
business alternatives. This concept really
encapsulates the importance of having a ü Developed and rolled out new
clear strategic direction and executing it products and services tailored to
effectively. Accordingly, Awash Bank has different segments of customers; and
developed its ten -years strategic road map
ü Crafted/revised various policies and
under the theme “Transforming AB: Vision
procedures that will support the
2025” and has been implementing for the last
execution of the strategy.
six years. In line with this, during financial
year 2021/22, the Bank has performed the
following major activities:
ü Developed Business Strategy for Small

and Medium Enterprise (SME) Banking
and Digital Financial Services (DFS);
ü Selected an international consultant

to develop the Bank’s five-year
Corporate Strategy Document and
commenced the development of the
strategy;
ü Established strategic partnership with

Government and Non-Government
Organizations to sustain its growth
and deepen its contribution to the
wellbeing of the society;
ü Institutionalized Service Level

Agreement in critical service areas;
ü Launched SME entrepreneurship

competition dubbed “Tatariwochu”;
ü Launched E-SchoolManagement
System solution;
ü Conducted M- wallet enhancement

services and launched Awash Birr;
ü Conducted various system

enhancements and automated the

‘ Tatariwochu’ Entrepreneurship Competition Launching Cermony

3.2 Human Capital

As at June 30 2022, the Bank’s total staff has reached 17,393. Awash Bank’s success in the
period under review was mainly attributed to the hard work and unwavering commitment
of its staff who continue to focus and engage in executing the Bank’s Strategy. The Bank
continued to cement its leadership positions in the industry mainly because of its staff
commitment and assiduousness.
To further sustain its growth and leadership position, the Bank continued to invest in enhancing
its staff capacity through continuous trainings and development program. Accordingly, more
than Birr 163.6 million was spent on staff training and education during FY 2021/22. These
trainings impart essential skills in key areas such as Information Technology and cyber
security, anti-money laundering, domestic and international banking operations, customer
services and leadership.
Induction Training
Friskers Training

3.3 Service Delivery Channels Awash Bank has rebranded its mobile and
Awash Bank continued to assess the needs Agent banking dubbed ‘Awash Birr’ to the
of its customers and respond accordingly market by introducing additional new features
by offering uninterrupted, seamless and in the product and services catalogue. The
personalized experience in all its channels. Awash e-school implementation has also
During the financial year 2021/22, the Bank digitized school management and operation,
opened 159 new branches across the country, empowered schools, parents and students
raising its total branch network to 725 as at to enjoy the e-learning, enabling school fee
June 30, 2022. payments through this platform in a user
friendly manner.
The Bank has also continued providing 24/7
convenient services to its customers during The strategic partnership established with
the reporting financial year through other Safaricom has put the bank in an ideal
service delivery channels like ATMs, POS position in advancing the services to be
terminals, internet banking, mobile and delivered by the new entrant through the
agency banking. At the end of June 30, 2022, bank’s customers, agents and channels.
the number of ATMs of the Bank reached 442 The bank has also enhanced its customer’s
terminals, POS at 2,355 and Agents at 1, 856. tax payments services already integrated
Moreover, the contact center is also another with Ministry of Revenues through Derash
platform on which customers’ enquiries Platform. This feature has enabled our
and complaints are addressed through customers, found at different tax levels,
personalized customer services. including small tax payers, to pay their
different tax commitments from the
comfort of our available channels. Water
3.4 Information Technology and Sewerage Authorities at different towns
(IT) have has also partnered with Awash to pay
their bills in a timely and convenient manner.
During the period under review, Awash Bank
continued to investment on IT and digital
services, including establishment of strategic
partnership with the major players in the IT
and digital ecosystems. The IT, Digital and
payments landscape the bank has expanded
to brought an enormous leap enabling major
payments in the market to be done through
the bank’s digital channels including bank
branches.
Awash Birr Inauguration

Awash E-School Managment System Launching Ceremony

3.5 Construction of Own Buildings

Awash Bank, as the first private bank to build its own Headquarters at the hub of Ethiopia
financial center, continued to construct its own buildings at different parts of the country.
Accordingly, the construction of Bulbula building (2B+G+ 13) and Bale Robe building (B+G+4)
were progressing as scheduled. Moreover, structural design and tender document were
completed for the envisaged Dire Dawa building.
On the other hand, during FY 2021/22, the Bank has secured land for the construction of
buildings at Ambo, Asosa and Woliso towns. Moreover, the process of acquiring land for the
future Headquarters complex building from Addis Ababa City Administration has started and
expected to be finalized in the coming year.
Bulbula Building under construction Bale Robe Building under construction
Ambo Building Design Asella Building Design
Dire Dawa Building Design

3.6 Corporate Social Responsibility (CSR)

Awash Bank‘s social capital is built on the foundation based on the principle” grow together
with the communities” in which it operates. Since its establishment, the Bank has been
progressively engaged in CSR activities aiming at enhancing the socio-economic situation of
the communities in which it operates.
Since its establishment, Awash Bank has been making countless efforts to improve the
living conditions of our society through standing via governmental and non-governmental
organizations even when its financial capacity was not advanced as of today. In line with this,
the Bank has participated in several developmental, humanitarian aid, health issues, social
affairs and environmental protection projects by allocating hundreds of millions of Birr over
the years.
Accordingly, the Bank has donated more than Birr 118 million to different segments of the
society during the financial year 2021/22. The beneficiaries are people affected by drought
in Oromia and Somali Regional states, households affected by heavy rain in Amhara Regional
State and Mekaneyesus Seminary for rehabilitation of the households evicted by floods.
Donation for Drought Affected Areas of Oromia
Donation for People Affected byHeavy Rain in Amhara Region Donation for Drought Affected Areas of Somali Region
Donation for Mekaneyesus Seminary for People Tree Plantation

Affected by Flood

3.7. Global Recognitions and Accolades

It is gratifying and proud to our country in general and Awash Bank in particular to be
rated and ranked among the leading financial institutions in the continent based on various
parameters. Accordingly, Global Finance Magazine selected Awash Bank as the Best Bank in
Ethiopia in 2022. Moreover, Reputation Poll International LLC, a leading global reputation-
management firm, has selected the Chief Executive Officer of the Bank, Mr. Tsehay Shiferaw,
as one of the top 50 most reputable Bank CEOs in Africa for FY 2021/22.
Ethiopia’s Best Bank Award 2022 by Global Finance

4. Interest Free Banking (IFB) Sharia Advisory Committee’s Report for

Financial Year 2021/22
Sharia Advisory Committee
Ustaz Sultan Aman Eba Mohammedhakim Ahmed (Dr.) Ustaz Hassen Abdulnasir Ali
Chairman D/Chairman Member
“In the name of Allah, the most Compassionate, the most Merciful”
To the Bank’s Board of Directors, all stakeholders and depositors:
In compliance with the duties and Accordingly, Awash Bank is offering the
responsibilities vested on us in the Bank’s following IFB services in fund mobilization,
Shariah Advisory Committee Charter and the fund utilization and service-based products
letter of appointment thereafter, we are at its more than 725 branches, among which
required to ensure that Awash Bank’s IFB 42 (Forty-two) are full-fledged IFB Branches,
operations are in compliance with the Islamic designated as “Ikhlas”, which is brand name
Shariah Principles as well as those required for the Bank’s Interest Free Banking Services.
by NBE Directive SBB/72/2019, Art 2.2.
All of the products are reviewed and certified
In this regard, it has been our regular by us as being Shariah-compliant.
duties and responsibilities to conduct
periodic review of products and services to ü Wadiah saving, Student-Plus, Al-Khair
assure that IFB operational activities and & Labbaik – Wadiah saving accounts;
transactions within the Bank and its IFB
policies and procedures issued henceforth ü Wadiah current account (Amanah),
are in compliance with Shariah principles
and requirements. ü Unrestricted Mudarabah Investment
accounts
To this end, we are required to issue and
submit this report, which complies with the ü Murabaha Financing schemes (Cost +
international best practices, to be published Mark-up),
on the Bank’s annual financial report. ü Interest-Free Export Financing scheme
(Qard) = Free Loans;

ü Loan for Overseas Employment 30 June 2022 that we have reviewed

Agencies (Qard) = Free Loans; are in compliance with the Shariah
principles and the Shariah rulings
ü Loan for the poor (Qard-al Hassan) = related to IFB operations.
Benevolent Loans;
2. Mudarabah deposits and financing
ü IFB Trade Services, (Murabaha, (Profit-Loss Sharing) is not yet started
Musharakah and Wakalah L/C) and thus, there is no allocation of
profit and charging of losses relating
ü IFB Bank Guarantees (Kafalah). to investment accounts;
ü Hawalah (Hiwalah), etc. 3. The profits generated by the Bank,
We have reviewed the products listed from Murabaha and other services
above with their respective expected like Kafalah, are Shariah-compliant
Shariah principles, the relevant contracts, and there are no earnings that have
transactions and IFB core banking introduced been realized from sources prohibited
by Awash Bank during the year ended June by the Shariah principles and thus,
30, 2022. In addition, we have assessed the no fund is expected to be disposed
IFB policies and procedures adopted by the to charitable causes from the Bank’s
Bank, examined sample transactions, the profit. However, ETB 16,430,190.87
relevant documentations, all information and was collected from defaulted
explanations which we considered necessary customers in the form of penalty
and sufficiently provide us evidence to which must be given to Charity.
give reasonable assurance that Awash Bank Accordingly, the Shariah Advisory
operations have not violated the Shariah Committee of the Bank ordered to use
principles. this fund for supporting communities
of selected eleven various geographic
In our opinion, generally, we, the Shariah areas across the country, where
Advisory Committee of Awash Bank, do drought, war, famine and shortage of
hereby confirm that: health services are acute. The Shariah
Advisory Committee of the Bank
1. The IFB Products mentioned above, appreciates commitment of the Bank
Operational procedures, contracts, CEO for implementing the order.
transactions and dealings entered into
by the Bank during the year ended Thank You (Jazakumullah Khairan)!
On
OnOn behalf
behalf
behalf ofthe
of of
the the Shariah
Shariah
Shariah Advisory
Advisory
Advisory Committee
Committee
Committee
……………………………………………………..
……………………………………………………..
Ustaz
Ustaz
Ustaz Sultan
Sultan
Sultan Aman
Aman
Aman EbaEba Eba
Chairman
Chairman of the
of the Shariah
Shariah Advisory
Advisory Committee
Committee
Chairman of the Shariah Advisory Committee
……………………………..………………………….
……………………………..…………………………. ………………………….………………………….
………………………….………………………….
Dr. Mohammedhakim
Dr.Dr. Mohammedhakim
Mohammedhakim Ahmed,
Ahmed
Ahmed D/Chairman
of ofof
D/Chairman
D/Chairman Ustaz
Ustaz
Ustaz Hassan
Hassan
Hassan Abdulnasir,
Abdulnasir
Abdulnasir Member
Member
Member of theof the
of the
Shariah Advisory
Shariah
Shariah AdvisoryCommittee
Advisory Committee
Committee Shariah
Shariah
Shariah Advisory
Advisory
Advisory Committee
Committee
Committee
Addis
Addis
Addis Ababa,
Ababa,
Ababa, Ethiopia
Ethiopia
Ethiopia
AUDITOR’S
REPORT





AWASH INTERNATIONAL BANK S.C.

Awash International
Financial Statements Bank S.C.
Financial
For the yearStatements
ended 30 June 2022
For the year ended 30
Directors, Professional June and
Advisers 2022
registered office
Directors, Professional Advisers and Registered Office
Company trade license number
LBB/001/91
Directors (as of June 30, 2022)
Amb. Dibaba Abdeta Dirbaba (Dr.) Chairman (Appointed Jan 23, 2020)
Gure Kumssa Deressa Vice Chairman (Appointed Jan 23, 2020)
Abaynesh Bekele Wakjira Non-Executive Director (Appointed Jan 23, 2020)
Abaynesh Merga Jena Non-Executive Director (Appointed Jan 23, 2020)
Alemu Tita Biidu Non-Executive Director (Appointed Jan 23, 2020)
Beza Tadesse Gurmu Non-Executive Director (Appointed Jan 23, 2020)
Getachew Olana Jabana Non-Executive Director (Appointed Jan 23, 2020)
Girma Guluma Woyessa (Eng.) Non-Executive Director (Appointed Jan 23, 2020)
Gudissa Legesse Diro Non-Executive Director (Appointed Jan 23, 2020)
kedeme Teshome Woldeyes Non-Executive Director (Appointed Jan 23, 2020)
Roba Arega Kitata Non-Executive Director (Appointed Jan 23, 2020)
Yoseph Yonas Kumsa Non-Executive Director (Appointed Jan 23, 2020)
Executive Management (as of June 30, 2022)
Tsehay Shiferaw Ensermu Chief Executive Officer (Appointed July 1, 2016)
Abdella Adem Sekeko Executive Officer (Appointed January 1, 2021)
Abebe Deressa Dinssa Executive Officer (Appointed Oct 1, 2016)
Dessalegn Tolera Jaleta Executive Officer (Appointed July 1, 2016)
Henock Tessema Tadesse Executive Officer (Appointed July 1, 2016)
Kefyalew Shiferaw Demissie Executive Officer (Appointed January 1, 2021)
Lemessa Soboka Megerssa Executive Officer (Appointed January 1, 2021)
Netsanet Woldekidan K/Mariam Executive Officer (Appointed January 1, 2021)
Tadesse Gemeda Denta Executive Officer (Appointed July 1, 2016)
Temesgen Busha Gemechu Executive Officer (Appointed January 1, 2021)
Temesgen Workineh Sodu Executive Officer (Appointed January 1, 2021)
Tilahun Geleta Neguma Executive Officer (Appointed July 1, 2017)
Tilahun Temotewos Handino Executive Officer (Appointed March 21, 2022)
Yohannes Merga Gudina Executive Officer (Appointed July 1, 2016)
Senior Management (as of June 30, 2022)

Abebe Tadesse Demesash Director (Appointed January 1, 2021)
Aweke Shegu Jetu Director (Appointed January 1, 2021)
Berhanu Balcha Wordofa Director (Appointed July 1, 2016)
Beyene Dekeba Obole Director (Appointed July 1, 2016)
Dereje Getachew Kelemu Director (Appointed January 3, 2021)
Desalegne Assefa Yegzaw Director (Appointed June 22, 2021)
Ebissa Deribe Cheru Director (Appointed March 15, 2018)
Elias Eshetu Ali Director (Appointed June 17, 2021)
Ephrem Bogale Shiferaw Director (Appointed July 1, 2016)
Fikru Gebrewold Ibsa Director (Appointed July 21, 2021)
Gacho Wara Abiyou Director (Appointed August 21, 2017)
Girmay Seyfu Asrat Director (Appointed January 1, 2021)
Gutama Tesfa Ashana Director (Appointed January 2, 2021)
Kelemu Ameha Alemu Director (Appointed March 24, 2021)
Hailu Meskela Gudeta Director (Appointed July 1, 2016)


Awash International
For the yearStatements
Financial ended 30 June 2022
For the year
Directors, ended 30
Professional June and
Advisers 2022
registered office (Continued)
Directors, Professional Advisers and Registered Office (Continued)
Senior Management (as of June 30, 2022) (Continued)
Hailu Woldegebriel Teklemariam Executive Assistant to the CEO (Appointed July 1, 2016)
Lemessa Bulti Abdeta Director (Appointed January 1, 2020)
Lemi Furgassa Bedada Director (Appointed November 25, 2019)
Melkamu Tadesse Zewdu Director (Appointed January 1, 2021)
Merga Atnafu Hirpa Director (Appointed January 1, 2021)
Meseret Ambelu Genie Director (Appointed January 1, 2021)
Mohammed Kedir Sado Director (Appointed January 1, 2021)
Nurfeta Legesse Kejella Director (Appointed December 18, 2018)
Olani Tabor Wami Director (Appointed January 1, 2021)
Samson Hussein Jemal Director (Appointed June 15, 2021)
Solomon Jebessa Gudissa Director (Appointed May 17, 2021)
Soressa Alemu Mosissa Director (Appointed September 5, 2018)
Tegene Tesfaye Gebretsadik Director (Appointed February 21, 2019)
Tadele Alemayehu Mamo Director (Appointed January 1, 2021)
Teferi Bekele Olika Director (Appointed January 1, 2021)
Takele Arega Mammo Director (Appointed July 1, 2016)
Tesfaye Seyfu Tekle Director (Appointed January 1, 2021)
Tewodros Hailu Wordofa Director (Appointed April 19, 2021)
Tilahun Dejene Tassew Director (Appointed January 1, 2021)
Tsehay Getachew Gebeyehu Director (Appointed January 1, 2021)
Tussi Mendido Urgessa Director (Appointed January 1, 2021)
Wegayehu Teshome Anteneh Director (Appointed January 1, 2021)
Wondimagegnehu Berhanu Gemechu Director (Appointed July 1, 2016)
Yadessa Miressa Gamtessa Director (Appointed October 6, 2021)
Yirga Yigezu Gemtessa Director (Appointed January 1, 2021)
Yohannes Tsegaye Terara Director (Appointed January 1, 2021)
Yonas Atomsa Bedasa Director (Appointed January 1, 2021)
Yonas Kumera Lemu Board Secretary (Appointed July 1, 2016)
Zebene Kaba Deresa Director (Appointed July 1, 2017)
Zelalem Bekele Gebremariam Director (Appointed January 6, 2021)
Independent auditors
The Federal Democratic Republic of Ethiopia
Audit Services Corporation
Addis Ababa
Ethiopia
Corporate office
Awash Tower
Ras Abebe Aregay Street
P.O. Box 12638
Addis Ababa, Ethiopia

AWASH INTERNATIONAL
Awash International BANK
Bank S.C.
S.C.
Financial
FinancialStatements
Statements
For
Forthe
theyear ended
year 30 30
ended June 20222022
June
Report
Reportofofthe Management
the Management
This management report discloses summary of the financial performance and state of affairs of the Bank.
Incorporation and address
Awash International Bank Share Company was incorporated in Ethiopia in 1994 as the first Privatly owned
commercial Bank and is domiciled in Ethiopia.
Awash Bank was established by 486 founding shareholders with a paid-up capital of ETB 24.2 million and started
banking operations on February 13, 1995. As of 30 June 2022, the number of shareholders and its paid-up capital
increased to over 5,981 and ETB 10.291 billion respectively.
Principal activities
The Bank provides diverse range of financial products and services to a Wholesale, Retail and Small and Medium
Enterprises (SME) clients base in Ethiopian Market; both for conventional and interest free banking(IFB) customers.
Awash Bank focuses on delivering distinctive profitable solutions for its clients in all core areas of commercial
banking in the arena of conventional and Interest free Banking.
Results and dividends
The Bank's results for the period ended 30 June 2022 are set out on the Statement of profit or loss and other
comprehensive income. The profit for the year has been transferred to retained earnings. The summarised results
are presented below.
30 June 2022 30 June 2021

ETB'000 ETB'000
Interest income 14,159,649 9,915,700

Profit / (loss) before tax 7,453,151 4,823,110
Tax (charge) / credit (2,111,920) (1,427,361)
Profit / (loss) for the year 5,341,231 3,395,749
Other comprehensive income / (loss) net of taxes 60,631 27,803
Total comprehensive income / (loss) for the year 5,401,862 3,423,552
Tsehay Shiferaw Ensermu

ChiefAddis
Executive
Ababa,Officer
Ethiopia
Addis Ababa, Ethiopia

Awash International Bank S.C.

Financial Statements
For the year ended 30 June 2022
Statementofof
Statement Directors'
Director’s Responsibilities
Responsibilities
In accordance with the Banking Business Proclamation No. 592/2008, the National Bank of Ethiopia (NBE) may direct
the Bank to prepare financial statements, whether their designation changes or they are replaced, from time to
time. Also, the Financial Reporting Proclamation No. 847/2014 requires the Bank to prepare its financial statements
in accordance with the International Financial Reporting Standards (IFRS).
The Board of Directors are responsible for the preparation and fair presentation of these financial statements in
accordance with International Financial Reporting Standards, and for such internal control as management
determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error. The Bank is required to keep such records as are necessary to:
a) Exhibit clearly and correctly the state of its affairs;
b) Explain its transactions and financial position; and
c) Enable the National Bank to determine whether the Bank had complied with the provisions of the Banking
Business Proclamation and regulations and directives issued for the implementation of the aforementioned
Proclamation.
The financial statements are prepared in accordance with International Financial Reporting Standards and are
based upon appropriate accounting policies and supported by reasonable and prudent judgements and estimates.
The Bank's Board of Directors accept responsibility for the annual financial statements, which have been prepared
using appropriate accounting policies supported by reasonable and prudent judgements and estimates, in
accordance with International Financial Reporting Standards.
The Bank's Board of Directors are of the opinion that the financial statements present fairly, in all material
respects, the financial position of the Bank and its financial performance.
The Board of Directors further accept responsibility for the maintenance of accounting records that may be relied
upon in the preparation of financial statements, as well as adequate systems of internal financial control.
Nothing has come to the attention of the Board of Directors to indicate that the Bank will not remain as a going
concern for at least twelve months from the date of this statement.
Signed on behalf of the Board of Directors by:
Amb. Dibaba Abdeta Dirbaba (Dr.) Tsehay Shiferaw Ensermu

28 October 2022
Board Chairman Chief Executive Officer
28 28 October
October 2022
2022 28 October 2022
8

Financial
Awash Statements
International Bank S.C.
Financial
For the Statements
year ended 30 June 2022
For the year ended 30 June
Statement of Profit or Loss 2022 Comprehensive Income
and Other
Statement of Profit or Loss and Other Comprehensive Income
30 June 2022 30 June 2021
Notes ETB'000 ETB'000
Interest income 5 14,159,649 9,915,700

Interest expense 6 (4,376,829) (3,307,476)
Net interest income 9,782,820 6,608,224
Fees and commission income 7 4,961,459 2,619,557
Other operating income 8 1,513,673 1,208,494
Total operating income 16,257,952 10,436,275
Loss Allowances on Financial Assets 9, 10 & 11 (860,434) (516,698)
Net operating income 15,397,518 9,919,577
Share of profit from associate 18 8,613 563
Total income 15,406,131 9,920,140
Personnel expenses 12 (5,677,133) (3,485,353)

Amortisation of intangible assets 21 (34,944) (16,623)
Depreciation and impairment of property and 22 (334,501) (244,016)
equipment
Interest expense on lease liability 20 (36,613) (26,801)
Amortisation of Right of Use Asset 20 (400,961) (289,088)
Other operating expenses 13 (1,468,828) (1,035,149)
Profit before tax 7,453,151 4,823,110
Taxation 14 (2,111,920) (1,427,361)

Profit after tax 5,341,231 3,395,750
Other comprehensive income (OCI) net of income tax
Items that will not be subsequently reclassified into profit or loss:
Re-measurement gain/(loss) on retirement 26
(7,651) (6,336)
benefits obligations
Deferred tax (liability)/asset on remeasurement 14
2,295 1,901
gain or loss
Re-measurement gain/(loss) on retirement
(5,356) (4,435)
benefits obligations (Net)
Fair value through other comprehensive income
financial assets : - Unrealized gain arising from 79,313 34,892
measurement at fair value-Equity Instruments
Deferred tax (liability)/asset on remeasurement
(13,326) (2,654)
gain or loss
60,631 27,803
Total comprehensive income for the period 5,401,862 3,423,553
Basic & diluted earnings per share (ETB) 29 570 470

The accompanying notes are an integral part of these financial statements.


As At Financial
30 JuneStatements
2022
Statement of June
As At 30 Financial
2022 Position
Statement of Financial Position
30 June 2022 30 June 2021
ASSETS
Cash and bank balances 15 32,049,124 17,897,386

Loans and advances to customers (Net) 16 126,894,685 86,033,125
Investment securities:
- Financial assets at fair value through OCI 17 340,030 229,127
- Financial assets at amortized cost 17 13,220,174 17,106,946
Investment in associates 18 52,119 44,068
Other assets 19 4,294,481 2,788,546
Right of Use Leased Assets 20 1,770,816 1,130,468
Intangible assets- Software 21 175,152 59,028
Property and equipment 22 4,549,996 3,395,242
Deferred Tax Assets 14 44,480 -
Total assets 183,391,057 128,683,936
LIABILITIES
Deposits from customers 23 148,028,613 102,280,950

Borrowings 24 107,580 208,803
Other liabilities 25 11,257,683 8,447,111
Current tax liabilities 14 2,268,417 1,409,111
Lease liabilities 20 450,945 287,297
Severance and Retirement benefit obligations 26 326,674 119,963
Deferred tax liability 14 - 101,300
Total liabilities 162,439,912 112,854,534
EQUITY
Share capital 27 10,291,407 8,188,948

Share premium 28 1,389 1,389
Retained earnings 30 5,066,847 3,547,495
Legal reserve 31 5,078,283 3,742,975
Risk regulatory reserve 32 362,703 258,709
Other reserve 33 150,517 89,886
Total equity 20,951,145 15,829,402
Total equity and liabilities 183,391,057 128,683,936
The financial statements were approved and authorized for issue by the Board of Directors on 28 October 2022 and were
signed on its behalf by:
Amb. Dibaba Abdeta Dirbaba (Dr.) Tsehay Shiferaw Ensermu

Board Chairman Chief Executive Officer
10


For the year
Awash ended 30
International June
Bank S.C. 2022
Statement of Changes in Equity
Statement of Changes in Equity
Other Other
Reserve Reserve
Share Risk (Fair (Defined
Share premiu Retained Legal regulatory value Benefit
capital m earnings reserve reserve reserve) reserve) Total
Notes ETB'000 ETB'000 ETB'000 ETB'000 ETB'000 ETB'000 ETB'000 ETB'000
Balance as at 1 July 2020 5,848,271 1,389 2,943,340 2,894,038 209,872 62,902 (3,473) 11,956,339
Prior period Lease Adjustment - - (10,488) - - - - (10,488)
Profit for the period - - 3,395,750 - - - - 3,395,750
Other comprehensive income:
Change in fair value of Fair value
through other comprehensive income - - - - - 34,892 - 34,892
investments (net of tax)
Re-measurement gains on defined
benefit plans (net of tax) - - - - - - (4,435) (4,435)
Total comprehensive income for the period - - 6,328,602 2,894,038 209,872 97,794 (7,908) 15,372,058
Transactions with owners in their

capacity as owners
Contributions of equity net of 691,636 - - - - - - 691,636
transaction costs (Proceeds from issue
of shares)
Dividends Capitalized 1,649,041 - (1,649,041) - - - - -
Dividends paid - - (223,168) - - - - (223,168)
Dividends in Payable - - 101 - - - - 101
Tax on Retained Earnings - - (8,984) - - - - (8,984)
Tax on interest income on foreign - - (536) - - - - (536)
Directors' allowance 31 - - (1,706) - - - - (1,706)
Transfer to legal reserve - - (848,937) 848,937 - - - -
Transfer to Risk regulatory reserve 32 - - (48,837) - 48,837 - - -
2,340,677 - (2,781,108) 848,937 48,837 - - 457,343
As at 30 June 2021 8,188,948 1,389 3,547,493 3,742,975 258,709 97,794 (7,908) 15,829,401
As at 1 July 2021 8,188,948 1,389 3,547,493 3,742,975 258,709 97,794 (7,908) 15,829,401
Profit for the period 30 - - 5,341,231 - - - - 5,341,231
Other comprehensive income:
Change in fair value of Fair value - - - - - 65,987 - 65,987
through other comprehensive income
investments (net of tax)
Re-measurement gains on defined 26 - - - - - - (5,356) (5,356)
benefit plans (net of tax)
Total comprehensive income for the period - - 8,888,724 3,742,975 258,709 163,781 (13,264) 21,231,263
Transactions with owners in their

capacity as owners
Contributions of equity net of 262,300 - - - - - - 262,300
transaction costs (Proceeds from issue
of shares)
Dividends Capitalized 1,840,159 - (1,836,914) - - - - 3,245
Dividends paid - - (486,411) - - - - (486,411)
Dividends in Payable - - (47,728) - - - - (47,728)
Tax on Retained Earnings - - (9,853) - - - - (9,853)
Tax on interst income on foreign - - - - - - - -
deposit allowance
Directors' 25 - - (1,670) - - - - (1,670)
Transfer to legal reserve 31 - - (1,335,308) 1,335,308 - - - -
Transfer to Risk regulatory reserve 32 - - (103,994) - 103,994 - - -
2,102,459 - (3,821,878) 1,335,308 103,994 - - (280,117)
As at 30 June 2022 10,291,407 1,389 5,066,847 5,078,283 362,703 163,781 (13,264) 20,951,145
11


For the
Foryear
the ended 30 June
year ended 20222022
30 June
Statement of Cash
Statement FlowsFlows
of Cash
30 June 2022 30 June 2021

Cash flows from operating activities

Cash generated from operations 34 6,459,533 7,013,207
Directors' allowance paid (1,670) (1,706)
Income tax paid 14 (1,409,111) (1,033,212)
Tax paid on Retained Earnings (9,853) (8,984)
Tax paid on interst income on foreign deposit - (536)
Retirement benefit paid 26 (4,369) (2,089)
Net cash (outflow)/inflow from operating activities 5,034,530 5,966,681
Cash flows from investing activities

Purchase of investment securities in NBE bills and bonds 17 3,887,901 (4,227,220)
Purchase of equity investment securities 17 (31,590) (47,694)
Purchase of Intangible Assets 21 (151,068) (52,628)
Purchase of property, plant and equipment 22 (1,156,381) (579,329)
Prepayments on Right of Use Assets (827,020) (457,348)
Net cash inflow/ (outflow) from investing activities 1,721,842 (5,364,219)
Cash flows from financing activities

Proceeds from issues of shares 262,300 691,636
Receipt ( Payments) of lease liabilities 20 (87,253) (65,955)
Dividends paid (486,411) (223,168)
Net cash (outflow)/inflow from financing activities (311,364) 402,513
Net increase/(decrease) in Cash and bank balances 6,445,008 1,004,976
Cash and cash equivalents at the beginning of the year 15 12,698,221 10,937,607
Foreign exchange (losses)/ gains on cash and cash equivalents 8 1,007,557 755,638
Cash and cash equivalents at the end of the year 15 20,150,786 12,698,221
12


Notes
Notestotothe Financial
the Statements
Financial (Continued)
Statements
1 General information
Awash International Bank S.C. ("Awash Bank or the Bank") is a private commercial bank domiciled in Ethiopia.
The Bank was established in November 1994, in accordance with the provisions of the Commercial Code of
Ethiopia of 1960 and the Licensing and Supervision of Banking Business Proclamation No. 592/2008. The Bank's
registered office is at:
Awash Tower
Ras Abebe Aregay Street
Addis Ababa,
Ethiopia
The Bank is principally engaged in the provision of diverse range of financial products and services to
corporate, retail and SME clients base in Ethiopian market.
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 year ended 30 June 2022 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;
• defined benefit pension plans – plan assets measured at fair value.

• Equity investments which is 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 (ETB' 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 3.
13

AWASH
Awash INTERNATIONAL
International Bank BANK
S.C.S.C.
FinancialStatements
For
For theyear
the year ended
ended 30
30June 2022
June 2022
Notes to the Financial Statements
Notes to the Financial Statements (Continued)
(Continued)
2 Summary of significant accounting policies (continued)
2.2 Basis of preparation (Continued)
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.
2.2.2 Changes in accounting policies and disclosures
New Standards, amendments, interpretations
New Standards, amendments, interpretations effective and adopted during the year.
The Bank has applied the following standards and amendments for the first time for the annual reporting
period commencing 1 July 2021:
• Definition of Material – amendments to IAS 1 and IAS 8
• Interest Rate Benchmark Reform – amendments to IFRS 9, IAS 39 and IFRS 7
• Revised Conceptual Framework for Financial Reporting
Annual Improvements to IFRS Standards 2018-2021 Cycle.
IFRS 9 Financial Instruments – clarifies which fees should be included in the 10% test for derecognition of
financial liabilities. This change did not have an impact on the Bank’s financial statements.
IFRS 16 Leases – amendment to remove the illustration of payments from the lessor relating to leasehold
improvements, to remove any confusion about the treatment of lease incentives. This change did not have an
impact on the Bank’s financial statements.
• Interest Rate Benchmark Reform
– amendments to IFRS 9 and IFRS 7. This did not have an impact on the Bank’s financial statements as the
Bank does not have hedging contracts.
New Standards, amendments, interpretations issued but not adopted.
IFRS 17 Insurance Contracts
IFRS 17 was issued in May 2017 as replacement for IFRS 4 Insurance Contracts. It requires a current
measurement model where estimates are re-measured in each reporting period. The new rules will affect the
financial statements and key performance indicators of all entities that issue insurance contracts or
investment contracts with discretionary participation features. The standard Originally 1 January 2021, but
extended to 1 January 2023 by the IASB in March 2020.
14

AWASHInternational
Awash INTERNATIONAL BankBANK
S.C.S.C.
2.2.2 Changes in accounting policies and disclosures (Continued)
Classification of Liabilities as Current or Non-current – Amendments to IAS 1
The narrow-scope amendments to IAS 1 Presentation of Financial Statements clarify that liabilities are
classified as either current or non- current, depending on the rights that exist at the end of the reporting
period. Classification is unaffected by the expectations of the entity or events after the reporting date (e.g.,
the receipt of a waver or a breach of covenant). The amendments also clarify what IAS 1 means when it
refers to the ‘settlement’ of a liability. The amendments could affect the classification of liabilities,
particularly for entities that previously considered management’s intentions to determine classification and
for some liabilities that can be converted into equity. They must be applied retrospectively in accordance
with the normal requirements in IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. The
standard effective on 1 January 2022 [deferred to 1 January 2023].
Property, Plant and Equipment: Proceeds before intended use – Amendments to IAS 16
The amendment to IAS 16 Property, Plant and Equipment (PP&E) prohibits an entity from deducting from the
cost of an item of PP&E any proceeds received from selling items produced while the entity is preparing the
asset for its intended use. It also clarifies that an entity is ‘testing whether the asset is functioning properly’
when it assesses the technical and physical performance of the asset. The financial performance of the asset
is not relevant to this assessment. Entities must disclose separately the amounts of proceeds and costs
relating to items produced that are not an output of the entity’s ordinary activities. The standard effective on
1 January 2022.
Reference to the Conceptual Framework – Amendments to IFRS 3
Minor amendments were made to IFRS 3 Business Combinations to update the references to the Conceptual
Framework for Financial Reporting and add an exception for the recognition of liabilities and contingent
liabilities within the scope of IAS 37 Provisions, Contingent Liabilities and Contingent Assets and Interpretation
21 Levies. The amendments also confirm that contingent assets should not be recognised at the acquisition
date. The standard effective on 1 January 2022.
Onerous Contracts– Cost of Fulfilling a Contract Amendments to IAS 37
The amendment to IAS 37 clarifies that the direct costs of fulfilling a contract include both the incremental
costs of fulfilling the contract and an allocation of other costs directly related to fulfilling contracts. Before
recognising a separate provision for an onerous contract, the entity recognises any impairment loss that has
occurred on assets used in fulfilling the contract. The standard effective on 1 January 2022.
These standards are not expected to have a material impact on the entity in the current or future reporting
periods and on foreseeable future transactions.
15


Awash International
For the year
Notes to theended 30 June
Financial 2022
Statements
(Continued)
2.2.2 Changes in accounting policies and disclosures (Continued)
Other Standards
The following amended standards are not expected to have a significant impact on the financial statements of
the Bank.
• Amendments to references to the Conceptual Framework in IFRS Standards
•Sale or contribution of assets between an investor and its associate or joint venture – Amendments to IFRS 10
and IAS 28
• IFRS 3 Definition of a Business
• Amendments to References to the Conceptual Framework in IFRS Standards
2.3 Investment in associates
An associate is an entity over which the Bank has significant influence. Significant influence is the power to
participate in the financial and operating policy decisions of the investee, but is not control or joint control
over those policies. The Bank’s investments in its associates are accounted for using the equity method. Under
the equity method, the investment in an associate is initially recognised at cost. The carrying amount of the
investment is adjusted to recognise changes in the Bank’s share of net assets of the associate since the
acquisition date. Goodwill relating to the associate is included in the carrying amount of the investment and is
neither amortised nor individually tested for impairment.
The statement of profit or loss reflects the Bank’s share of the results of operations of the associate. Any
change in OCI of those investees is presented as part of the Bank’s OCI. In addition, when there has been a
change recognised directly in the equity of the associate, the Bank recognises its share of any changes, when
applicable, in the statement of changes in equity. Unrealised gains and losses resulting from transactions
between the Bank and the associate are eliminated to the extent of the interest in the associate.
After application of the equity method, the Bank determines whether it is necessary to recognise an
impairment loss on its investment in its associate. At each reporting date, the Bank determines whether there
is objective evidence that the investment in the associate is impaired. If there is such evidence, the Bank
calculates the amount of impairment as the difference between the recoverable amount of the associate and
its carrying value, then recognises the loss as ‘Share of profit of an associate and a joint venture’ in the
statement of profit or loss.
Upon loss of significant influence over the associate, the Bank measures and recognises any retained
investment at its fair value. Any difference between the carrying amount of the associate upon loss of
significant influence and the fair value of the retained investment and proceeds from disposal is recognised in
statement of profit or loss.
16

AWASHInternational
Awash INTERNATIONAL BankBANK
S.C.S.C.
Forthe
For the year
year ended
ended3030June 2022
June 2022
2.4 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 (ETB).
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 measured at fair value, such as equities classified as FVOCI, are
included in other comprehensive income.
2.5 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 and advances given to customers, service charges and
commissions from customers, interest income from Deposits with local and correspondent banks, investment
in NBE (National Bank of Ethiopia) bills. Other income includes incomes like foreign currency transactions,
dividend, rental, and other miscellaneous incomes.
17


Awash International
For thetoyear
Notes ended 30
the Financial June 2022
Statements (Continued)
2.5 Recognition of income and expenses (continued)
2.5.1 Net interest income
a. Effective interest rate and amortised 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;
— the amortised 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, if the amount is material. Transaction costs include
incremental costs that are directly attributable to the acquisition or issue of a financial asset or financial
liability.
b. Amortised cost and gross carrying amount

The ‘amortised 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 amortisation 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 (or
impairment allowance before 1 July 2018).
The ‘gross carrying amount of a financial asset’ is the amortised 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 amortised 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 amortised 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 amortised 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.
18


2.5 Recognition of income and expenses (continued)
2.5.1 Net interest income (continued)
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 amortised 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
Interest rate risk.
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.
2.5.2 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 rental income, telephone and SWIFT 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 relate mainly to transaction and service fees and are expensed as the
services are received.
2.5.3 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.
2.5.4 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 mid rate of exchange at the reporting date.
This amount is recognised in the statement of profit or loss and it is further broken down into realised and
unrealised portion.
The monetary assets and liabilities include financial assets within the foreign currencies deposits received and
held on behalf of third parties etc. 19


Awash International
For thetoyear
Notes ended 30
2.6 Financial assets and financial liabilities
a. Recognition and initial measurement
The Bank shall initially recognise 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 amortised cost, fair
value through other comprehensive income (FVOCI) or fair value through profit or loss (FVTPL).
The Bank shall measure a financial asset at amortised 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.
b. Classification and subsequent measurement
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 amortised 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 amortised cost or at FVOCI or at FVTPL if doing so eliminates or
significantly reduces an accounting mismatch that would otherwise arise .
20


2.6 Financial assets and financial liabilities (continued)
- 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 realising 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 realised.
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:
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Awash International
For thetoyear
Notes ended 30
— 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 amortised 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 amortisation recognised 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 recognise 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.
22


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.
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 derecognised 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.
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Awash International
For thetoyear
Notes ended 30
iii) Credit-impaired financial assets
At each reporting date, the Bank shall assess whether financial assets carried at amortised 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 reorganisation; 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 amortised 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.
24

AWASHInternational
Awash INTERNATIONALBankBANK
S.C. S.C.
Forthe
For the year
year ended
ended 30
30 June
June2022
2022
Notes to the Financial Statements(Continued)
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
recognise an asset representing any prepayment of guarantee premium and a right to compensation for credit
losses.
d. Derecognition
i) Financial assets
The Bank shall derecognise 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.
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Awash International
For thetoyear
Notes ended 30
d. Derecognition (continued)
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 derecognised) 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 derecognise 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 derecognised
(see (1.3)) 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 maximise 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 amortised 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 recognises 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 amortised over the
remaining term of the modified financial asset.
26



e. Modifications of financial assets and financial liabilities (continued)
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 derecognise 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 derecognised
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 amortised 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 amortised 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 realise 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.
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.
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Awash International
For thetoyear
Notes ended 30
2.7 Interest Fee Banking (IFB)
2.7.1 Murabaha
Murabaha is an interest free financing transaction which represents an agreement whereby the Bank buys a
commodity/good and sells it to a counterparty (customer) based on a promise received from that counterparty
to buy the commodity according to specific terms and conditions. The selling price comprises of the cost of
the commodity/goods and a pre-agreed profit margin.
It is treated as financing receivables. Financing receivables are non-derivative financial assets with fixed or
determinable payments that are not quoted in an active market.
The profit is quantifiable and contractually determined at the commencement of the contract. Murabaha
Income (profit) is recognised as it accrues over the life of the contract using the effective profit method
(EPRM) on the principal balance outstanding.
These products are carried at amortised cost less impairment.
2.7.2 Interest Free export Financing Facility
Interest Free export financing facility is a short term financing given to the borrower for three months free of
any charge or profit and not subject to discounting being a short term facility. Interest free export facility
financing is stated in the statement of financial position of the bank at fair value of the consideration given
(amount of disbursement) and subsequently, they shall be stated at disbursement amount less loss allowances
(if any).
2.8 Cash and cash equivalents
Cash comprises cash on hand, deposits held on call with other banks, and other short term highly liquid
investments. Cash equivalents are deemed of immediate realization since they are easily convertible into cash
within three months following the date of the financial statements.
28


2.9 Property and Equipment
Property 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 statement of profit or
loss as incurred.
Subsequent costs are included in the asset’s carrying value 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 bank 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 class Depreciation rate (years)

Freehold land -
Buildings 50
Motor vehicles 10
Furniture and fittings:
-Medium-lived 10
-Long lived 20
Computer and Accessories 7
Office equipment:
-Short-lived 5
-Medium-lived 10
The Bank construct buildings in different cities mainly for image building, branches office and issue accounts
use. The remaining is rented out. If the building is rented up to 90% of the floor of the building, the building
shall be treated as PPE. If the building is rented out for more than 90% of the floor of the building, we ought
to transfer it to Investment property (IP).
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. Any gain or loss arising on
derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying
value of the asset) is included in statement of profit or loss.
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.
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Awash International
For thetoyear
Notes ended 30
2.10 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 statement of profit or loss 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
are presented as a separate line item in the statement of profit or loss, if significant.
Amortisation is calculated using the straight–line method to write down the cost of intangible assets to their
residual values over the lower of their estimated useful lives of six years orbthe license duration for purchased
computer software.
2.11 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.
30


2.11 Impairment of non-financial assets (continued)
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 statement of profit or loss.
2.12 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) Prepayments
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 an event or transaction as they arise and are
cancelled when payment is received.
2.13 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 4.7.1
• Quantitative disclosures of fair value measurement hierarchy Note 4.7.2
• Financial instruments (including those carried at amortised cost) Note 4.7.2
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.
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Awash International
For thetoyear
Notes ended 30
2.13 Fair value measurement (continued)
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.
2.14 Employee benefits

The Bank provides post-employment schemes, including both defined benefit and defined contribution pension
plans and post employment benefits.
(a) Wages, salaries and annual leave
Wages, salaries, other allowances, paid annual leave and sick leave are accrued in the period in which the
associated services are rendered by employees of the Bank. The Bank operates an accumulating leave policy;
this can be encashed when the employee is leaving employment or paid in cash if the bank rarely decides to
pay in cash. The Bank measures the expected cost of accumulating compensated absences as the additional
amount that the entity expects to pay as a result of the unused entitlement that has accumulated at the end
of each reporting period.
32


2.14 Employee benefits (continued)
(b) 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 No. 715/2011. Funding under the scheme is 7% and 11% by employees and the Bank
respectively; 2% provident fund contribution is made by the bank for employees covered under pension
scheme.
ii) provident fund contribution, funding under this scheme is 7% and 13% by employees and the Bank
respectively based on the employees' salary. Employer's contributions to this scheme are charged to profit or
loss and other comprehensive income in the period to which they relate.
(c) 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 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 statement of profit or loss 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 profit or loss and other comprehensive 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.
(d ) 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.
33


Awash International
For thetoyear
Notes ended 30
2.14 Employee benefits (continued)
(e ) Profit-sharing and bonus plans
The Bank 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.
2.15 Provisions
A provision is recognised when the Bank has a present obligation (legal or constructive) as a result of a past
event and 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 statement of profit or loss 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.
2.16 Share capital
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.
2.17 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.
2.18 Earnings per share
The Bank presents basic earnings per share for its ordinary shares. Basic earnings per share are calculated by
dividing the profit or loss attributable to ordinary shareholders of the Bank by the weighted average number
of shares outstanding during the period.
2.19 Leases
(i) Bank as a lessee
At commencement or on modification of a contract that contains a lease component, the Bank allocates
consideration in the contract to each lease component on the basis of its relative stand-alone price. However,
for leases of branches and office premises the Bank has elected not to separate non-lease components and
accounts for the lease and non-lease components as a single lease component.
34


2.19 Leases (continued)
The Bank recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-
use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for
any lease payments made at or before the commencement date, plus any initial direct costs incurred and an
estimate of costs to dismantle and remove any improvements made to branches or office premises.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement
date to the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment
losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily
determined, the Bank’s incremental borrowing rate. Generally, the Bank uses its incremental borrowing rate
as the discount rate.
The Bank determines its incremental borrowing rate by analysing its borrowings from various external sources
and makes certain adjustments to reflect the terms of the lease and type of asset leased.
Lease payments included in the measurement of the lease liability comprise the following:
—fixed payments, including in-substance fixed payments;
—variable lease payments that depend on an index or a rate, initially
—measured using the index or rate as at the commencement date;
—amounts expected to be payable under a residual value guarantee; and
—the exercise price under a purchase option that the Bank is reasonably certain to exercise, lease payments
in an optional renewal period if the Bank is reasonably certain to exercise an extension option, and penalties
for early termination of a lease unless the Bank is reasonably certain not to terminate early.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when
there is a change in future lease payments arising from a change in an index or rate, if there is a change in the
Bank’s estimate of the amount expected to be payable under a residual value guarantee, if the Bank changes
its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised
in-substance fixed lease payment.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount
of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has
been reduced to zero.
The Bank presents right-of-use assets in ‘property and equipment’ and lease liabilities in ‘other liabilities’ in
the statement of financial position.
35


Financial
Awash Statements Bank S.C.
International
For the year
Financial ended 30 June 2022
Statements
Notes
For thetoyear
the Financial
ended 30 Statements
June 2022(Continued)
2.19 Leases (continued)
(ii) Bank as a lessor
At inception or on modification of a contract that contains a lease component, the Bank allocates the
consideration in the contract to each lease component on the basis of their relative stand-alone selling prices.
When the Bank acts as a lessor, it determines at lease inception whether the lease is a finance lease or an
operating lease.
To classify each lease, the Bank makes an overall assessment of whether the lease transfers substantially all
of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a
finance lease; if not, then it is an operating lease. As part of this assessment, the Bank considers certain
indicators such as whether the lease is for the major part of the economic life of the asset.
The Bank applies the derecognition and impairment requirements in IFRS 16 to the net investment in the
lease. The Bank further regularly reviews estimated unguaranteed residual values used in calculating the gross
investment in the lease.
2.20 Income tax
(a) Current income tax
The income tax expense or credit for the year is the tax payable on the current year’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 as 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.
36


3 Significant accounting judgements, 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 value
of assets or liabilities affected in future periods.
Other disclosures relating to the Bank’s exposure to risks and uncertainties include:
• Capital management Note 4.6
• Financial risk management and policies Note 4
3.1 Judgments
In the process of applying the Bank’s accounting policies, management has made the following judgments,
which have the most significant effect on the amounts recognised in the financial statements:
(a) Lease commitments - Bank as lessee
The Bank has entered into commercial property leases. The Bank has determined, based on an evaluation of
the terms and conditions of the arrangements, such as the lease term not constituting a substantial portion of
the economic life of the commercial property, that it does not retain all the significant risks and rewards of
ownership of these properties and accounts for the contracts as leases.
(b) Going concern basis
The Bank’s management has made an assessment of its ability to continue as a going concern and is satisfied
that it has the resources to continue in business for the foreseeable future. Furthermore, management is not
aware of any material uncertainties that may cast significant doubt upon the Bank’s ability to continue as a
going concern, except that it has to make significant effort to reach the minimum capital requirement.
However, the financial statements continue to be prepared on going concern basis.
3.2 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 values 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.
37


Awash International
For thetoyear
Notes ended 30
3.2 Estimates and assumptions (Continued)
(a) Impairment losses on loans and receivables
The Bank reviews its loan portfolios for impairment on an on-going basis. The Bank first assesses whether
objective evidence of impairment exists individually for loans and receivables that are individually significant,
and individually or collectively for loans and receivables that are not individually significant. Impairment
provisions are also recognised for losses not specifically identified but which, experience and observable data
indicate are present in the portfolio at the date of assessment. For individually significant loans and
receivables that have been deemed to be impaired, management deems that the cash flow from collateral
would arise within one year where the loans and receivables is back by collateral.
Impairment losses on loans and receivables

Management uses estimates based on historical loss experience for assets with credit risk characteristics and
objective evidence of impairment similar to those in the portfolio when scheduling its future cash flows. The
methodology and assumptions used for estimating both the amount and timing of future cash flows are
reviewed regularly to reduce any differences between loss estimates and actual loss experience.
The use of historical loss experience is supplemented with significant management judgment to assess
whether current economic and credit conditions are such that the actual level of inherent losses is likely to
differ from that suggested by historical experience. In normal circumstances, historical experience provides
objective and relevant information from which to assess inherent loss within each portfolio. In other
circumstances, historical loss experience provides less relevant information about the inherent loss in a given
portfolio at the balance sheet date, for example, where there have been changes in economic conditions such
that the most recent trends in risk factors are not fully reflected in the historical information. In these
circumstances, such risk factors are taken into account when calculating the appropriate levels of impairment
allowances, by adjusting the impairment loss derived solely from historical loss experience.
The detailed methodologies, areas of estimation and judgment applied in the calculation of the Bank's
impairment charge on financial assets are set out in the financial risk management section.
The estimation of impairment losses is subject to uncertainty, which has increased in the current economic
environment and is highly sensitive to factors such as the level of economic activity, unemployment rates,
property price trends and interest rates. The assumptions underlying this judgement are highly subjective. The
methodology and the assumptions used in calculating impairment losses are reviewed regularly in the light of
differences between loss estimates and actual loss experience. See note 3.2 for more information.
(b) 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 judgment is required in
establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and
volatility. As at year end, no financial instrument was measured at fair value. See Note 4.7.1 for further
disclosures.
38


3.2 Estimates and assumptions (Continued)
(c) Defined benefit plans
The cost of the defined benefit pension plan, long service awards and gratuity scheme and the present value
of these defined benefit obligations are determined using actuarial valuations. An actuarial valuation involves
making various assumptions that may differ from actual developments in the future. These include the
determination of the discount rate, future salary increases, mortality rates and future pension increases. Due
to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly
sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
(d) Depreciation and carrying value of property, plant and equipment
The estimation of the useful lives and residual values 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.
(e) 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.
(f) Income 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.
39


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, market risk and different operational risks. It is
also subject to various risks that affect the financial sector of the country.
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 Risk Sub-Committee, a subset of the Board of Directors is responsible for the overall risk management
approach and for approving the risk management strategies and principles. It also has the responsibility to monitor
the overall risk process within the Bank.
The Senior Management chaired by the chief Executive Officer (CEO) has the overall responsibility for the
development of the risk strategy and implementing principles, frameworks, policies and limits. It is also responsible
for managing risk decisions and monitoring risk levels and reports on a monthly basis to the Board Risk Sub-
Committee.
The Risk Management Unit is responsible for implementing and maintaining risk related procedures to ensure an
independent control process is maintained. The unit works closely with the Senior Management to ensure that
procedures are compliant with the overall framework.
The Risk Management Unit is responsible for monitoring compliance with risk principles, policies and limits across the
Bank. It carries out an assessment of risk on an ad hoc basis to monitor the Bank's independent control of risks,
including monitoring the risk of exposures against limits and the assessment of risks of new products and structured
transactions. This unit also ensures the complete capture of the risks in risk measurement and reporting systems.
Exceptions are reported, where necessary, to the Senior Management, and further to the Board Risk Sub-Committee
and the relevant actions are taken to address exceptions and any areas of weakness.
The Bank Finance and Treasury function is responsible for managing the Bank’s financial assets, financial liabilities
and the overall financial structure. It is also primarily responsible for the funding and liquidity risks of the Bank.
The Bank’s policy is that risk management processes throughout the Bank are audited annually by the Internal Audit
Function, which examines both the adequacy of the procedures and the Bank’s compliance with the procedures. The
Internal Audit Function discusses the results of all assessments with management, and reports its findings and
recommendations to the Board Audit Sub-Committee.
40


Notes tothe
Notes to theFinancial
FinancialStatements
(Continued)
4 Financial risk management (Continued)

4.1 Introduction (Continued)
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 mitigates, identified and approved for the Bank, are documented for existing and new processes
and systems.
The adequacy of these mitigates 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 Financial instruments by category
The Bank's financial assets are classified into the following measurement categories: Financial assets at fair value
through OCI and Financial assets at amortized cost and the financial liabilities are classified into other liabilities at
amortised cost.
Financial instruments are classified in the statement of financial position in accordance with their legal form and
substance.
The Bank's classification of its financial assets is summarised in the table below:
Financial
assets at fair Financial
value through assets at
Notes OCI amortized cost Total
30 June 2022 ETB'000 ETB'000 ETB'000
Cash and bank balances 15 - 32,049,124 32,049,124

Loans and advances to customers (Net) 16 - 126,894,685 126,894,685
- Financial assets at fair value through OCI 17 340,030 - 340,030
- Financial assets at amortized cost 17 - 13,220,174 13,220,174
Other assets 19 - 2,241,976 2,241,976
Total financial assets 340,030 174,405,959 174,745,989
41


Financial
Awash Statements
For theStatements
Financial year ended 30 June 2022
ForNotes to the
the year Financial
ended 30 JuneStatements
2022 (Continued)

4.2 Financial instruments by category (Continued) Financial
assets at fair Financial
value through assets at
Notes OCI amortized cost Total
30 June 2021 ETB'000 ETB'000 ETB'000
Cash and bank balances 15 - 17,897,386 17,897,386

Loans and advances to customers (Net) 16 - 86,033,125 86,033,125
- Financial assets at fair value through OCI 17 229,127 - 229,127
- Financial assets at amortized cost 17 - 17,106,946 17,106,946
Other assets 19 - 1,982,028 1,982,028
Total financial assets 229,127 123,019,485 123,248,612
4.3 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%, 5% 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.
In measuring credit risk of Financial assets at amortized cost to various counterparties, the Bank considers the
character and capacity of the obligor to pay or meet contractual obligations, current exposures to the
counterparty/obligor and its likely future developments, credit history of the counterparty/obligor; and the likely
recovery ratio in case of default obligations-value of collateral and other solutions. Our credit exposure comprises
wholesale and retail Financial assets at amortized cost which are developed to reflect the needs of our customers.
The Bank’s policy is to lend principally on the basis of our customer’s repayment capacity through quantitative and
qualitative evaluation. However we ensure that our loans are backed by collateral to reflect the risk of the obligors
and the nature of the facility.
42


Forthe
For theyear
yearended
ended3030 June
June 2022
2022
Notestotothe
Notes theFinancial
(Continued)

4.3 Credit risk (Continued)
4.3.1 Credit related commitment risks
The Bank holds collateral against loans and advances to customers in the form of bank guarantees and property.
Estimates of fair value are based on the value of collateral assessed at the time of lending.
4.3.2 Credit risk exposure
(a) Maximum exposure to credit risk before collateral held or other credit enhancement
The Bank's maximum exposure to credit risk at 30 June 2022 and 30 June 2021 is represented by the net carrying
amounts in the statement of financial position.
30 June 2022 30 June 2021

ETB'000 ETB'000
Cash and bank balances 32,049,124 17,897,386
Loans and advances to customers (Net) 126,894,685 86,033,125
Investment
securities:
- Financial assets at fair value through OCI 340,030 229,127
- Financial assets at amortized cost 13,220,174 17,106,946
Other assets 2,241,976 1,982,028
174,745,989 123,248,612
Credit risk exposures relating to off balance sheet items are as follows:
Loan commitments 10,355,972 5,129,288
Guarantees 7,945,838 3,238,875
Letters of credit 3,843,965 7,060,194
22,145,775 15,428,357
Total maximum exposure 196,891,764 138,676,969

(b) Assets obtained by taking possession of collateral
Details of financial and non-financial assets obtained by the Bank by taking possession of collaterals held as security
against loans and advances to customers at the year end are shown below.
30 June 2022 30 June 2021
ETB'000 ETB'000
Acquired 26,054 18,518
Properties 26,054 18,518
The Bank's policy is to pursue timely realisation of the collateral in a timely manner. The Bank does not generally use
the non-cash collateral for its own operations.
43


Awash International
Financial Bank S.C.
Statements
Financial
For theStatements
ForNotes
the year ended
to the 30 June
Financial 2022

4.3.2 Credit risk exposure (Continued)
(c) Loans and advances to customers at amortised cost
(i) Gross loans and advances to customers per sectors are analysed as follows:
30 June 2022 30 June 2021
ETB'000 ETB'000
Domestic trade and services 27,107,021 17,457,203
Export 25,548,341 17,625,711
Building and construction 22,337,729 18,091,986
Import 16,170,654 10,190,725
Manufacturing 15,088,061 10,470,171
Transport 3,185,711 2,250,100
Personal loans 9,639,514 6,244,374
Merchandise 121,266 41,929
Agriculture 358,377 338,670
Staff loans and advances 4,164,666 2,708,137
Murahabah Financing-Domestic Trade 2,130,470 859,938
Murahabah Financing-Export 2,030,366 558,484
Murahabah Financing-Agriculture 10,041 8,994
Murahabah Financing-Building and construction 447,822 339,205
Murahabah Financing-Import 164,161 20,823
Murahabah Financing-Manufacturing 462,223 156,003
Murahabah Financing-Transport 130,015 63,896
Overseas Emp. Agencies Qard_IFB 26,011 37,236
Murahabah Financing-personal 118,566 -
Murabaha Financing -Staff loans & advances 3,170 -
129,244,185 87,463,585
(ii) Gross loans and advances from customers per National Bank of Ethiopia's impairment guidelines are analysed as
30 June 2022 30 June 2021
ETB'000 ETB'000
Pass 122,355,901 80,475,263
Special mention 4,438,291 5,519,993
Substandard 715,048 507,326
Doubtful 850,968 772,602
Loss 874,247 360,343
129,234,455 87,635,527
The above table represents a worst case scenario of credit risk exposure of the Bank as at the reporting dates
without taking account of any collateral held or other credit enhancements attached. The exposures are based on
carrying amounts as reported in the statement of financial position.
Management is confident in its ability to continue to control and effectively manage the credit risk exposure in the
Bank's loan and advances portfolio.
44


For the
For the year
yearended
ended3030June
June2022
2022
Notes to
Notes tothe
theFinancial
FinancialStatements
(Continued)

4.3.3 Credit quality analysis
(a) Credit quality of Cash and bank balances
The credit quality of Cash and bank balances and short-term investments that were neither past due nor impaired at
as 30 June 2022 and 30 June 2021 and are held in Ethiopian banks have been classified as non-rated as there are no
credit rating agencies in Ethiopia. However, Cash and bank balances that is held in foreign banks can be assessed by
reference to credit rating agency designation as shown in the table below;
30 June 2022 30 June 2021
ETB'000 ETB'000
A 15,436 365,627
A+ 4,777,894 5,724,145
AA- 260,185 224,820
B - 9,382
B+ - 76,938
BBB+ 1,217,362 956,435
Not rated 25,779,909 10,540,874
32,050,786 17,898,221
Definitions of ratings
AA: Very high This denotes expectations of a very low default risk. It indicates a very strong capacity for
credit quality payment of financial commitments. This capacity is not significantly vulnerable to foreseeable
events.
A: High credit This denotes expectations of low default risk. The capacity for payment of financial
quality commitments is considered strong. This capacity may, nevertheless, be more vulnerable to
adverse business or economic conditions than is the case for higher ratings.
BBB: Good credit This indicates that expectations of default risk are currently low. The capacity for payment of
quality financial commitments is considered adequate, but adverse business or economic conditions are
more likely to impair this capacity.
Not rated This indicates financial institutions or other counterparties with no available ratings and cash in
hand.
A "+ "(plus) or "-" (minus) may be appended to a rating to indicate the relative position of a credit within the rating
category. This is based on Fitch national long-term issuer default ratings.
45


Awash International
Financial Bank S.C.
Statements
Financial
For theStatements
ForNotes
the year ended
to the 30 June
Financial 2022

4.3.3 Credit quality analysis (Continued)
(b) Credit quality of loans and advances to customers
The following table sets out information about the credit quality of financial assets measured at amortised cost and
FVOCI debt investments. 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.
Explanation of the terms ‘Stage 1’, ‘Stage 2’ and ‘Stage 3’ is included in Note 2.6.
2022
12 month ECL Lifetime ECL Lifetime ECL
(Stage 1) not credit credit
In ETB'000 impaired impaired Total
(Stage 2) (Stage 3)
Loans and advances to

customers at amortised cost
Stage 1 – Pass 84,036,494 - - 84,036,494

Stage 2 – Special mention - 3,217,698 - 3,217,698
Stage 3 - Non performing - 2,133,188 2,133,188
Total gross exposure 84,036,494 3,217,698 2,133,188 89,387,380
Loss allowance (530,720) (56,945) (606,260) (1,193,926)
Net carrying amount 83,505,774 3,160,752 1,526,928 88,193,454
2021
(Stage 2) (Stage 3)

customers at amortised cost
Stage 1 – Pass 80,475,262 - - 80,475,262

Stage 2 – Special mention 5,519,993
- 5,519,993 -
Stage 3 - Non performing 1,640,272 1,640,272
-
Total gross exposure 80,475,262 5,519,993 1,640,272 87,635,527
Loss allowance (935,141) (77,090) (393,090) (1,405,321)
Net carrying amount 79,540,121 5,442,903 1,247,182 86,230,206
46

AWASH INTERNATIONAL
Awash International BANK
Bank S.C.S.C.
FinancialStatements
Forthe
For theyear
yearended
ended3030 June
June 2022
2022
Notesto
Notes tothe
theFinancial
(Continued)

(C) Credit quality of Off balance sheet items
2022
(Stage 2) (Stage 3)
Stage 1 – Pass 42,194,996 - - 42,194,996

Stage 2 – Special mention - 1,220,593 - 1,220,593
Stage 3 - Non performing - - 307,075 307,075
Total gross exposure 42,194,996 1,220,593 307,075 43,722,664
Loss allowance (981,569) (76,097) (110,059) (1,167,726)
Net carrying amount 41,213,427 1,144,496 197,016 42,554,939
2021
(Stage 2) (Stage 3)
Stage 1 – Pass 14,322,086 - - 14,322,086

Stage 2 – Special mention - 174 - 174
Stage 3 - Non performing - - 13,241 13,241
Total gross exposure 14,322,086 174 13,241 14,335,501
Loss allowance (101,531) (14) (785) (102,330)
Net carrying amount 14,220,555 160 12,456 14,233,171
47
AWASH INTERNATIONAL
Awash International BANK S.C.
Bank S.C.
Forthe
For theyear
year ended
ended 30
30 June
June 2022
2022
Notes to the Financial Statements(Continued)

(d) Credit quality of Other financial assets
In ETB'000 2022
Other financial assets (debt Gross Loss Net carrying
instruments) exposure allowance amount
Cash and balances with banks 12 Month ECL 33,234,203 (1,662) 33,232,541
Investment securities
12 Month ECL 12,037,358 (602) 12,036,756
(debt instruments)
Other receivables and financial Lifetime ECL 3,558,066 (18,844) 3,539,223
assets
Total 48,829,627 (21,107) 48,808,519
In ETB'000 2021
Other financial assets (debt Gross Loss Net carrying
instruments) exposure allowance amount
Cash and balances with banks 12 Month ECL 18,288,767 (835) 18,287,932
Investment securities 12 Month ECL
(debt instruments) 17,472,016 (1,731) 17,470,285
Other receivables and financial Lifetime ECL 2,589,276 (13,499) 2,575,777
assets
Total 38,350,059 (16,065) 38,333,994
4.3.4 Collaterals held and their financial effect
The bank holds collateral or other credit enhancements to mitigate credit risk associated with financial assets. The
main types of collateral and the types of assets these are associated with are listed below. The Bank does not sell or
repledge the collateral in the absence of default by the borrower. In addition to the Bank's focus on
creditworthiness, the Bank aligns with its credit policy guide to periodically update the validation of collaterals held
against all loans to customers.
The estimated value real estate collaterals are based on the last revaluations carried out by the Bank's in-house
engineers. The valuation technique adopted for properties is in line with the Bank's valuation manual.
48


For
For the
the year ended30
year ended 30June
June2022
2022
Notes
Notes to the Financial
to the FinancialStatements
(Continued)

4.3.5 Nature of security in respect of loans and advances to customers
The Bank holds collateral against most of its credit exposures. The following table sets out the principal types of
collateral held against different types of financial assets.
Machinery and
Real estate equipment Motor vehicles Shares Others Total
ETB'000 ETB'000 ETB'000 ETB'000 ETB'000 ETB'000

30 June 2022
Domestic trade and

services 66,340,196 408,408 3,866,895 329,225 2,139,302 73,084,026
Export 16,922,352 469,035 755,329 56,195 718,337 18,921,248
Building and
construction 56,841,466 1,034,558 1,266,085 157,068 394,672 59,693,849
Import 31,068,254 452,772 1,254,899 326,356 768,307 33,870,588
Manufacturing 21,703,885 7,018,407 1,190,684 50,162 2,433,512 32,396,650
Transport 2,417,124 118,805 5,421,328 5,179 11,158 7,973,594
Personal loans 11,658,454 38,437 3,651,347 36,898 49,061 15,434,197
Agriculture 609,121 30,567 78,787 - 230,912 949,387
Staff loans and advances 3,835,809 4,206 580,517 1,433 17,827 4,439,792
211,396,661 9,575,195 18,065,871 962,516 6,763,088 246,763,331
Machinery and
Real estate equipment Motor vehicles Shares Others Total
30 June 2021 ETB'000 ETB'000 ETB'000 ETB'000 ETB'000 ETB'000
Domestic trade and

services 63,191,113 296,245 3,534,609 231,009 992,109 68,245,085
Export 13,912,211 281,323 718,897 135,112 250,916 15,298,459
Building and
construction 24,006,654 662,249 1,669,759 29,787 32,000 26,400,449
Import 15,314,525 145,919 451,533 240,610 117,312 16,269,899
Manufacturing 10,197,749 2,742,766 625,097 45,732 815,629 14,426,973
Transport 1,265,483 58,269 2,469,436 7,587 3,968 3,804,743
Agriculture 9,253,866 27,761 1,256,820 41,092 1,728 10,581,267
Personal Loans 435,170 40,476 65,912 - 195,232 736,790
Staff loans and
advances 1,875,412 3,205 204,850 651 2,372 2,086,490
139,452,183 4,258,213 10,996,913 731,580 2,411,266 157,850,155
49


For
For the
the year ended 30
year ended 30June
June2022
2022
Notes
Statements(Continued)
(Continued)

4.3.5 Nature of security in respect of loans and advances to customers (Continued)
i) Loans and advances to customers
The general creditworthiness of a customer tends to be the most relevant indicator of credit quality of a loan
extended to it. However, collateral provides additional security and the Bank generally requests that corporate
borrowers provide it. The Bank may take collateral in the form of a first charge over real estate, floating charges
over all corporate assets and other liens and guarantees.
Because of the Bank’s focus on customers’ creditworthiness, the Bank does not routinely update the valuation of
collateral held against all loans to customers. Valuation of collateral of real estates (buildings) is updated and
reviewed every three year and at the same time whenever the loan foreclosure measure is opted. For credit-
impaired loans, the Bank obtains appraisals of collateral because it provides input into determining the management
credit risk actions.
AS at 30 June 2022, the net carrying amount of credit impaired loans and advances to customers amounted to ETB
2.440 billion (2021: ETB 1.247 billion) and the value of identifiable collateral held against those loans and advances
amounted to ETB 4.779 billion (2021: ETB 2.835 million). For each loan, the value of disclosed collateral is capped at
the nominal amount of the loan that it is held against.
ii) Investment securities designated as at FVTPL
As at 30 June 2022, the Bank had no exposure to credit risk of the investment securities designated as at FVTPL.
4.3.6 Amounts arising from ECL
i) Inputs, assumptions and techniques used for estimating impairment
See accounting policy in Note 2.6
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,
50


Forthe
For theyear
yearended
ended3030 June
June 2022
2022
Notestotothe
Notes theFinancial

4.3.6 Amounts arising from ECL (Continued)
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;
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
iv) 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.
51


Awash International
Financial StatementsBank S.C.
For the year ended 30 June
Notes to the Financial 2022
Statements

v) 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.
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:
there is no unwarranted volatility in loss allowance from transfers between 12-month PD (Stage 1) and lifetime PD
(Stage 2).
vi) 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);
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.
52


Notestotothe
Notes theFinancial
(Continued)

In assessing whether a borrower is in default, the Bank considers indicators that are:
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 .
vii) 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.
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.
vii) Incorporation of forward-looking information (Continued)

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.
53


FinancialStatements
For the
For theyear
yearended
ended3030June
June2022
2022
Notesto
Notes tothe
theFinancial
FinancialStatements
(Continued)

The key drivers for credit risk for each of the Bank’s economic sectors is summarized below:
Sector/Product Macroeconomic factors
Agriculture and Goods exports, Services imports,
Personal loans and USD USD - - -
Staff loans (Cluster
1)
Domestic Trade &
Services and - - - - -
Transport (Cluster 2)
Building & Goods imports, Real GDP, LCU Real GDP, USD Real GDP per -
Construction and USD (2010 prices) (2010 prices) capita, USD
Manufacturing (2010 prices)
(Cluster 3)
Export and Import Consumer Goods imports, Current account Import cover Real GDP per
(Cluster 4) price index USD balance, USD months capita, USD
inflation, (2010 prices)
2010=100, eop
vii) Incorporation of forward-looking

information
The economic(Continued)
scenarios used as at 30 June 2022 included the following key indicators for Ethiopia for the years 2022
to 2024
Macro-economic factor 2022 2023 2024
Goods exports, USDbn 4,022.00 4,137.00 4,393.00
Services imports, USDbn 5,857.50 6,267.00 6,696.50
Goods imports, USDbn 4,022.00 4,137.00 4,393.00
Real GDP, LCU (2010 prices) 944,211,000,000 998,681,500,000 1,062,988,500,000
Real GDP, USD (2010 prices) 65,526,523,984 69,306,677,493 73,769,466,189
Real GDP per capita, USD (2010 prices) 549 567 589
Consumer price index inflation, 2010=100, eop 581.0731393 689.7085522 758.6794075
Goods imports, USDbn 4,022.00 4,137.00 4,393.00
Current account balance, USDbn -4482 -4804 -4747.5
Import cover months 1.705 1.72 1.89
Real GDP per capita, USD (2010 prices) 548.962749 566.6069137 588.7835639
Predicted relationships between the key indicators and default rates on various portfolios of financial assets have
been developed based on analysing semi – annual historical data over the past 5 years.
54


ForFor
thethe year
year ended
ended 30 June
30 June 2022
2022
Notes
Notes to the
to the Financial
(Continued)
4 Financial risk
Scenario probability weightings
As at June 2022
Optimistic Base Downturn
Cluster 1 - 97% 3%
Cluster 2 3% 94% 3%
Cluster 3 4% 91% 4%
Cluster 4 2% 94% 3%
As at June 2021
Optimistic Base Downturn
Cluster 1 - 50% 50%
Cluster 2 - 50% 50%
Cluster 3 - 50% 50%
Cluster 4 - 50% 50%
viii) 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.
55


For
For the
the year ended 30
year ended 30 June
June2022
2022
Notes
to the Financial Statements
(Continued)

ix) 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.
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.
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.
56


For the
For theyear
yearended
ended30
30June
June 2022
2022

ix) Measurement of ECL (Continued)
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.
x) Loss allowance
The following tables show reconciliations from the opening to the closing balance of the loss allowance by class of
financial instrument.
30-Jun-22
(Stage 2) (Stage 3)

customers at amortised cost (on
balance sheet exposures)
Balance as at 1 July 2021 935,141 77,090 393,090 1,405,321
Transfer to stage 1 (12 months
152,781 (4,633) (1,222) 146,925
ECL)
Transfer to stage 2 (Lifetime ECL
not credit impaired) (18,498) 5,998 (498) (12,998)

credit impaired) (294,621) (72,429) 227,392 (139,658)
Net remeasurement of loss

67,260 63,922 146,590.67 277,773
allowance
Net financial assets originated or
372,084 31,950 11,818 415,852
purchased
Financial assets derecognised
(683,425) (44,954) (170,910) (899,289)
Balance as at 30 June 2022
530,720 56,945 606,260 1,193,926
57


For
For the
theyear
yearended
ended3030June 2022
June 2022
(Continued)

x) Loss allowance (Continued)
30-Jun-21
In ETB'000 Total
impaired impaired
(Stage 2) (Stage 3)
customers at amortised cost (on
balance sheet exposures)
Balance as at 1 July 2020 526,990 64,417 325,022 916,429
Transfer to stage 1 (12 months 447,373 (8,624) (116) 438,633
ECL)
not credit impaired) (43,579) 1,887 (61) (41,753)

credit impaired) (200,686) (11,082) 142,953 (68,815)
Net remeasurement of loss (115,145) 23,628 (3,398.92) (94,916)

allowance
New financial assets originated or
479,028 29,117 40,815 548,960
purchased
Financial assets derecognised (158,841) (22,253) (112,124) (293,218)
Balance as at 30 June 2021 935,141 77,090 393,090 1,405,321
30-Jun-22
In ETB'000 Stage 1 Stage 2 Stage 3 Total
Loan commitments and
financial guarantee contracts
(off balance sheet exposures)
Balance as at 1 July 2021 101,531 14 785 102,330

Transfer to stage 1 (12 months 479,368 - (3) 479,365
ECL)
not credit impaired) (57,775) - - (57,775)

credit impaired) (9,468) - 7,883 (1,585)
Net remeasurement of loss 149,577 77,984 65,583 293,144

allowance
502,198 18,322 92,708 613,228
purchased
Balance as at 30 June 2022 981,569 76,097 110,059 1,167,726
58

AWASH
Awash INTERNATIONAL
International BankBANK
S.C.S.C.
Financial
Statements
Forthe
For the year
year ended
ended 3030 June
June 2022
2022
Notestotothe
Notes the Financial
Financial Statements (Continued)
Statements

30-Jun-21
(Stage 2) (Stage 3)
Loan commitments and

financial guarantee contracts
(off balance sheet exposures)
Balance as at 1 July 2020 76,066 1,526 - 77,592

Transfer to stage 1 (12 months 64,132 179 26 64,337
ECL)
not credit impaired) - - - -

credit impaired) 14 - 784 798
Net remeasurement of loss 109,477 18,532 56,860 184,869

allowance
35,704 - 12 35,716
purchased
Balance as at 30 June 2021 101,531 14 785 102,330
30-Jun-22
Cash and Investment Other
In ETB'000 balances with securities receivables Total
banks (debt and financial
Other financial assets (debt instruments) assets
instruments)
Balance as at 01 July 2020 835 1,731 13,499 16,065
Net remeasurement of loss 827 (1,119) 5,345 5,052
allowance
Balance as at 30 June 2021 1,662 602 18,844 21,117
59


Financial
Awash Statements
For theStatements
Financial year ended 30 June 2022
ForNotes
the year ended
to the 30 June
Financial 2022
Statements

30-Jun-21
Cash and Investment Other
balances with securities receivables
In ETB'000 banks (debt and financial Total
instruments) assets
Other financial assets (debt

instruments)
Balance as at 30 June 2021 612 650 9,484 10,746
Net remeasurement of loss 223 1,081 4,015 5,319
allowance
Balance as at 30 June 2022 835 1,731 13,499 16,065
— Loans with renegotiated terms
Loans with renegotiated terms are defined as loans that have been restructured due to a deterioration in the
borrower’s financial position, for which the Bank has made concessions by agreeing to terms and conditions that are
more favourable for the borrower than the Bank had provided initially and that it would not otherwise consider. A
loan continues to be presented as part of loans with renegotiated terms until maturity, early repayment or write-off.
— Loans that were past due but not impaired

Loans that were ‘past due but not impaired’ are those for which contractual interest or principal payments were past
due but the Bank believed that impairment was not appropriate on the basis of the level of security or collateral
available and/or the stage of collection of amounts owed to the Bank. The amounts disclosed exclude assets
measured at FVTPL.
4.3.7 Commitments and guarantees
The maximum exposure to credit risk relating to a financial guarantee is the maximum amount the Bank could have
to pay if the guarantee is called upon. The maximum exposure to credit risk relating to a loan commitment is the full
amount of the commitment. The table below shows the Bank’s maximum credit risk exposure for commitments and
guarantees.
30 June 2022 30 June 2021

ETB'000 ETB'000

Guarantees 7,945,838 3,238,875
22,145,775 15,428,357
60


Awash International
Financial Bank S.C.
Statements
Notes tothe
Notes to theFinancial
(Continued)

4.4 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 the Asset and Liability Committee (ALCO), 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.
4.4.1 Management of liquidity risk
Cash flow forecasting is performed by the Finance and Treasury function. The Finance and Treasury function
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
to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or
risk of damage to the Bank’s reputation.
4.4.2 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.
181 - 365
0 - 30 days 31 - 90�days 91 - 180�days days Over �
1 year
ETB'000 ETB'000 ETB'000 ETB'000 ETB'000
30 June 2022
Deposits from customers 5,537,613 10,213,000 14,090,000 27,913,000 90,275,000
Other liabilities 5,455,842 3,978,189 - - -
Total financial liabilities 10,993,455 14,191,189 14,090,000 27,913,000 90,275,000
Loan commitments - 10,355,972 - - -

Guarantees - - 7,945,838 - -
Letters of credit - 3,843,965 - - -
Other commitments - 552,061 - - -
- 14,751,998 7,945,838 - -
Assets held for managing liquidity
risk 32,642,000 12,549,010 28,373,400 23,812,800 90,532,550
61


For
For the
the year ended30
year ended 30June
June2022
2022
Notes
(Continued)

4.4 Liquidity risk (Continued)
4.4.2 Maturity analysis of financial liabilities (Continued)
181 - 365
30 June 2021 0 - 30 days 31 - 90�days 91 - 180�days days Over �
1 year
Deposits from customers 13,323,904 7,269,000 10,033,000 19,325,000 61,667,000
Other liabilities 1,082,406 5,793,250 - - -
Total financial liabilities 14,406,310 13,062,250 10,033,000 19,325,000 61,667,000
Loan commitments - 5,129,288 - - -

Guarantees - - 3,238,875 - -
Letters of credit - 7,060,194 - - -
Other commitments - 1,586,895 - - -
- 13,776,377 3,238,875 - -
Assets held for managing liquidity

13,161,920 20,104,160 8,076,970 11,607,190 52,633,220
risk
4.5 Market risk
Market risk is defined as the risk of loss 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.
4.5.1 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.
Market risk is monitored by the risk and compliance management function regularly, to identify any adverse
movement in the underlying variables.
(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 and lending 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.
62


For
Forthe
theyear
yearended
ended 30 June 2022
30 June 2022
Notes
Notesto
tothe
the Financial Statements(Continued)
Financial Statements (Continued)

4.5 Market risk (Continued)
4.5.1 Management of market risk (Continued)
The table below sets out information on the exposures to fixed and variable interest instruments.
Fixed
interest Non-interest
bearing bearing Total
ETB'000 ETB'000 ETB'000
30 June 2022
Assets
Cash and bank balances - 32,050,786 32,050,786
Loans and advances to customers 123,843,076 5,401,109 129,244,185
Investment securities 13,220,776 340,030 13,560,806
Other assets - 2,260,820 2,260,820
Total 137,063,852 37,791,925 174,855,777
Liabilities
Deposits from customers 89,166,801 58,861,812 148,028,613
Other liabilities - 9,434,031 9,434,031
Total 89,166,801 68,295,843 157,462,644
Fixed interest Non-interest

bearing bearing Total
ETB'000 ETB'000 ETB'000
30 June 2021
Assets
Cash and bank balances - 17,898,221 17,898,221
Loans and advances to customers 86,512,779 1,026,507 87,539,286
Investment securities 17,108,677 229,127 17,337,804
Other assets - 1,995,527 1,995,527
Total 103,621,456 21,149,382 124,770,838
Liabilities
Deposits from customers 63,535,751 38,745,199 102,280,950
Other liabilities - 7,394,168 7,394,168
Total 63,535,751 46,139,367 109,675,118
63


Financial
Statements
ForFor
thethe year
year ended
ended 30 30 June
June 2022
2022
Notes
Notes to the
to the Financial
(Continued)

(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 (ETB). 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.
The total foreign currency denominated assets exposed to risk as at year end 30 June 2022 was ETB 8.383billion (30
June 2021: ETB 8.383billion).
Foreign currency denominated balances
30 June 2022 30 June 2021

ETB'000 ETB'000
US dollars (USD) 6,004,520 7,672,144

British pounds (GBP) 123,563 316,695
Euros (EUR) 309,998 296,597
Djiboutian franc (DJF) 1 10
Swiss franc (CHF) 8,346 78,810
Swedish Krona (SEK) 6,422 2,334
Japanese yen (JPY) 12,012 16,349
Saudi Riyal (SAR) 2,516 -
6,467,378 8,382,939
64


Notesto
Notes tothe
theFinancial
(Continued)

Sensitivity analysis for foreign exchange risk
The sensitivity analysis for currency rate risk shows how changes in the fair value or future cash flows of a financial
instrument will fluctuate because of changes in market rates at the reporting date.
30 June 2022 30 June 2021
ETB'000 ETB'000
Effect of a 10% Increase of the ETB against USD 600,452 767,214
Effect of a 10% Decrease of the ETB against USD (600,452) (767,214)
Effect of a 10% Increase of the ETB against GBP 12,356 31,670

Effect of a 10% Decrease of the ETB against GBP (12,356) (31,670)
Effect of a 10% Increase of the ETB against EUR 31,000 29,660

Effect of a 10% Decrease of the ETB against EUR (31,000) (29,660)
Effect of a 10% Increase of the ETB against JPY 1,201 1,635

Effect of a 10% Decrease of the ETB against JPY (1,201) (1,635)
Effect of a 10% Increase of the ETB against CHF 835 7,881
Effect of a 10% Decrease of the ETB against CHF (835) (7,881)
Effect of a 10% Increase of the ETB against SEK 642 233

Effect of a 10% Decrease of the ETB against SEK (642) (233)
Effect of a 10% Increase of the ETB against DJF 0 1

Effect of a 10% Decrease of the ETB against DJF (0) (1)
4.6 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.
65


Financial
Statements
For
For the
the year
year ended
ended 3030 June
June 2022
2022
Notes
Notes toto the
the Financial
(Continued)

4.6 Capital management (Continued)
4.6.1 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 a 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 18 August 1995. Capital includes capital
contributions, retained earnings, legal reserve and other reserves to be approved by the National Bank of Ethiopia.
The capital adequacy ratio is the quotient of the capital base of the Bank and the Bank’s risk weighted asset base.
30 June
30 June 2022 2021
ETB'000 ETB'000
Capital
Share capital 10,291,407 8,188,948
Share premium 1,389 1,389
Legal reserve 5,078,283 3,742,975
15,371,079 11,933,312
Risk weighted assets

Risk weighted balance for on-balance sheet items 140,257,051 96,483,340
Credit equivalent for off-balance 4,092,778 4,768,350
sheet items
Total risk weighted assets 144,349,829 101,251,690
Risk-weighted Capital Adequacy Ratio (CAR) 11% 12%

Minimum required capital 8% 8%
Excess 3% 4%
4.7 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 three levels as described below, based on the lowest level input
that is significant to the fair value measurement as a whole.
66


For the
For theyear
yearended
ended3030June
June 2022
2022
Notes to
Notes tothe
theFinancial
FinancialStatements
(Continued)

4.7 Fair value of financial assets and liabilities
4.7.1 Valuation models
IFRS 13 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are
observable or unobservable. Observable inputs reflect market data obtained from independent sources; unobservable
inputs reflect the Bank's market assumptions.
● 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, another 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
data and the unobservable inputs have a significant effect on the asset's 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.
4.7.2 Financial instruments not measured at fair value

The following table summarises the carrying amounts of financial assets and liabilities at the reporting date. The
amounts are based on the values recognised in the statement of financial position.
30 June 2022 30 June 2021

Carrying Amortized Carrying
amount Cost amount Amortized Cost
ETB'000 ETB'000 ETB'000 ETB'000
Financial assets
Cash and bank 32,049,124 32,049,124 17,897,386 17,897,386
balances
Loans and advances to customers 126,894,685 126,894,685 86,033,125 86,033,125
Investment securities
- Financial assets at fair value through OCI - - - -
- Financial assets at amortized cost 13,220,174 13,220,174 17,106,946 17,106,946
Other assets 2,241,976 2,241,976 1,982,028 1,982,028
Total 174,405,959 174,405,959 123,019,485 123,019,485
67

AWASHInternational
Awash INTERNATIONAL BANK S.C.
Bank S.C.
the year
For the yearended
ended3030June
June2022
2022
Notes to
Notes to the
theFinancial
FinancialStatements
(Continued)

4.7 Fair value of financial assets and liabilities (Continued)
4.7.2 Financial instruments not measured at fair value (Continued)
30-Jun-22 30-Jun-21
Carrying Amortized Carrying
amount Cost amount Amortized Cost
ETB'000 ETB'000 ETB'000 ETB'000
Financial liabilities
Deposits from customers 148,028,613 148,028,613 102,280,950 102,280,950
Other liabilities 9,434,031 9,434,031 7,394,168 7,394,168
Total 157,462,644 157,462,644 109,675,118 109,675,118
4.7.3 Valuation technique using significant unobservable inputs – Level 3

The Bank has equity investments measured at fair value on subsequent recognition.
4.7.4 Transfers between the fair value hierarchy categories
During the two reporting periods covered by these annual financial statements, there were no movements between
levels as a result of significant inputs to the fair valuation process becoming observable or unobservable.
4.8 Offsetting financial assets and financial liabilities

There are no offsetting arrangements. Financial assets and liabilities are settled and disclosed on a gross basis.
68


Awash Statements
Financial International Bank S.C.
Notes to the
Notes Financial
to the Statements
30 June 2022 30 June 2021

ETB'000 ETB'000
5 Interest income
Loans and advances 12,977,665 9,149,779

National Bank of Ethiopia bills and bonds 147,555 386,859
National Bank of Ethiopia Treasury Bills 759,301 171,469
Due from other banks 275,128 207,593
14,159,649 9,915,700
Included within various line items under interest income for the year ended 30 June 2022 is a total of ETB
250.817 million (30 June 2021: ETB 102.803 million ) relating to impaired loans and advances.
30 June 2022 30 June 2021

ETB'000 ETB'000
6 Interest expense
Deposits from customers 4,024,034 3,096,715

Due to National Bank of Ethiopia 47,869 7,757
Due to other banks 304,926 203,004
4,376,829 3,307,476
30 June 2022 30 June 2021
ETB'000 ETB'000
7 Fees and commission income
Cash payment orders and cheques 2,050 2,569
Foreign currency transactions 2,428,476 40,485
Letters of credit 1,093,006 818,094
Letters of guarantee 264,944 125,195
Telegraphic transfers 7 407
Money transfers 19,223 9,920
Other commission 943,254 1,568,315
Murabaha Income 210,499 54,572
4,961,459 2,619,557
69


Notes to the
Notes Financial
to the Statements
30 June 2022 30 June 2021
ETB'000 ETB'000
8 Other operating income
Dividends 33,780 20,905

Gain on foreign currency transactions and translations 1,007,557 755,638
Bad debts recovered 5 29
Telephone, postage and SWIFT 28,525 19,140
Rental 49,319 46,572
Gain on disposal of repossessed collateral 1,200 664
Estimation and inspection fees 13,936 12,606
Gain on Disposal of old assets 3,025 6,996
Other income 376,326 345,944
1,513,673 1,208,494
30 June 2022 30 June 2021

ETB'000 ETB'000
9 Loan impairment charge
Loans and advances - charge for the year (note 16) 855,392 512,237
Loans and advances - reversal of provision (note 16) - -
Loans and advances - Bad Debts Write Off (12,054) -
843,338 512,237
30 June 2022 30 June 2021

ETB'000 ETB'000
10 Impairment on other assets
Other assets-charges (reversal) for the year 5,344 4,015

Receivables - Bad Debts Write Off - -
5,344 4,015
The current impairment charges on other assets is ETB 4.015 million.
11 Impairment on Cash, Bills and Bonds 30 June 2022 30 June 2021

ETB'000 ETB'000
Cash, Bills and Bonds-charge (reversal) for the year (302) 446
70


Awash Statements
30 June 2022 30 June 2021
ETB'000 ETB'000
12 Personnel expenses
Salaries and wages 2,663,660 1,762,263
Staff allowances 1,035,718 838,947
Provident fund and pension costs – Defined contribution plan 321,516 212,909
Provident fund and pension costs - Defined benefit plans 203,429 94,345
Prepaid staff expense 5,432 38,295
Bonus 974,735 381,885
Other staff expenses 472,643 156,709
5,677,133 3,485,353
30 June 2022 30 June 2021

ETB'000 ETB'000
13 Other operating expenses
Rent 5,226 9,908
Stationery 203,347 92,217
Transportation 103,544 58,018
Telephone and related charges 71,164 50,601
Professional and legal fees 282,034 22,359
Audit fee 2,168 798
Insurance 24,428 17,124
Taxes 17,096 108,302
Fuel 11,712 6,452
Repair and maintenance 95,245 65,660
Other expenses 202,134 168,615
Card charges 39,138 28,960
Cleaning 7,770 6,754
Entertainment 36,488 14,142
Utility 22,274 14,396
Bank charges 9,131 7,210
Penalities 1,264 360
Loss on Disposal of old assets 14,358 2,573
Membership fees 1,496 329
Board Members fees 1,560 1,320
Loss provision for doubtful debt and assets damage_North Ethiopia conflict - 201,758
Provision on legal claims 2,445 -
Impairment (Reversal) on Off Balance sheet items (649) 650
Shariah Advisory committee fees 1,010 863
Advertising and publicity 190,455 100,730
Donation 118,406 55,050
Bad Debt expense 3,519 -
Land and Building taxes 992 -
Wadi'ah Deposits 123 -
Mudarabah Investment 950 -
1,468,828 1,035,149
71


30 June 2022 30 June 2021

14 Income tax ETB'000 ETB'000
14a Current income tax
Company income tax due to Federal Gov't 2,262,458 1,404,823

Rental income tax due to Regional Gov't and City Admin. 6,273 4,600
Deferred income tax/(credit) to profit or loss (156,811) 17,939
Total charge to profit or loss 2,111,920 1,427,361
Tax (credit) on other comprehensive income - -
Total tax in statement of comprehensive income 2,111,920 1,427,361
14b 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:
Add : Disallowed expenses and reversals
Entertainment 36,488 14,142
Donation 5,098 150
Penalty 1,264 360
Taxes Paid on Tax audit 1,877 98,122
Accrued Leave 236,587 119,568
Amortisation of Right of Use Asset 400,961 289,088
Interest expense on lease liability 36,613 26,801
Long service Award (Severance and Gratuity pay) 203,429 94,345
Amortization of employee prepaid expense 5,432 38,295
Bad debt written off 1,046 -
Provision for loans and advances as per IFRS 855,392 512,237
Impairment Losses Reversal on Other Assets (includes Local and
Foreign Deposits, NBE Bills and Bonds and Receivables) 5,042 4,461
Impairment Losses (Reversal) on off Balance
Sheets (LC and Guarantees) (649) 650
Bonus Provisional expenses 974,735 381,000
provision for doubtful debt- litigation Cases 2,445 1,318
Loss provision for doubtful debt and assets damage_North Ethiopia conflict - 201,758
Depreciation for accounting purpose_PPE 334,501 244,016
Amortization for accounting purpose_Intangible Assets 34,944 16,623
Net rental loss from rental operations 5,056 4,446
Total disallowable expenses and reversals 3,140,261 2,047,380
72


Awash Statements
14 Income tax (Continued)

14b Reconciliation of effective tax to statutory tax (Continued) 30 June 2022 30 June 2021
Less : Allowed expenses and reversals ETB'000 ETB'000
Depreciation and Amortization for tax purpose 420,325 302,851
Amortization on Prepaid Rent 429,273 297,638
Amortization on leasehold land 514 489
Accrued Leave Paid 13,084 111,495
Share of profit from associate 8,613 563
Provision for loans and advances for tax 541,388 276,400
Impairment Losses on Other Assets for tax 2,492 21,607
Bonus 399,521 381,885
Interest income taxed at source foreign 263 541
Dividend income taxed at source 33,780 20,905
Interest income taxed at source Local 1,181,722 758,041
Net rental income from rental operations 20,910 15,333
Total allowable expenses and reversals 3,051,885 2,187,748
Taxable profit 7,541,527 4,682,742
Current tax at 30% 2,262,458 1,404,823

2,262,458 1,404,823
30 June 2022 30 June 2021

14c Current income tax liability ETB'000 ETB'000
Balance at the beginning of the year 1,409,111 1,033,212

Charge for the year:
Income tax expense 2,262,458 1,404,823
Rental income tax due to Regional Gov't and City Admin. 6,273 4,600
Prior year (over)/ under provision - -
Withholding tax (314) (312)
Payment during the year (1,409,111) (1,033,212)
Balance at the end of the year 2,268,417 1,409,111
All tax payable is current in nature.
73


14d Deferred income tax
The analysis of deferred tax assets/(liabilities) is as follows: 30 June 2022 30 June 2021
ETB'000 ETB'000
To be recovered after more than 12 months 44,480 (101,300)
14 Income tax (Continued)

14d Deferred income tax (Continued)
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:
Credit/ Credit/
At 1 July (charge) to (charge) to
2021 P/L equity 30 June 2022
ETB'000 ETB'000 ETB'000 ETB'000
Deferred income tax assets/(liabilities):
Property, plant and equipment (125,432) (117,522) - (242,954)

Post employment benefit obligation 35,989 59,718 2,295 98,002
Provision for accrued leave (29,336) 64,442 - 35,106
Provision for accrued bonus 27,947 150,173 - 178,120
Unrealized fair value gain (loss) on Equity Instruments (10,468) - (13,326) (23,794)
Total deferred tax assets/(liabilities) (101,300) 156,811 (11,031) 44,480
Credit/ Credit/
At 1 July (charge) to (charge) to
2020 P/L equity 30 June 2021
ETB'000 ETB'000 ETB'000 ETB'000
Deferred income tax assets/(liabilities):
Property, plant and equipment (79,816) (45,616) - (125,432)

Post employment benefit obligation 6,411 27,677 1,901 35,989
Provision for accrued leave 65,207 (94,543) - (29,336)
Provision for bonus leave 86,353 (58,406) - 27,947
Unrealized fair value gain (loss) on Equity Instruments (7,814) - (2,654) (10,468)
Total deferred tax assets/(liabilities) 70,341 (170,888) (753) (101,300)
74


Awash Statements
ForFinancial
the year Statements
ended 30 June 2022
14e Rental Income tax 2022

Oromia Oromia Sidama Harari
South
Addis Ababa Regional Regional Regional Regional Total
Regional Gov't
Gov't Gov't (PMB) Gov't Gov't
Income: ETB'000 ETB'000 ETB'000 ETB'000 ETB'000 ETB'000
Rental Income 14,284 2,085 24,526 7,430 786 208 49,319
Expenses: -
Salaries and wages 1,838 958 2,472 1,778 496 - 7,542
Uniform - - - - - - -
Insurance 52 14 64 74 3 3 210
Deprecation 5,305 1,917 7,430 4,582 341 - 19,575
Repair and
maintenance 4 4 15 6 - - 29
Cleaning - - - - - - -
Building Taxes 12 74 319 198 2 1 606
Utilities 409 - 183 463 - - 1,055
Total Rental
Expenses 7,620 2,968 10,484 7,101 842 4 29,019
Net Profit (Loss)
from Rental
Operation 6,664 (883) 14,042 329 (56) 204 20,300
Loss BF - - (4,422) (24) - (4,446)
Rental
Operation
Income (Loss) 6,664 (883) 14,042 (4,093) (80) 204 15,854
After Loss BF
Rental income
tax (30%) Due
to Regional 1,999 (265) 4,213 (1,228) (24) 61 4,756
Gov't and City
2021
Oromia
Harari
Addis Ababa Regional SNNP Total
Regional Gov't
Gov't
Income: ETB'000 ETB'000 ETB'000 ETB'000 ETB'000
Rental Income 15,217 24,989 5,653 714 46,573
Expenses:
Salaries and wages 1,750 2,740 1,466 395 6,351
Uniform 104 5 - - 109
Insurance 49 98 59 3 209
Deprecation 5,053 8,695 4,515 336 18,599
Repair and maintenance 89 115 5 2 211
Cleaning 72 5 - - 77
Building Taxes 11 271 200 2 484
Utilities 248 66 237 - 551
Total Rental Expenses 7,376 11,995 6,482 738 26,591
Net Profit (Loss) from Rental Operation 7,841 12,994 (829) (24) 19,982
Loss BF - (5,502) (3,593) - (9,095)
Rental
Rental Operation
income taxIncome After
(30%) due toLoss
Regional 7,841 7,492 (4,422) (24) 10,887
Gov't and City Admin. 2,352 2,248 (1,327) (7) 3,266
75


30 June 2022 30 June 2021

ETB'000 ETB'000
15 Cash and bank balances
Cash in hand 2,132,824 2,049,226
Reserve account with National Bank of Ethiopia 11,900,000 5,200,000
Balance held with National Bank of Ethiopia 10,687,539 727,363
Deposits with foreign banks 6,336,189 7,630,098
Deposit with local banks Maturing in three months - -
Ethiopian Government Treasury Bills Maturing in three months 994,234 2,291,534
32,050,786 17,898,221
Less: Loss allowances (1,662) (835)
32,049,124 17,897,386
Maturity analysis
Current 20,150,786 12,698,221
Non-Current 11,900,000 5,200,000
32,050,786 17,898,221
15 Cash and bank balances (Continued)
15a Cash and cash equivalents
Cash and bank balances in the statement of cash flows are the same as on the statement of financial position
as the Bank had no bank overdrafts at the end of each reporting period.
30 June 2022 30 June 2021

ETB'000 ETB'000
Cash on hand 2,132,824 2,049,226

Deposit with local banks Maturing in three months - -
Deposit with foreign banks 6,336,189 7,630,098
Balance held with National Bank of Ethiopia 10,687,539 727,363
Ethiopian Government Treasury Bills Maturing in three months 994,234 2,291,534
20,150,786 12,698,221
The total cash on hand and at bank includes ETB 40.919 miliion at the Bank's branches in the Tigray Region,
the existance of which could not be confirmed due to the current conflict. Moreover, we have reclassified
local deposits and treasury bills maturing in three months as cash and bank balances and the remaining as
investment securities.
76


Awash Statements
30 June 2022 30 June 2021

ETB'000 ETB'000
16 Loans and advances to customers
Domestic trade and services 27,107,021 17,457,203

Export 25,548,341 17,625,711
Building and construction 22,337,729 18,091,986
Import 16,170,654 10,190,725
Manufacturing 15,088,061 10,470,171
Transport 3,185,711 2,250,100
Personal loans 9,639,514 6,244,374
Merchandise 121,266 41,929
Agriculture 358,377 338,670
Staff loans and advances 4,164,666 2,708,137
Murahabah Financing-Domestic Trade 2,130,470 859,938
Murahabah Financing-Export 2,030,366 558,484
Murahabah Financing-Agriculture 10,041 8,994
Murahabah Financing-Building and construction 447,822 339,205
Murahabah Financing-Import 164,161 20,823
Murahabah Financing-Manufacturing 462,223 156,003
Murahabah Financing-Transport 130,015 63,896
Overseas Emp. Agencies Qard_IFB 26,011 37,236
Murahabah Financing-personal 118,566 29,657
Murabaha Financing -Staff loans & advances 3,170 46,044
129,244,185 87,539,286
Loan Loss Allowance_Stage 1 (1,512,191) (1,035,182)

Loan Loss Allowance_Stage 2 (133,043) (77,104)
Loan Loss Allowance_Stage 3 (704,266) (393,875)
126,894,685 86,033,125
The total loans and advances and IFB financing balance of ETB 703.111 million and the related collateral at the
Bank's Tigray Region branches are treated in the same manner as the other loans and advances and IFB
financing balances, even though the status of those balances could not be determined due to the Region's
current conflict.
77


Notes to the
Notes Financial
to the Statements
16 Loans and advances to customers (Continued)

16a Impairment allowance on loans and advances to customers
A reconciliation of the allowance for impairment losses for loans and advances to customers by class, is as
follows:
Remeasureme
Charge for nt and
As at 1 the year As at 30 Charge for the As at 30 June
July 2020 2021 June 2021 year 2022 2022
Domestic trade and services 254,901 173,153 428,054 191,227 619,281

Building and construction 72,326 75,616 147,942 7,902 155,844
Manufacturing 60,893 (3,660) 57,233 24,505 81,738
Export 462,385 101,893 564,278 196,028 760,306
Import 33,007 115,250 148,257 69,998 218,255
Transport 75,905 (29,256) 46,649 190,159 236,808
Merchandise 592 (167) 425 1,992 2,417
Agriculture 1,195 3,397 4,592 13,013 17,605
Personal 9,134 46,245 55,379 77,660 133,039
Staff loans and Advances 2,782 10,069 12,851 6,774 19,625
Interest Free Banking 20,805.00 19,696 40,501 64,081 104,582
993,925 512,236 1,506,161 843,339 2,349,500
30 June 2022 30 June 2021

ETB'000 ETB'000
17 Investment securities
Financial assets at fair value through OCI :

Financial assets at FVOCI (equity investments) 340,030 229,127
340,030 229,127
Financial assets at amortized cost :
Ethiopian Government Treasury Bills 10,125,133 5,237,338
Ethiopian Government bills - 9,915,829
DBE Bill 889,186 -
Deposits with Local Banks 2,177,651 1,928,195
Ethiopian Government bonds 28,806 27,315
13,220,776 17,108,677
Less: Loss allowances (602) (1,731)
13,220,174 17,106,946
The Bank has pledged NBE Bills with a face value of ETB 2.822 Billion to secure currencies that the Bank
carries in its vault on behalf of the NBE.
78


Awash Statements
Notes to the
Notes Financial
to the Statements
17 Investment securities (Continued)

The Bank equity investment comprises: Fair Value Additional
30 June 2022 Adjustment Investment 30 June 2021
ETB'000 ETB'000 ETB'000 ETB'000
Entities
Ethiopian Reinsurance Share co. 31,766 (10,723) 9,810 32,679

Awash Insurance Share co. 105,730 6,784 13,643 85,304
Eth-Switch Solution Share co. 190,858 85,991 - 104,867
Negat Mechanical Engineering Share Co. (1,191) 66 - (1,257)
ODA Share Co. 12,616 (2,805) 8,137 7,284
Sheger Smart City Realestate S.C. 250 - - 250
340,030 79,313 31,590 229,127
As draft financial statement of both Negat Mechanical Engineering Share Co. and Ethiopian Reinsurance Share
company were not ready for valuation, the last valuation date for our investments was on June 30, 2021.
Proportion 30 June 2022 30 June 2021

18 Investment in associate No of of
ETB'000 ETB'000
Shares
Premier Switch Solutions S.C. 44,996 30.12% 52,119 44,069
18a Nature of relationship
Premier Switch Solutions Share Co. is a consortium owned by six private banks; Awash International Bank, Nib
International Bank, United Bank, Berhan International Bank, Addis International Bank and Cooperative Bank of
Oromia. It was established in 2009 by the visionary banks to save the high investment cost of the modern
payment platform and deliver electronic payment services to financial institutions with a shared system. It
commenced operation officially on 5 July 2012 with 165 million ETB. Awash International Bank holds 44,996
shares which is 30.12% of the total shareholding of the entity.
In accordance with the shareholders' agreement, Awash Bank has the right to cast 30.12% of the votes at
shareholders' meetings.
The associate is accounted for using the equity accounting method.
The financial year end date of Premier Switch Solutions Share Co. is 30 June. This was the reporting date
established when that company was incorporated. For the purposes of applying the equity method of
accounting, the provisional financial statements of Premier Switch Solutions Share co. for the year ended 30
June 2022 have been used.
The financial information in respect of the associate is set out below. The summarised financial information
below represents amounts shown in the associate's financial statements.
79


Notes to the
Notes Financial
to the Statements
18 Investment in associate (Continued)
18a Nature of relationship (Continued)
30 June 2022 30 June 2021
Premier Switch Solution S.C ETB'000 ETB'000
Current assets 144,733 126,622

Non-current 83,996 59,889
assets
Current (28,537) (10,033)
liabilities
Non-Current liabilities (6,147) (11,357)
Net Assets 194,045 165,121
30 June 2022 30 June 2021
Summarised statement of comprehensive income ETB'000 ETB'000
Income 111,686 48,884

Operating expense (90,662) (54,710)
Profit from continuing operation 21,024 (5,826)
Finance income 8,514 8,849

Finance costs - -
Net finance costs 8,514 8,849
Profit(loss) before tax 29,538 3,023
Income tax (435) (1,054)
expense
Profit after tax 29,103 1,969
Legal reserve - (98)
Board Allowances (507) -
Net profit for the year 28,596 1,871
The amount recognised in the income statement as share of profit/(loss) from investment in associate during
the year is as follows:
Share of profit from associate 8,613 563
Reconciliation of the above summarised financial information to the carrying amount of the interest in Premier
Switch Solutions Share co. (PSS) recognised in these financial statements:
30 June 2022 30 June 2021

ETB'000 ETB'000
Opening net assets 1 July 146,311 151,293

Profit for the period 28,596 1,969
Dividend Paid (1,871) (6,951)
Closing net assets 173,037 146,311
Bank's share in % 30.12% 30.12%

Bank's share in ETB 52,119 44,069
Carrying amount on the Bank's financial statement 52,119 44,069
80


Notes to the
Notes Financial
to the Statements
30 June 2022 30 June 2021

19 Other assets ETB'000 ETB'000
Financial assets
Uncleared effects 106,722 601,518

Other receivables 2,154,098 1,394,009
Gross amount 2,260,820 1,995,527
Less: Loss allowances (note 19a) (18,844) (13,499)
2,241,976 1,982,028
Non-financial assets
Repossessed collateral 26,054 18,518

Prepayments 354,601 198,707
Office supplies 268,555 140,774
Prepaid staff asset 1,403,295 448,519
Gross amount 2,052,505 806,518
4,294,481 2,788,546
Maturity analysis
Current 2,510,531 2,122,802

Non-Current 1,783,950 665,744
4,294,481 2,788,546
19a Loss allowance on other assets
A reconciliation of the allowance for impairment losses for other assets is as follows:
30 June 2022 30 June 2021
ETB'000 ETB'000
Balance at the beginning of the year 13,499 9,485

(Reversal)/charge for the year (note 10) 5,344 4,014
Receivables - Bad Debts Write Off - -
Balance at the end of the year 18,843 13,499
81


For For
the the
yearyear
ended 30 June
ended 20222022
30 June
Notes to the
Notes Financial
to the Statements
20 Right of Use Assets and Lease Obligation
The Bank leases a number of assets including land and buildings. Information about leases for which the Bank is
a lessee is presented below:
i. Right-of-Use assets:
Land Building Total
Cost: ETB'000 ETB'000 ETB'000
Balance at 01 July 2021 24,895 1,105,573 1,130,468
Additions 9,608 1,031,701 1,041,309
Balance at 30 June 2022 34,503 2,137,274 2,171,777
Amortisation
Balance at 01 July 2021 - - -
Charge for the year 650 400,311 400,961
Balance at 30 June 2022 650 400,311 400,961
Net Carrying Value at 30 June 2022 33,853 1,736,963 1,770,816
ii. Lease Liabilities:

Land Building Total
ETB'000 ETB'000 ETB'000
Balance at 01 July 2021 6,051 281,246 287,297
Additions 7,896 206,393 214,289
Interest expense in P & L 52 36,561 36,613
payment of leases (200) (87,053) (87,253)
Balance at 30 June 2022 13,799 437,146 450,945
The Bank recognises a lease liability at the present value of the lease payments that are not paid at that date.
The Bank uses an incremental borrowing rate that is based on the weighted average cost of deposits across the
years. The rates used to compute the present values of buildings lease liabilities as at 30 June 2022 was
10.81%. The adjustments are occurs due to changes in Incremental borrowing rate (IBR).
The Bank leases buildings for its office space and branches. The building leases typically run for a period
between 2 and 15 years with the majority of the contracts running for a period of 5 and 7 years. Some leases
include an option to renew the lease for an additional period at the end of the contract term. The renewal
term and lease rental cannot be reliably estimated before the end of a contract.
The Bank leases land for construction of its own office buildings. The land leases typically run for a period of
between 40 years and 70 years with majority of the contracts running for a period of 40 and 60 years. These
leases include an option to renew the lease.
The opening balance difference arose due to prior period adjustements made in the comparative period.
82


Notes to the
Notes Financial
to the Statements
Purchased
software
ETB'000
21 Intangible assets-Computer software
Cost:
As at 1 July 2020 190,132
Acquisitions 52,628
As at 30 June 2021 242,760
As at 1 July 2021 242,760

Acquisitions/ Disposal 151,068
As at 30 June 2022 393,828
Accumulated amortisation
As at 1 July 2020 167,109

Amortisation for the year 16,623
Impairment losses -
As at 30 June 2021 183,732
As at 1 July 2021 183,732

Amortisation for the year 34,944
Impairment losses -
As at 30 June 2022 218,676
Net book value
As at 1 July 2020 23,023

As at 30 June 2021 59,028
As at 30 June 2022 175,152
83

Freehold Land Buildings Motor vehicles Furniture, fittings and Computer Construction-work Total
22 Property and equipment equipments equipment in progress
ETB'000 ETB'000 ETB'000 ETB'000 ETB'000 ETB'000 ETB'000
Cost:
As at 1 July 2020 4,391 1,597,388 534,275 865,824 495,097 379,285 3,876,260
Adjustments - - - - - - -
Additions - 186,913 26,380 231,203 72,596 62,237 579,329
Annual Report 2021/22

Disposals - - (6,034) (21,320) (284) - (27,638)
92,043
Reclassifications - - - 77,148 14,895 -

As at 30 June 2021 4,391 1,784,301 554,621 1,152,855 582,304 441,522 4,519,994
As at 1 July 2021 4,391 1,784,301 554,621 1,152,855 582,304 441,522 4,519,994
Adjustments - - - 35 - - 35
Additions - 95,802 266,910 486,528 247,878 59,263 1,156,381
Disposals - - - (34,006) (10,636) - (44,642)
Reclassification - - - 242,400 106,505 - 348,905
As at 30 June 2022 4,391 1,880,103 821,531 1,847,812 926,051 500,785 5,980,673
Accumulated depreciation
As at 1 July 2020 - 114,387 201,389 324,605 259,727 - 900,108

Charge for the year - 34,370 47,274 96,940 62,953 - 241,537
Adjustments/ Transfer charge - - - (2,229) 2,337 - 108

Disposals - - (3,989) (13,444) (251) - (17,684)
As at 30 June 2021 - 148,757 244,674 405,872 324,766 - 1,124,069
As at 1 July 2021 - 148,757 244,674 405,872 324,766 - 1,124,069
Depreciation Charge for the year - 36,875 61,345 155,296 80,940 - 334,456
Adjustments/ Transfer charge - - - - - - -
- (28,427)
Disposals - - - (21,131) (7,296)

As at 30 June 2022 - 185,632 306,019 540,037 398,410 - 1,430,098
Accumulated Impairment
As at 1 July 2020 - - - 217 514 - 731
Charge/ Reversal for the year - - - - - - -
Disposals - - - (48) - - (48)
As at 30 June 2021 - - - 169 514 - 683
As at 1 July 2021 - - - 169 514 - 683
Charge/ Reversal for the year - - - - - - -
Disposals - - - (18) (86) - (104)
As at 30 June 2022 - - - 151 428 - 579
Net book value
As at 1 July 2020 4,391 1,483,001 332,886 541,002 234,856 379,285 2,975,421
As at 30 June 2021 4,391 1,635,544 309,947 746,814 257,024 441,522 3,395,242
As at 30 June 2022 4,391 1,694,471 515,512 1,307,624 527,213 500,785 4,549,996
84
131

ForFor
thethe
year ended
year 30 30
ended June 2022
June 2022
22(a) Property and equipment (Continued)
22.1.Construction in progress represents directly attributable costs related to IT projects and construction of
buildings at Head Office Cafteria, Bulbula, Bale Robe and Ashewa Meda.
22.2.Upon impairment review, the net book values of property and equipment do not exceed their recoverable
amounts. Furthermore, the bank disposed majority of impaired property and equipment during the period.
22.3.Property and equipment include ETB 4.391 freehold land with indefinite economic life that is not depreciated.
22.4.The total book value of property and equipment includes ETB 11.162 million at the Bank's branches in the
Tigray Region, the existance of which could not be confirmed due to the Region's current conflict.
30 June 2022 30 June 2021

ETB'000 ETB'000
23 Deposits from customers
Demand deposits 47,435,701 31,234,917

Savings deposits 81,653,675 57,417,730
Time deposits 7,513,126 6,118,021
Amana Deposit-Demand Private Sector 2,334,487 1,639,220
Wadi'ah-Saving Private Sector 8,957,160 5,834,894
Wadi'ah -Labbaik Account 81,716 7,062
Wadi'ah -Student Solution 27,587 9,103
Equity Investment A/C Holders 25,161 20,003
148,028,613 102,280,950
Maturity analysis
Current 106,177,343 60,429,680

Non-Current 41,851,270 41,851,270
148,028,613 102,280,950
24 Borrowings
30 June 2022 30 June 2021
ETB'000 ETB'000
Short term borrowings 107,580 208,803

107,580 208,803
The Bank entered a one year Master Loan Agreement with NBE at an annual interest rate of 5% as a
reimbursement to the credit extended to Hotel and Tourism Sectors to cope with the COVID-19 pandemic.
85

AWASH
AwashINTERNATIONAL BANKS.C.
For For
the the
yearyear
ended 30 June
ended 20222022
30 June
Notes to the
Notes to Financial Statements
the Financial (Continued)
25 Other liabilities 30 June 2022 30 June 2021

ETB'000 ETB'000
Financial liabilities
Deferred income 105,551 177,360

Letter of credit margin payables 3,978,189 5,793,250
Blocked accounts 14,429 15,575
Cheques issued 535,517 305,471
Exchange commission payable 245,169 180,257
Accounts payable 4,555,077 921,508
Loss Allowances on LC and Guarantee commitments -99 747
-
Gross amount 9,434,031 7,394,168
25 Other liabilities (Continued)
30 June 2022 30 June 2021
Non-financial liabilities ETB'000 ETB'000
Accruals 459,232 336,924

Directors' Allowance 1,713 1,740
Accrued Audit fee 2,168 798
Accrued liabilities-Bonus 956,241 381,000
provision for doubtful debt- litigation Cases 3,763 1,318
Provision for doubtful debt and assets damage- North Ethiopia conflict 201,758 201,758
Other payables 37,936 8,136
Tax payable 160,841 121,269
Gross amount 1,823,652 1,052,943
11,257,683 8,447,111
Maturity analysis
Current 7,279,494 2,653,861

Non-Current 3,978,189 5,793,250
11,257,683 8,447,111
Provision for doubtful debt and assets damage- North Ethiopia conflict - As a result of conflict in the Northern
Part of Ethiopia in Tigray Region, the management of the Bank has made prudential judgements and estimates
on the loss occurrance on the assets of the Bank. Thus, the Bank has made a total provision of ETB 201.758
million. Hence, the management belived that the Bank provided sufficient amount of provision.
Tax payable includes tax on capital gain, value added taxes (VAT), income tax, tax on saving deposits interest
paid and withholding taxes.
86


Notes to the
Notes Financial
to the Statements
26 Severance and Retirement benefit obligations

30 June 2022 30 June 2021
ETB'000 ETB'000
Defined benefits liabilities:
– Gratuity (note 26a) 326,674 119,963
Liability in the statement of financial position 326,674 119,963
Income statement charge included in personnel expenses:
– Gratuity (note 26a) 203,429 94,345
Total defined benefit expenses 203,429 94,345
Remeasurements for:
– Gratuity (note 26a) 5,356 4,435
` 5,356 4,435
The income statement charge included within personnel expenses includes current service cost, interest cost
and past service costs on the defined benefit schemes and legal requirement.
Maturity analysis 30 June 2022 30 June 2021

ETB'000 ETB'000
Current 203,429 94,345
Non-Current 123,245 25,618
326,674 119,963
26a Severance and Gratuity
The employee benefit plan is made up of two (2) unfunded schemes which are severance benefits that are
paid on voluntary withdrawal and retirement gratuity paid on retirement. These plans have been aggregated
in determining the retirement benefit obligation as the inherent risks applicable to these plans have been
assessed not to be materially different.
The key financial assumptions are the discount rate and the rate of salary increases. The provision for gratuity
was based on an independent actuarial valuation performed by QED Actuaries & Consultants (Pty) Ltd using
the projected unit credit method.
The Bank does not maintain any assets for the schemes but ensures that it has sufficient funds for the
obligations as they crystallise.
87

AWASH
For For
the the
yearyear
ended 30 June
ended 20222022
30 June
Notes to the
26 Severance and Retirement benefit obligations (Continued)

(i) Severance gratuity benefit
The severance benefits are based on statutory severance benefits in Ethiopia. The statutory severance
benefits are set out in Labour Proclamation No. 1156/2019. This benefit is summarised below:
Clause 39 (1) (h) of the Labour Proclamation sets out that any worker who has completed their probation and
who is not eligible for pension is entitled to a severance benefit:
h) Where he has given service to the employer for a minimum of five years’ service and his contract of
employment is terminated because of sickness or death or his contract of employment is terminated on his
own initiative provided that he has no contractual obligation relating to training to render service to the
employer
Clause 40 of the Labour Proclamation sets out the amount of the benefit, as follows:
The benefit applicable would be:
• thirty times the average daily wages of their last week of service for the first year of service, with part-
years pro-rata, plus
• ten times the average daily wages of their last week of service for each completed year of service after the
first.
To a maximum of one years’ wages payable to the member.Where the Company closes or reduces its work
force, an additional multiple of sixty times the average daily wages of their last week of service is payable.
Bank Paid Benefits

The bank valued severance benefits payable on death or resignation after a minimum of 5 years’ service only
for all employees, as it is applied by the Bank.
Furthermore, one months’ salary is divided by 30 to get the daily salary applied in the severance benefit
calculation.
(ii) Retirement gratuity scheme

The long service awards is the only applicable to employees that reach the retirement age. Employees who
attain this age while in a managerial position are entitled to 3 months final monthly salary while for other
employees, it is 2 months final salary. The scheme is not funded hence, there are no plan assets.
Below are the details of movements and amounts recognised in the financial statements:
30 June 2022 30 June 2021

ETB'000 ETB'000
A Liability recognised in the financial position
326,674 119,963
88


ForFor
thethe
year ended
year 30 30
ended June 2022
June 2022

30 June 2022 30 June 2021
ETB'000 ETB'000
B Amount recognised in the profit or loss
Current service cost 3,075 1,946

Past Service cost 182,226 88,991
Interest cost 18,128 3,408
203,429 94,345
30 June 2022 30 June 2021

ETB'000 ETB'000
C Amount recognised in other comprehensive income:
Actuarial (Gains)/Losses on demographic assumptions - -
Actuarial (Gains)/Losses on economic assumptions (28,233) 1,177
Actuarial (Gains)/Losses on experience 35,884 5,159
7,651 6,336
Deferred tax (liability)/asset on remeasurement gain or loss (2,295) (1,901)
5,356 4,435
D Changes in the present value of the defined benefit obligation 30 June 2022 30 June 2021
ETB'000 ETB'000
The movement in the defined benefit obligation over the years is as follows:
At the beginning of the year 119,963 21,371

Current service cost 3,075 1,946
Past Service cost 182,226 88,991
Interest cost 18,128 3,408
Retirement benefit paid (4,369) (2,089)
Remeasurement (gains)/ losses 7,651 6,336
At the end of the year 326,674 119,963
The significant actuarial assumptions were as follows:
i) Financial Assumption Long term Average
30 June 2022 30 June 2021
Discount rate (p.a) 24.10% 15.80%

Long term salary increases (p.a) 19.30% 10.00%
Average Rate of Inflation (p.a) 17.30% 12.00%
89

AWASH
For For
the the
yearyear
ended 30 June
ended 20222022
30 June
Notes to the

ii) Mortality in Service
The rate of mortality assumed for employees are those published in the Demographic and Health Survey
(“DHS”) 2016 report compiled by the CSA. The DHS report provides male and female mortality rates for 5 year
age bands from age 15 to age 49. For ages over 47 we have assumed that mortality will be in line with the
SA85/90 ultimate standard South African mortality tables published by the Actuarial Society of South Africa
(“ASSA”), since the rates in these tables are similar to the DHS female mortality rate at age 47. These rates
combined are approximately summarized as follows:
Age Mortality rate

Males 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 0.01536
iii) Withdrawal from Service
The withdrawal rates are believed to be reasonably representative of the Ethiopian experience. The valuation
assumed a rate of withdrawal of 15% at the youngest ages falling with increasing age to 2.5% at age 45.
The sensitivity of the overall defined benefit liability to changes in the weighted principal assumption is:
Impact on defined benefit obligation

30 June 2022 30 June 2021
Change in Impact of an Impact of a Impact of an Impact of a
assumption increase decrease increase decrease
ETB'000 ETB'000 ETB'000 ETB'000

Discount rate 1.0% 304,876 350,228 105,615 136,441
90


ForFor
thethe
year ended
year 30 30
ended June 2022
June 2022
(i) Severance and Retirement benefit obligations (Continued)

Impact on defined benefit obligation
30 June 2022 30 June 2021
Change in Impact of an Impact of a Impact of an Impact of a
assumption increase decrease increase decrease
ETB'000 ETB'000 ETB'000 ETB'000
Salary Increase 1.0% 351,002 303,850 136,754 105,134
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.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior
years. The average duration of the gratuity scheme at the end of the reporting period is five years (30 June
2021: five years).
27 Share capital
30 June 2022 30 June 2021
Authorised:
Ordinary shares of ETB 1,000 each 12,000,000 12,000,000
Issued and fully paid:
Ordinary shares of ETB 1000 each 10,291,407 8,188,948
Issued but not fully paid:
Ordinary shares of ETB 1000 each 1,698,320 3,786,982
Share Reconcilation
Number of shares outstanding at the beginning of the period 8,188,948 5,848,271
Number of shares Purchased by Cash 262,300 691,636
Number of shares Purchased by Dividend 1,840,159 1,649,041
Number of shares outstanding as at the end of the period 10,291,407 8,188,948
28 Share Premium 30 June 2022 30 June 2021

ETB'000 ETB'000

Addition during the year - -
1,389 1,389
91

AWASH
For For
the the
yearyear
ended 30 June
ended 20222022
30 June
Notes to the
29 Earnings per share
Basic earnings per share (EPS) is calculated by dividing the profit after taxation by the weighted average
number of ordinary shares in issue during the year.
30 June 2022 30 June 2021
ETB'000 ETB'000
Profit attributable to shareholders 5,341,231 3,395,750
Weighted average number of ordinary shares in issue 9,366,313 7,219,267
Basic & diluted earnings per share (ETB) 570 470
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares
outstanding to assume conversion of all dilutive potential ordinary shares. There were no potentially dilutive
shares at the reporting date (30 June 2021:nil), hence the basic and diluted earnings per share have the same
value.
30 Retained earnings 30 June 2022 30 June 2021

ETB'000 ETB'000
At the beginning of the year 3,547,495 2,943,340
Prior period Lease Adjustment - (10,488)
Tax on Retained Earnings (9,853) (8,984)
Tax on interest income on foreign deposit - (536)
Profit/ (Loss) for the year 5,341,231 3,395,750
Transfer to Legal reserve (1,335,308) (848,937)
Transfer from/to Risk Regulatory Reserve (103,994) (48,837)
Directors' allowance (1,670) (1,706)
Dividend declared (2,371,054) (1,872,107)
At the end of the year 5,066,847 3,547,495
31 Legal reserve 30 June 2022 30 June 2021

ETB'000 ETB'000
At the beginning of the year 3,742,975 2,894,038
Transfer from profit or loss 1,335,308 848,937
At the end of the year 5,078,283 3,742,975
The NBE Directive No. SBB/4/95 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.
92


ForFor
thethe
year ended
year 30 30
ended June 2022
June 2022
32 Risk regulatory reserve 30 June 2022 30 June 2021

ETB'000 ETB'000
Transfer to/from Retained Earnings 103,994 48,837
Provisions under prudential guidelines are determined using the time based provisioning prescribed by the
National Bank of Ethiopia (NBE) Directives. This is at variance with the expected credit loss model required by
IFRS under IFRS 9. As a result of the differences in the provision, there will be variances in the impairments
allowances required under the two methodologies. Similarly, interest on non-performing loans are suspended
as per NBE directive, while IFRS 9 prescribes to recognize stage 3 loans interest income net of impairement
losses.
The proclamation ‘Financial Reporting Proclamation No.847/2014 stipulates that Banks would be required to
make provisions for financial assets as prescribed in the relevant IFRS Standards when IFRS is adopted.
However, Banks would be required to comply with the following:
(a) Provisions for loans & advances and other assets are recognised in the income statement based on the
requirements of IFRS. However, the IFRS provision should be compared with provisions determined under the
NBE Directives and the expected impact/changes in other reserves are treated as follows:
• Prudential provisions is greater than IFRS provisions; the excess resulting should be transferred from the
general reserve (retained earnings) account to a “regulatory risk reserve”.
• Prudential provisions is less than IFRS provisions; IFRS determined provision is charged to the statement of
comprehensive income. The cumulative balance in the regulatory risk reserve is thereafter reversed to the
general reserve account.
• Interest suspended in the previous years and regularized in the current year is compared with current year
stage 3 loans interest income recognized net of impairment losses. The difference between the two is
transferred to “regulatory risk reserve”.
(b) The non-distributable reserve should be classified under Tier 1 as part of the core capital.
93


Financial
AwashStatements
ForFinancial
the year ended 30 June 2022
Statements
Notes
Fortothe
theyear
Financial
endedStatements
30 June 2022
33 Other reserves 30 June 2022 30 June 2021

ETB'000 ETB'000

Fair value reserve 65,987 34,892
Re-measurement gains on defined benefit plans (net of tax) (5,356) (4,435)
34 Cash generated from operating activities 30 June 2022 30 June 2021

Adjustments for non-cash items:

Foreign exchange gains/losses 8 (1,007,557) (755,638)
Depreciation of property, plant and equipment 22 334,501 244,016
Amortisation of intangible assets 21 34,944 16,623
Amortisation of Right of Use Assets 20 400,961 289,088
Investment in associate 18 (8,051) 110
Gain/Loss on disposal of property, plant and equipment (332,829) (82,137)
Adjustments on property, plant and equipment reclassification 22 (45) (2,371)
Adjustments on changes in lease amortization 20 - 40,202
Impairment on loans and advances to customers 16 855,392 512,237
Loans and advances - Bad Debts Write Off 16 (12,054) -
Impairment on other assets 10 5,344 4,015
Impairment charge / (reversal) on bills and bonds 11 (302) 1,081
Impairment charge / (reversal) on off balance sheet items 13 (649) 650
Interest expense on Lease Liability 20 36,613 26,801
Interest expense on Lease Liability 26 203,429 94,345
Changes in working capital:

-Decrease/ (Increase) in loans and advances 16 (41,704,899) (30,265,007)
-Decrease/ (Increase) in restricted deposits 0 (6,700,000) (1,700,000)
-Decrease/ (Increase) in other assets 19 (1,511,594) (1,240,851)
-Increase/ (Decrease) in Borrowings (101,223) 208,803
-Increase/ (Decrease) in other liabilities 25 2,766,738 3,095,084
-Increase/ (Decrease) in customer's deposit 45,747,663 31,703,046
6,459,533 7,013,207
94


Awash Statements
35 Related party transactions
Awash International Bank Share Company is owned by over 5,981 shareholders without an ultimate parent
company. Premier Switch share company (PSS) is the only associate of the Bank. See note 18 for the details of
the Bank's relationship with PSS.
A number of transactions were entered with related party in the normal course of business. These are
disclosed below:
35a Transactions with related parties Relationship 30 June 2022 30 June 2021
ETB'000 ETB'000
Income received from PSS Associate 1,238 1,335

Payment made to PSS Associate (49,344) (20,919)
Net Transaction (48,106) (19,584)
Relationship 30 June 2022 30 June 2021

ETB'000 ETB'000
Key
management
personnel
Board of Directors 1,649,510 894,600
Loans and advances
Executive Management 18,390 11,980
1,667,900 906,580
35b Key management compensation
It has been determined that key management is the members of the Board of Directors and the Executive
Management of the Bank. The compensation paid or payable to key management is shown. There were no
sales or purchase of goods and services between the Bank and key management personnel as at 30 June 2022.
30 June 2022 30 June 2021

ETB'000 ETB'000
Salaries and short term benefits 31,173 23,030

Post-employment benefits 5,228 3,643
Board allowances 2,570 2,183
Share and benefit in kind 113,342 112,901
Other long term benfits 43,322 27,197
195,635 168,954
Compensation of the Bank's key management personnel includes salaries, non-cash benefits and contributions
to the post-employment defined benefits plans. During the year, the Board of Directors approves shares and
other benefit in kind to the lower, middle and top managements of the Bank.
95


Notes to the
36 Contingent assets and liabilities
36a Claims and litigation
The Bank is a party to numerous legal actions brought by different organizations and individuals arising from
its normal business operations. Other the other hand, the Bank has various litigation claims arising from its
normal business operations. The maximum outflow and inflow of exposure from/to the Bank for these legal
cases as at 30 June 2022 is ETB 1.556 million and ETB 35.067 million respectively.
36b Guarantees and letters of credit
The Bank conducts business involving 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 2022 30 June 2021

ETB'000 ETB'000
Guarantees 7,945,838 3,238,875

11,789,803 10,299,069
37 Commitments

Other commitments 552,061 1,586,895
10,908,033 6,716,183
The Bank has commitments, not provided for in these financial statements for the year 30 June 2022 is ETB
11.790 billion (30 June 2021: ETB 10.300 billion), being exposure of the Bank from commercial letters of
credit and guarantees to customers. Other commitments represent commitments made in respect of the
estimated cost to complete the Bank's construction work in progress.
96


Awash Statements
37 Commitments (Continued)
37a Lease commitments - Bank as lessee
The Bank leases various properties under non-cancellable operating lease agreements. The lease terms are
between two and fifteen years, and the majority of these lease agreements are renewable before the end of
each lease period at market rate.
The future aggregate minimum lease payments under non-cancellable operating leases are as follows:
30 June 2022 30 June 2021

ETB'000 ETB'000
No later than 1 year 73,096 143,229

Later than 1 year and no later than 5 years 426,583 128,343
Later than 5 Years 73,700 600
Total 573,379 272,172
37b Lease commitments - Bank as lessor
The Bank acts as lessor of office spaces. These leases have an average life of between three and five years
with no renewal option included in the contracts. There are no restrictions placed upon the lessee by entering
into these leases (such as those concerning dividends, additional debt and further leasing).
Future minimum lease payments under non–cancellable operating leases as at 30 June are, as follows:
30 June 2022 30 June 2021

ETB'000 ETB'000
No later than 1 year 29,925 31,569

Later than 1 year and no later than 5 years 21,992 110
Later than 5 Years - -
51,917 31,679
ForTotal
the year ended 30 June 2022
38 Events after reporting period
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 2022 and on the profit for the period ended on that date, which have not been
adequately provided for or disclosed.
97

Financial Highlight, Number of Branches and Employees
(In millions of Birr unless stated otherwise)
Particulars 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22
Deposits* 13,105 16,118 19,506 24,236 32,893 45,906 62,464 70,578 108,074 152,007
Annual Report 2021/22

Loans & Advances** 7,710 9,176 12,482 15,451 22,646 31,304 47,262 57,274 87,539 129,244
NBE Bills*** 3,146 4,067 5,365 5,306 8,355 6,993 11,221 9,915 9,916 889
Total Assets 17,784 22,106 25,140 31,148 40,027 55,268 74,635 89,288 128,695 183,391
Capital & Reserves

2,066 2,597 3,185 3,934 5,424 6,496 9,640 11,968 15,852 20,951
(Total Equity)
Profit Before Tax 583 829 861 986 1,350 1,964 3,344 3,600 4,823 7,453
Profit After Tax 439 619 669 744 1,003 1,492 2,432 2,591 3,396 5,341
Earnings per share

456 475 445 371 390 543 632 510 470 570
(Birr)
No. of Branches (in
115 150 202 240 316 366 410 466 566 725
no.)
No. of Employees
4,011 4,787 5,847 6003 6,772 7,872 9,046 10,130 12,188 17,393
(in no.)
*Including Margins Held on L/C

**Including Provisions for Doubtful Loans & Advances
*** The Figure for FY 2021/22 is DBE Bill
145
ATMs and their Locations as at June 30,2022

1. Addis Ababa
ATM Location Type ATM Location Type ATM Location Type
TTW Ethiopia Hotel Lobby (Legehar)

Beshale Figa TTW
Ferensay legasion TTW
TTW
Betel Branch TTW Filwuha Lobby (Fitber)
18 MAZORIA Lobby
TTW
22 Mazoria Branch TTW Beteseb Memria Lobby
TTW
Lobby(Meg
5Killo Lobby Bethlehem Plaza
adebabay) Fitber Branch TTW
6KILO Branch Lobby BGI Lobby Flamingo TTW
Abuare Lobby Bole 17 TTW Garagura TTW
Addisketema Branch TTW Gast Solar Lobby

Bole 18 TTW
Addisu gebeya Gegi giorgis Lobby
TTW Bole 22 TTW
Branch Geja sefer Branch TTW
Adey Abeba TTW Bole 24 TTW
Gelan TTW
Africa Andinet Bole arabsa TTW Genet Hotel Branch Lobby
TTW
Branch
Bole Bulbula TTW Gerji Branch TTW
Africa Avenue TTW Lobby
Branch Bole Medhanialem TTW Ghion Hotel (Stadium)
Air port terminal 1 Lobby Bole Micheal Branch TTW Global Akababi Branch Lobby
( Branch)
Airport Branch TTW bulbula 93 TTW Gofa Gebriel Branch TTW
Airport terminal 2 Lobby Bulgaria Mazoria Gofa Mebrat TTW

TTW
Branch
Akaki Branch TTW Gofa sefer Branch TTW
Burka Guya TTW
Gojam Ber TTW
Akaki Gebeya TTW
Cameroon avenue Lobby Goro Beshale TTW
Akaki Gelan TTW Branch (Branch)
Gotera Branch TTW
Akaki Kality TTW Care ethiopia Lobby
Gulele Paulos TTW
Catholic Releif
Alembnak TTW Church Lobby Gullele Finance TTW
Alert Lobby Century Mall Lobby Gullelle TTW
Amanuel Total TTW Churchil Road Gurd Shola Branch TTW

TTW
Branch
Anfo TTW Gurd SholaJackros TTW
CMC Branch TTW
Arada Giorgis Branch TTW Habtegiorgis Branch TTW
Lobby
Aratkilo Branch TTW Concord (Temenja yaz) Halelujah Lobby
Halelujah lobby
Asco Branch TTW D’Afrique TTW
Hanna Mariam TTW
Asko addis sefer TTW Denbi Dolo TTW
Harbo Gudo TTW
Lobby (Africa Dessie Ber Branch TTW
AU Lobby( Bole
Union) Harmony Hotel
Dhgeda Lobby Medhanialem)
Ayat Adebabay TTW Haya 49 TTW
Dilgebeya Branch TTW
Ayat Arabsa TTW IFB-Muamalat TTW
Dubai Tera TTW
Ayat Tafo TTW Imperial TTW
East africa botling lobby Jacros Figa TTW
Ayertena TTW
ECA TTW Jakros TTW
Balcha aba nefso TTW
Edget Branch TTW Jemmo Michael TTW
Balcha ATM2 LOBBY
Eliana Bldg Ecas Lobby Kality Gumruk Lobby
Balderas TTW Trading (Mahal Arada) Kalty Gebriel TTW
Bambis Lobby Enderassie Branch TTW Kangew Shaleka TTW
Beklobet Branch TTW Ertu Lebu TTW Kar Allo TTW


1. Addis Ababa
Kara Kore Branch TTW
Kara Road Branch TTW

Sanford TTW Wuhalimat Branch TTW
Karl Square TTW sansussi TTW Yared TTW
Kazanchis Branch TTW
Kebena Branch TTW

Sarbet Branch TTW Yeka TTW
Kechene Chilot TTW Saris Addisu sefer Yeka Abado lobby
TTW
Kelela Building Lobby Branch
Yeka Abado
Keranio branch TTW Saris Branch TTW Mesqeligna TTW
Kilinto TTW
Kirkos 45 TTW
Sebategna Branch TTW Yerer Ber TTW
Kirkos Branch TTW Shala Akababi Branch TTW Yeshi Debele TTW
Kirkos Riche TTW
Kokeb TTW
Shashemene Branch TTW Yod Abbysinia Lobby(Airport)
Kolfe Atena Tera TTW Sheger Branch TTW Yoseph TTW
Lobby
kolfe kuteba (kazanchis)
Shegole TTW Lobby
Kolfe Lukanda TTW
Zefmesh Mall (Megenagna
Korea Hospital Lobby Shiromeda Branch Lobby Adebabay)
Kotebe 02 Lobby
Kotebe ATM1 Branch TTW

Sholla Meskelegna Lobby
Zenebe Work TTW
Kotebe ATM2 TTW Sidamo Tera Branch TTW
Kuas Meda Branch TTW
Sidist kilo University Lobby
Lafto Branch TTW
Branch
Lamberet TTW
Lebu Branch TTW

Signal Branch TTW
Legehar Branch TTW Snap Shopping Lobby
Lideta Branch TTW Center
Lobby (Bole
Mafi Mall Medhanialem) St. Mary Lobby
Megenagna 22 TTW
Stadium Branch TTW
Megenagna ATM2 TTW
Megenagna Branch TTW stadium Zuriya TTW

Mehal Arada Branch TTW
Summit TTW
Mehal Gebeya TTW
Branch
Summit 72 TTW
Mehal Gofa Branch TTW
Mekanisa Qore TTW T/Yaj Branch TTW

Mekanissa TTW
Teklehaimanot
Mekanissa Abo TTW Branch TTW
Melka Gefersa TTW
Teklehaymanot
Merkato TTW Hospital Lobby
Mesalemia TTW
Meskel Flower Torhayloch TTW
TTW
Branch
Traffic Tsefetbet
Metahara TTW
Branch TTW
Mexico Branch TTW
Micheal Adebabay Tropical Mall(Former

TTW
kenenisa) Lobby
Mikilliland TTW
Tsega Mall Lobby
MILLENIUM TTW
Tulu Boke TTW
Moenco TTW
Tulu Ejersa TTW
Nifas silk Branch TTW
Tuludimtu TTW
Olympia Branch TTW
Urael Branch TTW
Piazza Branch TTW
urael Nigest sefer TTW
Qechene TTW Lobby
Wabishebele Hotel (Mexico)
Ramada Hotel Lobby
Wellosefer TTW
Ruwanda Embassy TTW
Worku Sefer TTW
Sabon Building Lobby
Wosen sefer TTW
Salogora TTW
Wuhalimat 22 TTW


2. Outlying Areas
Aba Sena TTW Bako TTW

Derartu Adebabay TTW
Abajifar TTW Bale Robe TTW Dessie Branch TTW
Abay Mado TTW Bambasi TTW Dilla TTW
Abebe zeleke hotel Lobby Bati TTW Dire Dawa Branch TTW
bedelle TTW Dodola TTW

Bbosto TTW
Bedessa TTW Dolomena TTW
AdaaBranch TTW
Begi TTW Dukem TTW
Adaba TTW
TTW Ejaji TTW
Adama ATM2 TTW Bekoji
Berecha TTW Enjibara TTW
Adama Branch TTW
TTW Eteya TTW
Adama Ras TTW Bichena
TTW Fiche TTW
Adea ATM2 TTW Bishoftu
Lobby Finchwha TTW
Blenda Hotel
Adola TTW Finote Selam TTW
Boditi TTW
Agaro TTW Furi TTW
Boke TTW
Agaro Gomma TTW Gambella TTW
Bonga TTW
Alaba kulito TTW Gambella New land TTW
Bosset Branch TTW
Alamura TTW Ganda Gara TTW
Bote TTW
Alelltu TTW Gebre Guracha TTW
Bule Hora Lobby
Alemgena Lobby Gedo TTW
Burayu Keta TTW
Aleta Wondo TTW Gefersa Giji TTW
Burayu Mariam TTW
Gefersa Nono TTW
Ambo TTW
Bure Damot TTW Gelemso TTW
Anger Gute TTW
Burkaweyu TTW Gida Ayana TTW
Arba Minch TTW
burqa Jato TTW Gidami TTW
Lobby
Arbaminch P.Lodge TTW
(Arba minch) Butajira Gimbi Branch TTW
Areka TTW Chagni TTW Ginchi TTW
Arerti TTW Chancho TTW Ginir TTW
Arsi Negele TTW Chefe Donsa TTW Giregne TTW
Arsi Robe TTW TTW Goba TTW
chelenqo
Assassa TTW Chilalo TTW Gobessa TTW
Assela Branch TTW TTW Gomma TTW

Chiro
Assela university Lobby TTW Gonbora TTW
Chora
Assosa TTW TTW Gonder Azezo TTW
D/ Birhan
Gonder Branch TTW
Awash 7 kilo TTW D/Tabor TTW
Gonder Fasiledes TTW
Awasho TTW Dalle Dembel TTW
Grawa TTW
Aweday TTW Dambi Bishoftu TTW
Gudatu Arjo TTW
Ayra TTW Dangela TTW
Guder TTW
BahirDar (Ghion) TTW Debre Markos TTW
Gudru TTW
Babile TTW Dedere TTW
Guliso TTW
Bahirdar Branch TTW Dembela Branch TTW
Hafetesa (D/Dawa) TTW
Dera TTW
Haile Resort Lobby
Bahrdar ATM2 Lobby (Bahr Dar) TTW
Dera Gundo meskel Harar Branch TTW

Awash Awash
Bank Branch Address
Bank Branch by Regional
Address by Region Office
1.South Addis Ababa Region
S.N Branch Name Telephone Address Fax Remark
1 Africa Andinet 0113-71-61-02/72-03-36/72-26-11/ 71-65- 0113-71-65-94

93
2 Africa Avenue 0115-57-05-33/34/35 0115-57-05-36
3 Alemgena 011-367-90-95/64/91-22/09 0112-36-56-69
4 Ameya 011-315-01-47/05-59
5 Bambis 011-557-69-76/73 011-557-69-71
6 Beklobet 0114-66-85-75/23-54 0114-16-68-78
7 Bisrate Gebriel 011-320-99-18/21-87 New
8 Bu'i 046-883-07-22/11 058-225-05-32
9 Bulgaria Mazoriya 0115-54-00-14/02-92 0115-54-03-11
10 Burka Guya 011-385-44-28/26
11 Burka Wayu 011-471-10-21/18-61
12 Busa 011-312-06-70/07-43
13 Butajira 046-115-10-28/07-05 0255-51-10-22
14 Dil Gebeya 0113-72-08-20/17/18/19 0113-72-08-39
15 ECA 011-558-92-97/86-37 011-558-64-78
16 Enderase 0115-57-62-70/71 0115-57-62-73
17 Eresha 046-145-96-87/16-37 New
18 Erinzaf 046-145-22-29/65-91 New
19 Ertu Lebu 011-471-35-30 011-471-38-65
20 Finfine 011-557-02-00/01-12/01-07/557-07- 0115-57 01 13

87/557-11-23/557-10-03/
21 Fitber 0115-57-21-82/49 0115-57-22-15
22 Flamingo 011-526-02-21/ 011-526-04-16
23 Furi 011-367-90-87/77/32 0577-71-10-22

011-367-91-08
24 Furi Adebabay 011-380-22-30/20-99 057-773-06-76 New
25 Genet Hotel 0115-54-02-56/43 0115-54-00-33

Awash Bank Branch Address by Regional Office

26 Global Akababi 011-470-24-12/23-68 011-470-13-68
27 Gofa Mebrat Hayil 011-470-33-92/78/59/69 011-470-33-93
28 Gofa Sefer 0114-65-36-91/466-98-11/36-15/466-37- 0114-16-03-57

24/0114-67-31-67
29 Goffa Gebriel 0114-67-45-65/63/67 0114-67-45-61
30 Gotera 0114-67-03-92/0118-96-39-15/
31 Hana Mariam 0114-71-12-97 0114-71-14-53
32 Hayu 011-558-18-85/558-30-80
33 Hurbu 011-471-33-27/39-24 0114-71-36-43
34 Jemo Hulet 011-883-80-70
35 Jemo Michael 011-369-96-02/99-57 011-369-84-07
36 Karl Adebabay 0113-848154 / 0113-848004
37 Kazanchis 0115-57-07-56/57/22 0115-57-06-83
38 Kela 046-322-99-55/86-36 New
39 Kirkos 0115-54-75-83/81/85/0118-59-22-49/ 0115-54-75-82
0911-81-05-82
40 Kirkos -45 011-470-56-06 011-470-58-39
41 Kirkos Riche 011-470-06-45/21-33
42 Kute 011-369-30-46/45-65
43 Lafto 0114-19-07-63/10-86/0114-19-64-89/ 05- 0114-19-64-88
79
44 Lafto Gebeya 011-471-19-84/15-05
45 Lebu 0114-71-25-04/38 0118-59-20-61/62 0114-71-25-44
46 Legehar 011-532-00-01/54-77-65/ 0115-51-08-67
47 Legehar Gumruk 011-558-34-87 011-667-37-18 New
48 Leman 011-363-03-59/60 022-226-13-17
49 Liben 0113-41-34-74 058-555-55-09
50 Mehal Gofa 0114-67-12-39/97/67-15-74/91 0114-67-12-81
51 Mekanisa 011-369-83-48/86-03 011-369-83-25
52 Mekanisa Abo 0113-69-03-14/27/28 0113-69-03-29
53 Mekanisa Seminary 011-385-41-28/44-26 New
54 Meskel Flower 0114-66-93-93/67-15-27 0114-66-95-01
55 Mexico 0115-57-21-79/22-61/22-10 0115-57-22-59
56 Mogole 011-833-20-58 New
57 Nifas Silk 0114-42-03-09/08/43-85 0114-42-09-58
58 Olompiya 011557-11-90/12-40 0115-57-11-88


59 Sadeka 011-471-10-53/11-97 New
59
60 Sadeka
Saden Sodo 011-471-10-53/11-97
011-325-07-89/05-56 New
New
60
61 Saden
Sarbet Sodo 011-325-07-89/05-56
0113-72-73-91/72-78-06/72-77-95 0113-72-78-72 New
61
62 Sarbet
Saris 0113-72-73-91/72-78-06/72-77-95
0114-43-12-72/12-37 0113-72-78-72
0114-43-13-58
62
63 Saris
Saris 58 0114-43-12-72/12-37
011-471-19-69/53 0114-43-13-58
63
64 Saris
Saris 58
Addis Sefer 011-471-19-69/53
0114-40-01-53/0114-42-56-72 0114-40-06-85
64
65 Saris
SebetaAddis Sefer 0114-40-01-53/0114-42-56-72
0113-38-41-01/15 0114-40-06-85
047-556-25-06
65
66 Sebeta
Silk Amba 0113-38-41-01/15 047-556-25-06 New
66
67 Silk Amba
Stadium 0115-15-67-46/51-15/50-45-22/53-46- 0115-50-29-20 New
67 Stadium 43/94-54/ 0118-59-22-51
0115-15-67-46/51-15/50-45-22/53-46- 0115-50-29-20
68 Stadium Zuria 43/94-54/ 0118-59-22-51
011-531-91-02 011-531-91-01
68 Stadium Zuria 011-531-91-02 011-531-91-01
69 Teji 011-339-06-50
69 Teji 011-339-06-50
70 Temenja Yaj 0114-16-27-20/16/ 0114-16-27-05
70 Temenja Yaj 0114-16-27-20/16/ 0114-16-27-05
71 Tulu Bolo 011-342-14-01/02
71 Tulu Bolo 011-342-14-01/02
72 Tulu Ejersa 011-471-17-35/13-18 011-471-15-97
72 Tulu Ejersa 011-471-17-35/13-18 011-471-15-97
73 Tulu Jemmo 011-369-8052
73 Tulu Jemmo 011-369-8052
74 Urael 0115-54-08-30/31/32/33/0118-96-40-01 0115-54-08-36
74 Urael 0115-54-08-30/31/32/33/0118-96-40-01 0115-54-08-36
75 Urael Nigist Sefer 011-554-18-45/86-64 011554-30-49
75 Urael Nigist Sefer 011-554-18-45/86-64 011554-30-49
76 Vatican 0113-873-38-55/0113383-35-51 New
76 Vatican 0113-873-38-55/0113383-35-51 New
77 Wechecha 011-380-40-47/48
77 Wechecha 011-380-40-47/48
78 Welete 011-380-01-57/00-47
78 Welete 011-380-01-57/00-47
79 Weliso 0113-41-34-73/74
79 Weliso 0113-41-34-73/74
80 Wirtu 011-813-39-81
80 Wirtu 011-813-39-81
81 Wolkite 011-365-81-69/83-84
81 Wolkite 011-365-81-69/83-84
82 Yoseph 011-470-88-82/06-22 011-470-90-56
82 Yoseph 011-470-88-82/06-22 011-470-90-56
2. West Addis Ababa Region

2. West Addis Ababa Region
1 18 Mazoria 0112-79-14-44/011-273-89-60/56/0118- 0112-79-13-64
1 18 Mazoria 69-79-74
0112-79-14-44/011-273-89-60/56/0118- 0112-79-13-64
2 Abdi Nono 011-260-13-32/15-40
69-79-74 New
2 Abdi Nono 011-260-13-32/15-40 New
3 Adea Berga 011-286-05-63/82 034-445-03-48 New
3 Adea Berga 011-286-05-63/82 034-445-03-48 New


4 Adis Ketema 0112-75-83-58/57/77-24-81/82 011-894- 0112-77-24-83
95-40
5 Alem Bank 011-369-45-04/59/65/63 0113-69-45-42
6 Amanuel Total 011-273-60-09/46/39/73 011-833-40-50 011-273-60-32
7 Ambo 0112-36-41-74/33-77/67-90/0112-36-61- 057-634-03-28

90
8 Anfo 011-369-76-28/72-17
9 Asco 0112-73-02-91/93/94 0112-73-02-95
10 Asco Addis Sefer 011-273-16-31/30
11 Awtobis Tera 011-273-44-17/26/19/15 011-273-44-10
12 Ayer Tena 011-369-39-41
13 Betel 0113-49-12-68/49-13-04/49-08-55 0113-49-11-35
14 Betel Adebabay 011-369-78-65/74-23 New
15 Burayou Keta 011-260-46-20/41/54
16 Burayou Mariam 011-260-49-81/31
17 Coca Mazoria 011-273-68-76/66-97 New
18 D'Afrique 011-557-70-14/67 011-557-70-28
19 Dejazmach Balcha 011-530-31-11/10

Safo
20 Dire Enchini 011-287-05-89//99
21 Dire Sololia 011-262-34-26/0112-62-34-51 New
22 Dubai Tera 011-273-22-81/90 011-273-22-82
23 Ejere 011-261-03-98/05-99
24 Gefersa Guje 011-260-18-52/16-79 034-440-69-97
25 Gefersa Nono 011-260-11-17/32/02 025-776-16-95
26 Geja Sefer 0115-57-62-37/44/13 011-557-62-32
27 Gesho Tera 011-273-27-52/43/42/273-26-84 011-273-27-32
28 Ginchi 011-258-11-72/11-74 057-778-02-86
29 Gojam Berenda 011-273-38-34 0112-73-35-93
30 Gola Michael 011-126-34-98/22-01
31 Goro Kerensa 011-261-02-37/03-53 New
32 Guder 011-282-07-96/08-14 025-661-04-31
33 Guje 011-260-14-56/15-62 046-212-48-11 New


34 Gulele 0112-78-49-26/31//29/30/ 0118-59-22- 0112-78-49-27
53/ 0112-78-49-26
35 Gulele Pawlos 011-273-79-36/35
36 Hachalu Hundessa 011-2-60-96-94/45
37 Holeta 011-261-00-04/31/09
38 Jeldu 011-238-05-97/06-05 033-334-13-36
39 Jemo 0113-48-40-07/60-70 0113-48-62-70
40 Kachisi 011-215-05-30 011-637-50-81
41 Kara Girar Sefer 011-369-56-47/48
42 Karakore 0113-69-30-69/46/15/59/09 0113-69-30-67
43 Keraniyo 011-384-10-49/48
44 Ketena Hulet 011-383-50-71/72 011-383-50-73
45 Kolfe 0112-75-72-35/36/0112-75-17-67
46 Kolfe Atena Tera 011-273-97-22/91-19
47 Kolfe Kuteba 011-273-90-63/96-74
48 Kolfe Lekuanda 011-273-94-94/94-92 0112-76-03-49
Tera
49 Kuas Meda 0112-76-03-43/45/01-17/03-66
50 Lideta 0115-54-65-72/73/70/0118-95-99-58 0115-54-65-71
51 Lideta Menafesha 011-557-92-35/89-99 New
52 Lomi Meda 011-273-80-14/99-78 New
53 Mehal Gebeya 0112-77-94-72/13-54-42 0112-77-93-07
54 Mekanisa Kore 0113-69-85-67/97-20
55 Melka Gefersa 011-384-76-58/78-64
56 Merkato 0112-75-87-33/77-16-66/76-33-31/77-21- 0112-13-71-36
71/011-276-48-02/13-95
57 Merkato Arategna 011-273-20-32/38-51
Mazoriya
58 Merkato Kagnew 011-273-45-42/12 011-273-45-38
Shaleka
59 Merkato Tana 011-273-35-98/28-17 011-273-29-94
60 Mesalemia 011-275-84-37/276-97-80 011-278-81-95
61 Micky Land 0112-73-03-98/41/57 011-273-04-26
62 Mirab Merkato 011-273-42-98/42-85/ 0112-73-43-21/22 011-273-43-15
63 Muger 011-218-06-62/03-71 0113-38-41-02
64 Oddo Liban 011-260-99-25


65
65 Olankomi
Olankomi 0112-85-07-00/01
0112-85-07-00/01
66
66 Sansusi
Sansusi 011-373-19-40/18-06
011-373-19-40/18-06 011-373-12-21
011-373-12-21
67
67 Sebategna
Sebategna 011-277-33-43/42 0112-13-03-58/0118-
011-277-33-43/42 0112-13-03-58/0118- 0112-77-32-70
0112-77-32-70
30-76-69/
30-76-69/
68
68 SengaTera
Senga Tera 011-557-68-39/75/59/54/
011-557-68-39/75/59/54/ 011-557-68-80
011-557-68-80
69
69 SheraTera
Shera Tera 011-273-59-02/54-97
011-273-59-02/54-97 011-273-57-12
011-273-57-12
70
70 Sidamo Tera
Sidamo Tera 0112-78-41-18/94-53/78-94-54/41-18
0112-78-41-18/94-53/78-94-54/41-18 0112-78-41-17
0112-78-41-17
71
71 Tegbare-ed
Tegbare-ed 011-558-67-23/95-07
011-558-67-23/95-07
72
72 TekleHaimanot
Tekle Haimanot 0112-78-93-76/77-27-30/31
0112-78-93-76/77-27-30/31 0112-77-27-32
0112-77-27-32
73
73 TORHAYILOCH
TORHAYILOCH 011-369-13-11/369-12-93/13-18
011-369-13-11/369-12-93/13-18 011-369-12-08
011-369-12-08
74
74 Torhayloch
Torhayloch 011-384-28-24/26-05
011-384-28-24/26-05 New
New
Adebabay
Adebabay
75
75 TuluBoke
Tulu Boke 011-369-70-71/78-48
011-369-70-71/78-48
76
76 YeshiDebele
Yeshi Debele Sefer
Sefer 0113-69-23-92/24-50/07-21
0113-69-23-92/24-50/07-21 0113-69-06-27
0113-69-06-27
77 Zenebework 011-369-71-77/78-49
77 Zenebework 011-369-71-77/78-49
3. North
3. North Addis
Addis Ababa
Ababa Region
Region
S.N
S.N Branch
Branch Telephone Address
Telephone Address Fax
Fax Remark
Remark
Name
Name
1 5 Kilo 011-1154-14-57/58
1 5 Kilo 011-1154-14-57/58
2 Abado Meskelegna 011-869-4044
2 Abado Meskelegna 011-869-4044
3 Abuare 011-557-69-01/557-68-36/08/68-83 011-557-69-10
3 Abuare 011-557-69-01/557-68-36/08/68-83 011-557-69-10
4 Addisu Gebeya 011-126-81-00/126-80-72 011-126-80-99
4 Addisu Gebeya 011-126-81-00/126-80-72 011-126-80-99
5 Aleltu 011-631-05-78/07-10 046-224-06-30
5 Aleltu 011-631-05-78/07-10 046-224-06-30
6 Alem Ketema 011-132-10-58/11-46
6 Alem Ketema 011-132-10-58/11-46
7 Arada Giorgis 0111-55-61-66/59-38/62-08 0111-55-58-00
7 Arada Giorgis 0111-55-61-66/59-38/62-08 0111-55-58-00
8 Arat Kilo 0111-57-03-32/31/57-17-14/16 0111-57-03-35
8 Arat Kilo 0111-57-03-32/31/57-17-14/16 0111-57-03-35
9 Balderas 011-636-81-41 011-636-81-42
9 Balderas 011-636-81-41 011-636-81-42
10 Chancho 011-188-09-05/06
10 Chancho 011-188-09-05/06
11 Churchil Road 0111-26-20-25/26-20-00/26-20-17 0111-26-20-18
11 Churchil Road 0111-26-20-25/26-20-00/26-20-17 0111-26-20-18
12 Dalle Dembel 011-667-95-39/91-94
12 Dalle Dembel 011-667-95-39/91-94
13 Debre Berhan 0116-37-50-61/94/71/51-01/011-890-90- 011-115-06-74
13 Debre Berhan 0116-37-50-61/94/71/51-01/011-890-90-
57 011-115-06-74
14 Debresina 57
011-680-07-24/10-37 New
14 Debresina 011-680-07-24/10-37 New


15 Degem 011-136-05-44/45 New
16 Dejach Wube 011-170-29-79/21-15 New
17 Dera Gundo Meskel 011-115-07-07/08-32
18 Dessie-Ber 0116-67-80-22/44/56 011667-80-48
19 Eyesus 41 011-154-15-40/13-39 New
20 Ferensay Legasion 011-154-80-82/84/90 011-154-80-81
21 Fiche 011-135-20-22/77/69 011-471-37-64
22 General Tadesse 011-160-98-18/93-11 New
Biru
23 Gerba Guracha 011-131-0733/011-131-0689 0581-11-80-44
24 Gojam Ber 011-126-83-45/55 011-126-83-51
25 Gulele Finance 011-273-24-32/27/21 011-273-23-51
26 Gurd Shola 011-866-80-54/55/0116-46-16-47/16- 0116-46-12-31
79/76-82
27 Habte Giorgis 0111-57-88-91/95-93/91/155-51-20 0111-57-45-46
28 Hayat Tafo 0116-39-15-02/18-73
29 Hidabu Abote 011-118-08-62/66 0344-40-45-79
30 Kara Mazoria 011-668-03-50/51 011-668-05-49
31 Kara Road 0116-67-02-60/01-89/01-79 0116-67-02-57
32 Karra Alo 011-667-89-06/667-88-59/32 0116-67-88-94
33 Kebena 0111-54-40-06/07/08/15/ 0111-54-40-12
34 Kechene 011-126-76-77/70-13 011-126-68-56
35 Kechene Chilot 011-126-34-90/91 011-126-34-92
Adebabay
36 Kotebe 0116-47-54-00/45-62-75/46-28-12 0116-45-62-74 New
37 Kotebe 02 011-667-62-86/63-66
38 Kotebe Loke
39 Lamberet 011-667-54-31/64 011-667-53-97 011-667-54-27
40 Legetafo 011-637-50-76/51-10
011-829-07-48/011-651-13-29
41 Megenagna 0116-18-27-74/18-26-69 0116-18-27-72
42 Megenagna 0116-67-37-37/67-36-37 0116-67-37-99
Adebabay
43 Mehal Arada 0111-11-92-26/15/34/15-58 0111-56-08-83
44 Mehal Meda 0116-85-09-36 011-134-06-15
45 Molale 011-271-1453
46 Muka Turi 011-134-08-26/89
47 Parlama 011-170-46-94/95 New


48 Piassa 0111-11-94-54/24-76/16-74 0111-11-22-54
49 Ras Desta 011-126-10-46/69-27 011-126-09-97
50 Rufael 011-259-19-58/18-63/16-29/011-273-76- 011-259-19-71
78
51 Sanford 011-154-36-63/45-29 011-154-46-45
52 Sebara Babur 011-126-74-19/011-127-42-03 New
53 Semen Mazegaja 011-126-3740/011-126-3626
Branch
54 Sendafa Beke 011-638-74-56/77-82 0258-82-02-17
55 Sheger 0111-55-89-38/011-157-00-47 0111-57-00-34
56 Shegole 0112-59-03-46/59-02-24/04-75 011-259-03-79
57 Sheno 046-553-09-08/07-69
58 Sherero 011-133-08-31/07-07 046-771-05-88
59 Shiro Meda 011-154-35-13/51-52 011-154-31-99
60 Shola Gebeya New
61 Sholla Meskelegna 011-6-58-92-80/83-77
62 Sidest Kilo 011-126-10-46/54
63 Signal 0116-67-20-11/65/70/75 0116-67-20-17
64 Sululta 011-161-71-34/38/46/41 0464-46-03-11
65 Tebase 011-637-54-59/62-00
66 Trafic Tsihfetbet 0116-61-64-54/18-91-64/18-82-90 0116-18-87-18
67 Tulu Milki 011-142-03-85/05-20 New
68 Wara Jarso 011-187-07-10/04
69 Wedessa 0115-32-12-04/05
70 Weserbi 011-862-55-03
71 Wosen Sefer 011-668-00-65/67
72 Yared 011-126-14-03/15-53/01-88
73 Yaya Gulele 011-116-08-82/05-31 New
74 Yeka 011-667-40-49/68 /011-859-22-48 011-667-35-20
75 Yeka Abado 011-872-19-57
76 Yeka Megenagna 011-668-71-79/70
4. East Addis Ababa Region
East Addis Ababa Region


4.East Addis Ababa Region
1 22 Mazoriya 011-662-46-68/67/18-99-38/63-50-31/ 0116-62-65-87
2 22-Wuhalimat 011-660-84-43/86-73/ 011-660-09-31
3 Adey Abeba 011-470-77-35/08/43/30/ 011-470-77-42
4 Airport 0116-18-06-11/75/18-01-71 0116-18-01-71
5 Akaki 0114-34-07-23/435-16-72 0114-34-32-77
6 Akaki Gebeya 011-471-54-31/51-59
7 Akaki Gelan 011-471-65-03 0114-71-64-87
8 Akaki Kality 0114-71-64-40/41 0114-71-64-26
9 Atlas 011-639-31-08/33-09
10 Beshale 011-673-38-77/41-23 New
11 Beshale Figa 011-667-79-77/77-50 011-667-78-85
12 Bole 0116-18-95-22/24/26/23 0116-62-63-87
13 Bole 17 011-859-22-55/011-660-66-32/25-51/011- 011-660-06-82
660-90-02/65/53
14 Bole 18 011-690-21-02/23-13
15 Bole 22 011-662-80-15/662-16-86/663-09-40 011-618-39-96
16 Bole 24 011-667-36-79 011-667-36-18
17 Bole Abasena 011-668-71-31/64-40
18 Bole Arabsa 011-813-20-63
19 Bole Bulbula 011-471-43-21 011-471-45-94
20 Bole Lemi Industry 011 -668- 90-19/91-29 New
Park
21 Bole Medhanialem 0116-67-03-47/51 0116-67-02-37
22 Bole Michael 0116-39-20-22/05/21/04 0116-39-20-23
23 Bole Michael Ade. 011-639-29-52/28-43
24 Bulbula 011-471-47-14/48-32
25 Bulbula 93 Mazoria 011-466-23-54 011-416-68-78
26 Burka Chefe 011-666-33-98/39-87
27 Burka Shobe 011-639-13-78/77
28 Cameroon Avenue 0116-66-24-29/25-28
29 CMC 0116-67-51-88/0116-67-51-55 0116-67-51-04
30 Dukem 0114-32-05-02/03-42/03-99 058-775-21-15
31 Dukem Industry 011-462-80-20/22 New
Zone
32 Edget 0116-29-25-26/21-08 0116-29-22-59
33 Gara Gura 011-639-04-52/13-68


34 Gelan 011-471-34-70/
35 Gelan Condominium 011-455-02-08/01-18 New
36 Gerji 0116-47-62-75/76 0116-47-62-74
37 Gerji Giorgis 011639-40-00/10 0116-39-40-02
38 Gerji Mebrat Haile 011-639-49-14/59-91
39 Goro Beshale 011-666-09-31/668-34-82
40 Gurd Sholla Jakros 011-639-54-93/648-92-44/665-87-75/659- 011-661-74-00
01-41
41 Harbu Gudo 011-668-31-68/32-25
42 Hayat 49 Branch 011-639-13-67/21
43 Hayat Adebabay 011-639-03-05/23 011-639-03-14
44 Hayat Arabsa 011-816-01-10
45 ICT Industry Park 011-667-95-96 New
46 Imperial Akababi 011-667-46-73/49-24 011-667-48-38

47 Jackros 011-667-70-69 011-667-66-18
48 Jacros Adebabay 011-673-43-21/22
49 Jakros Figa 011-813-23-41
50 Kality Gebriel 011-471-72-62/15/65/28 0114 71 72 63
51 Kality Gumruk 0114-70 72 79/55/63/54/011-869-49-83 011-470 72 86
52 Kilinto Branch 011-451-20-15/20-14
53 Kilinto Industry 011-451-34-04/34-79 New
Park
54 Kokeb 011-667-44-63 011-667-38-02
55 Kore Guye New
56 Korea Hospital 0116-29-38-36/35-43 0116-29-31-50
57 Koyefeche 011-855-36-49 New
58 Lemlem Meda 011-673-25-64/20-79 New
59 Megenagna 22 011-667-33-82/31-56 011-667-33-63
60 Mehal Gerji 011-639-56-57/58-38 New
61 Mehal Summit 011-660-80-40/80-08 New
62 Melka Sheno 011-471-56-46/68-90 011-471-54-16
63 Meri-Summit 011-668-27-36/667-97-57
64 Millennium 011-661-00-87/68-38/56-95 011-661-55-50
65 Moenco 011-667-44-48/20 0116-67-44-69


66 Oda Nabe 011-471-82-93 046-339-08-74
67 Rwanda Embassy 011-614-66-78/14-67-58 011-614-66-40
Akababi
68 Salogora 011-471-62-23/011-471-61-87 011-471-61-97
011-869-64-64
69 Shalla 0116-67-38-20/21/22 0116-67-37-18
70 Summit 011-668-09-71/01-04 011-668-01-48
71 Summit 72 011-639-11-51/52
72 Summit Goro 011-672-66-42/65-33 New
73 Summit Safari 011-668-87-94/88-38 New
74 Tulu Dimtu 011-462-70-11/12
75 Weji 011 -672- 68- 98/35
76 Wollo Sefer 011-557-83-73/99-34 New

Adebabay
77 Wolo Sefer 011-557-58-55/40-20 011-557-43-24
78 Worku Sefer 011-471-74-98/79-49/76-31 011-471-76-31
79 World Bank 0115-15-30-87 0115-15-06-01
80 Wuha Limat 0116-18-12-00/18-90-21 011-618-78-29
81 Yerer 011-667-72-04/56 011-667-72-47
82 Yerer Leka 011-6733824/27-94 New
83 Yerer Sefera 011-666-16-98/34-28 New
84 Head Office 0116-18-35-72/61-18-24/25/662-03-03 011-663-75-38/011-

663-35-30/0116-62-09-85 (Operator) 662 03 02
011-618-01-25
5.North Region
North Region
1 Adigrat 034-445-03-30/04-69/00-16 /04-28/45-69

2 Adihaki 034-240-20-34/18-62 046-335-02-20
3 Alamata 034-774-07-35/82


4 Axum 034-275-94-90/71-61 0582-22-11-47
5 Edaga Hamus 034-773-06-52/07-39/95
6 Edaga Mekele 034-240-53-13/35/04 047-151-03-52
7 Elala 0342-40-26-63/90-64
8 Godana Selam 034-440-69-96/70-44 046-556-01-09
9 Humera 0344-48-14-72/73
10 Jibruk 0344-40-45-72/52
11 Meda Agame 034-245-43-17/87-18 011-218-03-33
12 Mekele 034-241-52-12/45
13 Shire endesilassie 0344-44-05-90/034-444-43-13/22-21 0465-51-07-06
14 Wukro 034-443-04-96/02/03-21
6.Dessie Region
1 Adago 033-431-49-92/49-91 New
2 Ataye 033-661-07-30/10-59 057-557-05-55
3 Bati 033-553-22-72/18-08
4 Buanbua Wuha 033-311-98-98/ 033-311-69-92 046-115-09-27
5 Degolo
6 Dessie 0331-11-28-29/34/37 034-240-52-87
7 Haik 033-222-07-65/12-80 025-441-12-53
8 Hara 033-452-05-59/44 033-550-00-50
9 Kemissie 033-554-14-50/43
10 Kobo 033-334-13-12/13-10
11 Kombolcha 033-551-08-77/39/83/07-96 0344-41-89-66
12 Kone 033-443-05-66/07-54 057-776-09-10
13 Lalibela 033-336-13-35/14-10
14 Logia 033-550-00-60/75/16
15 Mekaneselam 033-220-11-06/26
16 Meket 033-211-12-88/74
17 Mekoy 033-444-05-57/02-88 New


18 Mersa 033-333-10-36/46
19 Mugad 033-312-63-58
20 Sekota 033-540-54-20/19
21 Semera 033-366-28-13/48-85
22 Shewa Robit 033-664-19-86/21-89
23 Tosa 033-312-56-12/79-94
24 Were Ilu 033-554-14-43/50 New
25 Woldia 033-331-25-79/16-93
7.North West Region

1 Abay Mado 058-321-20-81/31-97 058-321-01-10

2 Addis Kidam 058-450-07-35/07-12 New
3 Adet 058-338-10-74/73 034-240-25-46
4 Azezo 058-114-12-22/058-114-11-63 058-320-89-86
5 Bahir Dar Gebeya 058-320-07-90/14-67
6 Bahirdar Ghion 058-320-95-10/96-92
7 Bahrdar 0582-20-06-71/20-10-26
8 Belay Zeleke 058-320-97-23/84-39 New
9 Bichena 058-665-15-80
10 Bure Damot 058-774-10-73/774-11-48/83
11 Chagni 058-225-04-58/01-79
12 Dangila 058-221-18-20/17-31 057-555-12-77
13 Debark 058-111-48-68 022-333-09-27
14 Debre Elias 058-250-06-35/05-76 New
15 Debre Markos 0587-71-40-24/73-89/23-28 058-141-03-55
16 Debre Tabor 058-141-03-03/46/19/42 022-211-57-33
17 Debrework 058-663-00-00/01-34 0331-11-28-39 New
18 Dejen 058-776-24-74/21-68 022-666-04-29 New
19 Dembecha 058-773-08-53 New
20 Dengel 058-320-71-61/74-54 New
21 Dur Bete 058-556-57-64/65 0475-51-18-69


22 Este 058-447-16-98/058-447-16-18 057-227-05-00
23 Fasiledes 058-211-46-21/22
24 Finote Selam 058-775-21-13/14 011-131-07-95
25 Ginde woin 058-664-05-97/96
26 Gishabay 058-226-64-67/058-226-44-16
27 Gonder 0581-11-48-67/68
28 Injibara 058-227-08-07/09 046-324-20-04
29 Jawi 0582-78-04-02/03
30 Jiga 058-779-06-39/04-77 New
31 Kidame Gebeya 058-211-81-21/22
32 Koso Ber 058-227-70-60/18 New
33 Kuch 058-289-04-45/46
34 Lumame 058-772-07-29/28 047-135-18-79
35 Mambuk
36 Maraki 058-211-50-81/57
37 Merawi 058-330-09-69/88 057-632-06-06
38 Metema Yohannes 058-555-56-51
39 Mota 058-661-19-74/20-74 022-212-04-08
40 Nefas Mewcha 058-445-18-26/17-92
41 Shebel Berenta 058-247-04-94/03-59 011-187-08-16 New
42 Shimbit 058-320-42-90/43-87 033-331-26-19 New
43 Tana 058-320-18-60/61 047-226-05-60
44 Tilili 058-229-06-64/63
45 Wenbera 058-451-04-51/50
46 Woreta 058-446-16-41/058-446-14-91
47 Yejube 058-246-04-75/39 New
48 Zenbaba 058-320-69-24
49 Zigem 058-555-90-31 New
8.Adama Region
1 Abomsa 022-441-13-41/40 046-211-50-58

2 Ada'a 0114-33-89-00/86/26 022-663-12-58


3 Adama 0221-11-85-85/84/86/022-112-15-00/022- 0221-11-53-75
111-11-23/13-82
4 Adama Bole 022-211-52-47/46 022-211-63-93
5 Adama Industry 022-212-59-87/63-91 New
park
6 Adama Ras 022-211-63-94
7 Arboye 022-470-04-12/07-44
8 Arerti 022-223-06-64/022-223-05-61 0223-31-56-22
9 Arsi Robe 022-242-17-65/14-06
10 Arsi Sire 022-330-07-57/07-39 New
11 Assella 022-331-27-70/28-75/63-56/ 0256-62-05-93
12 Awash Melkasa 022-225-03-17/08 New
13 Awash Sebat Kilo 022-224-02-74/79/ 022-224-03-19/44 058-114-08-79
14 Balchi 011-673-04-06/0116730092 New
15 Batu 0464-41-22-10/52/54
16 Bele Gesgar 022-513-76-55/77-23
17 Berecha 022-112-04-81/05-75/022-111-18-59 057-641-04-62
18 Bishoftu 0114-33-53-44/82/83/88 047-331-23-23
19 Bokoji 0223-32-06-55/04-39/ 022-832-90-20
20 Boku Shanan 022-211-79-64/65
21 Bole Nura Era 022-453-06-37/08-63 0464-43-09-35
22 Boru Jawi 022-512-04-00 New
23 Bosset 0221-11-90-27/28/30 058-774-11-96
24 Bote 022-115-05-03/04-92
25 Chefe 022-211-16-34/07-30 New
26 Chefe Donsa 022-451-05-14/10
27 Chilalo 0223-31-82-74/75/76 022-668-05-40
28 Cholle 022-454-05-61/022-454-05-62 058-221-21-43
29 Dabe Boku 022-212-44-69/46-84 New
30 Dabe Soloke 022-211-54-33/75-88 New
31 Dambi 0114-30-05-63/64/67/68 0221-10-06-22
32 Degaga 022-211-93-77 New
33 Dembela 0221-10-06-21/23/06-24
34 Dera 022-333-00-00/09-17 0114-32-05-23
35 Derartu Adebabay 022-211-69-26
36 Dhadacha Arara 022-212-17-46/30-74 New
37 Diksis 022-339-05-55/18


38 Doni 022-512-34-78/29-34 New
39 Dosha 022-238-26-12/67-34 New
40 Eteya 022-335-04-89/07-65 022-337-07-69
41 Ganda Gara 022-212-19-03/48-52
42 Gara Baru 011-430-00-96/49
43 Gobessa 022-446-06-57/93
44 Gololcha 022-826-09-04 0256-67-02-87
45 Haro Dembel 046-441-17-38/30-83 New
46 Hora Bishoftu 011-430-05-87/84-97 New
47 Huruta 022-334-12-3/332 022-111-83-03
48 Kalacha 022-211-74-56/67-80 New
49 Kechema 022-111-83-02/83-06/83-10
50 Kersa 022-337-07-70/71
51 Koka 022-499-01-92/02-05
52 Kurkura 011-848-08-65 New
53 Lume 022-236-34-12 New
54 Mararo 022-467-03-59/31 046-445-21-92 New
55 Meki 022-118-00-44/08/118-05-33/022-118-07-
47/022-118-01-98/80
56 Metehara 022-226-12-13/13-11
57 Migra 022-212-59-38/52-30 0251-11-21-33 New
58 Mojo 022-116-03-55/022-116-02-86
59 Negele Arbagugu New
60 Olenchiti 022-113-11-11/10-33
61 Sagure 022-338-05-33
62 Sar Tera 022-212-04-14/03-90/04-10/14
63 Sekakalo 022-211-59-94/87-96 New
64 Siltana 022-513-03-36/33-72
65 Sole 022-211-96-61/64-48 New
66 Uta Wayu 022-479-05-78/04-97 New
9. South Region
1 Abaro 046-211-39-65/64
2 Abaya 046-326-61-62/56-34


3 Abosto 046-211-50-77/13/20/34 0114-33-85-47
4 Adaba 022-663-12-22/65
5 Adola Weyu 046-335-00-59/06-07/06-15/06-19
6 Aje 046-456-02-76/68 New
7 Alamura 046-212-70-96/63-08 011-367-91-16
8 Aleta Chuko 046-227-08-05 New
9 Aleta Wendo 046-224-05-88
10 Angetu New
11 Arsi Negele 0461-16-01-27/09-46/ 0577-75-17-41
12 Assasa 022-336-08-45 046-211-98-40
13 Awasho 046-211-74-22/55-35 025-665-06-67
14 Bale Robe 0226-65-17-00/06/12-03/16-99/ 0464-41-22-11
15 Bani 046-211-18-65/49-98 0255-55-01-69
16 Bensa Daye 046-337-0637/046-337-0638 0223-32-00-80
17 Beriso Dukale 046-443-15-20/16-25 011-188-09-23 New
18 Bule Hora 0464-43-09-27/01-21/09-22
19 Chelelektu 046-333-04-20 011-665-92-78 New
20 Chembelala 046-212-66-56/69-29
21 Dilla 0463-31-09-70/43-41/10-62/20-22
22 Dodola 022-666-04-74/77 011-135-21-87
23 Dolo Oddo 046-449-04-14/449-03-77/011-126-47-66
24 Dolomena 022-668-00-39/21 025-552-13-48
25 Filtu 046-473-05-38/48
26 Fura 046-212-1854/2188 022-661-49-27 New
27 Gasera 022-462-07-54/15-88
28 Gedeb 046-268-03-77/05-90 New
29 Ginnir 022-664-11-50 025-411-03-90
30 Goba 022-661-26-13/29-29
31 Haro Walabu 046-131-04-45 022-335-08-18
32 Harufa 046-110-03-35/0461-10-06-10/11
33 Hwassa 0462-20-48-19/47-22/ 47-11/ 47-51/
0916-85-72-83/0911-42-52-35/0926-41-
56-81/ 0916-03-10-46/
34 Hawasa Industry 046-212-14-78/ 24-72 New

Park
35 Hawassa Areb Sefer 046-212-38-49 058-278-04-01


36 Hawassa Menaharia 046-212-40-21/41-62 025-211-08-83
37 Jara 022-478-07-13/06-91
38 Kercha 046-324-20-08
39 Kiltu Dema 046-328-96-91 New
40 Kofele 046-112-09-78/046-112-08-69 057-779-08-44
41 LEKU New
42 Madda Walabu 022-244-20-68/18-03
43 Moyale 046-444-17-91/16-62
44 Negelle 046-445-21-90/93
45 Sawena New
46 Shafeta 046-212-62-61/64-99
47 Shakiso 046-334-13-99/046-334-11-93/13-41 034-443-02-38
48 Shashemene 0461-10-65-25/27-59/27-60
49 Sofomer 022-665-31-17/25-25
50 Tabor 046-212-00-34/00-56
51 Wenago 046-333-08-95/07-28 New
52 Werka New
53 Wondo Basha 046-2220-04-27/05-15
54 Yabelo 0464-46-07-64/01-97/ 46-08-87/07-64
55 Yirba 046-239-03-87/01-90
56 Yirgachefe 046-332-16-59/15-64 New
57 Yirgalem 046-328-81-25/8176 New
58 Yirgalem Industrial 046-328-81-09/63 New
Park
10.Wolayita Region
1 Alaba Kulitu 046-556-01-24/02-24/046-556-00-52 011-261-00-21

2 Ameka 046-855-55-46 New
3 Angecha 046-304-06-66/07-77 New
4 Arbaminch 046-881-29-92/34/41-50 022-242-00-42
5 Areka 046-552-13-20/13-21 022-336-08-19
6 Birbir 046-452-06-78 New
7 Boditi 046-559-0965/10-00 0221-11-90-29


8 Bonosha 046-453-02-55/00-19 011-260-49-59
9 Dallocha 046-466-04-40/05-96 New
10 Demboya 046-245-03-58 / 44 New
11 Dicha 046-180-49-59/57-14 057-550-05-65
12 Doyo Gene 046-244-04-59/91 057-664-00-41
13 Durame 046-554-16-22/18-65 011-367-90-92
14 Fonko 046-263-04-18/02-81 New
15 Garo 046-181-47-96/03/31 058-222-00-73
16 Gesuba 046-469-05-63
17 Gimbichu 046-772-07-88/07-89
18 Gofer Meda 046-178-73-71/79-93 New
19 Gombora 046-178-67-57/046-178-88-17
20 Hadero 046-432-07-20/06-91
21 Homecho 046-251-07-12/04-56 New
22 Hossana 0465-55-06-84/00-75/09-13
23 Humbo 046-461-05-20/08-57
24 Jinka 046-115-18-62/00 033-336-12-86
25 Karat 046-773-05-80/21 New
26 Kindo Koysha 046-450-05-16/03-95 0255-57-05-63
27 Sawla 046-777-16-62
28 Seleme 046-178-62-42/21-20 New
29 Shinshecho 046-339-08-50/08-64 011-365-81-68
30 Shone 011-687-06-35/07-74 0113-41-34-72
31 Tercha 047-345-08-64/15
32 Tona 046-180-53-58/65-80
33 Wachemo 046-178-80-07/94-77
34 Werabe 046-771-06-00
35 Wolaita Sodo 0465-51-24-24/0465-51-07-43
11. West Region

1 Aba Sena 057-771-24-84

2 Agamsa 057-890-40-35
3 Amuru 057-639-06-36/07-65
4 Anger Gutte 057-634-02-47/49 057-634-03-84/85 022-223-07-19
5 Aqoldi 057-275-93-90/89-90 0461-16-08-77 New
6 Assosa 0577-75-16-52/17-46/76-73/16-73 034-275-04-77
7 Ayira 057-577-06-98/38
8 Babo Gambel 057-117-03-69/00-19 057-441-06-54 New
9 Bako 0576-65-14-14/65/21
10 Bambasi 057-441-06-77/07-34 047-445-01-73
11 Begi 057-641-04-41/03-26/92/
057-641-05-01
12 Burka Jato 057-660-81-27/29 0223-31-82-77
13 Chomen Guduru 057-861-71-81
14 Dalo 057-660-56-05/08 New
15 Dembi Dollo 0575-55-23-33/057-555-16-51
16 Ejaji 057-550-06-12/06-02 022-212-23-39
17 Enango 057-552-05-55
18 Finchawa 057-664-01-51/00-69/01-90
19 Gedo 057-227-01-59/00-70
20 Gida Ayana 057-773-06-91/56 011-282-08-01
21 Gidami 057-780-08-00/01 057-663-05-71
22 Gimbi 0577-71-00-66/03-42/08-80 057-116-06-66
23 Gobu 057-665-15-73/16-05 New
24 Gudaya Bila New
25 Gudetu Arjo 057-116-06-17/06-60
26 Guduru 057-663-06-10/11 046-220-47-51
27 Gulisso 057-778-02-78/81/85 046-212-36-21
28 Hababo Guduru 057-445-66-69/057-445-60-30 034-773-06-52
29 Harato 057-118-05-96/26 New
30 Haro Limu 057-446-2210/32 0344-48-14-71
31 Haro Sebu 057-556-05-74/06-22
32 Hora Fincha 057-664-26-10/21-34 046-775-18-59
33 Jardaga Jarte 057-637-04-76/


34 Jima Rare 057-223-06-55/05-27
35 Jimma Arjo 057-667-05-15/31
36 Jitu 057-633-06-14/03-97 New
37 Kamashi 011-215-05-30/62
38 Kumsa Moroda 057-660-12-51/27-05
39 Leka 0576-61-14-02/30/33
40 Mendi 057-776-09-06/07 /057-776-07-56/08-77
41 Mizyig 057-447-20-20/21 0576-61-54-74
42 Mugi 057-779-06-55/05-33
43 Nafi 057-660-97-35/36 011-638-73-92
44 Nejo 057-774-04-92/057-774-02-87/06-14 0461-10-00-14
45 Nekemte 057-661-70-92/90/661-32-01/057-661-82-
07
46 Nole Kaba 057-632-06-62/07-14
47 Oda 057-660-09-20/13-70
48 Oda Buluk 057-866-22-78/27-72
49 Sayo Nole 047-557-20-20/21
50 Shambu 057-666-01-42/39
51 Sibu Sire 057-668-09-21/09-17
52 Uke kersa 057-447-61-43/057-447-61-61
12. South West Region

1 Aba Jifar 047-211-27-94/17-33

2 Ababuna 047-211-46-05/45-89
3 Agaro 0472-21-17-46/36-55
4 Asendabo 047-114-07-93/08-31
5 Baromado 047-151-46-65/42-48 New
6 Bedele 047-445-08-65/10-97/02-40/01-43
7 Bonga 047-331-18-65/06-91 011-260-46-12
8 Chora 047-337-07-06/05 0116-37-50-88
9 Darimu 047-444-05-61/06-28 New
10 Didessa 047-443-05-37/39 New


11 Dima 047-835-12-90/96 New
12 Gambela 0475-51-18-14/67/68 057-780-08-02
13 Gambela Newland 047-151-52-79/38-50 011-258-11-70
14 Gera 047-342-06-93/30
15 Gomma 047-221-53-47/48 025-466-98-59
16 Gore 047-554-14-27/13-21 New
17 Hirmata 047-211-00-33/35/39 0471-11-94-12
18 Hurumu 047-446-05-65/06-16 New
19 Jimma 047-111-21-89/11-59-76/12-92/25-58
20 Jiren 047-211-37-08/31-88
21 Konta 047-227-05-93/07-32 New
22 Limu Genet 047-224-07-52/20 0474-41-41-65
23 Masha 047-452-26-51/53
24 Meti 047-339-06-64/05 New
25 Metu 047-441-26-48/34/67 022-113-11-71
26 Mizan Teferi 047-135-91-38/31-89
27 Pugnido 047-465-03-91/06-99
28 Shebe 057-639-06-36 011-380-30-07
29 Shenen Gibe 047-211-76-24/66-93
30 Shey Bench 047-777-04-46/07-30 New
31 Sokoru 047-111-70-634/04-99 New
32 Tepi 047-556-34-89/35-66
33 Toba 475-40-05-00/0475400751 New
34 Wacha 047-338-04-75 New
35 Yayo 047-333-07-65/51/80
36 Yebu 047-226-04-85/06-22
13.East Region
1 Aferen Kelo 025-441-12-52

2 Aweday 0256-62-05-61/66 0576-65-14-94
3 Babile 025-665-06-14/07 0226-65-19-75
4 Bedeno 025-332-06-81/70 0114-37-04-20 New
5 Bedessa 0255-55-01-51/00-57


6 Beroda 025-443-0495/05-24 New
7 Boke 025-230-07-11/04-69 022-115-05-42
8 Chelenko 025-335-05-86 0587-71-42-25
9 Chiro 0255-51-11-21/10-21 011-430-05-69
10 Dara 025-772-09-95 New
11 Deder 025-333-12-99/12-68
12 Dire Dawa 025-771-06-48/49 0463-31-41-07
13 Dire Dawa 0251-11-40-42/80-16/80-05 New
Industrial Park
14 Gelemso 025-113-03-69
15 Gode 025-552-13-28/ 14-00
16 Grawa 025-776-10-89/15-04
17 Hafatessa 025-334-05-79/31 057-556-08-31
18 Harar 025-411-03-95/88/78 025-811-92-30 047-211-00-44
19 Harar Arategna 0256-66-06-16/025-667-07-60 0465-55-06-94
Sefer
20 Harar Hundene 025-466-27-07/025-466-85-34
21 Haromaya 025-466-85-35
22 Hirna 025-661-04-67 058-227-08-04
23 Jigjiga 0257-75-25-48/65-88 033-551-07-92
24 Kali 025-278-02-70/94/35/97 0576-61-14-39
25 Kezira 025-211-37-60/08-83
26 Kulubi 025-339-00-00 022-118-07-40 New
27 Laga Oda 025-211-53-60/84-40
28 Mechara 025-557-05-61/62-32-02 033-312-11-40
29 Nahar 025-211-35-15/87-58
30 Sabian 0251-11-21-30/12-48-79/ 0935-66-06- 011-161-71-51
98/99
31 Shebele 025-278-68-55/82-06 011-380-40-33
32 Shewa Ber 025-466-42-02/92-44 New
33 Togochale 0258-82-01-31/0258-82-01-32
34 Weltasis 025-659-45-43/025-659-04-07 New

List of Full-Fledged Intrest Free Banking Branches (IKHLAS)
No Name of branch Location Telephone Remark
1 North A.A Region

Near to T/Haimanot
1.1 Ababil 011-126-4763/66
Hospital
Infront of Awelia
1.2 Awelia 011-273-1210/1995
School
South Addis Ababa
2
Region
2.1 Ameen Furi-Bajaj Tera Area 011-380-5064/5240
2.2 Ihsan Welete Area 011-380-3496/3243
3 West Addis Ababa Region

3.1 Afdal Sidamo-tera Area 011-273-3102/01
3.2 Amal Awtobes Tera 011-273-5524/23
3.3 Khidma Bereber Berenda Area 011-369-5084/5812
3.4 Manal Alem-Bank Square 011-369-5084/12
3.5 Mu’amalat Branch Betel area 011-369-7815/16
3.6 Yusera Karakore Girar Area 011-369-5455/3856
4 Adama Region
4.1 Kuaser Assela 222283147
4.2 Noor Adama 022-111-27-79
4.3 Raji Adama 022-212-10-86/07-92 New
5 North West Region

5.1 Nejashi Bahir Dar 058-220-78-29/69-20
6 South Region
6.1 Bani Shashemene 046-211-18-65/49-98
6.2 Berekah Shashemene 046-211-93-28/56-47
6.3 Ikram Assasa 022-336-07-95 New
6.4 Teqwa Dodola 0910-98-95-91 New
6.5 Ansar Robe 0921-09-73-92 New
7 South West Region

7.1 Ashura Dedo 047-223-05-19/26
7.2 Rayyan Agaro 047-221-2690/1165

7.3 Hira Jimma 047-211-1902/2164
8 East Region
8.1 Barwako Jigjiga 025-278-53-91/92
8.2 Chinaksen Chinaksen 025-779-05-29/04-59
8.3 Degehabur Degehabur 025-771-06-48/49
8.4 Huda Harar 025-338-0755/56
8.5 Korahay Kebrdar 025-774-02-12
8.6 Meshreq Dire Dawa 025-411-5439/1593
025-211-8758/35-
8.7 Nahar Dire Dawa New
15/24-39
8.8 Dara M/Harerge 025-772-09-95 New
8.9 Billal Harer 025-466-41-76 New
8.1 Taajir Harer 025-466-80-74/09-46
9 West Region
9.1 Nafi Nekemte 057-660-97-35/36
10 Dessie Region
10.1 Afelah Kombolcha 033-351-7905/6527
10.2 Akrem Harbu Town 033-552-05-15/04-96
10.3 Fathi Dessie 033-312-7981/8593
10.4 Mabrook Sanbete 033-118-06-08/06-27
10.5 Kebir Chefarobit 09-24-13-81-30 New
11 Wolayita Region
11.1 Amanah Halaba 046-556-16-25/26
11.2 Mina Werabe 046-771-0844/75
11.3 Afiya Sankura 046-237-03-10 New
11.4 Imam Lera 046-234-04-66/02-97 New



አዋሽ ኢንሹራንስ

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We flow with you.
Customer Line: 8980

TEL: +251 115 570167 FAX: +251 115 570136
Tel. +251-11-466 5781/82
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P.O.BOX: 12638 Addis Ababa , Ethiopia

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Nurturing Like the River

The Bank that

2 Annual Report 2021/22

Annual Report 2021/22 3

Vision, Mission & Values

4 Annual Report 2021/22

BOARD CHAIRMAN’S MESSAGE 10

CHIEF EXECUTIVE OFFICER’S

BOARD OF DIRECTORS’ REPORT 27

FINANCIAL HIGHLIGHTS 145

ATMs LOCATIONS 146

AWASH BANK BRANCH ADDRESS 149

Annual Report 2021/22 5

Highlight of Major Performances

Deposit Loans Advances

0 0 2017/18 2018/19 2019/20 2020/21 2021/22

Total Assets Capital Reserve

Proﬁt Before Tax Number of Branches

5,000 3,600 500

6 Annual Report 2021/22

Responding To Changing Life

Annual Report 2021/22 7

THE BOARD OF DIRECTORS

Ambassador Dr.Dibaba Abdeta

Gure Kumssa Abaynesh Bekele Abaynesh Merga

Alemu Tita Beza Tadesse Getachew Olana

8 Annual Report 2021/22

Girma Guluma(Eng) Gudissa Legesse Kedeme Teshome

Roba Arega Yoseph Yonas

Annual Report 2021/22 9

Ambassador Dr.Dibaba Abdeta

10 Annual Report 2021/22

Annual Report 2021/22 11

12 Annual Report 2021/22

Yohannes Merga Tadesse Gemeda Henock Tessema

Tilahun Geleta Abebe Deressa Dessalegn Tolera Tilahun Temotewos

Annual Report 2021/22 13

Abdella Adem Kefyalew Shiferaw Lamessa Soboka

14 Annual Report 2021/22

Abebe Tadesse Beyene Dekeba Birhanu Balcha

Dereje Getachew Desalegne Assefa Ebisa Deribie

Ephrem Bogale Fikru Gebrewold Gacho Wara

Gutama Tesfa Hailu Meskala Hailu Woldegebriel

Kelemu Amha Lemessa Bulti Lemi Furgassa

Melkamu Tadesse Mohammed Kedir Nurfeta Legesse

16 Annual Report 2021/22

Olani Tabor Samson Hussein Solomon Jebessa

Soressa Alemu Takele Arega Tegene Tesfaye

Tesfaye Seifu Tewodros Hailu Tusi Mendido

Annual Report 2021/22 17

Tsehay Getachew Wendimagegnehu Birhanu Yohannes Tsegaye

Yonas Atomsa Yonas Kumera Zebene Kaba

18 Annual Report 2021/22

Aweke Shegu Elias Eshetu Merga Atnafu

Meseret Ambelu Tadele Alemayehu Teferi Bekele

Annual Report 2021/22 19

Tilahun Dejene Wegayehu Teshome Yadesa Miressa

Yirga Yigezu Zelalem Bekele

20 Annual Report 2021/22

CHIEF EXECUTIVE OFFICER’S