PRACTICAL ATTACHMENT REPORT ON HIBRET

BANK OF ETHIOPIA, HAWASSA MENHIRIA BRANCH

ID. No: HU/AcFn/E/0398/12

A Report Submitted in partial fulfillment of the requirement for the subject INTERNSHIP (4113) on Bachelor of Arts (BA)
Degree in Accounting and Finance

PROGERAM OF ACCOUNTING AND FINANCE

DEPARTMENT OF ACCOUNTING AND FINANCE

COLLEGE OF BUSINESS AND ECONOMICS

HAWASSA UNIVERSITY

JANUARY, 2024

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 I. Declaration
AbigeI Abebayeu

(ID. No: HU/AcFn/E/0398/12)

3rd Year Accounting and Finance

Program of Accounting and Finance

Department of Accounting and Finance

College of Business and Economics

Hawassa University

DECLARATION

I, the student whose name mentioned above (Abigel Abebayeu HU/AcFn/E/0398/12) hereby
declare that the report entitled On Jan 09,2024 Submitted to department of Accounting and
Finance, Regular Under Graduate Program, Hawassa University in partial fulfillment of the
requirement on Internship (4113), is a record of the original report work done by me and
that it has not formed before the basis for the award of any degree/diploma/ associate
ship /fellowship or any other similar titles.

Date: 4thJuly, 2022

II. Acknowledgement

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First I give a great thanks to the manager of Hebert bank menahirya branch Mr. Wendesen
for his unreserved support and acceptance of my request, and for Mr.aberu the customer
service supervisor and also Staff members of the branch for their help by providing the
requested data.

Finally, I would like to express a great thanks to Hawassa university business and economics
college department of accounting and finance for giving me this chance to do this practical
attachment.

TABLE Of CONTENTS

Content page no

1.Chapter one---------------------------------------------------------------------------------------------------------------5

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1.1Back ground of the organization--------------------------------------------------------------------------------------------5

1.2 vision------------------------------------------------------------------------------------------------------------------------------------5

1.3mission----------------------------------------------------------------------------------------------------------------------------------5

1.4 Organizational structure of Hibret Bank-----------------------------------------------------------------------------6

1.5 Main objective of hibret bank-----------------------------------------------------------------------------------------------6

Chapter 2: Management and training information------------------------------------------------------------------------7

Chapter 3 : 3. Job background and information------------------------------------------------------------------------------11

3.1 deposit-------------------------------------------------------------------------------------------------------------------------------------11

3.2. Payment/withdrawal via:--------------------------------------------------------------------------------------------------------11

3.3. Account opening this includes;---------------------------------------------------------------------------------------------11

3.4. Transfer --------------------------------------------------------------------------------------------------------------------------------11

3.5. Exchange foreign money----------------------------------------------------------------------------------------------------------11

Chapter 4: SWOT Analysis Strength, Weakness &Opportunity and Threats of the organization------12

4.1. S TRENGTH --------------------------------------------------------------------------------------------------------------------------------12

4.2. Weaknesses-----------------------------------------------------------------------------------------------------------------------------------------12

4.3 Opportunity---------------------------------------------------------------------------------------------------------------------------------------------13

4.4.Threat--------------------------------------------------------------------------------------------------------------------------------------------------------13

Chapter 5: Evaluation, Conclusion and Recommendation -----------------------------------------------14

5.1.
Evaluation--------------------------------------------------------------------------------------------------------------------------------------------------------14

5.2. Conclusion
--------------------------------------------------------------------------------------------------------------------------------------------------------14

5.3.Recommendation----------------------------------------------------------------------------------------------------------------------------------------------
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Reference------------------------------------------------------------------------------------------------------------------------------------------------------------
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Chapter 1: Introduction

1.1. Back ground of the organization

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Hibret Bank is one of Pioneer private Banks in Ethiopia. Hibret is founded with the underlying
rationale that value diversity. The founding shareholders were enterprising Ethiopians from all walks
of life that combined and committed their resources to establish the bank. The name “Hibret” is
Amharic word for collaboration and synergy.

The bank was incorporated as share company on 1September 1998 GC in accordance with the
commercial code of Ethiopian 1960 and the Licensing and supervision of banking Business
proclamation No. 84/1994 . Over the years Hibret bank has built a reputation for providing
innovative financial solution to the Ethiopian banking industry. As a result of the bank’s competitive
edge in the technology and reputable name , Hibret Bank is selected as a pioneer partner by Giant
National brands such as The Ethiopian Airlines in “Hibir Sheba miles “and the Ethio Telecom in
“Tele –Birr” and the ministry of revenues for e-tax payment.

today ,Hibret is a reputable Brand in Ethiopia ,with more than 470+ branches and sub –branches
(still-expanding),4706 employees out of 41.8%are women. Hibret bank is now the proffered Bank by
big international organizations and local businesses ,Non –governmental organization and institutions.

1.2 Vision

“TO GLOBALLY BE THE PREFERRED FINANCIAL SERVICES PROVIDER OF INNOVATIVE

1.3:Mission
“committed to exceeding the expectations of our customers and other stakeholders by
providing competitive financial solutions while ensuring efficient service delivery and people
empowerment”.

Tagline
united, we prosper!

1.4 Organizational structure of Hibret Bank

Hibret Bank is governed the board of directors consisting of a long-term shareholder value

there are four standing sub committee, the audit committee, the business development

committee, Loan review committee that deal with the various businesses affaires of bank.

overall management is entrusted to the management team which comprises the chief

executive officer, who is appointed by the board of directors, eight district directors to ensure

a more effective management.

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1.5 Main objective of hibret bank

1. Maximizing profitability through increased efficiency,

Chapter 2: Management and training information

Since I started this practice the staffs have welcoming environment to their customers, they work
together, they solve problems together generally they have team spirit.

My apparent has 4 phases since there is four weeks in one month

In the first week the manager directed me to practice, asking him and other co-workers about the
banking operation system on how they treat customers because there is a different type of customers
one bank worker have to treat them with a lot of humility and without bias/favoritism based on their
religion, nation, color and so on there must be impartial service to customers in the bank.

Also they told me about time punctuality and dressing code In the morning the bank starts work on
2:30 and ending in 11:30in local time.

The key operational activities I have seen in the bank in my day to day activities are acceptance of
deposits, lending of funds, cleaning checks, remittance of funds, lockers and safe deposits, bill
payment services, online banking, credit and debit cards and so on…

In the second week have been working on account opening area for new clients of the bank this have
a lot of works to do and as I mentioned above there may be a lot of peoples who have different
behaviors so you have to treat them by full of patience.

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-The account can be accessed through; Valid, government issued and renewed Identification card
with its copy,

-Only birr 25 up 50 ETB is needed to open a saving account,

-The account can be accessed through payment card, mobile and internet banking services,

- Two recent photos,

-Filling the required data/application on the prepared saving account opening form.

Finally the customer become new family of the bank and he can save his money withdraw and can
gain the available services.

In the third week have been working on customer service area with the bank customer service officer
asking and looking how he is working. Bank customer service officers, also known as bank tellers,
responsible for accurately processing routine transactions at bank. These transactions may include
processing deposits, collecting loan, payments or cashing checks. Bank customer service officers may
also advice customers on how to use the bank’s facilities, or provide basic information about products
or services.

-One customer service officer have to deliver qualitative service to customers.

- Promote bank products and services.

-Build customer relationships, Maintain and manage existing accounts.

-Accept cash or money orders deposited by customers, credit customers’ accounts and issue receipts
and statements.

-Pay money to or credit accounts for customers according to advice slips checks or other banking
documents and debit appropriate accounts.

-Conduct foreign currency transactions for overseas travelers.

-Provide change and cash checks.

-Balance cash.

-Answer customer inquires.

- Identify customer needs and refer customers to appropriate banking services and specialists.

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- close accounts.

- One customer service officer would accept cash or money orders deposited by customers, credit
customers’ accounts and issue receipts and statements. Pay money to or credit accounts for
customers according to advice slips, checks or other banking documents, and debit appropriate
accounts.
- A customer service officer is a public-facing role that involves communicating with customers
and clients via telephone, face-to-face, or email regarding a particular service or product .

To become a bank customer service officer, you would need:

 Good communication skills

In the fourth week have been working on the area of ATM card opening system which stands for
automated teller machine, is a specialized computer that makes I covenant to manage a bank account
holder’s funds. It allows a person to check account balances, withdraw or deposit money, pint a
statement of account activities or transactions and even purchase stamps.

I learn How to give loan for customers the bank offer healthy loan portfolio, and well-experienced
management team. The Bank avails a wide range of credit products/services so as to satisfy its
customer needs in line with the credit demands of the economy.Types of Loans Provided by Hibret
Bank Term loan Overdraft,Letter of credit,Merchandise loan,Pre-shipment,Advance on Import,Trade
Bill discounting,Syndicated loan,Letter of Guarantee,Personal/Consumer loan.

The bank entertains the following types of assets as collateral Buildings (Residential, commercial,
Factory),

Motor vehicles (Trucks and trailers, Tankers, Buses, Dump Trucks, Automobiles),

Construction Machinery and Equipment,

Business Mortgage,

Cash Deposits (C/A, S/A, CDs),

Merchandise (against Physical pledge, MDSE In transit, Warehouse receipts & Against stock list)

Negotiable Instruments (Treasury bills, Government bonds, Cash surrender values of Life Insurance
Policy)

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Share Certificates,

Guarantees (Bank Guarantee & Personal Guarantee),

Government guarantee

The bank also entertains different types of personal loans for Individuals, NGOs, Diasporas, Big
Depositors, High-value customers, MSMEs

Customers Should Satisfy the Following Criteria

Open accounts in the branch where the credit would be requested.

Fill an application form mentioning the objective and the amount of the credit.

Supplement a renewed trade license and other relevant licenses.

Memorandum and articles of association for businesses with legal personalities.

Profile of management members

Business plan.

Businesses with legal personality should submit audited financial statements preferably done by
external auditors

Financial statements showing the business and financial position.

Balance Sheet.

Income Statement.

Cash flow statement

Other relevant documents as deemed necessary by the Bank and NBE.

Chapter 3 3. Job background and information

3.1. Deposit

It is a type of deposit which is offered to natural and legal persons that enables customers to save
money to meet their future needs and wants. It’s benefits include competitive interest is earned
monthly, The account is captured in a system or quick and efficient deposits and withdrawals at any
branch of the bank, The account can be accessed through payment card, mobile and internet banking
services.

3.2. Payment/withdrawal via:

- Book

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 -Check

-ATM

- Hello cash

3.3. Account opening this includes;

-saving account

-check account

-Time deposit account

3.4. Transfer

- Mobile banking

- Account to account

3.5. Exchange foreign money

-Dollar-birr , -Euro-birr and other foreign money- birr

Chapter 4: SWOT Analysis Strength, Weakness &Opportunity andThreats

As every other institutions hibret bank has its own strength weakness, opportunity and threat analysis
in its operation as follows.

4.1. STRENGTH

With its innovative business strategies and prompt responses to customer demand, hibret became
the modern bank attracting a massive base of customers. It also built the widest network of
international correspondent banks all over the world enabling out international trade with
smoother transactions.

4.2. Weaknesses

Lack of branches out side the ruler area . It also relies heavily on the coordination of the economy, but
this is a problem on global scale.

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This include the issues of impeding loan growth and rising loan clients complain on the bank
regarding the valuing of properties offered for collateral, lengthy of loan processing, amount of loan
processed and approved, loan period, and discretionary limits affecting the performance of credit
management.

There are also some customers who lack experience about the bank awareness gives.

4.3 Opportunity

Service sectors are giving high consideration in the government policy in the form of creating peace
and security in a country. Also the bank has high capital effort this will let the service sectors to do
whatever the bank wants to be in the future time also it’s creating good relationship b/n the staff
members in the bank.

4.4.Threat

As other institutions there is a chance of threats/ risks to in the banking operation as follows:

-A major challenge for other banks and hibret bank today is adoption of more customers .

Internal factors: Internal factors are individual bank characteristics which affect the banks

performance and are basically influenced by the internal decisions of management and board. Internal

factors includes interest rate spread, loan, deposit, capital, asset size, liquidity etc.

Hibret Bank is governed the board of directors consisting of a long-term shareholder value a.there are

four standing sub committee, the audit committee, the business development committee, Loan review

committee that deal with the various businesses affaires of bank. overall management is entrusted to

the management team which comprises the chief executive officer, who is appointed by the board of

directors, eight district directors to ensure a more effective management.

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Chapter 5: Evaluation, Conclusion and Recommendation

5.1. Evaluation

The bank has good working area and workers with good behavior. They really know how to treat
customer with full of respect and there is good cooperation between the employees. The bank is
introducing some unique features to attract massive number of customers. But there is one or two
workers in the bank that do not have the efficiency as other this might be due to lack of experience or
ability to do their work In online banking.

5.2. Conclusion

Generally, even if the history of banking in Ethiopia begin after the establishment of the bank of
Abyssinia, today there is so many banks in Ethiopia hibret bank of Ethiopia is one of those banks that
has many customers in the country. In this competitive world the main properties of the bank are its
customers. As a branch the hibret bank Hawassa branch . The bank today has many customers. To
satisfy customers need expected from the bank its working hard and continue to live with its
customers by extending its services from time to time.

5.3. Recommendation

 To give time saving service the bank must adopt the new operation system
technology after that many service can pass by one person to the customer.
 The bank also must employ well trained workers so the bank can get its goal and
provide satisfying services to the customers.
 The bank give a lot of written materials to the customers to give information about
them this is good but since there is a lot of customers who can’t understand or read
those materials the bank should have to create communication with them and clear
their services and objectives to them.
 The physical and psychological environment of the bank should always be
comfortable to work. It should bring calmness among the worker , the manager
should try to work on removing chaos in any means and keep focus on getting work
done under all circumstance.
 They should open branches thru the area because it have congestion in b/n customers

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Reference
https://www.hibretbank.com.et/business/

“Banking principle and practice” by M. L. Seth

. “Bank management and financial services” by Peter S. Rose and Sylvi

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