Annual

REPORT
July 2015 - June 2016
 www.nibbank-et.com

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 Page

MESSAGE FROM THE BOARD CHAIRMAN 5-6

MESSAGE FROM THE PRESIDENT 7-8

BOARD OF DIRECTORS’ REPORT 10 - 21

AUDITORS’ REPORT 23

FINANCIAL STATEMENTS

BALANCE SHEET 26

INCOME STATEMENT 27

CASH FLOW STATEMENT 28

NOTES TO THE FINANCIAL STATEMENTS 29 - 40

 Nib InternationalBank

Vision
To become an icon of excellence and the leading commercial bank in Ethiopia.

Mission
To provide customer focused, efficient, effective and full-fledged commercial banking
services by deploying qualified, honest and motivated staff, state-of-the-art technology
and thereby optimize stakeholders’ interest.

Values
NIB upholds the following values:
Loyalty;
Transparency;
Accountability;
Social responsiveness;
Honesty and integrity;
Organizational excellence;
Equal employment opportunity;
Prudent and professional banking practices;
Competitive services and sustainable growth.

2
The Bank that Strives to Stimulate Growth Annual Report (July 2015-June 2016)
Board of

DIRECTORS

Ato Woldetensai Woldegiorgis Ato Sraj Abdella

Chairman V/Chairman

Wro Mebrat W/Tensaie Ato Alemu Denekew Ato Simmie Kulala

Director Director Director

Ato Kifle Borga Ato Kifle Yirga Wro Martha Hailemariam

Director Director Director

Ato Hashim Mustefa Ato Mulugeta Asfaw Ato Theodros Haile

Director Director Board Secretary
(Mulege Plc)

3
Annual Report (July 2015-June 2016) The Bank that Strives to Stimulate Growth
 Nib InternationalBank

MANAGEMENT

Ato Kibru Fondja

President

Ato Gashawtena Amdetsion Ato Genene Ruga Ato Solomon Goshime

V/P - Strategic Support & Modernization V/P - Operations V/P - Resource & Facilities

Ato Abera Shire Ato Asefa Jeza Ato Beyene Alemu Wro Eden Haddis Ato Elias Negassi
Director, Human Director, Logistics & Property Director, Legal Services Director, Treasury & Fund Director, Information
Resource Management Management Management Systems

Ato Fresenbet Gebremedhin Ato Kedir Bedewi Ato Lemma Hailemichael Ato Leulseged Niguse Ato Melkamu Solomon
Director, E-Banking Director, Trade Finance Director, Customer Director, Internal Audit Director, Risk &
Relations Management Compliance Management

Ato Menkir Hailu Ato Mulugeta Dilnesaw Ato Seifu Agenda Ato Shiferaw Argaw Ato Osman Ali
Director, Domestic Banking Director, Corporate Planning Director, Credit Appraisal Director, Account & Finance Executive Assistant
& Business Development to the President

4
The Bank that Strives to Stimulate Growth Annual Report (July 2015-June 2016)
 Message from the

BOARD CHAIRMAN
On behalf of Board of Directors of Nib International
Bank, I am glad to present the report for the 17th
Annual General Meeting of the shareholders of Nib
International Bank.
During the financial year 2015/16, the Board of
Directors has continued to work hard and observed
a better performance over the preceding year. The
Bank’s performance illustrates the opportunities
and challenges facing the banking industry at
large. During the financial year, the Bank made clear
progress on a number of strategic fronts that laid the
foundations for future growth in revenue, profitability
and shareholder value.
The pivotal measures taken especially in connection
with the mega Head Quarter and Hawassa
Construction Projects coupled with floating an
expression of interest to implement an overall
restructuring of the Bank surely requires a strong focus
on innovation and collaboration. While these are
aggressive and ambitious goals, the Board strongly
believes that these are eminently achievable through
game changing initiatives. This will of course not be easy. These goals have to be viewed in the
context of significant external and internal challenges. Markets are volatile, business models are
changing rapidly, new capabilities need to be built and the organization needs to adapt with great
agility. In this regard, the start of the journey has been very encouraging as evidenced by qualitative
and quantitative terms.
Apart from the above strategic issues, we are keenly focused on the performance of the company,
as are all the Bank’s employees and we are determined to see steady and continuing improvement.
The primary capital of the Bank has increased to Birr 2.5 billion. This has significant implications
in pursuing the new strategic plans ahead and maintaining a stable capital adequacy. On the
investment front, during the financial year under consideration, the Bank awarded both Hawassa
and Head Quarters Projects to contractors. These measures allow us to make significant investments
of our own while keeping the balance sheet healthy and allowing the Bank to distribute dividends
accordingly.

5
Annual Report (July 2015-June 2016) The Bank that Strives to Stimulate Growth
 Nib InternationalBank

Our staff, in every way, is critical to the success we have experienced

and will be even more critical as we forge our unique path to the
future. Simply put, our people add value for our customers, for our
shareholders, and for each other. For that reason, our focus on the
growth and development of our people will continue and will expand.
We are grateful to our employees for their willingness and ability to
adapt to times of continuous change. With their commitment and
detemination, we are confident that the Bank is equipped to take on
the opportunities and challenges that will come in our way in the
years ahead.
The Board takes this opportunity to acknowledge the continued
confidence and encouragement of our shareholders, the trust and
loyalty of our clients and business partners for doing business with us.
The Board also expresses its appreciation to the National Bank of
Ethiopia, correspondent banks, public and private institutions for
their continued guidance and their relentless efforts in supporting
the Bank.

Woldetensai Woldegiorgis

Annual General Meeting of Shareholders in Session

Board Chairman
November, 2016

6
The Bank that Strives to Stimulate Growth Annual Report (July 2015-June 2016)
Message from the

PRESIDENT

Fiscal year of 2015/16 was a beginning of second In spite of the unfavorable macroeconomic
GTP where major macroeconomic environment was environments observed in the year, I feel great pleasure
expected to continue as previous years. However, and pride to announce another successful year of
the economic growth of the year observed in some record of our Bank. In the operational year ended June
macro-economic factors was not as expected. The 2016, our Bank has overcome the multi-dimensional
major factor attributed to this slower growth of the challenges including stiff competition of financial
economy was unprecedented drought caused by sector and successfully achieved commendable
Elnino that had adverse effect on agriculture sector strategic and operational results observed in the
which is the major contributor of GNP. The agriculture overall business expansion and growth.
production of the year has been adversely affected
by both quality and quantity. Agriculture as a major During the reporting period of 2015/16, the Bank
contributor also put its impact on both supply and has earned a gross profit of Birr 458.8 million which
demand side of the national economy. Particular is higher than last year by Birr 17.9 million. The Bank’s
impact of drought was observed by lower export total asset grew by Birr 2.6 billion or 19.4% and reached
earnings of the country where relative shortage of Birr 15.8 billion. The total liability of the Bank rose to
foreign exchange has been observed. The shortage Birr 13.3 billion from previous year balance of Birr 11.1
of foreign exchange earning was not only affected billion. Of which, the total deposit constitutes 93.4%
by volume of export but also by fall in global price of or Birr 12.4 billion and shows an absolute growth of
agricultural commodity. The import sector which was Birr 2.6 billion compared to last year same period. This
dependent on export on the other hand was critical is the highest absolute growth registered during 16
for direct consumption as well as for raw material years history of the Bank. The Bank’s customer base
supply to industry sector which both have negative is significantly growing from year to year and has
impact on the overall macro economy of the country reached 412,910 in the year ended June 2016.
including financial sector.

7
Annual Report (July 2015-June 2016) The Bank that Strives to Stimulate Growth
 Nib InternationalBank

Beyond financial performances, the Bank different locations including Lideta, Yeka Abado
has accomplished considerable strategic and Akaki Kality condominium sites.
performances where it has continued to broaden
its outreach to customers through multiple service As part of capacity building process, the Bank
delivery channels. To sustain our expansion to realized that Human Resource Development is a
regional cities and Addis Ababa, the Bank has vital element for business success. In this respect,
opened a total of 26 new branches in the financial we have undertaken capacity building of staff and
year. The Bank has also expanded its alternative management through continuous training both
service delivery channels through deployment locally and overseas. A lot has been done towards
of 49 ATM’s, an improved Mobile Banking system employee motivation and inspiration through
and Internet Banking service to the general public. various means including annual employee
Moreover, the Bank has started accepting Visa and celebrations, bonus, benefits and promotions.
Union Pay international branded cards. The Bank
is also in the process of launching Agent Banking The financial year 2015/16 was a year of transition
and Point of Sales (PoS) services on full scale. as the country launched second Growth and
Transformation Plan that calls to set new strategic
With regard to Interest Free Banking and other objectives and goals for the coming five years
banking services, having finalized all the necessary both in macro and micro economic levels
procedural and legal issues, the Bank has started including the banking industry. In this regard, Nib
operations in some selected branches in the International Bank is on the process of formulating
reporting year. In doing so, the Bank has performed its third five year strategic Plan, in the context of
well and has got encouraging results in terms of the second GTP of the country. To this end, new
number of customers and deposits. Moreover, to five-year strategic plan will be prepared through a
augment the Bank’s product variety and service consultative process that will include inputs from
quality as well as to reach that part of the society key stakeholders; customers, staff, shareholders
which demand differentiated product type, a and the general public. This envisaged Five Years
number of new and improved product types are Strategic Plan of the Bank is expected to bring
under study which will be commenced in the about vibrant breakthrough to the overall growth
coming financial year. and development of the company.

With the aim of alleviating the ever growing rental Finally, I would like to take this opportunity to
price of office space and establish strong base express my gratitude to the Board of Directors for
for the Bank’s future sustainability, commendable their tireless support and leadership to realize the
tasks have been accomplished in the year. In this strategic and operational objectives of the Bank.
regard full-fledged Project Management Office I am also pleased to express my appreciation to
was setup. Related to this, re-hiring of a consultant NBE officials for their significant guidance, the
for Head Quarter building was made and after Management and employees of NIB for their
further re-work, the bid to hire a contractor for unreserved effort towards achieving the Bank’s
superstructure works of Head Quarter building is overall objectives and goals. With concerted efforts
re-floated in better organized manner. Hawassa of all employees, shareholders, business partners
Office and multipurpose project bid process and other stakeholders, I have full confidence that
is at final stage and Dukem building project we will attain a remarkable result and move the
construction work is at commendable progress. Bank to a new chapter in 2016/17 financial year.
On the other hand, 12 commercial spaces were
purchased from Addis Ababa Housing Agency in Kibru Fondja

President
November, 2016

8
The Bank that Strives to Stimulate Growth Annual Report (July 2015-June 2016)
HIGHLIGHTS OF THE LAST FIVE YEARS MAJOR OPERATIONAL PERFORMANCE

Total Deposit In Million Total Expense In Million No of Staff

2011/12 2012/13 2013/14 2014/15 2015/16

2011/12 2012/13 2013/14 2014/15 2015/16

2011/12 2012/13 2013/14 2014/15 2015/16

12,423 945 3,063

9,774 768 2,622

7,923 624 2,351

6,665 473 2,278

5,838 370 2,042

Profit Before Tax In Million Loan & Advances In Million No of Depositors In Thousands
2011/12 2012/13 2013/14 2014/15 2015/16

2011/12 2012/13 2013/14 2014/15 2015/16

2011/12 2012/13 2013/14 2014/15 2015/16

458 7,537 413

441 6,894 337

415 5,408 279

379 4,429 240

389 3,608 212

No of Branches Total Income In Million Total Asset In Million

2011/12 2012/13 2013/14 2014/15 2015/16

2011/12 2012/13 2013/14 2014/15 2015/16

2011/12 2012/13 2013/14 2014/15 2015/16

130 1,427 15,830

105 1,209 13,256

88 1,039 10,747

71 851 9,145

55 759 8,239

Total Deposit In Million Total Capital & Paid up Capital In Million

2011/12 2012/13 2013/14 2014/15 2015/16

12,423
36
77 2,5
9,774 64 2,1
66 1,9 02
28 1,6 1 1,5
1,5 1,2
0
,26
5
7,923 9 1
99
4 99
6,665

5,838
2011/12 2012/13 2013/14 2014/15 2015/16

Total Capital Paid up Capital

9
Annual Report (July 2015-June 2016) The Bank that Strives to Stimulate Growth
 Nib InternationalBank

Directors’ Report
in 2015 to about 4.1% in 2016 and rise to 4.6%
1. BACKGROUND in 2017. Macroeconomic indicators suggest
that economic activity in Sub-Saharan Africa
1.1 GLOBAL ECONOMIES and the Middle East - for which quarterly GDP
series are not broadly available - also fell short of
According to IMF’s World Economic Outlook expectations, as a result of the drop in oil prices,
report updates of July 2016, growth in most declines in other commodity prices, geopolitical
advanced economies remained cyclical, with and domestic strife in a few countries.
low potential growth and a gradual closing of Accordingly, the growth in Sub-Saharan Africa
output gaps. Prospects remained diverse across fell short of expected in 2015 at 3.4% growth rate
emerging market and developing economies, and projected at 3% and 4% in 2016 and 2017
with some improvement for a few large emerging respectively.
markets.
1.3 INFLATION
The United Nation’s World Economic Situation
and Prospects of June 2016 report indicated According to United Nation’s World Economic
that world gross product is expected to expand Situation and Prospects (WESP) 2016 report,
by just 2.4 per cent in 2016, the same rate as in average global inflation continues to decline
2015. This marks a significant downward revision amid persistently subdued economic activity,
of 0.5 percentage points to forecasts reported modest wage growth and lower commodity
in December 2015. Global economic growth prices. Risks of deflation, however, still persist in
prospects for 2017 (projected 2.8%) also remain developed countries, mainly in Japan and the
well below pre-crisis trends, and extended Euro area, and to a lesser degree in the United
period of slow productivity growth and meager States, where average inflation floated at about
investment weigh on the longer-term potential 0.2 per cent during the past four quarters.
of the global economy. The revised forecast Inflation in developing countries is expected to
reflects significant downward adjustments in rise moderately in 2016, mainly driven by higher
the growth rates of many countries in Africa, the levels of inflation in transition economies.
Commonwealth of Independent States (CIS),
Latin America and the Caribbean, where tighter Across a large number of economies, low
policy attitudes have aggravated the effects of a quarterly inflation has coincided with higher
series of adverse shocks. The picture for emerging levels of volatility in quarterly growth in
markets is quite diverse, with high growth rates developed economies. Inflation in Sub-Saharan
in China and most of emerging countries in African countries is projected to rise from 7% in
Asia, but severe macroeconomic conditions in 2015 to 9% in 2016 and decline to 8.3% in 2017.
Brazil, Russia and a number of other commodity
exporters 1.4 TRADE

1.2 EMERGING AND DEVELOPING According to World Bank June 2016 report,
ECONOMIES global trade performance remains restrained in
2016 as it has been reflected in the recent years.
The United Nation’s June 2016 report shows Global trade prospects have been significantly
that growth in emerging and developing downgraded for 2016 and 2017, reflecting a
economies is projected to decline from 4.3% combination of cyclical and structural factors

10
The Bank that Strives to Stimulate Growth Annual Report (July 2015-June 2016)
like; expectations of weak investment worldwide Information obtained from Ministry of Trade
and a slower pace of supply chain integration and showed that, the country’s export earnings
trade liberalization. registered USD 2.86 billion in the year 2015/16
which is less by 7% compared to last year same
According to United Nation’s mid 2016 report, period of USD 3.0 billion. The share of export
Global trade growth is projected to remain earnings in the GDP of the country continues
moderate in 2016, slightly recovering from the its usual pattern of declining by two percentage
estimated 2.4 per cent growth in 2015 to 3.1 per point for the last five years, averaging at 13%.
cent in 2016. Developed economies particularly Coffee, the biggest foreign currency generating
Western Europe should continue to drive global crop, generated USD 722.4 (Declined by 7.4% from
trade during the forecast period. Trade growth in 2014/15 balance) accounted for 33% of the total
developing East Asia, a long-time engine of global export earnings.
trade, is set to experience very modest improvement
in 2016. The global oil market continues to remain Oilseeds took the second position with a balance
oversupplied and demand growth is not expected of USD 443.3 million albeit it shows a decline of
to accelerate in 2016, in line with the overall weak 6.24% during the fiscal year compared to last
global economic conditions, especially in China year balance of USD 472.6 million. Manufacturing
and other emerging economies that have been sector has also registered a similar pattern of
the main oil and metal demand drivers for the declining in terms of volume and earnings with
past decade. The source of the global slowdown USD 344.4 million in 2015/16 fiscal year. Revenue
in trade is primarily rooted in weaker demand from Mining similarly registered a decline of 15%
from developing economies and a sharp decline compared to the previous year’s achievement and
in imports demanded by economies in transition. earned USD 310.5 million. However, the amount of
Agricultural product exporting countries are also minerals supplied to the global market came with
affected by drought that was caused by El Nino. a 74 % increase in volume compared to last year.

1.5 DOMESTIC ECONOMY When looking at the performance of other export

earning sectors in the fiscal year 2015/16 the
The El Niño climate phenomenon hit Ethiopia country earned USD 262.4 million (9.1%) from
hard last year and its impact continues to weigh Chat, USD 115.3 million (4%) from Leather & leather
on the country’s agriculture-dependent economy. products, USD 96 million (3.4%) from Meat, USD
The Business Monitor International (BMI) projects, 77.8 million (2.7%) from Textile and other sectors
Ethiopia‘s real Gross Domestic Product (GDP) to constituted the remaining amount of about USD
record a 7.8% growth rate in 2016 driven by the 490 million.
Government’s continued large-scale investment
under the second phase of its Growth and Aside from falling global commodity prices, a
Transformation Plan (GTP II). Ethiopia’s investment chronic logistical shortcoming in the country’s
into the fixed capital formation and construction supply chain management is believed to be
industry will grow by 14% per year over 2016 and the fundamental factor responsible for falling
2017. This will attract Foreign Direct Investments earnings from export. On the other hand, the
(FDI) in the country to ensure sustained economic unprecedented drought occurred due to the
growth. The Economic Intelligence Unit (EIU) impact of El Nino has also affected the country’s
in January 2016 reported that inflation grew at macroeconomic performance in general.
an average of 10.1% in 2015 and is expected to
increase in to 10.7% in 2016 owing to the El Nino
weather phenomenon.

11
Annual Report (July 2015-June 2016) The Bank that Strives to Stimulate Growth
 Nib InternationalBank

2. DEVELOPMENTS
DURING THE YEAR
2.1 MAJOR ACHIEVEMENTS

A number of strategic and core activities that were beneficial

for the growth and development of the Bank were performed
in the financial year. Some of these major activities are
mentioned below as follows:
NIB Head Quarter Building
Having considered the ever-changing customers need and
to provide the most convenient product varieties to different
customer segments, new product development study is
completed and procedural issues are underway which will be
operational in coming financial year.

12
The Bank that Strives to Stimulate Growth Annual Report (July 2015-June 2016)
 Based on the strategies adopted to increase the number
and types of service outreaches throughout the country,
26 new branches were opened in different parts of Addis
Ababa and regional towns. Besides, 49 own Automatic Teller
Machines (ATM) are deployed and become operational in
Addis Ababa and regional towns. Moreover, 38 Point of Sale
(POS) machines are also deployed at 26 merchant locations
and branches.

With regard to the implementation and progress of Interest

Free Banking, One Window Service was launched in twenty
six branches whereby encouraging achievements have
been registered.

With the aim of renovating human resource management

system, software solution is developed to manage
recruitment, leave, performance appraisal and signature
management. Moreover, foreign currency facility request
registration and allocation, credit appraisal system and
share administration solutions are also developed for
efficient management of activities.

To efficiently manage the Bank’s building construction

projects which are underway and to design sustainable
road map for future construction related activities, the
project management office was established.

As one of the primary objectives of the Bank to have its own

Head Quarter building, quite a lot of fundamental works
have been done within the past few years. In this regard,
during the financial year 2015/16, the consultant for Head
Office building was rehired and a bid was re-floated to hire
a contractor for the construction of the superstructure.
Similarly, a bid for Hawassa building is also re-floated for
hiring a contractor. Whereas, the contract agreement
is signed for Dukem building and the construction is
progressing well.

NIB Hawassa Building Contract Agreement with contractor for Hawassa Building NIB Dukem Building
13
Annual Report (July 2015-June 2016) The Bank that Strives to Stimulate Growth
 Nib InternationalBank

NIB Hawassa Building

Beside to constructing multipurpose buildings, purchasing office

spaces or buildings is the other means of owning fixed assets. With
this respect, 12 commercial office spaces are purchased from Addis
Ababa Housing Agency which are located at Lideta, Yeka Abado
and Akaki Kality Condominium sites. Moreover, the Bank has also
purchased two office spaces at Adama Ginb Gebeya Share Company
and becomes shareholder in the company.

A G+4 multipurpose building which is under construction is

purchased in Hossana town, which is the 4th building the Bank owns
in outlying towns.

With the aim to invest in projects which are feasible and beneficial
for the Bank as well as the entire economy, the Bank has subscribed
Birr 10 million and paid Birr 5 million in an indigenous reinsurance
company.

In order to facilitate the smooth operation of the Bank and to cope up

with the ever changing banking service needs, policy and procedure
manuals have been developed and improvements were made on
existing ones.
Management Meeting in Session

14
The Bank that Strives to Stimulate Growth Annual Report (July 2015-June 2016)
3. FINANCIAL
PERFORMANCE
The financial performance of the Bank is the central and most vital
part of this report. To this end, the Board of Directors is pleased to
provide the detailed financial report for the year 2015/16.

3.1 BALANCE SHEET ANALYSIS

The overall assets of the Bank as at 30th June 2016 stood at Birr 15.8
billion registering a growth of 19.5% compared to that of the same
period of last year. Out of the total assets, liquid assets constituted
18.8% which is higher by 65.7% compared to the preceding year.
The share of total loans and advances constituted 47.5% of the total
assets which was 52% last year same period. At the same time, the
share of deposit in foreign banks from total assets increased to 5.5%
from 1.1% of last year same period. On the other hand, the loan to
deposit ratio decreased to 60.6% in the financial year from 70.5%
of June 2015. The Bank’s total liabilities stood at Birr 13.3 billion,
registering a growth of 20.2% compared to the corresponding
period of last year. Of which, total deposits constituted 93.3% of the
total liabilities.

The Bank’s total capital, composed of paid-up capital, reserves,

retained earnings and undistributed profit, reached Birr 2.5 billion.
It showed an increase of Birr 350.5 million (16.1%) relative to last
year’s balance. Out of the total capital, paid-up capital constituted
Birr 1.5 billion (59.4%).

The capital adequacy ratio of the Bank was 22.2% in the financial
year which is well above the regulatory minimum requirement of
8% set by NBE indicating that the Bank’s asset growth is suitably
Financed Project: Azzeman Hotel
backed by proportionate growth of equity.

3.1.1 DEPOSITS

The total deposit during the financial year stood at Birr 12.4 billion which shows an increment of Birr 2.6
billion or 27.1% compared to the balance of Birr 9.8 billion registered during last year same period.

The number of deposit accounts also reached 412,910 registering an increment of 75,856 new accounts
or 22.5% growth during the reporting period. This is a clear indication of the growth of public trust on
the Bank which is increasing from time to time.

The details of deposits are presented in Table 1, Charts 1 and 2 below.

15
Annual Report (July 2015-June 2016) The Bank that Strives to Stimulate Growth
 Nib InternationalBank

TABLE 1: COMPARISON OF DEPOSIT BY TYPE In ‘000 Birr

30/06/16. 30/06/15 Change
Deposit Type
Amount % Amount % Absolute %
Savings Deposits 6,540,612 52.65% 5,455,787 55.8% 1,084,825 19.9%
Demand Deposits 4,138,959 33.32% 2,996,628 30.7% 1,142,331 38.1%
Time Deposits 1,743,452 14.03% 1,321,700 13.5% 421,752 31.9%
Total 12,423,023 100.0% 9,774,115 100.0% 2,648,908 27.1%

The above table shows that the balance of interest bearing deposits was Birr 8.3 billion
or 66.7% while non-interest bearing deposits accounted for Birr 4.1 billion or 33.3% at
the end of the financial year.

CHART 1: COMPOSITION OF DEPOSITS CHART 2: COMPARISON OF DEPOSITS

33.32%
12,423
14.03% Total Deposits 9,774

1,743
Time Deposits 1,322

4,139
Demand Deposits 2,997

6,541
52.65% Savings Deposits 5,456

Savings Deposits Demand Deposits Time Deposits

30/06/16. 30/06/15

3.1.2 LOANS AND ADVANCES

At the close of the 2015/16 financial year, the Bank’s total outstanding loans and advances
stood at Birr 7.6 billion. When compared to the preceding year, it showed an increase of
Birr 647.9 million or (9.3%).

During the period under consideration, asset quality of the Bank was at a good position
that complies with the statutory requirement which is the result of rigorous monitoring
and follow-up activity by the Bank’s management.

TABLE 2: LOANS AND ADVANCES BY ECONOMIC SECTOR In ‘000 Birr

30/06/16. 30/06/15. Change
Economic Sector
Amount % Amount % Absolute %
Manufacturing 1,687,686 22.1% 1,592,980 22.8% 94,706 5.9%
Domestic Trade & Services 1,331,960 17.4% 1,311,399 18.7% 20,561 1.6%
Export 1,157,198 15.1% 1,137,311 16.2% 19,887 1.7%
Building & Construction 1,177,805 15.4% 960,922 13.7% 216,883 22.6%
Import 925,174 12.1% 898,721 12.8% 26,453 2.9%
Hotel & Tourism 845,591 11.1% 677,571 9.7% 168,020 24.8%
Agriculture 105,219 1.4% 104,303 1.5% 916 0.9%
Transportation 126,528 1.7% 79,618 1.1% 46,910 58.9%
Mining, Power & Water 18,347 0.2% 17,638 0.3% 709 4.0%
Personal 271,630 3.6% 218,727 3.1% 52,903 24.2%
Total 7,647,138 100.0% 6,999,192 100.0% 647,946 9.3%

16
The Bank that Strives to Stimulate Growth Annual Report (July 2015-June 2016)
 Table 2 and Chart 3 depict that, loans and advances extended by the Bank covered a wide range
of sectors of the economy. The sectoral distribution of loans and advances of the Bank during the
financial period 2015/16 indicates that the lion’s share (22.07%) goes to the manufacturing sector
followed by domestic trade and service (17.42%), export (15.13%), building and construction
(15.40%) and import (12.10%).

CHART 3: SECTORAL SHARE OF LOANS AND ADVANCES CHART 4: COMPARISON OF LOANS AND ADVANCES
12.10%

11.06%

15.40%
1.38%
1.65%
0.24%
3.55%

15.13%

22.07%

17.42%

Manufacturing Domestic T & S Export Building & Construction Import

Hotel & Tourism Agriculture Transportation Mining, Power & Water Personal

Chart 4 shows comparative distribution and increase of aggregate loans and advances during
the financial year 2014/15 and 2015/16.

3.2 INCOME STATEMENT ANALYSIS

3.2.1 REVENUE

The Bank earned a total income of Birr 1.41 billion during the financial year 2015/16 showing an
increase of Birr 222.3 million (18.4%) compared to Birr 1.21 billion registered in the preceding
financial year.

TABLE 3: COMPOSITION OF REVENUE In ‘000 Birr

30/06/16 30/06/2015 Change
Item
Amount % Amount % Absolute %
Interest Income 1,441,051.3 79.7% 891,973.2 73.8% 249,078.0 27.9%
Commission Income 69,485.0 4.9% 64,774.7 5.4% 4,710.3 7.3%
Service Charge 112,269.0 7.8% 149,411.0 12.4% (37,142.0) -24.9%
Gain on FCX Revaluation 79,297.6 5.5% 73,785.2 6.1% 5,512.4 7.5%
Provision No Longer Required - 0.0% 10,613.4 0.9% (10,613.4) -100.0%
Other Income (including dividend income) 28,926.3 2.0% 18,200.5 1.5% 10,725.9 58.9%
Total 1,431,029.2 100% 1,208,758.1 100% 222,271.1 18.4%

As shown on table 3 above, interest income constituted 79.7% (Birr 1.1 billion) of the total income
showing an increase of 27.9% when compared to the level of the preceding year Birr 892 million.
The other income components have also registered a moderate growth during the financial
year (Refer charts 5 and 6). The reason for decline in earnings from service charge is attributed to
a lesser income generated from foreign banking operations.

17
Annual Report (July 2015-June 2016) The Bank that Strives to Stimulate Growth
 Nib InternationalBank

CHART 5: COMPOSITION OF REVENUE CHART 6: COMPARISON OF REVENUE SOURCES

7.8%
4.9%
5.5%
2.0%

1,200.0

Birr in Millions
1,000.0
800.0

79.7% 600.0
400.0
200.0
-

30/06/16 30/06/2015

Interest Income Service Charge Commission Income

Gain on FCX transactions & translations Other Income

3.2.2 EXPENSES

The total expenses of the Bank for the financial year were Birr 972.3 million. When compared with
previous year’s balance, it increased by Birr 204.3 million (26.6%). As shown on the table below, the
Bank’s operational expenses are dominated by spending on interest payments (Birr 392.3 million)
followed by salaries and benefits (Birr 290.8 million) and general expenses (Birr 256.4 million). The details
are presented on table 4 below.

TABLE 4: BREAKDOWN OF EXPENSES In ‘000 Birr

30/06/16 30/06/15 Change
Items
Amount % Amount % Absolute %
Interest Expense 392,307.7 40.3% 300,494.5 39.1% 91,813.2 30.6%
Salaries & Benefits 290,762.9 29.9% 235,977.1 30.7% 54,785.7 23.2%
General Expenses * 256,436.1 26.4% 231,244.3 30.1% 25,191.9 10.9%
Provision for NPLs 32,509.9 3.3% - 0.0% 32,509.9 -
Audit fee 258.8 0.03% 241.5 0.03% 17.3 7.2%
Total 972,275.5 100% 767,957.4 100% 204,318.0 26.6%
*Includes Directors’ monthly allowances

The increase in interest expense is attributed to the growth of saving deposits and the increasing interest
rate on fixed time deposits. Salaries and benefits grew mainly due to the recruitment of additional
employees in line with the branch expansion program of the Bank and annual salary increment and
benefit for staff. Likewise, administrative and general expenses have also grew by Birr 25.2 million or
10.9% as a result of the continuous increase in the volume of the Bank’s operational activities, and the
continued increase in the rental expenses of branch offices. The chart below shows the compositional
share of each expense items

Financed project: Joytech Fresh

18
The Bank that Strives to Stimulate Growth Annual Report (July 2015-June 2016)
 CHART 7: COMPOSITION OF EXPENSES CHART 8: COMPARISON OF EXPENSES
26.4%
392.3
300.5
290.8
3.3% 236.0
256.4
231.2
32.5
29.9% -
0.3
0.2 972.3

768.0
40.3%
30/06/16 30/06/15

Interest Expense Salaries & Benefits General Expenses Provision for NPLs Audit Fee

3.3 INTERNATIONAL BANKING OPERATIONS 3.5 RETURN ON ASSETS & PAID-UP CAPITAL
During the financial period under review, fees The Bank’s Return on Assets (ROA) expressed as
collected from international trade operations and the ratio of profit before tax to the average assets
foreign exchange translation reached Birr 248.8 is 3.2% in the financial year 2015/16 compared
million, which is around one-sixth of the Bank’s to last year same period of 3.7%. On the other
total income. Out of the total income generated hand, during the financial year, return on Paid-up
from international banking operations, service Capital expressed as the ratio of net profit after
charges and others contributed a sizable share tax to average paid-up capital stood at 25.8%.
(45.4%) followed by gain on foreign exchange The percentage for the same period last year was
transactions and translations (31.9%). The 27.3%.
remaining 22.7% was earned from commission
income on L/C opening, interest earned on Bills 4. HUMAN RESOURCE
discounted and foreign cheques purchased and
interest earned on correspondent accounts. With the thoughts that our employees are our
The share of income from international banking most valuable assets, employee engagement
operation is declining as a result of decreasing continued to be an area of priority. At the close
trend of foreign exchange generation which is of the financial year, the staff strength of the Bank
caused by the country’s export performance. reached 3,069 from the previous year number
of 2,622. In the financial year 2015/16 the Bank
3.4 PROFIT & LOSS ACCOUNT recruited 729 additional employees, of which, 365
were professional and clerical and the remaining
The Bank’s pretax profit is growing with a moderate 364 were non-clerical.
rate of change during the past five years with an
average growth rate of 6.1%. In 2015/16 financial
period, the Bank was able to generate a pretax
and net profit of Birr 458.8 million and Birr 356.7
million respectively. The net profit showed an
increase of Birr 19.6 million (5.8%) compared to
Birr 337.1 million registered in the financial year
2014/15. Similarly the gross profit of the Bank has
increased by Birr 17.9 million (4.1%) from last year
same period balance.

Staff Training in Session

19
Annual Report (July 2015-June 2016) The Bank that Strives to Stimulate Growth
 Nib InternationalBank

Career development opportunities were limits. Risk management policies and systems are
also made available to staff both locally and reviewed regularly to reflect changes in market
internationally. On the training front, the Bank was conditions, products and services offered. The
able to arrange over 91 training programs (both Bank, through its training and management
local & international) and 3,578 members of staff standards and procedures, aims to develop a
have got training intervention during the year. disciplined and constructive control environment,
Capacity development activities included on-the- in which all employees understand their roles and
job training, formal classroom training, projects, obligations.
job rotations and peer reviews.

5. RISK AND COMPLIANCE 6. INFORMATION

MANAGEMENT TECHNOLOGY

The services a bank provides come with a range In the current financial environment, information
of risks, such as credit, operational, liquidity and technology based banking service enhances
market risks, all of which have to be carefully provision of quality services and maximizes
managed to balance the needs of our customers customer satisfaction by reaching the users at
with protecting the security and reliability of the their end. During the year, the Bank was doing on
Bank. As such, we have formulated comprehensive the internal development of software programs
actions to strengthen our risk management culture for efficient management of human resource;
and improve the quality of our risk management credit appraisal system; share administration and
personnel. The risks continue to grow with foreign currency management system.
financial system becoming more sophisticated
and digitization of banking transactions; such as In another development, our Mobile and Internet
online and mobile banking. banking service is improving from time to time
and continued serving the customers promptly.
The primary responsibility of the risk and Furthermore, Corporate Internet Banking and SMS
compliance management function of the Bank alert services were successfully implemented.
is to coordinate the integrated risk management
process throughout the Bank and ensure the To enhance the application of modern banking
Bank’s compliance with national and international technologies and provide competitive service
as well as legal and supervisory requirements so as via a wide range of card banking services, the
to avoid any risk of loss in the Bank’s earnings and Bank is currently providing full payment service
capital. The Bank regularly monitors and controls with Master Card, VISA and Union Pay branded
these inherent risks through an effective risk international cards. ATM card banking and POS,
management program. In terms of compliance which are the Bank’s priority service delivery
management, the Bank has recently updated channels, are progressing well. Apart from the
its compliance and Anti-Money Laundering & Premier Switch Solution (PSS) and EthSwitch
Combating the Financing of Terrorism (AML/CFT) member banks ATM machines, the Bank is
policy and procedures for the second time. delivering ATM card banking service with its own
ATM machines and Point of Sale (POS) deployed
The Bank’s risk management policies are at different locations.
established to identify and analyze the risks faced
by the Bank, to set appropriate risk limits and
controls, and to monitor risks and adherence to

20
The Bank that Strives to Stimulate Growth Annual Report (July 2015-June 2016)
7. BRANCH NETWORK

During the period under consideration, the Bank has

opened 26 branches at different parts of the country
bringing the total number of branches to 130, out of
which 71 are in Addis Ababa and the remaining 59 are
located in the regional towns.

8. 2016/17 PRIORITIES

Our priorities for 2016/17 flow naturally from our strategic aspirations and financial framework:

Make tangible progress on our strategic aspirations;

Innovate, digitize and simplify our service in order to improve productivity

and effectiveness;

Strengthen the efforts to diversify service delivery channels

Establish a strategic development partnership with internationally renowned

consultant to design transformational road map and to increase competitive
position of the Bank to international level,

Implement new banking products and services in order to meet customers’

demand and increase customer base of the Bank.

Effectively continue the construction activities of the Head Office and other
office building projects in Addis Ababa and regional towns

Finalize the purchase of selected office spaces and continue to purchase

additional branch office buildings in selected areas.

We believe delivering on each of these priorities is key to the continuous success in our journey towards
building a long-term sustainable business in the country.

9. VOTE OF THANKS
The Board of Directors would like to express its heartfelt gratitude to our customers, shareholders,
Management and staff of NIB as well as the National Bank of Ethiopia, for their respective contribution
towards the satisfactory performance of the Bank during the financial year 2015/16.

Woldetensai Woldegiorgis
Chairman, Board of Directors
November, 2016
21
Annual Report (July 2015-June 2016) The Bank that Strives to Stimulate Growth
 Nib InternationalBank

STAFF GET TOGETHER

BEST PERFORMING BRANCHES AWARD

ADARASH BRANCH DIRE DAWA BRANCH

NEWLY OPENED BRANCHES AT GLANCE

FINANCED PROJECTS

AZZEMAN HOTEL ROSE ETHIOPIA STEEL FACTORY SANTA MARIA HOTEL

22
The Bank that Strives to Stimulate Growth Annual Report (July 2015-June 2016)
 Auditors’
REPORT
23
Annual Report (July 2015-June 2016) The Bank that Strives to Stimulate Growth
 Nib InternationalBank

ጌታቸው ካሣዬ እና ጓዶቹ

Getachew Kassaye & Co.
Chartered Certified Accountatnts

Tel. 011-551 37 11 011-551 17 08 P.O.Box 1432

011-551 74 47 011-551 72 76 ADDIS ABABA
Fax: 251 -11-551 02 20 ETHIOPIA

INDEPENDENT AUDITORS’ REPORT

TO THE SHAREHOLDERS OF
NIB INTERNATIONAL BANK SHARE COMPANY

1. We have audited the accompanying financial statements of Nib International Bank Share
Company (hereinafter referred to as the Bank) for the year ended June 30, 2016, set out on
pages 26 to 40, which have been prepared under the accounting policies set out on page 29.

DIRECTOR’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

2. The directors of the Bank are responsible for the preparation and fair presentation of these
financial statements in accordance with the historic cost convention, generally accepted
accounting principles and the laws and regulations of Ethiopia. This responsibility includes:
designing, implementing and maintaining internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to
fraud or error, selecting and applying appropriate accounting policies; and making accounting
estimates that are reasonable in the circumstances.

AUDITORS’ RESPONSIBILITY

3. Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with International Standards on Auditing. Those standards
require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on our judgment,
including the assessment of the risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk assessments, we considered internal
control relevant to the preparation and fair presentation of the financial statements in order
to design audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the Bank’s internal control. The audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness
of accounting estimates made by management, as well as evaluating the overall presentation
of financial statements. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.

24
The Bank that Strives to Stimulate Growth Annual Report (July 2015-June 2016)
 ጌታቸው ካሣዬ እና ጓዶቹ
Getachew Kassaye & Co.
Chartered Certified Accountatnts

OPINION

5. In our opinion, the financial statements present fairly, in all material respects, the financial
position of the Bank as at June 30, 2016, and its financial performance and its cash flows for the
year then ended in accordance with Generally Accepted Accounting Principles.
6. We have no comments to make on the report of the Board of Directors relating to the financial
matters and pursuant to article 375(2) of the commerical code of Ethiopia of 1960; we
recommend that the above mentioned financial statments be approved.

GETACHEW KASSAYE & CO.

Chartered Certified Accountants

OUNTANTS

Addis Ababa,
September 30, 2016

25
Annual Report (July 2015-June 2016) The Bank that Strives to Stimulate Growth
 Nib InternationalBank

NIB INTERNATIONAL BANK SHARE COMPANY

BALANCE SHEET
AS AT JUNE 30, 2016

Currency: Ethiopian Birr

ASSETS Notes
2015
Cash & Bank Balance
Cash on hand 4 978,521,630 858,496,116
Deposits with local commercial banks 5 7,512,595 7,512,595
Deposits with foreign banks 867,081,189 144,490,179
Deposits with National Bank of Ethiopia 6 1,124,864,933 787,187,308
2,977,980,347 1,797,686,198
Loans and advances to customers 7 7,511,984,948 6,894,044,536
NBE Bills 4,168,435,000 3,774,511,058
Equity Investment 8 125,777,840 84,637,100
Other assets 9 652,621,145 400,018,383
Tangible Fixed assets 3.1,10 393,522,482 305,227,206
TOTAL ASSETS 15,830,321,762 13,256,124,481

LIABILITIES
Deposits From Customers
Demand 4,138,959,318 2,996,628,389
Saving 6,540,611,705 5,455,786,993
Fixed 1,743,451,964 1,321,700,492
12,423,022,987 9,774,115,874
Margin held on letters of credit 108,531,285 146,671,512
Other liabilities 11 678,736,757 1,054,305,180
Provision for taxation 24 102,074,855 103,727,831
TOTAL LIABILITIES 13,312,365,885 11,078,820,397
CAPITAL AND RESERVES
Share capital 12 1,502,380,000 1,265,202,500
Legal reserve 636,564,528 547,394,790
Special reserve 13 1,700,000 1,600,000
Retained earnings 14 111,002,135 111,002,135
Profit and loss account 266,309,214 252,104,659
TOTAL CAPITAL AND RESERVES 2,517,955,877 2,177,304,084
TOTAL LIABILITIES, CAPITAL AND
RESERVES 15,830,321,762 13,256,124,481

_______________________ ___________________________
Woldetensai Woldegiorgis Kibru Fondja
Chairman of the Board President/CEO

26
The Bank that Strives to Stimulate Growth Annual Report (July 2015-June 2016)
NIB INTERNATIONAL BANK SHARE COMPANY
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED JUNE 30, 2016

Currency: Ethiopian Birr

2015
INCOME Notes
Interest Income 3.3,15 1,141,051,271 888,075,000
Less: Interest expense 3.3,21 392,307,725 300,494,498
Net interest income 748,743,546 587,580,502
Commission income 16 69,485,045 64,774,737
Service charges 17 112,268,997 149,411,041
Net gain on foreign exchange dealings and translations 18 79,297,567 73,785,217
Dividend income 19 3,858,842 3,898,236
Provision for doubtful debt - 10,613,425
Other income 20 25,067,504 18,200,483
1,038,721,501 908,263,641
EXPENSES
Salaries and benefits 290,762,861 235,977,136
General and administrative expense 22 256,098,649 230,914,895
Provision for doubtful debt 32,509,934 -
Directors’ monthly allowances 337,500 329,400
Audit fee 258,750 241,500
579,967,694 467,462,931
PROFIT BEFORE TAXATION 458,753,807 440,800,710
PROVISION FOR TAXATION 24 (102,074,855) (103,727,831)
PROFIT AFTER TAXATION 356,678,952 337,072,879
TRANSFER TO LEGAL RESERVE (89,169,738) (84,268,220)
TRANSFER TO SPECIAL RESERVE (100,000) (100,000)
NET PROFIT AFTER TAX AND RESERVES 267,409,214 252,704,659
BOARD OF DIRECTORS’ REMUNERATION 26 (1,100,000) (600,000)
CURRENT YEAR PROFIT 266,309,214 252,104,659

EARNINGS PER SHARE 27 129 137

________________________ ________________
Woldetensai Woldegiorgis Kibru Fondja
Chairman of the Board President/CEO

27
Annual Report (July 2015-June 2016) The Bank that Strives to Stimulate Growth
 Nib InternationalBank

NIB INTERNATION BANK SHARE COMPANY

CASH FLOW STATEMENT
FOR THE YEAR ENDED JUNE 30, 2016

Currency: Ethiopian Birr

2015
Cash Flow from Operating Activities
Profit before tax 458,753,807 440,800,710
Depreciation and amortization 53,632,428 45,613,603
Provision for doubtful loans and others 32,509,934 (10,613,425)
Investment income (128,552,154) (102,170,449)
Directors allowance paid (600,000) (600,000)
Operating profit before change in operating assets and
415,744,016 373,030,439
liabilities
(Increase) in loans and advances to customers (647,945,916) (1,475,692,029)
Decrease (increase) in other assets (255,107,192) 17,653,164
Increase in demand deposits 1,142,330,929 485,143,733
Increase in saving deposits 1,084,824,712 908,780,153
Increase in fixed deposits 421,751,472 456,898,812
Increase (decrease) in margin held on letters of credit (38,140,227) (93,520,307)
Increase in other liabilities net of directors’ allowance (376,068,423) 535,712,043
Dividend transferred to liability (20,209,614) (14,693,038)
Income tax Paid (103,727,831) (100,848,107)
Net Cash Inflow/(Outflow) from Operating Activities 1,207,707,910 1,092,464,863
Cash flow from investing activities
Purchase of fixed assets (129,965,315) (64,536,097)
Payment for the construction in progress (11,962,388) (32,404,656)
Interest on deposit with other banks 740,996 1,225,564
Increase in NBE bills purchased (393,923,942) (1,088,403,000)
Interest on NBE bills 123,952,316 97,046,649
Equity Investment (41,140,740) (18,759,400)
Income from equity investment 3,858,842 3,898,236
Net cash received from (used in) investing activities (448,440,232) (1,101,932,704)
Cash Flow from Financing Activities
Proceeds from issue of share capital 237,177,500 64,175,000
Dividend paid (231,895,045) (173,007,785)
Net cash received from (used in) financing activities 5,282,455 (108,832,785)
Net Increase ( Decrease) in Cash For the year 1,180,294,149 (118,300,626)
Cash Balance at the Beginning of the Year 1,797,686,198 1,915,986,824
Cash Balance at the End of the Year 2,977,980,347 1,797,686,198

______________________ ________________________
Woldetensai Woldegiorgis Kibru Fondja
Chairman of the Board President/CEO

28
The Bank that Strives to Stimulate Growth Annual Report (July 2015-June 2016)
NIB INTERNATIONAL BANK SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2016

1. BACKGROUND

Nib International Bank is a privately owned commercial bank established in 1999 in accordance with
the “Licensing and Supervision of Banking Business Proclamation No. 84/1994” of Ethiopia, now
superseded by Proclamation No. 592/2008 to undertake commercial banking activities.

The Bank obtained its license from the National Bank of Ethiopia (NBE) on 26th May 1999 and started
its business activities in the month of October 1999. It operates through its Head Office in Addis
Ababa and 130 branches and 3 agency offices for foreign exchange transactions in and outside Addis
Ababa.

2. BASIS OF PREPARATION

These financial statements have been prepared in accordance with the historical cost convention,
Generally Accepted Accounting Principles (GAAP) and laws and regulations of Ethiopia including
the commercial Code of Ethiopia 1960, the Banking Business Proclamation No 592/2008 and the
Directives of the National Bank of Ethiopia. The Bank maintains its accounting records in accordance
with Ethiopian banking and accounting regulations. These financial statements have been prepared
from those accounting records and adjusted as necessary in order to comply with GAAP. The financial
statements have been prepared on the going concern basis.

The preparation of these financial statements requires the use of estimates and assumptions that
affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as
at the date of the financial statements. Although these estimates are based on management’s best
knowledge of current events and actions, actual results ultimately may differ from those estimates.

3. SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted by the Bank are stated below:-

3.1 Fixed assets

Fixed assets are stated at cost, less depreciation. Depreciation is applied on a book value by adding
additions and deducting disposal proceeds except for building and intangible assets:

Building 5% straight line

Computer hardware and software 25%
Other assets 20%
User right on lease 10% straight line

29
Annual Report (July 2015-June 2016) The Bank that Strives to Stimulate Growth
 Nib InternationalBank

NIB INTERNATIONAL BANK SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2016

3.2 Intangible assets

Expenditure incurred before the commencement of operations is treated as pre-operational costs and
amortized on the straight-line method for an expected useful life of 5 years.

3.3 Interest income and expenses

Interest income and interest expenses are accounted for on the accrual basis.

3.4 Bonus

Bonus and compensation for services of the Bank’s employee are accounted for when paid.

3.5 Other income

All other income is accounted for at the time of completion of related banking transactions.

3.6 Conversion of foreign currencies

(i) Foreign currencies denominated transactions are converted into Birr at the prevailing rates of exchange
and realized foreign exchange gains or losses are reflected in the profit and loss account.
(ii) Year-end balances of foreign currencies on hand and with correspondent banks are converted into Birr
at the closing selling rates on the balance sheet date.
(iii) Year end Balances of foreign Currencies customer deposit are converted into Birr at the closing buying
rates on the balances sheet date.

3.7 Off-setting

Financial assets and liabilities are off-set and the net amount reported in the balance sheet only when there
is a legally enforceable right to offset the recorded amounts, and there is an intention to either settle on a net
basis, or to realize the asset and settle the liability simultaneously.

3.8 Provisions for Loans and Advances

Loans and advances are financial instruments originated by the Bank by providing money to the debtors. The
loans and advances are stated at cost less impairment losses. Impairment losses comprise specific provisions
against debts identified as bad and doubtful and general provisions against losses which are likely to be
present in any loans and advances portfolio. The Bank follows the National Bank of Ethiopia, Supervision of
Banking Business Directive SBB 43/2008 in determining the extent of provisions for impairment losses. The
Directive classifies loans and advances into the following;

i) Pass Loans

Loans and advances in this category are fully protected by the current financial and paying capacity
of the borrower and are not subject to criticism. In general, loans and advances, which are fully
secured, both as to principal and interest, by cash or cash substitutes, are classified under this category
regardless of past due status or other adverse credit factors.

30
The Bank that Strives to Stimulate Growth Annual Report (July 2015-June 2016)
 NIB INTERNATIONAL BANK SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2016

ii) Special Mention

Any loan or advance past due 30 days or more but less than 90 days is classified under this
category.

iii) Substandard

Non-performing loans or advances past due 90 days or more but less than 180 days is
classified under this category.

iv) Doubtful

Non-performing loans or advances past due 180 days or more but less than 360 days is
classified as doubtful.

v) Losses

Non-performing loans or advances past due 360 days is classified as loss.

As per the Directive, the provision for impairment losses are determined as follows:-

No. Loan Category Extent of provision required

1 Pass loans 1% of the outstanding loan balance
2 Special mention loans 3% of the outstanding loan balance
3 Substandard loans 20% of the net loan balance
4 Doubtful loans 50% of the net loan balance
5 Loss loans 100% of the net loan balance

Note: Net loan balance is outstanding loan balance less net recoverable value of collateral.

4. CASH ON HAND

Currency: Ethiopian Birr

2015
Local Currency 964,970,918 840,558,908
Foreign Currency 13,550,712 17,937,208
978,521,630 858,496,116

31
Annual Report (July 2015-June 2016) The Bank that Strives to Stimulate Growth
 Nib InternationalBank

NIB INTERNATIONAL BANK SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2016

5. DEPOSITS WITH LOCAL BANKS

Currency: Ethiopian Birr

2015
ECX and other Accounts with other banks 12,595 12,595
Fixed time Deposit 7,500,000 7,500,000
7,512,595 7,512,595

6. DEPOSITS WITH NATIONAL BANK OF ETHIOPIA

Statutory Reserve Balance 620,190,920 490,190,920

Payment and Settlment Account 186,519,333 203,376,407
Issue Account 318,154,680 93,619,981
1,124,864,933 787,185,308

7. LOANS AND ADVANCE TO CUSTOMERS

Agriculture 105,219,216 104,302,532

Manufacturing 1,687,686,038 1,592,980,499
Domestic Trade and Service 1,331,960,094 1,311,399,394
Transport and Communication 126,527,992 79,618,033
Hotel and Tourism 845,591,306 677,571,078
Export 1,157,198,048 1,137,311,430
Import 925,173,576 898,721,487
Building and Construction 1,177,805,315 960,922,320
Mines, Power and Water Resource 18,347,198 17,637,898
Personal 271,629,294 218,727,492
7,647,138,079 6,999,192,163
Less: Provision for Doubtful Loans and Advances (135,153,131) (105,147,627)
7,511,984,948 6,894,044,536

32
The Bank that Strives to Stimulate Growth Annual Report (July 2015-June 2016)
NIB INTERNATIONAL BANK SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2016

8. EQUITY INVESTMENT

Currency: Ethiopian Birr

2015
Nib Insurance S.C 9,696,000 9,696,000
Agar Micro Finance S.C 6,167,200 3,575,100
Premier Switch Solution S.C. 44,996,000 44,996,000
Jemar Hulegeb Industrial S.C. 28,000,000 15,000,000
Eth Switch S.C. 11,370,000 11,370,000
Genb Gebeya S.C 20,548,640 __________
Ethiopian Reinsurance S.C 5,000,000 __________
125,777,840 84,637,100

9. OTHER ASSETS

Acquired properties 17,670,481 26,206,889

Uncleared effect- local 75,507,938 30,455,216
Uncleared effect - foreign 36,263,215 40,251,609
Stationery stock 5,415,283 9,096,590
Other stock items 6,781,015 8,005,631
Prepaid rents 179,745,182 134,980,964
Withholding tax receivable 38,251 76,133
Other advances (9.1) 272,972,830 104,500,758
Cheque book and revenue stamps 1,027,018 1,574,697
Accrued interest 65,573,921 50,739,454
660,995,133 405,887,941
Less: Provision for doubtful debts other than loans (8,373,988) (5,869,558)
652,621,145 400,018,383

9.1 OTHER ADVANCES

Other advances 124,206,782 46,255,878
Deposit for rent for branches under establishment 29,405,078 12,945,655
ATM inter-operability account 21,629,257 2,035,535
Automatic transfer system -suspense 18,905,844 14,614,008
Purchase advance 61,957,929 10,065,191
Advance payment- Computerized Core Banking system 16,867,940 16,852,923
China Railway Eng group __________ 1,731,568
272,972,830 104,500,758

33
Annual Report (July 2015-June 2016) The Bank that Strives to Stimulate Growth
 Nib InternationalBank

NIB INTERNATIONAL BANK SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2016

10. TANGIBLE FIXED ASSETS

Currency: Ethiopian Birr

Balance Addition Balance
Cost 30/06/2015 30/06/16
Leasehold land 33,630,487 1,201,438 34,831,925
Fixed assets stock 32,501,126 5,374,281 37,875,407
Motor vehicles 85,942,659 4,492,030 90,434,689
Computer hardware and software 141,348,623 37,672,529 179,021,152
Office equipment 51,680,809 19,881,326 71,562,135
Furniture and fittings 60,296,736 9,814,617 70,111,353
User rights on lease 2,000,000 - 2,000,000
Buildings 21,968,324 51,118,282 73,086,606
429,368,764 129,554,503 558,923,267
Accumulated depreciation
Motor vehicles 51,130,979 7,449,928 58,580,907
Computer hardware and software 76,203,172 25,704,495 101,907,667
Office equipment 25,441,776 9,224,072 34,665,848
Furniture and fittings 30,947,309 7,831,917 38,779,226
User rights on lease 1,800,000 200,000 2,000,000
Buildings 5,931,983 2,811,202 8,743,185
191,455,219 53,221,614 244,676,833

Net Book Value 237,913,545 314,246,434

Construction in Progress 67,313,660 11,962,388 79,276,048

305,227,205 393,522,482

10.1 The Bank acquired 3,682.4 m2 of leasehold land in Lideta Sub City from Addis Ababa City Administration for 55
years at a cost of Birr 12,695,207.35 . The Bank paid Birr 4,133,924 in advance and agreed to pay the remaining
Birr 8,561,282 within 30 years with annual lease payment of Birr 285,376 starting from September 10, 2008 E.C.

The Bank also acquired on 12th June 2013 leasehold land of 1.980 m2 for its Hawassa branch office building for 70
years and Birr 1,108,800 was paid in advance. The Bank agreed to pay the remaining Birr 9,979,200 with annual
rental of Birr 255,877 for 40 years commencing from 12 June 2014

On 18th November 2013 the Bank acquired new leasehold land of 2,353 m2 for its Dukem branch office building
for 70 years at a cost of Birr 9,591,651 and paid Birr 3,836,660 in advance . The Bank agreed to pay the remaining
Birr 5,754,991 with an annual lease payment of Birr 574,499 for 10 years.

The Bank also acquired on November 5, 2001 E.C leasehold land of 688.64 m2 for its Wolkite branch office
building for 70 years at a cost of Birr 255,628 and Birr 76,688.64 was paid. The Bank agreed to pay the remaining
Birr 178,940 with annual rental of Birr 2,510 for 70 years .

34
The Bank that Strives to Stimulate Growth Annual Report (July 2015-June 2016)
NIB INTERNATIONAL BANK SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2016

11. OTHER LIABILITIES

Currency: Ethiopian Birr

2015
Leasehold land payable 23,426,935 23,372,285
Guarantee deposit 4,304,632 7,174,556
Cash Payment Order issued 281,612,764 285,737,475
Cheques and Claims in-transit 19,502,436 21,362,310
Exchange Payable to NBE 21,007,447 17,613,427
Current accounts blocked 35,122,428 89,625,243
Accrued interest on fixed time deposit 86,411,934 60,900,436
Telegraphic transfers payable 7,035,525 8,710,535
Board of Directors allowance 1,100,00 600,000
Tax payables 9,092,705 9,000,012
Dividend Payable 40,367,923 20,158,309
Other accruals 30,638,236 23,180,155
Others (11.1) 119,113,792 486,870,437
678,736,757 1,054,305,180

11.1 Others

Customers loan deposit accounts 1,492,681 1,214,700

Retention re-construction work 3,348,801 2,085,674
ATM Inter -operability account 15,655,363 3,873,907
Money transfer payable 46,940,337 37,413,882
Correspondence account - 408,374,930
Others 51,676,611 33,907,344

119,113,792 486,870,437

35
Annual Report (July 2015-June 2016) The Bank that Strives to Stimulate Growth
 Nib InternationalBank

NIB INTERNATIONAL BANK SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2016

12. SHARE CAPITAL

The authorized capital of Nib International Bank S.C. is Birr 2,200,000,000 comprising 4,400,000 ordinary shares of Birr 500 each.

Currency: Ethiopian Birr

2015
Subscribed 2,200,000,000 1,300,000,000
Paid-up 1,502,380,000 1,265,202,500

13. SPECIAL RESERVE

The Bank has a special reserve of Birr 1,700,000 against fidelity risk in accordance with article 21(7) of the Banking Business
Proclamation No 592/2008.

14. RETAINED EARNING

Opening Balance 111,002,135 64,076,930

Add: Transfer of surplus for 2014/15 252,104,659 234,626,028
Less: Dividend paid (252,104,659) (187,700,823)
111,002,135 111,002,135

15. INTEREST INCOME

Loans and advances 1,015,829,212 789,785,420

Government Bond 123,952,316 97,046,649
Deposits with domestic banks 740,996 1,225,564
Interest on correspondence bank accounts 528,747 17,367
1,141,051,271 888,075,000

16. COMMISSION INCOME

Telegraphic transfers and drafts 3,042,897 3,531,642

Certified Payment Orders 1,832,113 1,867,990
L/C opening, confirmations and extensions 41,291,586 40,850,251
Letters of guarantee issued 17,584,888 15,254,515
Other commissions 5,733,562 3,270,339
69,485,045 64,774,737

36
The Bank that Strives to Stimulate Growth Annual Report (July 2015-June 2016)
NIB INTERNATIONAL BANK SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2016

17. SERVICE INCOME

Currency: Ethiopian Birr

2015
Service charges - foreign 110,210,345 148,453,519
Service charges - local 2,058,652 957,522
112,268,997 149,411,041

18. GAIN ON FOREIGN CURRENCY TRANSACTION AND TRANSLATION

Gain in foreign currency dealings 1,416,467,949 799,204,845

Loss in foreign currency dealings (1,337,170,382) (725,419,628)
79,297,567 73,785,217

19. DIVIDEND INCOME

Nib Insurance S. C. 2,515,484 3,069,368

Agar Micro Finance S. C. 1,343,358 828,868
3,858,842 3,898,236

20. OTHER INCOME

L/C opening charges 1,855 19,897

Telecommunications 606,645 1,769,328
Estimation fees 5,528,435 859,059
Correspondent charges 1,335,498 1,457,174
Gain on sale of acquired property 586,841 5,226,253
Rent 1,077,161 740,097
Sundry income 15,931,068 8,128,675
25,067,504 18,200,483

21. INTEREST EXPENSE

Saving Deposits 228,508,116 200,803,426

Time Deposits 152,284,893 96,843,126
Loan from NBE 11,514,717 2,847,946
392,307,725 300,494,498

37
Annual Report (July 2015-June 2016) The Bank that Strives to Stimulate Growth
 Nib InternationalBank

NIB INTERNATIONAL BANK SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2016

22. GENERAL AND ADMINISTRATIVE EXPENSES

Currency: Ethiopian Birr

2015
Office rent 94,300,972 78,049,726
Advertising 7,867,565 11,190,129
Depreciation and amortization 53,632,428 45,613,602
Stationery and printing 14,499,948 9,114,267
Communications 10,379,934 10,365,277
Maintenance and repair 9,242,473 8,527,325
Insurance 9,326,928 7,854,132
Fuel 6,269,517 6,037,711
Bank charges 2,785,362 2,949,456
Consultancy 50,503 -
Membership fee 165,267 191,167
Perdiem and travel 3,069,758 2,499,301
Transportation 1,981,256 2,040,327
General assembly and meeting 1,483,059 4,147,956
Entertainment 7,972,422 7,120,249
Utility fees 1,452,572 1,619,960
Car and representation allowance 1,911,212 1,719,048
Property transfer fee - 577,646
Meeting workshop and seminars 2,345,330 1,521,201
ATM transactions and card personalization 8,309,832 12,745,164
License fee 4,471,261 6,413,509
Swift expense 2,048,773 113,396
Correspondent charges 303,174 2,927,498
Others 12,229,105 7,576,848
256,098,649 230,914,895

38
The Bank that Strives to Stimulate Growth Annual Report (July 2015-June 2016)
NIB INTERNATIONAL BANK SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2016

23. EMPLOYEE BENEFIT SCHEMES

The Bank has a provident fund scheme for all its permanent employees hired before July 2011, for which the
Bank contributes 13% of basic salary, and employees contribute 7%. These contributions are held for each
individual in saving accounts at the Bank. All employees hired after June 2011 are included in private pension
scheme as per the Private Organization Employees Pension Proclamation No. 715/2011 issued in June 2011. For
those employees included in private pension contribution, the excess amount is deposited to the individual
bank accounts.

All other employee benefits are in accordance with the Labor Proclamation No.377/2003 and Amendment No.
494/2006.

24. PROVISION FOR TAXATION

Currency: Ethiopian Birr

2015
Profit (Loss) before tax 458,753,807 440,800,710
Add: Representation allowance in excess of 10% 11,635 23,400
Entertainment 7,972,422 7,120,249
General provision on debts 2,504,430 -
Less: Interest on local deposits 740,996 1,225,564
Interest on foreign deposits 528,747 17,367
Dividend income taxed at source 3,858,842 3,898,236
Interest on NBE Bills 123,952,316 97,046,649
Taxable profit 340,161,393 345,756,543
Profit tax at 30% 102,048,418 103,726,963
Tax on interest on foreign deposit at 5% 26,437 868
Provision for taxation 102,074,855 103,727,831

39
Annual Report (July 2015-June 2016) The Bank that Strives to Stimulate Growth
 Nib InternationalBank

NIB INTERNATIONAL BANK SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2016

25. CAPITAL COMMITMENTS

The Bank has signed an agreement with Tigat Business Center S. C. for purchase of branch office building around Wuha Limat
( Haile G/Slassie Road) for Birr 12,840,000. So far the Bank has paid Birr 11,556,000 and the remaining amount Birr 1,284,000 is
expected to be paid next financial year.

The Bank has signed with Temenos an agreement for new banking software and hardware and as at 30th June 2015, the Bank
implemented the T-24 Core Banking Software and Birr 72,792,702 was capitalized in relation to modules implemented by the
bank. Birr 16,852,923 is still awaiting for implementation in relation to Mobile Banking and other related modules.

26. BOARD OF DIRECTORS’ REMUNERATION

The Board of Directors remuneration was computed as per the directive No SBB/63/2016 Issued by NBE in June 2016 .

27. EARNINGS PER SHARE

Earnings per share for the year are calculated on the basis of average number of shares outstanding during the year.

28. COMPARATIVE FIGURES

Some comparative figures have been reclassified for better presentation.

29. CONTINGENT AND MEMORANDUM ITEMS

Currency: Ethiopian Birr

Contingent liabilities 2015
Guarantees issued to customers 849,698,738 784,422,666
Contingent assets
Interest on loans and advances under litigation 10,764,671 5,477,035
Accrued interest income on NPL 79,356,132 65,409,926
90,120,803 70,886,961
Unutilized overdraft balance 1,125,664,886 940,712,932
Overdraft and loan facilities approved but not disbursed 416,285,927 1,308,325,751
Commitments
Letters of credit 418,888,788 432,978,888
Less: Margin held (108,531,285) 146,671,513
310,357,503 286,307,375
Inward bills for collection 69,849,968 116,190,038
Outward bills for collection 9,696,711 7,280,734
Memorandums on export letters of credit (170,838,567) (189,508,363)

40
The Bank that Strives to Stimulate Growth Annual Report (July 2015-June 2016)
 BRANCHES
OUTLYING

SNNPR

ALETA WENDO ARBA MINCH BUTAJIRA DILLA DILLA EDGET

Tel +251 46 224 0354 +251 46 881 2012 +251 46 115 0752 +251 46 331 4331 +251 46 331 0113
Fax +251 46 224 1006 +251 46 881 4174 +251 46 115 1461 +251 46 331 3925 +251 46 331 0102
P.O.Box 2 2078 117 152 258

EMDIBIR GUBRE HADERO HALABA KULITO HAWASSA

Tel +251 11 331 0333 +251 91 285 3928 +251 46 432 0100 +251 92 990 4657 +251 46 220 7178
Fax +251 11 331 0317 +251 46432 0241 +251 46 220 7181
P.O.Box 70 10 1247

HAWASSA ARAB SEFER HAWASSA WARKA HOSSANA HOSSANA MENAHARIA SHINSHICHO

Tel +251 46 212 3698 +251 46 212 0012 +251 46 555 0371 +251 46 555 2421 +251 46 339 0670
Fax +251 46 212 4617 +251 46 212 0005 +251 46 554 4444 +251 46 555 2973 +251 46 339 0811
P.O.Box 88 615 615 47

WERABE WOLAITA SODO WOLKITE YEJOKA YIRGA ALEM

Tel +251 46 771 0311 +251 46 180 0020 +251 11 330 2541 +251 11 365 8031 +251 91 171 7509
Fax +251 46 771 0327 +251 46180 0600 +251 11 330 2544 +251 11 365 6580 +251 46 225 1084
P.O.Box 63 393 189 189 215

YIRGACHEFE ZEBIDAR HALABA KULITO SHONE

Tel +251 46 332 0569 +251 46 115 0906 +251 46 556 1555 +251 91 349 3527
Fax +251 46 332 0090 +251 46 115 0130 +251 46 556 1771
P.O.Box 146 103 100

DIRE DAWA CITY

AFETESA DIRE DAWA
Tel +251 25 211 0416 +251 25 112 3495
Fax +251 25 211 0340 +251 25 112 3492

P.O.Box 1952 1952

OROMIA REGION

ADAMA ADAMA MENAHARIA ALEM GENA ARSI NEGELE ASSELA

Tel +251 22 112 4844 +251 22 212 2729 +251 11 387 0553 +251 46 116 4655 +251 22 238 0015
Fax +251 22 112 5188 +251 22 211 2256 +251 11 387 0408 +251 22 238 0024
P.O.Box 1714 2930 1177 297 638

AWEDAY BALE ROBE BATU BISHOFTU DUKEM

Tel +251 25 662 0154 +251 22 665 0084 +251 22 118 0006 +251 11 433 7527 +251 11 432 0652
Fax +251 25 662 0462 +251 22 665 0094 +251 22 118 0013 +251 11 433 0554 +251 11432 0653
P.O.Box 90 4 49 1599 27

FURI JIMMA MEHAL ARADA-ADAMA MEKI MODJO

Tel +251 11 367 9121 +251 47 112 1234 +251 22 111 8554 +251 22 118 0014 +251 22 236 0013
Fax +251 11367 9131 +251 47 112 1232 +251 22 111 8552 +251 22 118 0116 +251 22 236 0030
P.O.Box 1469 2288 53 87

NEKEMET ODA (SHASHEMENE) SEBETA SHASHEMENE WECHECHA

Tel +251 57 661 3211 +251 46 211 0035 +251 11 338 0055 +251 46 110 2623 +251 11 367 9246
Fax +251 57 661 3166 +251 46 211 0044 +251 11 338 0208 +251 46 110 4289 +251 11 367 9228
P.O.Box 79 1177 177 1177 2439

WOLISO BISHOFTU ADDA SULULTA

Tel +251 11 341 3442 +251 96 781 4162 +251 91 144 6304
Fax +251 11 341 3280

P.O.Box 45

41
Annual Report (July 2015-June 2016) The Bank that Strives to Stimulate Growth
 Nib InternationalBank

BRANCHES
OUTLYING

SOMALI REGION HARARI REGION

AWEBERE JIJIGA TOGOCHALE HARAR

Tel +251 25 777 0037 +251 25 775 6072 +251 25 882 0127 Tel +251 25 667 0730
Fax +251 25 777 0036 +251 25 278 0033 +251 25 882 0129 Fax +251 25 667 1076
P.O.Box 834 834 587 P.O.Box 1697

AMHARA REGION

BAHIR DAR DEBRE BIRHAN DESSIE GONDER GONDER MARAKI

Tel +251 58 226 6242 +251 11 681 2701 +251 33 112 5110 +251 58 112 1881 +251 58 211 5061
Fax +251 58 226 6244 +251 11 681 2383 +251 33 112 5109 +251 58 112 1797 +251 58 211 5044
P.O.Box 2221 232 214 185 185

METEMA YOHANNES
Tel +251 58 231 0811
Fax +251 58 231 0807
P.O.Box 40

TIGRAY REGION

HUMERA MEKELE MESOBO SHIRE

Tel +251 34 448 0939 +251 34 440 9300 +251 34 240 5131 +251 34 444 3420
Fax +251 34 448 0425 +251 34 441 1095 +251 34 240 5185 +251 34 444 3425
P.O.Box 84 869 869 10

42
The Bank that Strives to Stimulate Growth Annual Report (July 2015-June 2016)
 BRANCHES
ADDIS ABABA

ABAKORAN ABINET ADARASH ADDIS KETEMA ADDISU GEBEYA

Tel +251 11 126 6052 +251 11 277 0073 +251 11 275 8575 +251 11 277 3941 +251 11 127 0240
Fax +251 11 126 6040 +251 11 277 9491 +251 11 277 0220 +251 11 277 3944 +251 11 127 0125
P.O.Box 2439 2439 2439 2439 2439

AFRICA AVENUE ALEM BANK ARADA ARAT KILLO ASKO

Tel +251 11 661 0986 +251 11 369 4525 +251 11 157 4186 +251 11 126 4833 +251011 273 0403
Fax +251 11 661 0997 +251 11 369 4513 +251 11 157 4187 +251 11 126 4942 +251 11 273 0415
P.O.Box 2439 2439 2439 2439 2439

AYER TENA BALCHA ABANEFSO BESHALE BETHEL BISRATE GABRIEL

Tel +251 11 369 3410 +251 11 554 8005 +251 11 667 7399 +251 11 369 6445 +251 11 320 3534
Fax +251 11 369 3418 +251 11 554 8004 +251 11 667 7335 +251 11 369 6404 +251 11 320 3550
P.O.Box 2439 2439 2439 2439 2439

BOLE BRASS BOLE ENIREDADA BOLE MEDHANEALEM BOLE MICHAEL BOLE

Tel +251 11 642 4384 +251 11 662 5347 +251 11 662 1340 +251 11 639 2151 +251 11 663 3319

Fax +251 11 664 2972 +251 11 662 5349 +251 11 662 2321 +251 11 639 2117 +251 11 663 3334

P.O.Box 2439 2439 2439 2439 2439

CATHEDRAL CMC D’AFRIQUE EHIL BERENDA FERENSAY LEGASION

Tel +251 11 156 9673 +251 11 667 0811 +251 11 515 0315 +251 11 275 8721 +251 11 154 8544
Fax +251 11 156 9674 +251 11 667 0742 +251 11 515 0456 +251 11 275 8720 +251 11 154 8589

P.O.Box 2439 2439 2439 2439 2439

SNNPR

GOFFA MAZORIA GOTERA GOTERA IBEX GURD SHOLA HABTEGIORGIS

Tel +251 11 416 0154 +251 11 466 4634 +251 11 470 2659 +251 11 647 9272 +251 11 156 4976
Fax +251 11 416 0405 +251 11 466 4689 +251 11 470 0949 +251 11 647 4067 +251 11 156 4988
P.O.Box 2439 2439 2439 2439 2439

HAYAHULET MAZORIA ILRI KALITY KALITY MENHARIA KARA

Tel +251 91 141 9720 +251 91 167 2522 +251 11 439 1086 +251 11 471 6405 +251 11 667 8995
Fax +251 11 439 5326 +251 11 471 6478 +251 11 666 44 30
P.O.Box 2439 2439 2439 2439 2439

KAZANCHIS KIRKOS KOLFE KOLFE EFOYITA KOTEBE

Tel +251 11 558 6414 +251 11 470 3191/98 +251 11 273 8057 +251 11 274 9386 +251 11 645 1297

Fax +251 11 558 5265 +251 11 470 3239 +251 11 273 8059 +251 11 279 5272 +251 11 645 1307

P.O.Box 2439 2439 2439 2439 2439

LAFTO LAMBERET LEBU MAIN MAMOKACHA

Tel +251 11 471 0938/39 +251 11 667 5357 +251 11 896 3630 +251 11 551 7561 +251 11 552 0163
Fax +251 11 471 0938 +251 11 667 5311 +251 11 896 3634 +251 11 551 7569 +251 11 552 0162

P.O.Box 2439 2439 2439 2439 2439

MEGENAGNA MEHAL MERKATO MEHAL SUMMIT MESKEL FLOWER MIRAB MERKATO

Tel +251 11 667 3824 +251 11 278 5329 +251 11 667 9906 +251 11 470 0735 +251 11 273 2353
Fax +251 11 667 3826 +251 11 278 5338 +251 11 667 9598 +251 11 470 0754 +251 11 273 2295
P.O.Box 2439 2439 2439 2439 2439

43
Annual Report (July 2015-June 2016) The Bank that Strives to Stimulate Growth
 Nib InternationalBank

BRANCHES
ADDIS ABABA

NEFAS SILK PEACOCK RAGUEL RAS RUFAEL

Tel +251 11 442 5695 +251 11 557 2217 +251 11 213 9400 +251 11 553 6821 +251 11 259 1932
Fax +251 11 442 5696 +251 11 557 2236 +251 11 278 9100 +251 11 553 6820 +251 11 259 2075
P.O.Box 2439 2439 2439 2439 2439

SARIS SEFERE SELAM SENGATERA SHOLA SUMMIT

Tel +251 11 470 7725 +251 11 213 9189 +251 11 835 2884 +251 11 662 2694 +251 11 835 2894
Fax +251 11 470 7773 +251 11 278 1589 +251 11 662 2695

P.O.Box 2439 2439 2439 2439 2439

T/HAIMANOT TANA TATARI TEWODROS ADEBABAY TIGAT

Tel +251 11 277 9299 +251 11 276 5351 +251 11 278 1286 +251 11 111 8643 +251 11 585 5238
Fax +251 11 277 2606 +251 11 276 5350 +251 11 213 0082 +251 11 111 0820 +251 11 515 0638
P.O.Box 2439 2439 2439 2439 2439

TIRET TOR HAILOCH URAEL WOLLO SEFER YEKAKE WURDWOT

Tel +251 11 273 3924 +251 11 320 4355 +251 11 557 7239 +251 11 552 9253 +251 91 117 5515

Fax +251 11 276 8576 +251 11 371 3050 +251 11 557 7179 +251 11 552 9856
2439 2439 2439 2439 2439
P.O.Box

YERER BER ADDISU MICHAEL ASFA WOSSEN BEKLOBET BOLE 24

Tel +251 11 647 9501 +251 91 143 7136 +251 11 273 5469 +251 11 470 3983 +251 91 116 8581
Fax +251 11 647 9511 +251 11 273 5549 +251 11 470 6821

P.O.Box 2439

ENQULAL FABRICA GERJI JEMMO KARA KORE LIDETA

Tel +251 91 166 2419 +251 91 106 6070 +251 91 166 8133 +251 91 174 8575 +251 11 557 8137
Fax +251 11 557 9113

SHEGER MENAFESHA TOTOT VATICAN YERER GORO

Tel +251 11 126 4951 +251 91 191 7189 +251 91 334 4098 +251 11 667 7836
Fax +251 11 126 5267 +251 11 667 7790

Our
147
Branches

44
The Bank that Strives to Stimulate Growth Annual Report (July 2015-June 2016)
ATM LOCATIONS
ADDIS ABABA
Branch Commercial Center & other
Main, Africa Avenue Road, Dembel City Center Ahmed Commercial Center, Behind Dej. Balcha Hospital
Africa Avenue, Japan Embassy Road, in front of Novis Super Market Dil Betegil Commercial Center, In front of Head Quarter of EthioTele
Bole Medhanealem, in front of Sheger Building Abadir Supermarket, 4 kilo, in front of AAU 4 Kilo Campus
Ras, in front of Ras Hotel Morning Star Mall, at the back of Edna Mall
Shola, Megenagna Building, near Lem Hotel San Building, around Bisrate Gabreal Church
Arada, Piassa, in front of Empire Cinema DJ Vision Real Estate, Meskel Flower Road, next to Dreamliner Hotel
Abinet, around Molla Maru, St. Gabriel Building Abyssinian Plaza, adjacent to Bole Medhanealem Church
Nefas Silk, Nefas Silk Paint Factory, Tekle Trading Building Golf Club, inside Golf Club
Gotera, adjacent to Agona Cinema, Balaker Building
H/Giorgis, Tefera Trade Center Building OUT SIDE ADDIS ABABA
Yerer Ber, Angels Tower (around 46 Mazoria) Branch
Peacock, in front of Bole Printing, Yeshi Building Hawassa, Hawassa Town, Piassa, Shenkore Building
Tana, Merkato, Tana Business Center Building Mekelle, Mekelle Town, Kidamay Weyane market
Bisrate Gabriel, beside Bisrate Gabriel Church, Lafto Mall Adama, Adama Town, Hawas Building
Cathedral, on Cathedral School Building Mehal Arada Adama, Adama Town, Arada
Bole Michael, in front of Bole Michael Square Bishoftu, Bishoftu Town, Tenkir Hotel Building, in front of bus station
Goffa Mazoria, Sofia Mall Building Hossana, Hossana Town, Colonel Bezabeh Petros adebabay
CMC, near to Michael Church Dilla, Dilla Town, inside Delight Hotel building
Bethel, near Shoa Bakery Yejoka, Wolkite Town
Asko, Burayu Taxi Tera, Aklilu Agew Building Gonder Maraki, Gonder Town, Maraki
Ayer Tena, near Ayer Tena Adebabay Bahir Dar, Bahir Dar Town, Papyrus Hotel area, Ambay Building
Kolfe Efoyta, Kolfe Efoyta Gebeya Jijiga, Jijiga Town
Bole, DH Geda Tower Furi, Around Fitsum Belay Hotel
Torhayloch, adjecent to Shoa Supermarket
Hotel
Lambert, in front of Lamberet Bus Station
Central Hawassa Hotel, Hawassa Town, Arab sefer
ILRI, Gurd Shola, at the campus of International Livestock Research Institute
Landmark Hotel, Gonder Town, Beleko
Alem Bank, around Alem Bank Square
Jantekel Hotel, Gonder Town, Maraki
Saris, in front of Ries Engineering
Planet Hotel, Mekelle Town, Semahetate obelisk
Megenagna, In front of Zefmesh Mall, Megenagna Tamegas Building
Jacaranda Hotel, Bahir Dar Town, Giorgis Church
Lebu, around Lebu Square, infront of Safeway Supermarket
Fitsum Belay Hotel, Furi
Beshale, around Beshale Hotel
Yina Grand Hotel, Dukem Town
Kality, around Cork Factory
Tourist Hotel, Arbaminch Town
Sefere Selam, around Ethio Tebib Hospital
Bini International Hotel, Bishoftu Town
Mehal Summit, Summit/Safari
Samrat Hotel, Dire Dawa Town
Gotera Ibex, around Wengelawit Building
Haile Resort Hotel, Shashemene Town
Beklo Bet, Omedad building
Lucy Hotel, Arbaminch Town

Hotel
Commercial Center
Intercontinental Hotel, Kazanchis
Alliance Market Center, Hawassa Town, Gabriel Church
Desalegn Hotel, Infront of European Union
Beer Garden Inn, Behind Edna Mall
University
Zola International Hotel, around the road from Imperial Hotel to 22
Jimma University, Jimma Town
Churchill International Hotel, Churchill road, Tewodros Adebabay
Saro - Maria Hotel, At the back of Edna Mall
Salvaz Hotel, Around Atlas Hotel
45
Annual Report (July 2015-June 2016) The Bank that Strives to Stimulate Growth
N O T E S Date / /
 STEP 01: 08:00H

Mobile
Banking STEP 01: 08:00H

Banking at your hand!

*865#

Internet
MAGAZINE NEWS ART DESIGN CULTURE

CONTEMPORARY ART
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Banking
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CONTEMPORARY ART
STEP 01: 08:00H
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laborum.

MAGAZINE NEWS ART DESIGN CULTURE

CONTEMPORARY ART
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pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa

CONTEMPORARY ART
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eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut
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Just Click NIB Online and be online

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consequat. Duis aute irure dolor in
in voluptate nulla pariatur. deserunt mollit anim id est anim id est laborum.
laborum.

ይሠሯል ከልብ፣
እንደ ንብ!
The Bank that Strives to Stimulate Growth!
Head Office
Tel: +251 115 503288
Fax: +251 115 527213
P.O.Box: 2439
E-mail: nibbank@ethionet.et
SWIFT: NIBIETAA
Website: www.nibbank-et.com ይሠሯል ከልብ፣
እንደ ንብ!
Addis Ababa, Ethiopia The Bank that Strives to Stimulate Growth!