State Banks Welcome New Bosses


The new presidents received the letter of appointments last week




The two state banks, the Commercial Bank of Ethiopia (CBE) and the Development Bank of Ethiopia (DBE) have received new heads, Bacha Gina and Haileyesus Bekelle, respectively.

Sintayehu Woldemicahel (PhD), director general of the Public Financial Enterprises Agency, assigned Bacha, former vice-president of Cooperative Bank of Oromia, as the new president of CBE replacing Bekalu Zeleke. Sintayehu also assigned Haileyesus, former vice president of Credit Management of DBE, to head DBE replacing Getahun Nana.

Before moving to the CBE, Bacha was serving in the banking industry under different capacities, including as vice president of credit and risk management at Awash International Bank and member of Awash Insurance Company’s board of directors.

Haileyesus has been vice president of DBE for the past year and a half replacing Tadesse Hatiya, who served the bank for eight years in the same position. Before coming to the DBE, he was president of the Construction & Business Bank (CBB) which merged with the CBE in 2015. After the merger of the two banks, Hayleyesus took a position at the CBE but resigned from his position in September 2016.

The new appointment at DBE came following the resignation of Getahun in mid-May this year after serving a year and a half on the job. Getahun had replaced the long-serving president of the Bank, Essayas Bahre he was also vice governor in charge of Banking & Insurance Supervision at the National Bank of Ethiopia (NBE). Essayas was appointed to the position by the late prime minister Meles Zenawi in December 2009.

Haileyesus will be heading a bank which has faced challenges holding high rates of non-performing loans (NPLs). Last year, the Bank reported NPL ratio increases to 25pc from 16pc of the previous year. Based on the bank’s nine-month report, DBE has improved its NPL ratio from 28pc earlier in the year to the current 20.54pc. The ratio has fallen mainly in the manufacturing and commercial farming sectors. As of January 2018, about 8.6 billion Br in loan portfolio was considered non-performing, according to the Bank’s report.

During the first three-quarter of the recently ended fiscal year, DBE has approved loans worth 4.34 billion Br and disbursed 1.94 billion Br. It also managed to collect 1.37 billion Br from project and lease financing services.

Bacha also came into the scene following Bekalu’s new appointment at the central bank as vice governor. Bekalu has been serving the state-owned giant CBE since 2008. Bekalu has served the CBE starting as junior staff and rising to the position of Vice President for Finance & Accounting under Abie Sano, the current President of the Oromia International Bank.

During the first three-quarters of the current fiscal year, CBE has received 71.5 billion Br in deposit and disbursed 63.7 billion Br as new loans. Leading the sector with card and digital banking, CBE currently possesses 1,676 automated teller machines (ATM) and 7,382 points of sale (PoS). During the same period, the bank has also opened 40 new branches in various parts of the country.

 



By FASIKA TADESSE
FORTUNE STAFF WRITER

Published on Jul 14,2018 [ Vol 19 ,No 950]


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