African Business magazine survey titled ‘East Africa’s Top Banks in 2021’ recognized CBE as the top profitable bank in East Africa with 24% Return-on-Investment (ROE).
In terms of capital, Kenya’s Equity Bank has replaced the Commercial Bank of Ethiopia at the top of East Africa regional ranking in 2021. Part of this is due to faster depreciation of the birr than the Kenyan shilling against the US dollar, said African Business.
Commercial Bank of Ethiopia was the largest bank in East Africa in terms of assets as of 2021 based on Statista November data. The institution led the regional ranking, with total assets worth nearly 24 billion U.S. dollars. This value was far above that measured by Kenya’s Equity Bank Group, the second in the list. The institution had approximately 10 billion U.S. dollars in assets.
In 2021, CBE loans disbursed to the private sector have reached 100 billion ETB, showing a 170% jump from last year and a whooping 730% increase from the year 2015. This year also shows the private sector taking over as the largest receiver of loans from the Commercial Bank of Ethiopia, with 2.5 times as much loans received as the public sector.
The share of the public sector has reduced substantially in 2021, decreasing from 110 billion ETB in 2020 to just 40 billion ETB in 2021, a 64% drop.
The majority of loans went to international trade and domestic trade, followed by agriculture and industry sectors.
Image Courtesy: Green Sustainable Ethiopia Network
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