Industry Analysis Of Commercial Banks Essay

Financial Year 2006/07

Six Months Performance Review of the Banking industry

By Business Development, Planning and research Division

July 2007
1. A review of Banks Performance from Dec 31, 2006 to Mar 31,2007
1.1 Deposit mobilization
The amassed growth rate of deposits was recorded by the industry in general for the third quarter of FY 2006/07 that is 2.38%. Both private and government banks has registered a growth rate of 12.36% and 11.39% respectively. Of the private Banks, Cooperative Bank of Oromia registered the highest growth rate 38.55%, followed by United Bank 12.94% and Nib International Bank 9.12%, and the least growth rate was registered by Dashen Bank which is 5.34%. On the other hand, CBE and CBB evidenced a growth rate of 3.76% and 7.63% respectively where as DBE remains constant (Zero growth rate).

In the third quarter of the financial year 2006/07, private Banks show a momentous improvement in market share by recording 0.87% growth while government Banks decline their market share by the same percentage, this was mainly the declined in the market share of CBE i.e.0.86%. Among private Banks, United Bank has registered the highest improvement in market share 0.22%, AIB holds the second highest position 0.14 followed by Nib International Bank and Lion Bank both shows 0.13% improvement. Wegagen Bank registered 0.01 % improvement in market share and it is recorded as the least from private Banks.
Deposits mobilization by commercial Banks and specialized bank
                                                                                                                                                                  In '000 Birr
Banks 31-Dec-06 Market Share 31-Mar-07 Market Share Growth Rate Variation in Mkt Share
Absolute % age
Commercial Bank of Ethiopia   31,708.00               65.89   32,900.00     65.03   1,192.00     3.76               (0.86)
Development Bank of Ethiopia         595.00                 1.24...