Evopica’s Post

Zemen Bank S.C. Reports Profit Growth Despite Economic Challenges Zemen Bank announced a pre-tax profit of ETB 3.77 billion for the 2023/24 fiscal year, reflecting a 36.8% increase from the previous year. This was shared during the bank's Annual General Meeting at the Millennium Hall, where shareholders noted an Earnings Per Share (EPS) of 37.6%. The bank's total assets grew by 23.9% to ETB 59.2 billion, while customers' deposits increased by 17.6% to ETB 43.61 billion. Loans and advances rose by 13.5% to ETB 35.63 billion, and foreign exchange inflows reached USD 566 million, averaging USD 47.2 million per month. Read more: https://lnkd.in/epYMPCm8

Industry Analysis of Commercial Banks Review Period Ashadh 2081 Vs Ashadh 2080!

While interacting with a micro finance leader about the way forward of managing risk in a fast growing mfi loan portfolio, I socially advised her a brief prescription ~ If your micro credit delivery is primarily used for: (a) buying unproductive assets or (b) meeting lifestyle expenses or (c) repaying other loans then even your best looking portfolio could be at a serious risk! In a scenario like this, you just need to probe 3 core operational aspects: ~ are you properly assessing the credit needs and worthiness of new and old clients with due diligent CGT/GRT practices? ~ are you ensuring disbursements in the right hands and for the right reason? ~ are you systematically conducting centre meetings and promoting enough discipline? Do it once, yourself. Then repeat quite often and experience a turn around very soon! Sharing here to draw a few more insights and best practices from the sector while candidly reflecting our collective wisdom on #lending responsiveness, #credit delivery and #risk perception. ~ Sa-Dhan Association | Microfinance Industry Network (MFIN)

#TheReserveBankofIndia (RBI) has come across instances of micro lenders and non-bank financiers charging high, 'usurious' interest rates on small-value loans, reminding them to judiciously use their pricing power. The regulator reiterated that customer protection is one of its top priorities. This comes two years after the regulator removed pricing caps from MFI (microfinance institution) loans, instead relying on these lenders to have policies that are approved by their boards. In March 2022, RBI said banks, non-banks and micro lenders must have a policy on pricing of microfinance loans. While such internal policies were mandated to include a ceiling on the interest rate and all other charges on microfinance loans, the cap would no longer be decided by RBI. Source: Livemint

Arab Bank Group reported solid results for the first half of 2024, with 25% increase in net income after tax reaching $503 million as compared to $401 million for the same period last year. The Group maintained its strong capital base with a total equity of $11.5 billion. Assets grew by 5% reaching $68.7 billion and at constant currency, the Group’s loans grew by 8% to reach $38.1 billion, and deposits grew by 6% to reach $50.5 billion. Read more about it in Finance 360 #ArabBankGroup #BestBankintheMiddleEast2024 #Finance #Finance360

With rising living costs and inflation, the post-COVID lending boom has highlighted the need for GCC lenders to optimise collections operations and prepare for future challenges. Discover key insights and strategies in our latest article on optimising and digitalising collections. Read more here: https://okt.to/jObMfs #AMon #GCC #DigitalTransformation #CreditCycle

With high and rising delinquencies, Vietnam’s lenders face mounting pressure as the economy experiences a slow rebound. Traditional collection methods no longer suffice, especially as cost-of-living pressures continue to squeeze consumers' budgets. Our latest article from Alvarez & Marsal outlines why a digital-first approach to collections is critical in today’s environment. Here are a few key takeaways: 1️⃣ 𝗗𝗮𝘁𝗮-𝗗𝗿𝗶𝘃𝗲𝗻 𝗢𝗽𝘁𝗶𝗺𝗶𝘇𝗮𝘁𝗶𝗼𝗻: Leveraging benchmarks and insights can pinpoint operational inefficiencies, helping lenders increase cash collections by at least 20% and reduce costs by 15%. 2️⃣ 𝗘𝗻𝗵𝗮𝗻𝗰𝗲𝗱 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗘𝗻𝗴𝗮𝗴𝗲𝗺𝗲𝗻𝘁: Moving from outbound calls to digital channels (e.g., SMS, email, apps) not only aligns with customer preferences but also significantly boosts engagement and repayment rates. 3️⃣ 𝗟𝗼𝗻𝗴-𝗧𝗲𝗿𝗺 𝗕𝗲𝗻𝗲𝗳𝗶𝘁𝘀: A phased approach—starting with quick optimizations and advancing to full digital transformation—can lead to a 30% or greater improvement in collection efficiency, ensuring lenders remain competitive in an evolving market. Proactive, digitally enabled collections are no longer optional; they’re essential to stay ahead in a challenging credit cycle. Dive into the article for deeper insights on how to future-proof your collections operations. #𝗩𝗶𝗲𝘁𝗻𝗮𝗺 #𝗗𝗶𝗴𝗶𝘁𝗮𝗹𝗧𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻 #𝗖𝗼𝗹𝗹𝗲𝗰𝘁𝗶𝗼𝗻𝘀 #𝗔𝗹𝘃𝗮𝗿𝗲𝘇𝗔𝗻𝗱𝗠𝗮𝗿𝘀𝗮𝗹

Optimising collections remains a key objective of banks, as important as effective risk management, and is growing in importance. A&M’s practitioner approach, with senior ex-bankers from risk, data and digital backgrounds, gives us depth of experience to provide valuable insights and solutions that will help banks reduce costs and increase collections, towards overall efficiency and optimisation. An initial conversation with us will allow us to present our approach.

While I was studying the financial statements of DCB COMMERCIAL BANK TANZANIA, something stood out to me. Usually, a bank's #deposit base will be composed of almost entirely call (demand) deposits that customers can withdraw on demand. However, at DCB their deposit base consisted largely of time (or 'term') deposits (64%), while call deposits formed a much smaller proportion (12%)*. I see two main issues with this. Firstly, in order to retain these time deposits they may have to offer higher rates because we are in a rising treasury rate environment. This could be compounded by the fact that the bank has received substantial loans from Tanzania Mortgage Refinance Company Limited (TMRC), BoT, and CRDB Bank Plc which mature in 2024. I imagine rolling over these loans may also come with greater rates, at DCB's expense. The second issue is that perhaps DCB hasn't taken the right approach to growing their consumer banking depositor base. In a rapidly growing banking industry, one has to wonder where that leaves DCB in the context of an evolving competitive landscape. Download the report here: https://lnkd.in/egEnsWjf. *Annual Report and Financial Statements FY 2022, DCB Commercial Bank PLC #learn #risk #invest #grow #banking #finance #analysis DSE Tanzania

Askari Bank (PSX: AKBL) has reported a profit of Rs3.74 billion [EPS: Rs2.58] in Q12024, 20.49% YoY lower compared to the earning of Rs4.7bn [EPS: Rs3.25] recorded in the same period last year (SPLY). The bank witnessed an increase of 8.22% YoY in its net interest income (NII) to stand at Rs12.92bn, compared to Rs11.94bn incurred in Q12023. Likewise, the bank’s total non-markup income also improved by 22.57% YoY to Rs3.85bn, owing to a significant jump in both fee and commission income and foreign exchange income. Read the full story at: https://lnkd.in/eyCmf_HG