Nib International Bank ended its latest fiscal year with a net loss of 2.98 billion birr, reversing a 957 million birr profit from the previous year. The downturn was driven by a 4.41 billion birr foreign-exchange revaluation loss, which overwhelmed the bank's income statement. Core banking operations remained average by industry standards.
Nib International Bank concluded its latest fiscal year with a net loss of 2.98 billion birr, a stark reversal from the 957 million birr profit recorded the previous year. At the heart of this downturn lies a 4.41 billion birr foreign-exchange revaluation loss, which became the largest single item on the bank's income statement. Despite this, the bank's core banking operations are described as average compared to industry benchmarks.
In typical circumstances, a fiscal year ending in multi-billion-birr losses would signal scrutiny on management performance. The bank's challenges appear tied to Ethiopia's volatile currency environment, which has amplified pressures from shareholders. This situation underscores broader strains within the country's banking sector amid economic fluctuations.