sSA: Ethiopia : NIB INTERNATIONAL BANK S.C

1. Establishment:

Nib International Bank S.C. (NIB) commenced operation on 28th October 1999, after being licensed by the National Bank of Ethiopia on 26th May 1999. Its paid up and authorized capitals then were Birr 27.6 million and Birr 150 million respectively. The total number of employees was 27. Since establishment the Bank made remarkable growth. At the end of March 2009, the authorized and paid up capital reached to birr 1.0 billion and 487 million respectively. Shareholders and employees number increased to 2973 and 1492 correspondingly. The number of full-fledged branches also reached 44.

2. Vision, Mission and Values:

Vision:

To become an icon of excellence and the leading commercial bank in Ethiopia.

Mission:

To provide efficient and effective full-fledged commercial banking services by utlizing qualified, honest and motivated staff and the state-of- art technology and thereby optimize stakeholders' interest.

Values:

• Prudent and professional banking practice,
• Honesty and integrity,
• Transparency,
• Accountability,
• Confidentiality,
• Loyalty,
• Social responsiveness,
• Competitive services and sustainable growth,
• Organizational excellence and
• Equal opportunity employer.

3. Major Objectives:

• To deliver efficient and customer focused domestic and international banking services supported by the state -of –art technology;
• To help spread and deepen banking habits in the country;
• To introduce and popularize modern banking practices in the country;
• To generate optimum return for the shareholders.

4. Governance:

• The General Assembly of Shareholders is at the apex of the Bank’s organizational structure.

• The Bank is supervised by twelve Board of Directors who are elected by the General Assembly of Shareholders, consisting of a Chairman and Vice Chairman and ten other Directors. Presently, the chairman is Dr Dembele Balcha and the vice chairman Dr. Eng Belay Weldeyes.

• The Management of the Bank is entrusted to the President(currently, Mr Amerga Kassa), who is appointed by the Board of Directors and is assisted by three Vice Presidents namely:

• Vice President for Credit & Risk Management and Branch Operations – Mr Hailu Alemu
• Vice President for Administration & Finance – Mr Tassew Demissie, and
• Vice President for International Banking Operations- Mr Bekele Endalew.

• There are nine departments to run the day-to-day activities,

• Credit & Risk Mgt. Department,
• International Banking Department,
• Control Department,
• Legal Services Department,
• Planning & Business Development Department,
• HRD & Administration Department,
• Accounts & Finance Department,
• Management Information Systems Department and
• Branch Operations Department

5. Major Business Purposes:

• To mobilize deposits in the form of savings, demand and fixed time deposits;
• To grant loans and advances;
• To render international banking services;
• To open and maintain Foreign Currency Accounts for Non- resident Ethiopians, foreigners and foreign organizatioins entitled for such facilities;
• To provide international and local money transfer services and
• To engage in Foreign Exchange transaction services.

5.1 Deposit Services:

5.1.1 Normal Deposit Accounts: The Bank renders normal deposit services namely; saving, demand and fixed time deposits.

5.1.2 Special Deposit Services:

• Minor's Savings Accounts (MSA): These accounts can be opened and operated by parents and/or guardians. Such accounts bear attractive interest rate higher than normal saving accounts.
• Holiday, Vacation & Special Purpose Saving Accounts (HOVASP S/A): These accounts can be opened and operated either by individuals or joint account holders; however, the joint signatories cannot be more than two individuals. Such accounts also bear higher rate of interest than normal saving accounts.
• Special Saving Accounts (SSA): These accounts combine features from savings and checking (demand) accounts. The account holders are provided with chequebooks in order to effect a limited number of withdrawals (at the moment five withdrawals per month are allowed). Deposits under this account attract the same rate of interest as the normal savings rate.
• Special Demand Deposit (Non Interest Bearing Saving) Accounts: These accounts are operated using a saving Pass Book but do not bear interest. This is specially designed for Muslims who need such facility.

5.2 Credit Services:

NIB facilitates and gives credit services to those who are engaged in domestic and international trade, industry, transport, construction, hotel, and other sectors. The major services are

• Short and medium term loans,
• Merchandise loans,
• Overdraft facilities.

5.3. International Banking Services:

• Import and Export Letters of Credit,
• Cash Against Document (CAD),
• Purchase and Sale of Travellers’ cheques,
• Purchase and Sale of Cash Foreign Currencies,
• Issuance of Letters of Guarantees,
• Inward and Outward Money Transfers,
• Maintenance Accounts in Foreign Currencies for individuals and organizations entitled for such facilities.

6. Branch Network

The Bank currently operates through 44 full-fledged branches and two forex bureaus. Of which, 27 are located in Addis Ababa and the remaining in regional towns.

7. Customers and Shareholders Base

At the end of June 2009, the number of shareholders reached to the tune of 3,000 and the customers base over 140,000. This clearly demonstrates the high esteem the Bank enjoys from the public.

8. International Recognition:

• NIB received international recognitions and won the following prestigious awards.
• “Bank of the Year in Ethiopia” award winner for 2005 and 2008 by The Banker magazine.
• “Best Bank Award” winner in Ethiopia for 2006, 2007 and 2008 by Global Finance magazine.

9. Branches and Forex Bureaus -June 2009

9.1 Branches:

9.2 Foreign Exchange Bureaus

Note: In addition to the Forex Bureaus, most branches perform Foreign Exchange transactions.