Addis Ababa, February 13, 2021 (Walta) – The Commercial Bank of Ethiopia (CBE) announced that it has made loan service charge rates adjustment from the previous 8.63 percent average rate to 9.8 percent.
Briefing journalists today, Commercial Bank of Ethiopia President Abe Sano said the interest rate adjustment is aimed at balancing the unbalanced income and expense rates of the bank.
The income of Commercial Bank of Ethiopia is growing with an average of 26 percent rate, while its expense is growing by 39 percent during the last five years, he added.
The borrowing rate of the Commercial bank of Ethiopia is much lower than the market borrowing rate, which is an average of 14.5 percent, the president claimed.
Accordingly, the bank has made service charges adjustment to an average of 9.8 percent from the previous 8.63 percent rate, including for merchandise goods (maximum 16.5%), microfinance (maximum 12.5 %), condominium house (12% percent), public enterprises (maximum 12.5%), corporate bond (9%), and coupon bond (10.5 %), among others.
The bank also improved the loan service charges on merchandise goods that earn foreign currency from 5.5 to 9.5 percent.
In related news, CBE secured 7.4 billion Birr profit in its six-month performance, and the total assets of the bank reached 903.6 billion Birr.