Most of the profits come from the 21 branches outside of Addis Abeba

Oromia International Bank (OIB), in its second year after establishment, has made its first profit at 21.5 million Br.

This profit comes after the bank, established with a paid-up capital of 193.7 million Br in October 2008, recorded a loss of 13 million Br during its first year of operations, sources at the bank told Fortune.

"Our expectation was to achieve only zero per cent," said Worku Lemma, OIB's vice-president for corporate services.

The bank's financial report will be presented at the general assembly, which is plannd to take place in October 2010, where it is expected to decide whether dividends will be paid to shareholders.

OIB, which has 6,200 shareholders with a registered capital of 279 million Br, has six branches in Addis Abeba and 21 branches in other towns. This includes one branch each in Gindeberet, Metehara, and Ageregute, where OIB is the only bank available to the community. Branches outside Addis Abeba were responsible for most of the profit that the bank gained during the previous fiscal year, according to Worku.

The headquarters of Oromia International Bank, on Mahatma Gandhi Street, lies up the hill from Mega Amphitheatre.

Service charge fees and commissions for international banking and domestic money transfers have contributed a larger chunk of the unexpected profits.

"It is to the credit of every staff member of OIB," said Worku.

The bank is currently undergoing a technological transformation with the adoption of OMNIEnterprise's centralised, online, real-time, electronic (CORE) banking solutions, which are currently under installation by InfrasoftTech, an Indian company.

The CORE banking solutions will enable the bank to offer interest free banking services in addition to Internet, mobile, and card banking, according to Worku. OIB also plans to expand its services by opening 12 branches this fiscal year.