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Click on table/chart for bigger image
Click on table/chart for bigger image
Notwithstanding the deterioration in the credit portfolio, the operational performance of the banking sector improved with an increase of 62.3 percent in pre-tax profit to Le18.5bn in December 1999. Enhancing the pre-tax profit for 1999 was income from investments in government securities, which accounted for 39.8 percent (1998: 15.1 percent) of total operating income. Consequently retained earnings increased to Le3.2bn from Le0.83bn in 1998. Both the Return on Assets (ROA) and Return on Equity (ROE) improved to 13.3 percent and 44.4 percent from 10.4 percent and 36.0 percent respectively.
The banking sector continued to maintain very high liquidity position at 109.5 percent from 86.9 percent (end December 1998). The cash ratio reserve increased to 26.5 percent from 13.9 percent.
(iv) Year 2000 Compliance
The Banking Supervision Department coordinated and supervised the Year 2000 compliance activities of commercial banks. The department ascertained that the commercial banks' computer installations and embedded chips were compliant to continue operations in Year 2000
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