Esteemed Shareholders and other stakeholders;

The fiscal year 2019/20 was another year of global instability, with an economic downturn resulting from the coronavirus outbreak, and continued decline of global output and investment. The domestic economy, on the other hand, sustained modest growth as the reform and domestic production continued to fold momentum. Although the economy expanded significantly for eight months of the fiscal year, the momentum moderated in the last four months due to the pandemic. Aside from the pandemic, during the year, the banking industry was severely challenged with liquidity crunch.

Despite these challenges, the bank continued to maintain a healthy growth in key metrics and improved profitability for the year under review. The year also represents a major landmark for the bank, as it marked its 15th year anniversary.

The bank’s balance sheet size grew by 25.6 percent during the period from ETB 41.79 billion to ETB 52.49 billion in line with increase in deposits and loans.

The most important foundation of our earning assets remained customers’ deposit which grew by ETB 9.34 billion or 25.82 percent to ETB 45.51 billion ensuing to instituting and maintaining of the relationships with our clients.

During the fiscal year, the bank was able to earn a total foreign currency of USD 363.42 million with export constituting the largest share of 70.8 percent. In fact, export performance of the country has marginally improved during the year with earnings of about 3.03 billion USD, 14 percent or 300 million USD up from the previous fiscal year.

Outstanding loans and advances of the bank increased by 40.3 percent to ETB 34.21 billion in the FY 2019/20, from the 2018/19 end year value of ETB 24.39 billion. The bank made additional injection or disbursement of ETB 16.66 billion mainly to customers in export, domestic trade, service and manufacturing businesses. As for credit quality, the NPL ratio improved once again, dropping to 2.35 percent during the year, keeping below a regulatory standard of 5 percent and our internal plan.

In this fiscal year, the bank have made tremendous progress in earnings. The bank generated a record revenue of ETB 5.74 billion, up by 54.6 percent or ETB 2.03 billion from the previous year’s ETB 3.71 billion. Interest income held the major portion of the income with 72.4 percent of the total revenue depicting sustainability to yield sound benefit to the Bank.

On the other hand, the total operating expense were ETB 4.32 billion, increasing by 46.6 percent from the prior year’s balance of ETB 2.95 billion. Interest expenses paid on customers’ deposit and personnel expenses jointly held a significant share of 61 percent from the expenses.

The bank’s regular growth of earning assets, together with our unrelenting focus on efficiency and optimization, enabled the bank to deliver an underlying profit. The gross profit before tax was therefore ETB 1.42 billion, a growth of 85.5 percent from the last year’s balance of 767.01 million.

Beside the financials, I feel that we have also accomplished a number of non-financial and strategic matters that are just as important for our continued success. The bank is endeavoring to continuously be in the heart of the community, and hence increased its retail branch network by 31 to 420 new branches. Moreover, by recognizing role of digital innovations to enrich customer offerings, improve customer experience and harness the benefits of faster service, the bank laid important attention to promotion of the digital ecosystem. Accordingly, the bank managed to recruit 747 merchants and 377,856 subscribers to COOPay-ebirr digital banking service.

In the moment of COVID outbreak, the bank granted a donation of ETB 5 million to the National Resources Mobilization Committee and ETB 3 million for Oromia Regional Steering Committee to fight the potential spread of the virus.

In addition, the bank also offered its two buildings in Naqamte and Kuyyu for the same services and provided transport services to its employees in a bid to strengthen efforts in containing the virus. In the same note, the

bank made a significant reduction of up to 5 percent loan interest rates and waived some fees aimed at minimizing the impacts of the pandemic.

Aside from the pandemic, the bank was also engaged in supporting other humanitarian, environmental and cultural events/initiatives.

As I look forward, and especially with the commencement of the bank’s five-year strategy, we will strengthen competencies of our human capital, intensively work on digitalization, and persistently revise operating models to _ne tune needs of our customer service approaches. We will continue our growth and transformation journey in an aspiration to be the Bank of choice for our clients and partners, and bring operational excellence.

Finally, I can say the fiscal year 2019/20 was very fruitful, and all in all I believe we are very well positioned for the forthcoming periods. By this chance, I want to say thank you to all our employees, shareholders, board of directors, customers and partners, and regulatory bodies for your commitment, sharing our journey and for your continued support.

Thank you,

DERIBIE ASFAW

President