JINKA UNVERSTIY

COLLEGE OF BUSSINESS AND ECONOMICS

DEPARTMENT OF ECONOMICS
AWASH BANK/MEGENAGNA 22 Branch
ADIS ABEBA, ETHIOPIA
A report submitted in partial fulfillment of the requirement for the
practical Attachment (econ3112)
Advisor Mr. Bulo Feyisa Debele
BY Shegaw Meshesha ID.NO 0849/12
Bachelor of Arts in Economics
October,2022
 JINKA UNVERSTIY

COLLEGE OF BUSSINESS AND ECONOMICS

DEPARTMENT OF ECONOMICS

AWASH BANK/MEGENAGNA 22 Branch

ADIS ABEBA, ETHIOPIA

A report submitted in partial fulfillment of The requirement for the practical

Attachment (econ3112)

Advisor Mr. Bulo Feyisa Debele

BY; Shegaw Meshesha

ID.NO 0849/12
Bachelor of Arts in Economics

October, 2022
Name Shegaw Meshesha

Id. No 0849/12

Fourth year economics/AB/

Department of Economics

Jinka University
Declaration
Shegaw Meshesha‘’Id. No 0849/12’’ Hereby declare that the report entitled ‘’A report on Awash Bank,
[AA] megenagna22Branch and its function’’ submitted to Department of Economics, Jinka University
in partial fulfillment of the requirement for the subject practical attachment/Econ301/, is a record of the
original report work done by me and that it has not formed before the basis for the award of any
degree/diploma/ associate ship / fellowship or any other similar titles

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 Preface/Foreword
At its most basic level a Bank is a place to safely keep our money. But beyond the basics, banks usually
offer a wide range of products and services designed to make managing our money a bits easier. There
are plenty of banking services customers may need at different stages of life. And with digital options,
they can access many of them right from their phone or laptop. According, Awash Bank underscores the
need to develop a product catalogue where product information across lines of business and channels,
specifically designed for banking product/services may be easily accessed. As such, the product
catalogue contains the major product/services list information that enables marketing officers to map
product offerings and aware customers our product menu. As a result, a list of the bank’s products and
services with some explanation has been put in the form of catalogue which may help customers of the
existing product and services portfolio.

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 Acknowledgment
Praise to God and his mother saint merry, who helped me in all aspect of my life including the
Achievement of this program. Then I am deeply grateful to my advisor, Mr bulo Feyisa Debele, for his
expert guidance, helpful criticism, valuable constructive suggestion and encouragement at every stage
during the completion of this training. I would like also thank Ato Gzawu Andarge and Ato
Wondewossen Bekele for all the help they have given me the training. / I owe great thanks to my friend
Ato AndargeTegegnwerk and our two beloved brothers for the encouragement and understanding they
have given me throughout the program

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Contents
Declaration................................................................................................................................................................i
Preface/Foreword....................................................................................................................................................ii
Acknowledgment.....................................................................................................................................................iii
Chapter one..............................................................................................................................................................1
1 .Introduction..........................................................................................................................................................1
1.1 BACKGROUND OF AWASH BANK....................................................................................................................1
1.2 Company vision, mission and core value........................................................................................................1
1.2.1 Vision.......................................................................................................................................................1
1.2.2 Mission....................................................................................................................................................1
1.2.3 Our Core value........................................................................................................................................2
1.3 HISTORY AND Growth OF AWASH BANK........................................................................................................2
1.4 Organizational Structure Of Awash Bank In megenagna22 Branch................................................................2
1.5 MAIN PRODUCT AND SERVICE OF AWASHAVAILED BY AWASH BANK ARE;............................3
1.6 programs and projects....................................................................................................................................3
1.7 financial performances...................................................................................................................................3
Chapter Two.............................................................................................................................................................6
Management and Training Information...................................................................................................................6
CHAPTER THREE;......................................................................................................................................................8
JOB BACKGROUND AND INFORMATIONS.................................................................................................................8
CHAPTER FOUR.......................................................................................................................................................11
4. SWOT Analysis of Awash Bank............................................................................................................................11
4.1. Strength.......................................................................................................................................................11
4.2 .WEAKNESSES...............................................................................................................................................11
4.3. OPPORTUNITES............................................................................................................................................11
4.4. THEARTS......................................................................................................................................................11
CHAPTER FIVE.........................................................................................................................................................12
5. EVALUATION, CONCLUSION, AND RECOMMENDATION.....................................................................................12
5.1 Difficult situation /problems that my encountered......................................................................................12
5.2 EVALUATION.................................................................................................................................................12
5.3 CONCLUION..................................................................................................................................................12
5.4 RECOMMENDATION.....................................................................................................................................13
REFERENCE.............................................................................................................................................................14
APPENDIX...............................................................................................................................................................15

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LIST OF CONTENTS

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 Chapter one

1 .Introduction

1.1 BACKGROUND OF AWASH BANK

Twenty-Five year ago, Ethiopia was on passage from command economy to market-oriented economy.
This was when founders of Awash set a set to establish the first private commercial bank and insurance
company in the country. Since inception, the twins have expanded through a combination of substantial
organic growth and an enhanced customer service excellent.

Contribute to society, Macro Economics stability and the environment. For us sustainability is about
building businesses to ensure that we that we have a positive impact on the economy, social progress of
communities and environment. The sustainability of our business depends largely on our staff. We focus
on building a strong and rewards outstanding performances. In order to maintain its leading position
Awash Bank has been investing a lot on human resource development and have more than 10,000 staff.

Awash Bank focuses on delivering distinctive profitable solutions for clients in all core areas of
commercial banking. To be the core bank to our clients, deepening and broadening strategic relationship
in the market.

Awash Bank offers a unique bouquet of innovative products and services that help individuals manage
their finances now and in the future. Awash Bank offers its private banking customers distinct
personalized financial service that allow them bank with utmost convenience and exclusivity. The five
important banking services are checking and saving accounts, loan and mortgage services, wealth
management, providing Credit and Debit Card, overdraft service.

Awash Bank is a commercial bank in Ethiopia that was established by 486 founding shareholders with a
paid-up capital of birr 24.2 million and started banking operations on Fed.13,1995.as of end of June
2022 the number of shareholders and its paid-up capital increased to over 4369 and Birr 5.87 billon,
respectively. Likewise, as of end June2020,our total assets reached birr 95.6 billon with over 535
branches found across the country, awash bank continues to be leading private commercial Bank in
Ethiopia .Having grown from humble beginnings with visionary intent, we are the first private bank in
Ethiopia to exceed a billon profit mark in the history of Ethiopia private banks in the financial year 2019
since inception, we have expanded through a combination of substantial organic growth and an
enhanced customer service experience.

1.2 Company vision, mission and core value

1.2.1 Vision
‘’To be the first choice world class bank’’.

1.2.2 Mission
‘’To provide innovative, competitive and Diversified banking services accessible to the society with
qualified and committed staff in a profitable and socially responsible manner’’.

1.2.3 Our Core value

A-Accessibility

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 W-Wisdom

A-Accountability

S-Social Responsibility

H-Honesty

1.3 HISTORY AND Growth OF AWASH BANK

Awash international bank S.C is a private commercial bank domiciled in Ethiopia The Bank was
established in November 1994,in according with the provisions code of Ethiopia of 1960 and the
licensing and supervision of Banking Business proclamation No .592/2008.

Choosing the names for the bank and the insurance companies was not an easy Many debates and
discussions had to take place as several names were tabled and considered, name which all appeared to
sum up the vision of the shareholders for the two sister companies ’We listed 17 names and the name
‘’awash’ ’won just by one vote 2 A.M.; recall as Mr. Hambissa. Awash River starts its long Journey in
the plateaus of central Ethiopia and gently flows downstream through the rift valley, generating electric
power , irrigating large commercial farms ,quenching the thirst of millions people and animals along its
banks and ends within Ethiopia ,thus ,providing an invaluable economics life line for the country.

The symbolic name of ‘’Awash’ ’for the twin companies reflects the aspiration of the founders of the
companies that they serve as economics life-line of the nation with loyalty for everyone. The
shareholders also envisioned going beyond Ethiopia borders and they called the bank international.Later
on, as a part of vision 2025 roadmap; the Bank has rebranded itself as Awash Bank. The consultant in
charge of the vision drew conclusions from the market survey that the Bank is better known as AB as
AIB and hence rebranded as’’ Awash Bank’’ while Awash international Bank S.C remains functional in
all legal document of the Bank.

1.4 Organizational Structure Of Awash Bank In megenagna22 Branch

1.5 MAIN PRODUCT AND SERVICE OF AWASHAVAILED BY AWASH BANK

ARE;
 Loan and Advances including term Loan and Draft Facilities
 Value added Deposit Accounts[current, Fixed Time Deposit, Special Saving]

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  Payroll Administration Solution Service
 F Solution Account Service
 Door Step Banking-Cash Cheque /BC pickup Delivery
 Digital Channels
 Guarantee Services
 Training, Consultancy and Advisory Services
WHO IS THE TARGET OF THE PRODUCT OF AWASH Bank

 Saving and Credit Cooperatives

 Edir and Equb
 Other Associations
BASIC SERVICES

 Local Transfer services

 Cheque Clearance services
 School/ Tuition fee collection service
 International Banking Services
 Credit Services
 Diaspora Banking Services
 Money Transfer Service
 Interest Free Banking Services
1.6 programs and projects
To be one of the top ten bank in east Africa by all parameter.
For example;
 Profit
 Total asset
 Number of customer
 Bank coverage
 Number of employee
 Technological advancement and Number of branch

1.7 financial performances

Description 2019/2020 2020/2021 Growth%
Income 5,408 8,056 49
Expense 3,443 4,712 49
Profit before tax 1,964 3,344 70
Profit after tax 1,492 2,433 63

Awash Bank has registered an impressive financial result during FY 2020/21 despite the difficult
business environment due to the COVID-19 pandemic and internal conflicts.

1.7.1 Income
During financial year 2020/21, Awash Bank generated a total income of birr 13.7 billion from birr 3.5
billion a year earlier, depicting a growth of over birr 2.6 billion [49 percent], driven by strong

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improvement in all components of income. Interest income rose by 42 percent and stood at birr 5.9
billion, reflecting the surge in loans and advances. Similarly, income from reached Birr13 billion,
largely associated with fees derived from trade services operations.

The Bank’s revenue structure seems to remain steady as interest income continued to account for the
largest share of total income[74 percent], followed by fees and commission income [17percent] and
other operating income [9 percent].

1.7.2 INTEREST INCOME

The total expense of the Bank rose to 4.7 billion by the end of June 2019, depicting a growth of Birr 13
billion [37 percent] compared with the corresponding period of last year, primarily influenced by a surge
in interest bearing Deposits and staff expenses.

Interest expense increased by 42 percent and reached Birr 2.1 billion during the period, mirroring a 35
percent and 25 percent growth in interest bearing deposits, namely saving and time deposits,
respectively. Similarly, personnel expenses increased by 32 percent and stood at Birr 16 billion, owing
to the recruitment of additional qualified personnel and salary and benefit increments Other operating
expenses of the Bank also grew by 23 percent and reached Birr 671 million, partly reflecting the
operational volume of the Bank and the general rise in the price of good s and services.The expense
structure of the Bank continued to be dominated by interest expense, which accounted for 45 percent of
total expense, and other operating expense [14 percent], while depreciation and amortization as well as
impairment charge on loans and other assets altogether accounted for the remaining balance of 6 percent

 Depreciation and amortization 4%

 Impairment and charge on loans and Other Assets 2%
 Other Operating Expense 14%
 Personal Expense 35%
 Interest Expense 45%

1.7.3 profit
Awash Bank continued to register a sustained high profit growth trajectory during FY 2020/21, driven
by substantial growth in lending business, commission and fee related services and efficient cost
management. The Bank delivered a profit before tax of Birr 3.3 billion during FY 2020/21 up by Birr
1.4 billon [70 percent] as compared with the same period of last year. Both the amount and the growth
rate of profit registered by Awash Bank was unprecedented in the history of private banks in Ethiopia.

The substantial growth of profit has partially offset the growth in paid up capital of the Bank during FY
2018/19and resulted in an increase in earnings per share from 543 in 2019/20 to 632 in 2020/21 for a per
value of 1000.

Financial performance Of Awash Bank At Megenagna 22 Branch

 Profit 38.8 million

 Deposit 305.9 million
 Loan outstanding 287.9 million
June 30,2021/2022

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 Chapter Two

Management and Training Information

Training is an organized process of intervention to improve current knowledge, abilities and skills of the
workforce. Training involves a number of stages. It involves Training Need Analysis [TNA], Designing
of Training program, Implementation of Training, and Evaluation of the Training. Training can be
viewed as a process comprised of five related activities such as; Assessment, Motivation, Design,
Delivery, and Evaluation. Training is the process of enhancing the skills, capabilities and knowledge of

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employees for doing a particular job. Training process thinking of employees and leads to quality
performance of employees. It is continuous and never ending in nature.

The training had an orientation and I started the training on August 12/2014 EC At that time, Ato
wondewossen Bekele, Who is the manager of Awash Bank at the branch of megenagna 22, He gave me
the orientation. From the time I started the orientation, I have been doing our job properly, and I have
been working with the employees in peace, love, unity, and togetherness. To know the function of
Awash Bank The job holder is responsible for attracting, deepening and managing financial relationship
to meet deposit and loans growth goals, achieve business growth for the Bank by selling personal
Banking products, and by promoting and selling other products and services of the Bank to enhance
value-add relationship with other Banks.

Since I started the training, I have received the right information and learned about the Marketing team,
operation team and customer and service team. To know the work of market manager For example;
promote businesses, services, product, or brands. They develop marketing and pricing strategies,
generate new business leads, and oversee marketing department staff and they also manage marketing
budgets and analyze trends.

Supervisor assistance I was also debriefed on other office duties that I would be taught which would
have nothing to do with schoolwork but were skills needed in the office for example, filing,
photocopying, faxing, filling bank cheques and deposit slips and going to the bank. I was also told that I
would not have any specific responsibilities but work would come up as and when needed which I
would be given a briefing on how to do what at that moment.

Job orientation A brief meeting was held on the first day which an assessment of my course work in and
accounting knowledge was made. The information available on the transcript and curriculum vitae was
used for the assessment. This same meeting was also used for the purpose of giving me a tour through
the company, debriefing on company history and the services offered by the company. I also got the
opportunity to familiarize with the environment and the rest of the staff around. The next step was to test
the skills I had I stated that I had. I was shown how to capture information from a receipt, change it,
delete it and create a file for a company in the accounting software. After a series of examples, I was
asked to do the same. I went through a series of tests in using the accounting system. Having shown
adequate knowledge, I was informed that I would assist in that part of the job. The main job capturing,
but some more office jobs were to be done, which I was kindly briefed on.

Form the first day that have started practical work on Customer service department;

 I could understand how to deliver bank service to customers.

 I could understand the different type of communications in the organization at all.
 I have good communication with others at work place.
 To ask necessary data I could communicate with my manager from time to time
I know the responsibility of marketing manager

 Oversee all marketing manager campaigns for their company or department

 Implement strategy

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  Promote a business, product, or service
 Ensure the company is communicating the right messaging to attract prospective customers and
retain existing ones
Objective of marketing department

 Increase sales
 Build brand awareness
 Grow market share
 Launch new products or services
 Target new customers
 Enter new markets internationally or locally
 Improve stakeholder relations
 Enhance customer relationship

CHAPTER THREE;

JOB BACKGROUND AND INFORMATIONS

Our organization includes; Finance department, Marketing department, Small and Medium enterprise
and Retail banking, Business Banking, Corporate Banking, International Banking, Human Resources
Capital Management, General and Technical services department, Educational and Training department
and Bank operation and Expansion department. Finance department is the part of an organization that
is the responsible for acquiring funds within for the firm, managing funds within the organization and
planning for the expenditure of funds on various assets. It is the part of an organization that ensures
efficient financial management and financial control necessary to support all business activities.

The role of finance department

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  Bookkeeping
 Management of company’s Cash flow
 Budgets and forecasting
 Advising and sourcing longer-term financing
 Management of taxes
 Management of company’s investments
 Financial Reporting and analysis
 Assist managers in making key strategic decisions
Small and medium enterprise means financing provided by financial institutions in small and medium
industries. SMEs plays an important role in term of production, employment generation, contribution to
exports and facilitating equitable distribution of income is very critical.

Retail banking, also known as consumer banking or personal banking, is banking that provides financial
services to individual consumers rather than businesses. Retail banking is a way for individual
consumers to manage their money, have access to credit, and deposit their money in a secure manner.

The role of retail banking

 To help individual consumers manage their money
 Gain access to credit
 Deposit their money in a secure way
Business banking is a company’s financial dealings with an institution that provides business loans,
credit, savings accounts, and checking accounts, specifically designed for companies rather than for
individuals

The role of business banking

 To help their clients manage their finances in the most successful way possible and help them
navigate the numerous services
 Procedures and products available, include stocks, bonds, loans, international transactions, real
estate, trade credits, insurance policies and more

Corporate banking is a subset of business banking that involves a range of banking services that are
offered only to corporate. The services include the provision of credit, cash management facilities.

The roles of corporate banking is provide financial advice to commercial clients and institutions
as well as promoting financial services and services and products to help these clients run their
operations.

International banking comprises cross-border business in any currency and business in foreign
currencies.

The roles of international banking is a major business line of the bank that serves customers by
facilitating international payment for the purpose of trade and transfer of funds for others.

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Human resources capital management is the process of hiring people the right people, managing
workforces effectively and optimizing productivity. It has evolved from a mostly from a mostly
administrative function to a critical enabler of business value.

The roles of human resource capital management

 Recruitment and Hiring
 Training and Development
 Employer-Employee Relations
 Maintain Company Culture
 Manage Employee Benefits
 Create a Safe Work Environment
 Handle Disciplinary Actions
Education and Training department
Education is the acquisition of knowledge through a process of receiving or giving systematic
instruction. Training is the action of teaching or learning practical skills or type of behavior.

The roles Educational and training

 Training allows employees to acquire new skills
 Sharpen existing ones
 Perform better
 Increase productivity and be better leaders
 Carrying out initial and diagnostic assessments
 Clear communication with your learners, other professionals and respect for others
 Identifying and meeting individual learners needs

I have been trained most of time in the educational and training Department. Daily operation like
Customer account creation, Customer service, Account Operation.The number of employees working in
Awash Bank is more than 17950 and 35 are working in megenagna22 branch. There are five Managerial
position available at megenagna22 branch; such as Branch manager, Operation manager, Customer and
services manager, Internal Audit manager and Marketing manager. There are two working time hours;
2;30 to11;00 and 4;00 to 12;30 The reason for this is to accommodate customer until evening. There are
four department Supervisor such as; Marketing Team supervisor, Account operation supervisor, Cash
management supervisor and Customer service supervisor.

As department member I also have the responsibilities of performing the activities of the department.
Based on those general activities, I perform the following specific activities as an apprentice, when I was
participating at Awash Bank of Ethiopia Megenagna 22 branch.

 I opened account for customers

 I check the name, date and signature of the customer
 I participated in different writing and typing activities that help for the
customer service.
 I accomplish a given work punctual and honesty

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  Protection the office resource from damage.
 I gave different service for department and customer.
 I fill different from by helping customers.

CHAPTER FOUR
4. SWOT Analysis of Awash Bank
Like any financial organizations Awash Bank can also be affected by changing environment. Therefore,
it is necessary to know SWOT analysis of the bank. It provides a strategic SWOT analysis of the bank
business and operations. The following are some of the SWOT analysis of Awash Bank.

4.1. Strength
 Company reputation and goodwill
 Experienced and efficient management team and human resource
 Good services
 Setting of a financial conglomerate structure
 Large corporate client base that can be migrated into the WM business
 Experienced retail banking senior management team
 High services levels
 Easy access to capital and funding solid financial reserves
 Good understanding of the customer journey

4.2 .WEAKNESSES
 Poor cost efficiencies
 No distinct product features
 Undifferentiated products’
 Low customer satisfaction
 Poor website features
 Low staff morale
 High loan rates

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  Low brand recognition or a minimal product line

4.3. OPPORTUNITES
 Leverage our big data
 Develop a customer relationship culture
 Attract new customers through special offers
 Shift to a customer centric marketing outlook
 Target more price inelastic markets
 Expand our product mix
 More clearly differentiate our product offering

4.4. THEARTS
 Becoming a market or a me too player
 Declining unit margins
 Rising fixed costs
 Consumers becoming more price sensitive
 Becoming a me- too player, due to product mix

CHAPTER FIVE

5. EVALUATION, CONCLUSION, AND RECOMMENDATION

5.1 Difficult situation /problems that my encountered

There are some problems which affect 2 training months, some of these problems are from the
organization and some are the customer
Some of them don’t sign the ticket and some signature on the ticket and on the book are different
customers fill the application form.
 No correct order of sender name which is difficult to serve customer transfer form
 Some are careless to respect the employees and the rule
 Some of them bring incorrect account which the system is not read
 Some time cash problem.
 Network(system) problem which hinders the service giving of the organization

5.2 EVALUATION
Most significant learning experience the most significant learning process was that on the important of
teamwork. Business processes are intertwined that each person relied the other person. Slacking was
therefore intolerable as it affected everyone. That said, I learnt to rely on other people, and to become a
person to be relied upon. I also learnt value the contribution of other people and the vitality of making a
significant contribution in a team.

Self-evaluation the strengths I possessed for this job were adaptation and quick-learning. I understood
whatever work was assigned to me in a very short space of time. There was a lot of tossing around
involving in the job as I had no specific responsibilities this meant I had to be versatile and ready for
anything. The ability to think quickly and summon best judge mention a rash situation was very useful
when running errands and things would not go according to plan or clients were late. This required

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changing things or rearranging with a client on my own without calling the office first. The ability to
work without supervision and being self-motivation was an added advantage. Time keeping MY time
keeping in morning was not punctual to work and I would arrive a little bit after time. I however
compensated for this shortfall by personally working during lunch or working late.

5.3 CONCLUION
This practical attachment includes, introduction, background of Awash Bank, Company vision, mission
and core value of Awash Bank, history and growth of Awash Bank, organizational structure of Awash
Bank, products and service of Awash Bank, program and project of Awash Bank, financial performance,
Management and Training Information, Job Background and Information, SWOT Analysis of Awash
Bank and Evaluation, Conclusion, and Recommendation. Career goals versus practical attachment the
practical attachment surely did bring some perspective. The daily work in Awash bank is very
significant different from the theory learnt in school. Day to Day activity is routine and very simple.
Within a short period of time, one begins to know the routine of recording creating financial statements
at the end of the year. That said, I realize now that Economics needs to be supplemented with other
courses, for example Accounting, ACCA, CFA, CIMA, etc. These professional courses give one the
sability to review policies placed by the business in their economics. They also help one to become more
marketable in the bank. I have also come to realize that the lack of consultancy and knowledge of cost
versus revenue makes some business fail or not realize their full potential as much is taken from the
business without replacement via drawings. That said may career goals really have changed and I would
not want to end up sitting in the office, day by day, drawing accounts for people, but instead to give
advice on running a business and creating strategies that work.

5.4 RECOMMENDATION
The managements hold increase the number of printing papers to the under writers so that work can be
made easier. The objectives of practical attachment is not achieved at all. Many of the practical
attachment objectives were achieved; However some of the objectives was missed due to the several
reasons experienced during the practical attachment period. The financial and transportation problems
that was facing repeatedly while I doing the practical attachment played a major role in hindering this
goal.

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 REFERENCE
 Alvin. A-Areas,(1991). Principle of audition
 Fess. Warren, mosich,(1998). Accounting principles 16th edition
 Grencoe macmillan, (1992) Accounting- basic principle college course 16th editors
 Harrison and horngern, (2000). Financial Accounting
 John M.culberton, (1968) money and banking

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APPENDIX

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