Strategic Cost Optimization Proposal

(Prepared by Cost Optimization Ad-hoc Committee)

April 2018
 Table of Contents

Acronyms ........................................................................................................................................ 3
1. Executive Summary................................................................................................................. 4
2. Introduction ............................................................................................................................. 8
3. Objectives and Scope of the Proposal ..................................................................................... 9
3.1 Grounds for the Strategic Cost Optimization ................................................................... 9
3.2 Objectives .......................................................................................................................... 9
3.3 Scope ................................................................................................................................ 9
3.4 Methodology .................................................................................................................. 10
4. Corporate Expense Structure ................................................................................................. 10
4.1 Interest Expense ............................................................................................................. 10
4.2 Salaries and Benefits ...................................................................................................... 12
4.2.1 Branch Staff Right Size- Clerical: .............................................................................. 13
4.2.2 Head quarter Staff Right Size- Clerical, Branch and HQ Guards .............................. 19
4.2.3 Cleaner Messengers and Messengers ......................................................................... 21
4.2.4 Leave pay.................................................................................................................... 22
4.3 General Expenses ............................................................................................................... 24
4.3.1 Depreciation................................................................................................................ 25
4.3.2 Office Rent ................................................................................................................ 25
4.3.3 Stationery & Office Supply Expenses ...................................................................... 26
4.3.4 Telephone and Communication Expenses ................................................................ 27
4.3.5 Business Travel & Transportation Expenses ............................................................. 30
4.3.6 Fuel and Lubricant Expenses ..................................................................................... 31
4.3.7 Maintenance............................................................................................................... 31
4.3.8 Insurance Expense ..................................................................................................... 35
5. Corporate Cost Conscious Culture ........................................................................................ 36
6. Recommendations and Implementing Organs ....................................................................... 36
6.1 Recommendation of New Position/ Job Grade Increase ............................................... 36
6.2 Implementations and Implementing Organs .................................................................. 37
Annex I...................................................................................................................................... 42
Annex III ................................................................................................................................... 63
Annex IV ................................................................................................................................... 73

2
 Acronyms

ADSL Asymmetric Digital Subscriber Line

ATM Automatic Teller Machine
BDM Business Development Manager
BOO Branch Operation Officer
Br Branch/Birr
CEO Chief Executive Officer
CIR Cost to Income Ratio
CPC Central Processing Center
CSA Customer Service Agent (in Dashen Bank)
CSM Customer Service Manager
CSO - Customer Service Officer
DC Digital Channel
DCO Digital Channel Officer
DSR Direct Sales Representative
HQ Head Quarter
HR Human Resource
IT Information Technology
NBE National Bank of Ethiopia
POS Point of Sale Machine
RPC Regional Processing Center

3
 1. Executive Summary
Taking in to account the likely impacts of recent policy changes by NBE and
to minimize the adverse impacts of those policies, ad-hoc committee is
established by the CEO of the bank to:
 Assess the expense structure of each work unit and propose efficient
ways of expense management system
 Assess the staffing or the bank and propose the right sizing level of
our bank with clear understanding of issues that need to be
considered like organizational structure
 Propose cost-effective ways of budget utilization and initiate a cost –
conscious culture throughout the bank. This right sizing is proposed
on specific positions i.e. CSOs’ and Auditors of branches.
 Benefits of this proposal
 This will support rotation of CSO for those resisting the
change
 It will serve as a base for performance management and the
bank will get opportunity to identify competent staffs.

It supports target attainment of cost income ratio (CIR).

Following its establishment, the Cost Optimization Ad-hoc Committee has been
working diligently to execute tasks entrusted to it. In the course of doing so, it
has thoroughly assessed expenses of the bank and worked hard to find every
possible ways to optimize costs without jeopardizing the day to day operation
of the bank.

Recent trend of constituents of expense structure of the bank was discussed

actively and on item-by-item basis among committee members in every session
along with feasible optimization measures to be proposed.

Accordingly, all three broad categories of expenses were reviewed.

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 1.1 Interest Expense
Regarding interest expense optimization measures like expanding mass saving
deposit mobilization, close control while acquiring fixed time deposit and
boosting performance of Interest free Banking are proposed. Training staff to
create culture of attracting low cost deposits has been identified.

1.2 Salaries and Benefits

Right size of Customer Service Officers (CSO), Internal Auditors, staffs at
certain Directorates, and annual leave reduction recommendations are
identified to optimize salaries and benefits expense and optimally utilize staffs
in an efficient and effective way. If the recommendation is implemented, 586
clerical staff 149 non-clerical staffs will be assigned elsewhere which will also
temporarily suspend new staff recruitments unless required exceptionally,
from which annual salary and benefit expense of about Birr 63,000,000 will
be saved all together. Of course this saving will not be directly reflected on the
payroll, but is of a long run effect by avoiding additional staff employment that
will otherwise be recruited and increase the total payroll expense. This has of
strategic importance as to how many customer service officers and internal
auditors are required for certain branch and to make decision on when to
increase the number of staffs based on the defined transaction parameters.

1.3 General and Administrative Expense

Each break down of General and Administrative expenses, most specifically
those exhibiting dramatic growth are also identified and assessed item by item.
The committee has forwarded the following measures it believes are feasible
and worth implementing to optimize those overhead costs.

 Depreciation: As clearly known, branches are book holding. Even though they
account for all expenses they incur, they don’t account for depreciation and
leave expense. This distorts the actual performance of our branches’ since they

5
 do not account for all expenses they utilize in the process of generating income.
Due to this, branches are encouraged to over plan their fixed assets. In order
to optimize utilization of fixed assets, it has been found necessary to
decentralize depreciation expense to branches. This will discourage branches
from over planning for purchase of new fixed assets since it will impact their
profitability.

 Office building rent: An assessment was made regarding rent expense and the
committee recognized the efforts being made by the concerning rental
committee to reduce office rent expenses. It is recommended that minimizing
office space, dispersed opening of branches than concentrating several
branches in few distance radius unless the business dictates to so, expansion
of digital channels as outlet as a measure to reduce rent expense. In addition
arranging meeting and training inside own building recommended to reduce
expenses.

 Stationery and office supplies: establish bank wide electronic

correspondence system, avoid hard copied reports as much as possible, strict
control of consumable stationery items, reuse stationery items where
applicable, introducing online audit system are the major recommendations
made by the committee.

 Telephone and communication: Back up connections subscribed as a stand

by like 3G is identified as a major communications expense since all branches,
especially in Addis Ababa have one 3G data subscription for each the bank
pays ETB 3,001.00 whether used or not. Hence, it is recommended that limited
number of 3G data facility to be handled by regions in Addis Ababa and to be
supplied to branches up on demand. Number Fixed telephone lines to each
branch is also recommended to be minimized to a maximum of three lines
which will contribute to cost saving of birr 5,964,142.28 annually.

6
 Repair and Maintenance: it is recommended that since the bank has
established technical service division, in house servicing of Vehicles (regular
service), generators, Photocopy machines, notes counting machine etc. will
reduce maintenance cost than outsourcing. To do so, it is recommended that
the bank shall enter into agreement with suppliers so that they will also supply
required spare parts together with assets they supply. This may require further
study.

 Other expenses having general administrative nature are also assessed and
appropriate recommendations are made.

Embedding a responsible unit in the corporate structure along with relevant

policy and tools is also recommended to create corporate cost conscious culture
and to achieve sustainably cost optimized work environment.
Finally, recommendations on responsible implementation organ and schedule
of implementation are presented.

7
 2. Introduction
It is well known that business environment is prime challenging for our Bank
and entire domestic banking players owing to different internal and external
factors which directly or indirectly affect the day to day activities and strategic
performance of Banks.

Until recently, Banks were earning significant share of their income proportion
by selling foreign currencies to importers and granting loans by mobilizing
deposits. The income, however, from these segments is negatively affected due
to stiff competitions and policy measures. Had it not been for an all -out effort
exercised, most specifically by our bank, in mobilizing local currency deposit
and elevating level of loan provision to borrowers, boosting foreign remittance
and selling it back to importers; the result could have been opposite to what
has been achieved so far.

The regulator recently introduced credit ceiling, surrendering 30% of hard

currency earned to NBE, 27% bills purchase requirement on loans dispersed
bearing interest rate lower than depository rate, increased interest rate on
deposit and increase of the percentage of foreign currency retention for
exporters etc., which will erode profitability of Banks.

Thus, looking inward, it has become imperative to assess our recent trend of
expenses and their efficiency in generating income to further look in to
opportunities there on to cut costs which are not value adding in the corporate
effort of boosting revenue.

Cognizant of these facts, the Cost Optimization Ad-hoc Committee has made
an assessment of expense structure of the bank and proposed cost optimization
measures to be implemented. The committee further believes that such studies
should continue in the future to sustainably review those areas which need
critical and deep assessment as cost optimization is one of the areas in which
companies often leverage.

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 3. Objectives and Scope of the Proposal
3.1 Grounds for the Strategic Cost Optimization
 Increasing trend of overhead costs
 Growth may cover inefficiencies
 Existing and emerging stiff competition in the banking industry
 Newly introduced regulatory (NBE) impositions are affecting profitability
 A Bank that aspires “To be the first choice world class bank” should be
cost efficient
 The bank’s ten years strategy plan demands improved cost efficiency
 Efficiency guarantees sustainable profit and growth

3.2 Objectives
The main objective of this cost optimization proposal is to identify and propose
areas where the bank could optimize or cut operational costs by adopting
different optimization strategies in a way that will not compromise the bank’s
day to day operation and quality customer services. The task has also been
taken place with specific objective of:-
 Conducting assessment of expense structure of the bank;
 Looking into staff establishments in force at Head office , Regions, and
Branches and proposing right staff size if the assessment proves to do so;
 Assessing budgeting system of the bank and recommending methods of
efficient utilization of budgets; and
 Suggesting on how to bring into the stage cost conscious corporate culture in
the long-run.

3.3 Scope

The scope of the cost optimization encompasses both head office and branches.
Accordingly, the Ad-hoc Committee has looked into the trend of corporate
expense structure of the bank based on data up to five years period and
proposing expense reduction measures to be implemented. Assessment of staff

9
size established into the corporate structure vis-à-vis actual tasks and activities
on the ground is conducted to propose right staff size into corporate structure.
To bring efficient utilization of overhead cost, short-run and long-run strategies
are proposed to be implemented by all stake holders. Besides, as effective cost
optimization requires sustainable corporate effort, measures to be looked to
initiate cost aware culture across the bank are also incorporated.

3.4 Methodology
In order to develop this proposal document, the Bank’s financial data and ten
year strategic documents were reviewed. Other Banks’ experience was also
observed and focus group discussion was made with Division Managers,
Regional Managers, Directors and Chiefs. After the completion of the draft
document, presentation was made comment received both from Transformation
Implementation Steering Committee and Board Strategy Management
Committee.

4. Corporate Expense Structure

4.1 Interest Expense

It is obvious that interest expense of domestic banks’ constitutes the lion share
of all expenses. It is a direct cost of acquiring interest-bearing deposits having
longer age than non- interest bearing deposits.

It is therefore important for banks to resale those deposits at higher interest

income margin to get subsequent net interest margin well higher than interest
paid to acquire deposits, which in turn measures the efficiency of interest
expenses.

To simply scan over efficiency of interest expenses of our bank over recent two
quarters and year end performance report is presented below. (In millions of birr)

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 June 2017 September December 2017
Items (yearend) 2017 (Period end)
(period end)
Interest income 2,587,584 832,077 1,792,028
(A)
Interest expenses 914,185 285,791 640,289
(B)
Net interest 1,673,399 546,286 1,151,739
income (c)
C/B 183% 191% 180%

As clearly observed above, birr one of interest paid to deposits is able to generate
net interest margin of birr 1.83 in the year ended June 30, 2017; birr 1.91 in
the period ended September 30,2017 ; and birr 1.80 in the period ended
December 30,2017.

Here, we can say that costs incurred to acquire deposits are efficiently utilized
based on net interest margin to interest expense ratio derived. However,
improving the ratio to a maximum possible extent will proportionally bring
improvement in part of the bank’s profit eroded by overhead costs.

Interest paid to deposits is the direct cost of services provided by banking

business. This expense has two sources: interest paid to saving deposits of
various types and the one calculated on fixed time deposit, which always bear
higher rate than the former. It might be difficult to curb such expenses.

However, the following proposals are proposed forwarded to optimize interest

expenses:

 Mobilizing normal interest bearing deposits from unbanked segment of the

society by increasing the number of small depositors than mobilizing
competitively priced fixed time deposit. This will not only reduce the
interest expenses, it will also reduce the risk of sudden withdrawals.
 Focus on attracting customers which will open current accounts ;

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  Promoting hybrid saving and checking account wherein customers are
paid small interest but still use cheques to operate their accounts.
 Expanding on interest free banking services to mobilize funds;
 Budgeted and controlled mobilization of Fixed time deposits as high
interest paid on such deposits will reduce net interest margin;
 Increased mobilization of minors and juvenile savings deposit with
attached special benefits;
 Training Staff to focus/direct customers to open convenient accounts
which in turn help mobilization of low cost deposits

4.2 Salaries and Benefits

Salary and benefit is semi-controllable expense. It is possible to minimize such
expenses by optimizing work force. The other option looked into is to quantify
transactions to be handled by employees and set as standard to re-deploy right
size of staff where found feasible and keep same work force where demand and
supply gap exists or where future demand is inevitable. Implementation of the
later may have positive advantage for the bank than recruiting new blood with
less or no experience. Retaining existing employees who already have acquainted
themselves to the existing work culture of the bank and developed required skills
to deliver the bank’s services in a required standard is always advantageous.

Salaries and benefits per birr of income and total expense

In ‘000 birr

Items June 2015 June 2016 June 2017

Salaries and Benefits (A) 466.8 615.3 8 48.1

Total Expenses(B) 1,439.8 1,837.6 2,413.3

Total Income(C) 2,301.0 2,824.0 3,763.8

A/B 32.4 % 33.5 % 35 %

A/C 20 % 21.8 % 22.53 %

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As depicted in the table above, employees of the bank received Birr 0.20, 0.218
and 0.2253 from birr one of income generated in the year ended June 30, 2015,
2016 and 2017 respectively. The trend of salary and benefits vis-à-vis total
income is increasing despite tremendous revenue increase.

Out of birr one total expenses incurred by the bank, payments made to
employees in the form of salaries and benefits was cents 0.324, 0.335 and 0.35
for the period ended June 2015, 2016 and 2017.

The trend exhibited above together with existing and emerging revenue eroding
macro-economic conditions, regulatory measures, and stiff competition demand
for efficient utilization of human resources of the bank commensurate to salaries
and benefits they received. Out right measures sought by the committee to this
end are presented as follows.

 Standardizing number and amount of transactions to be handled by Branch

staffs to bring efficient utilization and fixing right size of staff accordingly.
As a result, excess staff members will be redeployed to vacant positions
which will avoid new recruitment;
 Reduction of number of staffs from existing location to be assigned to newly
opened branches;
 Expansion of digital channels and creating customer awareness on the
advantage of using such services. This will reduce the number of small
amount transactions executed by staffs which will result in efficient
utilization of human capital.

4.2.1 Branch Staff Right Size- Clerical:

After thorough evaluation on the services rendered, transactions handled, and

staffs deployed in light with the new business model of the bank and competition
within the domestic banks which require more quality service delivery and
effective resource mobilization, possibilities were identified to right size the
number of customer service officers and resident auditors. In doing so, it is

13
 identified that there will be a possibility to resize those job positions which will
bring efficiency while payroll expenses are reduced effectively to this effect.

The proposed right sizes of Customer service officers, along with assumptions
used, and results there on are presented herein below.

 Proposed Right Size of Customer Service Officers and Auditors

Assumptions and Methodology

Generally, right sizing of employees are made when a company restructures its
human resources to align with company goals and strategies and when a
company intends to shift its focus or to optimize its efficiency for the long term.
This evaluation and recommendations for optimal utilization is proposed to
optimize payroll expenses and also to create cost conscious mentality with in
Awash Bank family. The Proposal is concerned with Customer Service Officers
and Branch Auditors. While executing review of right staff size;

 Meticulous Focus Group Discussion is made with Regional Managers

 Other Bank’s Experience is taken into considerations
 Benchmark branches are taken into account, there are branches working
with number of CSOs &/or Auditors equal with our proposal.
 Data Analysis of Number and amount of transactions is used for CSOs
and number of tickets for Auditors.

Others banks’ Experience

 Commercial Bank of Ethiopia
 CSO: (75 transactions per day X 26 days per month= 1,950
transactions per month). Auditors: (500 transactions per day X 26
days per month = 13,000 transactions per month)
 ATM linking and Authorization of other DC Products is handled by
CSM’s
 Nib International Bank
 CSO: (95 transactions per day X 26 days = 2,470 transactions per
month) CSOs’ will also handle other DC related activities.

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  Dashen Bank
 It is on process to set criteria on CSA performance metrics but there
are CSA (Customer Service Agent) front and Back office and one CSA
Back office is dedicated per branch to handle DC related issues
(including reporting).
 United and Birhan Banks
 There is no such trend and are doing as AB has been doing before.

Number of transactions:- Man power needed as per the total number of

transactions computed by adding average cash and noncash transactions of
each branch of 12 months data :-
o One CSO I can manage up to 1,600 transactions/month (62 transactions
per day)
o One CSO II can manage up to 1,800 transactions/month (69 transactions
per day) and
o One CSO III can manage up to 2,000 transactions/month (77 transactions
per day)

Amount of cash received: - While reviewing the amount of cash received

considerations were:-

o One CSO I can manage up to birr 30,000,000.00/ month ( collection of 1.2

million birr per day)
o One CSO II can manage up to birr 35,000,000.00/month ( collection of 1.3
million birr per day) and
One CSO III can manage up to birr 40,000,000.00/ month (collection of 1.5
million birr per day)

However, as per recent data 2,300 transactions count and 42 million amount in
cash are getting reward and average monthly staffs who perform this is 311 in
number. Therefore, a single CSO is assumed to handle 2,000 cash and non-cash
transactions and receiving transactions amounting to Birr 40 million per month.

15
We took as a bench mark branches which performed comparable (2000)
transactions and amount (42 million) were taken before this proposal is made.
Among bench mark branches are:
 Bole
 Yared
 Yeka
 Torhailoch
 Megenagna 22
Assumptions
 We assumed the data is correct and the staffs are yet working in the branches
or not yet transferred. But if the staff are already transferred no need of
replacement.
 All participants of the discussion agreed on transaction number and amount
of transactions used for the criteria
 Seasonality nature of work volume and late hour service is not considered;
 The cost saving implication didn’t consider materials for these staffs (Chair,
table and others);
 Batch Posting is not excluded;
 For city branches trade service and loan processing are already centralized,
but we have not deducted such transactions from transaction count (loan
account handling like repayment collections is still duties of branches);

 We have taken one year data (number of transaction as well as amount of

transactions) i.e. from January – December, 2017;
 We assume expansion of branch and other delivery channels will further
distribute existing branches work volume;
 The operating model also include account opening starting from party
creation;
 BOO accounts are relatively less burdened as per the new operating model.
 BOO cash is assumed to support CSO’s in class IV tier C branches

16
 Exceptional branch specific seasonal transactions such as CPO issuance,
remittance payment etc. can be managed by staffs retained in the pool of
regional offices.

Auditors’ right sizing is proposed taking in to account a branch having the

following number of transaction tickets.
o 3000 – 6000 tickets per month 1 Auditor
o 6001 – 10,000 tickets per month 2 Auditors
o 10,001 – 14,000 tickets per month 3 Auditors
o 14,001 – 18,000 tickets per month 4 Auditors
o 18,001 – 20,000 tickets per month 5 Auditors
o Above 20,000 tickets per month 6 Auditors

 Branch managers shall handle the audit activities for branches having
below 3000 Tickets per month which should be included in their job
description
 The bank shall conduct risk based audit in future which will be determined
by Internal Audit Directorate.
 Online audit has already been commenced.

Cost implication of CSO and Auditor staff right sizing

City CSO 7,915 398 3,150,170 37,802,040

Auditor 10,913 24 261,912 3,142,944

Outlaying CSO 7,815 111 867,465 10,409,580

Auditor 10,813 33 356,829 4,281,948

Total 37,456 566 4,636,376 55,636,512

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 Recommendations
In view of the above facts we recommend;

 Suspension of Staff assignment for those requesting as per approved

budget;

 Digital Channel Officer (DCO) to handle digital channel operations like

ATM card linkage, dispute management, card delivery, card activation etc.

 Dedicated CSO or Digital Channel Officer DCO shall be assigned to handle

DC related activities for Special Class and Class I – Class III Branches;

 10 CSO’S are recommended to be assigned at each regional offices in Addis

Ababa as reserve army (10*4= 40)

 5 CSO’s are recommended to be assigned at each regional offices in outlying

regions as reserve army (5*6 =30)

 Assistant CSO’s position shall be revised again.

 HR shall consider CSOs performance against this criteria during promotion

screening;

 Minimum CSO for any branch shall be 2;

 In general cash deposit above Birr 50,000 shall be counted at back office
(BOO cash) and lesser amounts shall be counted at front office (by CSO).
However branch managers can set different amount to be counted at back
office considering branch specific transaction volumes.

 Each branches transaction and revised CSO and Resident Auditors number
are detailed in Annex I.

 Its implementation will be done phase by phase or gradually and regional

managers will manage it together with Chief Retail & SME Banking Officer. As
per our new operating and business model, branches are of sales engines than
operations center. This calls for skilled marketing staffs. Currently, DSR are

18
assigned to do the marketing work. However, most of the DSR are laterally
transferred from secretarial work and lack knowledge of the bank’s products
and services. Hence, they may not be able to attract more customers by
marketing the bank’s different products, services and channels. Therefore, it
is recommended that DSR position should be reclassified to a higher grade job
whereby more skilled staffs who have in-depth knowledge of the bank’s
products and services are promoted based on merit. Therefore, D/Chief
Human Resources Officer shall come up with revised job evaluations and job
grade for this position so that better skilled staffs will compete for this position.

4.2.2 Head quarter Staff Right Size- Clerical, Branch and HQ

Guards
Assumptions:

 Implementation of various IT systems (such as outlook) has significantly

reduced paper work and hence decreased the role/importance of some
job positions

 Enhancement of some work processes is believed to increase employee

productivity and reduce number of manpower

 Shared Administrative Assistant (Secretary) concept should be

introduced

 Establishment of Regional Offices and delegation of duties to regional

offices will reduce some work units’ manpower

 Preparation for automation of some works, like payroll system and

shareholders system shall impact on number of head quarter staff

 Redundant (duplicate) guards of Awash own building and branch

guards optimized to be guarded by the building guards leaving only one
guard as a lobby man

19
 Findings
It has been thoroughly reviewed by the committee and discussed with various
work units and 22 clerical staff at Head office are found to be redeployed to
other location which saves annual cost of birr 2,013,228

Number
of Basic Salary, Annual Cost
S/N Job Title
Excess Transportation and Reduction
Staff Housing Allowance in Br

1. Fixed Assets Accountant 3 10,632 382,752

2. Assistant Payment & Settlement Accountant 1 7015 84,180

3. Cash Office Boy/Girl 2 3178 76,272

4 Assistant Payment Reconciliation Accountant 2 7015 168,360
5 Payroll and Staff Benefits Accountant 1 10632 127,584
6. Report Consolidation Supervisor 1 19045 228,540
7. Employee Services and Talent Mgmt. Officer 1 9275 111,300
8. Talent Acquisition and Onboarding Officer 1 9275 111,300
9. Administrative Assistant I 4 7015 336,720
10. Scooter Driver 2 3178 76,272
11. Mail Clerk I 3 3493 125,748
12. General Service Officer 1 8279 99,348
13. General Service Clerk 1 3493 41,916
14. Auto Mechanic 1 7015 84,180
15. Procurement Officer 1 9275 111,300
18. Telephone Operator 1 3178 38,136
19. Security Guards (Balcha, Finfine, Adama and Hawassa) 15 3178 572,040

Total 41 2,775,948

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 4.2.3 Cleaner Messengers and Messengers

1. Cleaner - Messengers:-
o A single Cleaner – Messenger shall clean up to 362.7 M2 areas as in the
case of Awash Tower (One cleaner-messenger to clean each floor).
o Cleaner - Messengers will also handle other messenger tasks at
branches, hence no need of assigning messengers at such branches.

2. Messengers:-
o A single Messenger assumed to handle 2 Special Cheques clearance per
day;
o Legal Related issues;
o Documents Authentication;
o Serving reminder letters to borrowers;
o Ad-hoc activities like communications to Trade Service, Credit, Regional
office

The following further considerations are also taken into account:

 Branches having only a Cleaner-Messenger (1) are excluded;

 For Adama, Agaro, Finfine, Hawassa, Leka, Kirkos and Shashemene
branches cleaner-Messenger is left as it was, for their area of office is not
known yet;
 Gofa Sefer and Bale Robe branches case is viewed especially for their
office area exceed the determined area (362.7 m2) with 70 and 77 m2
respectively.
 Messengers case is not viewed for outlying branches since there is no
check clearance activities

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Messengers and Messenger- Cleaners Available for Redeployment
Salary and
Excess
benefits(per Monthly Yearly cost
Job Title staff
Location month in cost saving
number
birr)
Cleaners 452,712(66%) =
Head 2902 13 37,726
(AIB/AIC bldg.) 298,790
Quarter
Messengers 2902 21 60,942 731,304
Cleaner/mes 2,902 25 72,550 870,600
City Br sengers
Messenger 2,902 60 174,120 2,089,440
Cleaner/mes
Outlying 2,902 9 26,118 313,416
sengers

Total 128 4,303,550

Recommendations

In view of the above facts:

 D/ chief - HR Office shall assign Cleaner – Messengers and Messengers
to branches against this criteria;
 Branches shall be communicated about these criteria and urged to
standardize additional Cleaner- Messenger as well as Messenger requests.

4.2.4 Accrued Leave

Accrued leave expense of above Birr 23 million was incurred for the first half of
the year ended December31, 2017 making up the total Accrued leave payable
above Birr118 million as shown hereunder.

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 Break Down Of Staffs Accrued Leave As At December 31, 2017

Ser. Accrued Leave Pay

No. Title
12/31/2017
CEO, Chief Officers and D/Chief
1 Officers 3,182,438.12
2 Directors and D/Directors 3,002,852.16
A.A & Outlaying Regional
3 Managers 2,304,095.42
4 Division Managers 3,210,772.96
5 Relief Branch managers 677,121.80
6 Relation Ship Managers 2,913,016.36
7 Branch Managers 26,851,496.97
8 Others Staff 75,908,400.24

TOTAL 118,050,194.03

From the above Birr 118,050,194.03 accrued leave payable, Birr 29,045,980 is
accrued leave payable of Head office and Regional office employees. Record
shows Birr 9,456,714 leave payable for Head Office organ is for leaves that
accrued for annual leave in excess of two years. If we can reduce branch and
Head Office organ leave payable by 20% up to June 30, 2018, the bank would
reduce expense at least by Birr 23.6 million. Hence concerted effort should be
exerted by all to reduce accumulated leave by 20% up to June 30, 2018. In the
long run accrued leave accumulation should always be below accrued leave for
two years. This means staffs should be encouraged or forced to utilize their
annual leave by scheduling in a way that does not affect the day to day operation
of the bank. In principle employees need to take vacation so as to be more
productive.

In order to reduce annual leave expense, it is recommended that replacements

should be made from within unit/branch in the following manner:

 CSOs Leave will be cleared by using reserve army to be assigned by

regional offices;

23
  BOO accounts by senior CSOs
 CSM by BOO accounts
 BDM by ROs
 Branch managers by CSM or BOO Accounts as applicable
 Regional managers by Branch Managers
 Directors by division managers
 Division Managers by supervisors or senior officers
 Chief Officers by directors

 There shall be no pool of relief managers if the above proposal is implemented

4.3 General Expenses

Trend of major general expenses over recent periods are indicated below;
In 000

GENERAL & ADMINISTRATIVE EXPENSES

June June 2015 June 2016 June 2017 Dec. 2017

2014

Depreciation 63,567,473 88,801,846 142,655,374 194,406,899 100,312,281

Rent 68,804,473 93,442,679 116,124,971 144,946,256 85,979,508

Consultation and
Fees 8,211,863 7,865,280 10,950,523 48,115,528 30,163,088

Communications 14,830,299 21,877,308 31,099,653 37,429,735 18,404,668

Advertisements
and publicity 8,960,818 14,554,870 14,727,931 26,639,958 12,812,208
Stationery and
office supplies 8,795,689 20,351,446 29,767,249 24,321,318 38,076,759
Others 60,895,505 78,559,994 76,532,132 81,146,690 85,220,558

Total 244,066,120 325,453,423 421,857,833 557,006,384 370,969,071

24
As can be seen above, Depreciation, Office rent, Communication, Stationery and
Supplies are record high overhead costs. The contribution of other general
expenses is also considerable. Based on investigations and analysis made, there is
room to optimize these expenses. The following measures are proposed by the
committee on item- by -item basis:

4.3.1 Depreciation

Depreciation expense is periodic allocation of investment on fixed assets that is

worn out in the process of income generation. So far branches and head office
organs request budget approval for supply of additional fixed assets every year.
However, fixed asset expense depreciation is not reflected in the book of accounts
of branches. Due to this, branches’ performance is not appropriately measured.
On the other hand, branches are encouraged to request for additional materials
supply since depreciation expense is not reflected on their books of accounts. As
a result, it is believed that fixed assets budget is not optimally utilized. In order
to optimize utilization of fixed assets, it is crucial to decentralize depreciation to
branches. This will discourage branches from requesting budget for fixed assets
that are not crucial.

4.3.2 Office Rent

Office rent expense is significant part of overhead expense of the bank. The
expense is believed to continue increasing given the mandatory branch
expansion and inflations of rental price. This expense to certain extent is
uncontrollable since rental price is determined by the market which the bank is
compelled to take it or leave it. However, there are still ways to manage the
expenses by minimizing branch office space and by buying own branch office
over a period of time.

25
The below are recommended measure to be taken in an effort to manage
excessive rent expense.

 Avoid opening Branches in the same locality of short distance unless

benefits of doing so prevail over the cost;

 Avoid renting extra-large space for new branches wherever fewer customers
are expected at that particular area for the coming 5 years. To achieve this,
required branch office size should be determined based on branch grade;
 Yearly allocate budget for purchase/construction of low cost buildings at
prime locations to reduce rent expense;

 Intensify the use of available extra vacant spaces in rented buildings for
office or store purposes;

 The practice of opening sub-branches & agent banks in outlying areas and
expanding of deploying ATMs & POS, introducing cash/deposit receiving
ATMs significantly minimizes the growing Rent Expense;

 As much as possible let the Bank own its meeting rooms and conference
halls in its own big buildings that can accommodate small or large meetings.
Having such meeting places reduces hall-rental expense for meetings and
staff training.

4.3.3 Stationery & Office Supply Expenses

The following are optimization measures are proposed by the Committee after
thorough discussion.

 Restrict practice of traditional banking operation, which usually consumes

a lot of stationery formats such as Monthly Return, Quarterly, Semiannual
or Yearend Reports etc. Instead establish electronic banking and use of
email for reporting, and generate hardcopies if only mandatory. It is
advisable that reports should be generated in printed format only based on

26
 needs and relevance. All organs do not need all type of reports to make
business decisions;

 Every employee of the Bank should be committed to develop the habit of

reusing pins, clips, fastener, rubber band etc. than dumping them in to a
trashcan by creating cost conscious workforce ;

 Never use clean sheet of paper to draft a letter rather use computer or rough
papers;
 Establish a control mechanism to supply of pens, pencils, erasers, printing
materials, tonners etc. Only relevant stationery items and printing formats
shall be procured.

 Develop bank wide use of electronic/automated correspondence and Skype

rather than sending/mailing hardcopies to each bank unit;

 Minimize or if possible avoid sending hard copies to all Bank units to convey
letters, internal vacancy announcements etc.;

 Decrease office supply and operating expenses by electronically scanning

and saving currently/formerly filled documents for later retrieval online or
from CD, DVD or other formats;

 Avoiding the use of fax machine to reduce the cost of paper and tonners
involved. This can also reduce purchase cost, maintenance cost , and
depreciation expenses attached with Fax machine;

 Buying durable UPS that can serve for a long period of time without frequent
maintenance or replacement of batteries.

4.3.4 Telephone and Communication Expenses

Telephone and communication expense is one of the major expenses of our bank.
Hence, there needs to be a way to reduce such expense without compromising
the day to day communications of our bank. Cost reduction ad-hoc Committee

27
has deliberated on the subject and come up with the below proposal based on
the following assumptions:

Fax and Telephone Expense- communication using fax needs to be replaced by

email, purchasing and supplying fax machines need to be suspended unless
exceptionally required. Therefore, there is no need for dedicated fax line for
branches but telephone lines may be used as a fax line when needed.

Most of the activities demanding telephone communication like telegraphic

money transfer are replaced by online system and other activities like loan
processing and trade service are processed either at CPC or RPC. Going forward
customers calls also should shift to call center instead of to branches.

Therefore, the number of telephone lines subscribed for branches need to be

reduced as follows:
 One telephone, which can interchangeably be used as fax line, to be
assigned for branch manager or CSM II or CSM III as applicable
 One telephone for CSM or BOO- Accounts, as applicable
 One telephone line for BDM or DSR as applicable
 This means that a branch, grade IV can only have two fixed telephone lines
while branches of grade III and above grade III will have three fixed telephone
lines.

Based on three months telephone expense obtained from some branches (few
branches did not send the data) the total numbers of telephone service number
to be terminated from branches are 134. But this number can be as high as 250
even if one service number is terminated from each branch that have over four
subscribed numbers. The total monthly telephone expense to be reduced is ETB
43,243.24 per month. If this is multiplied by 12, the total telephone expense will
be ETB 518,918.88. But if service numbers are terminated based on full
information, the total monthly expense will be 80,677.69, and annual expense
will be 968,132.22. This reduction can be achieved without compromising the

28
day to day communication of our branches. City Branches’ list of telephone line
and their consumption is attached in Annex III.

As ADSL has no substitute, the subscription shall continue in the usual manner.
Hence, the maximum telephone line for branches cannot exceed three.

3G Data- almost all city branches have 3G data connection subscription as a

standby. However, they are only used when branches face network connectivity
problem. Hence, monthly fixed fee of ETB 3,001.00 is unnecessarily paid
commonly. Therefore, it is agreed that 91 such 3G data subscriptions of city
branches be terminated but five 3 G data shall be kept at each of the regional
offices.

The cost impact of reducing 3G data access is: 3001x 91x 12 = 3,277,092.00
Existing Recommended
S. Name of No. of
No. of to be held at Excess
No Region Branch
3G Data Region
1 East A.A 39 25 5 20
2 North AA 48 29 9 20
3 West A.A 45 29 7 22
4 South A.A 50 36 7 29
5 H.O Branch 1 1 1 0
6 Adama 26 1 1 0
7 North Re 20 1 1 0
8 West Re 37 2 2 0
9 South Re 33 6 6 0
10 North West 14 2 2 0
11 East Re 17 - - 0
132 41 91

29
3G Internet- most branches in Addis Ababa and some branches outside Addis
Ababa have 3G internet facility to be used as a standby for money transfer
services. In order to use them economically, they shall be changed to prepaid
service. This is assumed to reduce respective cost. Hence, branches will continue
to maintain them but utilization will be monitored by their respective regional
managers.

Headquarter Telephone- it is observed that our bank has subscribed many

fixed telephone lines for headquarter organs. But some of them need to be
terminated in consultation with the concerned organ of the bank.
This category of expenses comprises electronic data communication,
incoming and outgoing telephone calls, telegraphic and fax messages,
postage and the like. In order to reduce this controllable expense we propose:

 Limit the number of direct telephone lines supply to branches and to head
office organs. Maximize the use of internal communication using private
branch exchange (PBX) system. This method will significantly decrease the
number of private calls and subsequent costs.

 Improve communications among head office organs and branches by using

e-mail whenever appropriate.

4.3.5 Business Travel & Transportation Expenses

The Ad-hoc Committee’s deliberation on this issue took a considerable time, and
forwarded the following proposals:

 During annual meetings, whenever possible transport meeting participants

by air and instruct head office personnel, city and outlying branch managers
to share vehicles. This is needed to practice cost sharing by decreasing cost
of fuel, per diem and wear and tear of vehicles. Of course, this practice is in
place but needs to be strengthened more since some branches prefer using

30
 own vehicle than air transportations just for the sake of having vehicle
around the meeting venue.
 Whenever possible, at head office level arrange pool vehicles to transport
personnel and goods on the same root together.

4.3.6 Fuel and Lubricant Expenses

 Keep on the practice of using Abyssinia Card to control fuel and lubricant
costs of pool vehicles.

 Consider expanding Abyssinia card for outlying branches, where possible.

 Whenever possible use air transport instead of vehicle to transport
individuals for field service. However, use of vehicle for a group should be
encouraged, since it is cheaper than air transport.

4.3.7 Maintenance
Maintenance cost represents major portion of general expenses budget. Hence,
it should be controlled or a mechanism needs to be devised so that our bank will
optimize the budget for maintenance without compromising the day to day
operations. The below are major assets that require maintenance with
recommendations of what strategy to follow so as to control or reduce hiking
maintenance cost. Discussion is made with the concerning technicians regarding
current challenges and what strategy to follow so as to reduce or control
maintenance expense.

Generator- it is known that our bank purchases generators for all of its
branches. Generator services or maintenance is made both by our technical
staffs and by outsourcing to the respective suppliers. The challenges are that
only those suppliers sell required spare parts for maintenance and servicing.
Some suppliers are reluctant to sell spare parts, but want to perform services
and maintenance by themselves so that they can charge as high price as they
like. What they charge are, cost of spare parts, labor, transportation and per

31
diem for their staffs, if it is outside Addis Ababa. Even if the bank has employed
skilled electricians and mechanics, still maintenance and service (PM) are made
partially by the suppliers. However, if the below conditions are fulfilled, the
bank’s technicians can fully own the work.

 The bank should agree with suppliers to avail spare parts and also purchase
some fast moving spare parts together with the generators.
 Suppliers should provide service manual of the generators they are
supplying, they are sometime reluctant to do so.
 They must provide training on the generator they are supplying to the
bank’s technical staff as part of the supply contract

They charge from ETB 6,000- 7,500.00, for example, for every periodical services.
But if the above conditions are fulfilled, the bank’s technicians can take care of
the service (PM) as well as maintenance as required that will reduce the cost by
70% of what suppliers charge.

 Note Counting Machines

Of all machines that our bank’s use, note-counting machines are:

• Many in number
• Require frequent services and maintenance due to work load
• Their maintenance and service is sensitive by nature since they impact
customer’s services.

So far minor services that does not require replacement of spare parts or
preventive maintenance are done by the bank’s technical staffs. However, full
maintenance is not made by the bank’s technical staffs but by the respective
suppliers. This is because spare parts can only be supplied by the respective
suppliers, cannot be purchased from any other seller. They also are not willing
to sell the parts to the bank but want to maintain by themselves so as to charge
as high price as they like. For example, they charge from ETB 500- ETB 4,000
or above for each machine based on the degree of severity. But if the following

32
major is taken, maintenance cost can only be limited to cost of spare parts which
will reduce the maintenance cost by more than 70%.

 Critical spare parts that are required should be purchased together with the
machines and suppliers should sign agreement to make spare parts available
for sale. If required spare parts are made available, internal technical staffs
are capable to maintain the machines without outsourcing.

 Cost of critical spare parts should also be made contractual so that they
cannot charge price as they like.
 Some suppliers do not return old spare parts saying that they will send it to
manufacturer for improvement. But this is susceptible that they may modify
and reuse them. This should also be made contractual.

 Due to heavy work load, note-counting machines cannot efficiently serve for
a longer period of time. Therefore, they require frequent maintenance which
will equate to their replacement cost within a short period of time. They also
compromise efficient customer service due to frequent stoppage. Therefore,
the bank should consider or have a policy of replacing the machines within
a short time interval like three years.

 If the above actions are taken:

 Maintenance cost will be limited to cost of spare parts. In this case

exaggerated labor cost will be eliminated.

 The machines will not be taken to the suppliers which will compromise
customer’s service. Prompt and onsite maintenance will be made by the
bank’s technical staffs.

 The bank will reduce unnecessary cost of nursing machines that should have
been replaced.

 Photocopy Machines- our bank purchases and supplies photocopy machines

to all branches and head office organs. There are only limited suppliers of

33
 photocopy machine in the country and most of the known brands so far
purchased by our bank are: Sharp, Kyocera, Rico, and Cannon.

 Except Cannon, spare parts and cartridge are available only from the
respective suppliers. But Cannon spare parts and cartridge are available in
the market, other than the supplier. This might guide the bank to purchase
photocopy machine whose spare parts and cartridge are available in the
market.

 If the below actions are taken, maintenance cost of photocopy machine will
only be limited to cost of spare parts.
 Fast moving spare parts should be purchased together with the photocopy
machine

 Suppliers should sign agreement to make spare parts available for sale than
doing the maintenance themselves. A price of, on average 2,000.00 –
7,000.00 is charged for maintenance but this can be reduced to the cost of
spare parts if suppliers enter into agreement to make spare parts available
for sale and provide training on the machine brand and model they supply
to our bank.

 The bank should purchase photocopy brand and model whose spare parts
are stocked and made available from other sellers.

 Vehicles- Maintenance and service cost of vehicles represent major expense

of maintenance budget. This is because of:

 Failure to dispose old vehicles. The older the vehicles, the high the
maintenance cost and the less productive the vehicles are since they spend
longer time in garages.

 Mishandling of vehicles
The bank has hired mechanics and is paying salary for them but they are not
performing what they have been employed for. Maintenance cost can be
minimized if the following actions are taken by the bank.

34
Most costs are incurred during regular services. Vehicles need to be serviced at
every 5,000 KM. But this can be done by our mechanics if:

 The required facility, small workshop is arranged by the bank

 The required tools are procured for the mechanics

In that case, vehicles can get regular services at every 5,000 KM by the bank’s
mechanics which will reduce the cost by more than 50% of what is requested
by garages.
Old vehicles driving cost might equate to the original cost within a short period
of time. Hence, it is advisable to dispose such vehicles after a certain period of
time based on their maintenance history or fixed time interval like 10 years or
lesser.

 Outlying branches vehicle should always be maintained at Moenco

/supplier branches located in the vicinity of the branches.
 All replaced parts should be received by store before payment is effected, for
which store issues receipt of replaced parts
 Garages should purchase parts only from genuine suppliers like Moenco
and Marathon Motors Engineering for which they should present original
spare part purchase receipt

Hence assets that require maintenance, office machines, generators and

vehicles maintenance cost will materially reduce if the above actions are taken
by the bank.

4.3.8 Insurance Expense

In order to minimize the Bank’s insurance expense, the Bank has to take action
on the following issues:

 The Bank has to negotiate on the premium payment with the Insurer
Company.
 Dispose obsolete Assets of the Bank to minimize insurance cost,

35
 5. Corporate Cost Conscious Culture
Delivering our bank’s services under sustainably cost optimized environment
requires building cost aware workforce. Where cost optimization culture exists,
every member of the organization strives to contribute his/her part to realize the
strategies. The effort further requires embedding a responsible unit in the
corporate structure to effectively achieve the objective and Preparing cost
optimization policy in general. Besides, actualizing the following measures
makes the culture to flourish.
 Install cost efficiency measurement standards and tools;
 periodic Monitoring of cost efficiency of each branches and head office
units and taking remedial action to alleviate the cost inefficiencies;
 Conducting customized trainings sustainably to enhance the culture;
 Periodic assessment of structure and recommend right structure with
right size of manpower and resources and others

6. Recommendations and Implementing Organs

6.1 Recommendation of New Position/ Job Grade Increase
1. Digital Channel Officer (DCO) at branches to handle digital channel
operations like ATM card linkage, dispute management, card delivery,
card activation etc.

2. Job Grade of Direct Sales Representative (DSR) to be raised to a higher

job grade to be studied and implemented by the management in order to
attract competent staff that clearly knows the product, services and
delivery channels of the bank

3. One Office Machine Technician for each region

4. Reserve Customer Service Officer (CSO) at Regional Office -To be

assigned to branches temporarily to support during maternity leave,

36
 seasonality of business etc. (To be redeployed from the excess of staff
resizing )
 Ten for each city regions and
 Five for outlying regions
5. Reserve Auditor – Two for each region

6.2 Implementations and Implementing Organs

Cost optimization is a complex task that requires commitment across the bank
for its effective implementation and to maximize the benefit. Thus, summarized
findings and recommendations of the committee with respective implementing
organ of the bank are illustrated hereunder. Chief Finance and Support Services
shall follow-up the periodic implementation of the proposals. The implementing
organs shall report performance at least once quarterly.

Implemen
Item Recommendation to Implementing
Cost Matters tation
No. optimize organ
period
4.1 Mobilizing Low Creating awareness to  Chief, Wholesale First Quarter
Cost Deposit mobilize low cost and Banking Officer of fiscal year
interest free deposits;  Chief Retail and SME 2018/19 and
careful negotiation while Banking Officer onwards
acquiring/renewing fixed
(ongoing)
time deposits.
4.2 Staff Right Assignment/redeployment  D/Chief, HR First Quarter
Sizing of 586 clerical and 149 Management Office, of fiscal year
non-clerical excess staff  Chief, Retail and SME 2018/19 and
Banking, onwards
Assignment/redeployment
 Director Internal Audit
of excess auditors (ongoing)

4.2.1 Reserve To be redeployed from the  Chief, Retail and SME First Quarter
Customer excess of staff resizing Banking of fiscal year
Service Officer  Deputy Chief, HR 2018/19
- Ten for each City Branches
(CSO) at Management Office (ongoing)
Regional Office - Five for Outlying Branches

37
4.2.4 Minimizing Critical follow-up of leave  Chief, Retail and SME First Quarter
Accrued Leave utilization at all Regional Banking of fiscal year
Expense Offices and Branches  Deputy Chief, HR 2018/19
Management Office (ongoing)
4.3.1 Reduction and Accounting of periodic  Chief Finance and Second
Decentralization depreciation expense to Support Services Quarter
of Depreciation each branch account to Officer 2018/19
expense control branches’
unjustified request for
additional fixed asset
4.3.2 Constructing or Request yearly budget to  Chief Finance and On every
purchasing own purchase/build low cost Support Services budget year
building building especially in Officer
outlying areas
4.3.2 Rent Cost Rent out or reduce office  Chief, Retail and SME Fourth
Reduction size/ utilize extra office Banking Quarter and
spaces for other purpose ongoing
4.3.4 Reduction of Removing of excess (from  Chief Finance and
Telephone cost 134 to 250) telephone lines Support Services Ongoing
of branches by limiting to Officer
two or three lines, limit
number of direct lines in  Chief, Retail and SME Fourth
head office, limit PBX of Banking Quarter
Head office for incoming
call only
4.3.4 Minimizing Collect 3G data from city  Chief Finance and
Telephone cost branches and give the Support Services Ongoing
(3G Data) and recommended number of Officer
change all 3G 3G data to regions and
internet of interrupt connection of the  Chief, Retail and SME Fourth
branches to 91 excess 3G Banking Quarter
prepaid Change all 3G internet of
branches to prepaid from
post paid
Minimization of Arranging common vehicle  Chief Finance and
4.3.5 Travel and or using air plane for Support Services
Transportation branch managers that Officer Ongoing
Expenses attend annual/semiannual
meeting

38
4.3.7 Minimizing  Negotiating with vendors  Chief Finance and
Repair cost of on supply of parts, Support Services
Generator, Note availability of repair Officer Ongoing
counting manual and training up
machines and on purchasing of new
Photocopy generators, note-counting
machines and photo copy machines.
 Collect old/replaced parts
 Purchase, as much as
possible, equipment
having more than one
supplier
 Establish centralized
photocopy machine on
Head Office Building

4.3.7 Vehicle Consider workshop  Chief Finance and

Maintenance establishment for handling Support Services
cost reduction service of vehicles at 5000 Officer Ongoing
KM for normal service,
Collecting replaced spare
parts to store against
receipt

4.3.7 Maintenance Conduct feasibility studies  A/Chief, Corporate Fourth

and Repairing of and develop proposal Strategy and Quarter and
Machineries, documents on cost Transformation Officer onwards
Office efficiency, like outsourcing  Chief Finance and
equipment and versus in-house Support Services Ongoing
Furniture maintenance Officer

4.3.8 Insurance Negotiate insurance  CEO

Expense Premium payment for all  Chief Finance and
reduction type of insurance cover Support Services Ongoing
Dispose old assets to avoid Officer
insurance expense as well

39
5. Developing cost Developing cost conscious  A/Chief, Corporate First Quarter
conscious culture through various Strategy and of fiscal year
culture awareness creation Transformation Officer 2018/19
mechanisms, like
discussion on cost
efficiency, inculcating cost
conscious culture in all
trainings

Conducting feasibility Second

study on how to reduce Quarter of
cost-income ratio of the fiscal year
Bank as per the strategy 2018/19
set by the Consultant

6.1 Creation of new Assignment of DCO to  Deputy Chief HRM Fourth

job position and grade 3 and above quarter and
assignment of branches to handle digital onwards
Digital Channel channel
Officer (DCO)for
branches
6.1 Raising Job To be studied and  Deputy Chief HRM First
Grade of Direct implemented in order to Quarter of
Sales attract competent staff fiscal year
Representative that clearly knows the 2018/19
(DSR) in product, services and
collaboration with delivery channels of the  Chief, Retail and SME Second
D/Chief, HRM bank Banking Quarter of
fiscal year
Selecting competent staff 2018/19
for the position
6.1 Assignment of Assigning one Office  Deputy Chief HRM First
Office Machine Machine Technician for Quarter of
Technician for each region fiscal year
each region 2018/19
6.1 Reserve Auditor Two reserve auditors to be  Director Internal Audit First
for regions assigned permanently for Directorate Quarter of
each region fiscal year
2018/19

40
Annex

41
Annex I
City Branches – List of telephone line and their consumption

No Branch Name Service No Sep Oct Nov Total

fixed line
1 22 Mazoria 0116626587 - 29.54 34.52 64.06 voice ( Fax)
fixed line
2 22 Mazoria 0116189938 - 1,363.59 1,223.24 2,586.83 voice

3 AbayMado 0583210110 27.32 28.32 27.12 82.76

4 Abuware 0118690585 740.96 58.38 230.47 1,029.81 'WIRELESS

5 Abuware 115576910 22.52 17.12 17.92 57.56

6 Addis Ketema 0118698689 278.26 278.26 278.26 834.78

7 Addis Ketema 0118699194 18.15 16.52 31.11 65.78

8 Addis Ketema 0112758358 587.90 667.81 668.53 1,924.24

9 Addis Ketema 0112758357 648.84 743.49 675.63 2,067.96

10 Addis Ketema 0929154761 278.26 278.26 278.26 834.78

11 Adihaki 0342-402546 22.32 21.32 22.32 65.96

12 Afetesa 2514110395 273.09 288.21 384.96 946.26

13 Africa Andinet 113716594 27.74 18.99 18.99 65.72

14 Africa Andinet 0113716592 212.78 226.18 263.99 702.95

15 Africa Andinet 0113720336 408.05 564.48 752.04 1,724.57

16 AkakiKality 0114716426 16.52 18.52 18.12 53.16

17 Alem Bank 0113.69-45-59 380.42 373.70 317.82 1,071.94

0113679064
18 Alemgena 783.97 837.51 769.78 2,391.26
0113679109
19 Alemgena 19.00 19.00 19.00 57.00
0113679122
20 Alemgena 265.53 438.15 432.48 1,136.16
223315622
21 Asela 76.04 115.14 90.76 281.94
581140879
22 Azezo - 46.14 47.52 93.66 FAX

23 Bahir Dar Ghion 058-320-8986 21.32 31.52 22.32 75.16

24 Balderas ,0116368142 17.12 19.12 18.52 54.76

25 Boset 221119030 586.14 373.82 334.09 1,294.05

115540289
26 Bulgaria Mazoria 432.25 432.25 393.84 1,258.34
115540311
27 Bulgaria Mazoria 22.32 22.32 24.92 69.56

28 BurayuKeta 011 369 30 15 2,334.65 2,423.94 0.04 4,758.62

29 ButaJira 461150705 453.82 - - 453.82

43
30 Chancho 0111880923 17.00 18.52 20.52 56.04

31 CMC 011667188 550.32 481.38 496.74 1,528.44

32 Dembela ,221100622 61.32 79.52 66.32 207.16

33 Dembi +251-114-30-05-69 47.12 30.92 37.72 115.76

34 DerartuAdebaby 222116220 - - 16.52 16.52

35 Dubai Tera 0118 959955 16.52 16.52 16.52 49.56 (Wire-less)

36 Dubai Tera 0112 732290 403.81 624.85 386.57 1,415.23

37 FinoteSelam (058) 775-2115 - 14.92 20.52 35.44

38 Furi 011367-90-92 22.92 27.12 30.92 80.96

39 Gambela 0475511868 168.02 51.72 82.34 302.08

40 Gambela 0475511869 21.24 16.52 16.52 54.28

41 Gebreguracha 0111210689 236.14 303.34 149.89 689.37

42 Gebreguracha 0111310795 50.52 32.92 28.12 111.56

43 Gebreguracha 0111310733 16.52 16.52 16.52 49.56

44 Geferesa 112601133 16.52 16.52 16.52 49.56

PHONE
45 Genet Hotel 0115540022 227.53 331.25 221.99 780.77 NUMBER

44
46 Gode 257761695 560.74 542.57 568.32 1,671.62
Fixed Line
47 GofaSefer 0114673167 465.18 471.84 527.75 1,464.77 Voice
Fixed Line
48 GofaSefer 0114673567 16.52 16.52 16.52 49.56 Voice
Fixed Line
49 Gulelle Finance 0112732427 16.52 16.52 16.52 49.56 Voice

50 Gulelle Finance 0112732351 23.12 21.12 21.72 65.96 FAX

Fixed Line
51 Gulelle Finance 0112732439 16.52 16.52 16.52 49.56 Voice

52 Gurd Shola 0116617400 22.52 23.97 22.52 69.01

Gurd Shola
53 Jakros 0116617400 22.52 23.97 22.52 69.01

54 H/GiorgisDildiy 0111579591 301.79 535.66 512.56 1,350.01

55 H/GiorgisDildiy 0111579592 16.52 16.52 16.52 49.56

56 H/GiorgisDildiy 0111579593 563.32 825.36 609.04 1,997.72

57 H/GiorgisDildiy 0111578891 483.76 536.56 553.30 1,573.62

58 Harer 4th Sefer 254662707 461.52 454.50 350.31 1,266.33

59 Harer 4th Sefer 254668534 208.38 287.82 106.19 602.39

60 HawassaArebsefer Fax-462124811 39.92 23.32 22.12 85.36

0116674840
61 Imperial Aka 1,502.57 1,553.08 1,528.21 4,583.85

45
62 Injibara 582270809 266.95 268.88 373.89 909.72

63 IrtuLebu 0114713530 652.78 536.62 456.12 1,645.52 Fixed Line

64 Jibruk 0344404552 19.00 19.00 19.00 57.00

65 Jibruk 0344404579 62.24 44.30 55.11 161.65

66 KagnewShaleka 0112734512/42/38 3,214.94 3,214.94 3,214.94 9,644.81

67 KalityGebreal 0114717263 2,143.24 2,143.24 2,143.24 6,429.73

68 KalityGumruk 0114707286 16.52 16.52 16.52 49.56

69 Kara Road 0116670250 18.99 18.99 18.99 56.97

70 Kara Road 0116670179 18.99 18.99 18.99 56.97

71 Kara Road 0116670260 297.47 295.72 394.64 987.83

72 Kechema 221118306 741.21 603.28 388.86 1,733.35

73 Kechema 221118310 599.02 577.34 692.47 1,868.83

74 Kemissie 335541447 361.10 331.68 368.45 1,061.23

75 Kobo 333341312 683.28 268.56 501.80 1,453.64

76 Lafto 0114196488 - 28.52 31.32 59.84 Fax

77 Maraki 058211-50-69 112.73 166.86 225.82 505.41

46
78 Maraki 058211-50-62 33.32 30.52 33.72 97.56

79 MegenagnaAdeb 116673737 646.84 572.59 647.56 1,866.99

80 MegenagnaAdeb 116673799 21.18 29.32 26.72 77.22

81 MegenagnaAdeb 118592256 16.52 16.52 16.52 49.56

82 MehalGebeya 0118698720 273.63 432.05 217.43 923.11 WIRELESS

83 MehalGebeya 0112781780 810.20 585.08 662.66 2,057.94

114671297
84 MehalGofa 434.64 335.97 257.40 1,028.01
114671281
85 MehalGofa 19.92 19.72 18.72 58.36
114705448
86 MehalGofa - - 16.52 16.52

87 Mekenisa Abo 0113690329 21.12 21.12 19.12 61.36

88 Merkato 0118698837 48.04 373.41 506.10 927.55

89 Merkato 0118698953 20.32 16.52 16.52 53.36

90 Merkato 0112761395 919.96 1,275.80 1,090.73 3,286.49

91 Merkato 0112772171 688.40 955.43 603.14 2,246.97

92 Merkato 0112771666 348.18 590.95 459.11 1,398.24

93 Merkato 0112764802 1,135.01 1,803.46 1,620.82 4,559.29

47
 94 Merkato 0112758732 384.37 411.15 609.65 1,405.17

95 MerkatoTana ;0112733598 276.88 290.18 309.04 876.10

FIXED
96 Meskel Flower 0114669501 41.72 54.72 35.72 132.16 LINE (FAX)

97 Metehara 022-226-1213 834.66 568.02 573.02 1,975.70

98 Mexico 0115572208 296.46 394.09 326.77 1,017.32

99 Mexico 0115572261 530.54 198.86 280.28 1,009.68

100 Mugad 0333126579 20.25 134.61 113.02 267.88

101 Mugad 0333122312 19.00 19.00 19.00 56.99

102 Mugi 57 779 0 844 696.75 684.71 639.03 2,020.49

103 Nefas Silk 0114424679 391.01 512.18 513.40 1,416.59

104 Nefas Silk 0114404385 340.53 500.00 286.52 1,127.05

105 Negelle 0464-452192 53.04 58.10 39.24 150.37 FAX

106 Negelle 046-4452302 19.00 19.00 19.00 56.99 Fixed Line

107 Negelle 046-4452303 19.00 19.00 19.00 56.99 Fixed Line

108 Negelle 046-4452337 19.00 19.00 19.00 56.99

109 Negelle 046-4452789 19.00 19.00 19.00 56.99

48
110 Olympia 0115571190 885.50 810.99 641.49 2,337.98

111 Rufael 112591958 1,211.89 1,183.87 568.52 2,964.28

251130369
112 SabeanSefer 830.90 201.50 631.75 1,664.15
251124879
113 SabeanSefer 193.71 250.46 200.96 645.13

114 Salo Gora 0118696464 53.14 16.52 16.52 86.18 (wireless)

115 Salo Gora 0114716187 427.11 645.30 541.41 1,613.82

116 SebategnaAke 0112773342 574.06 641.30 815.76 2,031.12

117 Sebeta 113384114 426.64 443.11 349.98 1,219.73

118 Sebeta 113384115 337.68 301.68 600.60 1,239.96

119 Shambu 057-666-0152 19.00 55.40 424.27 498.67

120 Shogole 0112590346 421.20 672.37 681.80 1,775.37

121 Sidst Kilo 011-1261054 326.82 383.11 494.46 1,204.39

122 T/Haimanot 0112772731 588.17 857.22 577.44 2,022.83

123 T/Haimanot 0118962610 278.26 278.26 278.26 834.78

124 TiraficTsifet Bet 011-6-18-87-18 39.68 28.52 32.32 100.52

125 Tulubolo 0113421402 702.79 774.52 651.83 2,129.15

49
126 Wechecha 0113804048 497.88 440.22 397.49 1,335.59

127 WorkuSefer 0114717631 22.72 18.52 23.92 65.16

128 Yeka 0118592248 423.69 495.54 570.95 1,490.18 Wireless

129 Yeka 0116673520 29.58 24.06 22.68 76.31 Fax

130 YeshiDebele 25113690627 19.92 16.52 16.52 52.96

131 O582250532 16.52 103.72 68.32 188.56

132 0116375094 16.52 16.52 16.52 49.56

fax 114166878
133 23.52 26.77 24.92 75.21

134 0112784931 737.20 847.27 1,056.21 2,640.68

Total 43,243.24 46,226.75 42,589.99 132,059.98

50
Annex II
City Branches-Summary of CSO and Auditors Right sizing Proposal

CSO needed

Existing Auditors

Auditor Excess/
Recommended

Recommended
Existing CSOs
Total based on

CSO Excess/
Number of

Number of

Number of
Final CSO
(Average

Shortage

Shortage
Auditors
Average Cash

Transaction
cash and
S/N Branch Collection
Non
(Amount)

Amount
cash)
Txn

1 18 Mazoria 3 2 3 5 2 1 2 (1)
6,269 57,332,047
2 22 Mazoriya 4 2 4 12 8 2 2 -
7,713 81,213,802
3 22-Wuhalimat 2 2 2 3 1 1 1 -
4,917 40,805,542
4 A.Andinet 3 2 3 10 7 2 2 -
6,672 65,766,964
5 A.Avenue 4 2 4 7 3 2 2 -
7,249 91,322,582
6 A.Giorgis 3 2 3 8 5 2 2 -
6,484 52,400,769
7 Abay Mado 2 2 2 1 (1) 1 - 1
1,317 12,396,749
8 ABOSTO 3 2 3 3 0 1 1 -
5,208 33,623,736
9 ABUWARE 2 2 2 4 2 2 1 1
3,611 26,148,251
10 Adama 8 6 8 16 8 4 4 -
16,167 232,142,428

51
11 Adama Ras 2 2 2 2 - 1 - 1
2,813 14,642,407
ADDISU
12 3 2 3 8 5 1 2 (1)
GEBEYA 6,618 79,128,260
13 Adey Abeba 2 2 2 4 2 1 1 -
4,695 30,532,960
14 Adihaki 2 2 2 3 1 - - -
737 12,398,988
15 Adis Ketema 6 4 6 15 9 3 3 -
11,739 174,399,583
16 Airport 4 2 4 6 2 1 2 (1)
8,013 64,527,178
17 Akaki 3 2 3 4 1 1 2 (1)
6,907 32,249,926
18 Akaki Gelan 2 2 2 3 1 1 1 -
3,948 28,421,237
19 Akaki Kality 2 2 2 4 2 - 1 (1)
4,861 33,684,739
20 Alem Bank 3 2 3 5 2 1 2 (1)
6,398 53,395,412
AMANUEL
21 2 2 2 5 3 1 1 -
TOTAL 3,576 32,766,014
22 Arat Kilo 5 2 5 9 4 3 2 1
9,699 72,535,235
23 Asco 4 2 4 7 3 3 2 1
8,813 44,757,087
24 Awasho 2 2 2 3 1 1 - 1
2,850 17,635,543
25 Awassa 3 2 3 6 3 2 1 1
5,103 66,248,480
26 Awtobis Tera 2 2 2 4 2 1 - 1
2,593 16,237,601

52
27 Bahirdar Ghion 2 2 2 2 - 1 - 1
1,319 15,241,614
28 Bahrdar 3 3 3 8 5 2 1 1
5,520 101,425,187
29 Balcha Aba Nefso 2 2 2 3 1 - - -
400 10,104,685
30 BALDERAS 2 2 2 3 1 - - -
1,495 14,354,642
31 Bambis 2 2 2 1 (1) 1 - 1
2,091 12,805,053
32 Beklobet 2 2 2 3 1 1 1 -
4,861 56,731,827
33 Berecha 3 2 3 3 0 1 1 -
5,905 61,270,849
34 Betel 2 2 2 4 2 1 1 -
4,958 49,299,058
35 Bole 4 2 4 4 0 2 2 -
8,562 77,181,784
36 BOLE 22 2 2 1 3 2 1 - 1
2,399 28,267,908
37 BOLE 24 2 2 2 3 1 1 1 -
3,009 16,468,776
38 Bole Bulbula 2 2 2 2 - 1 - 1
2,256 13,342,909
Bole
39 4 3 4 6 2 2 2 -
Medhanialem 8,082 115,893,299
40 Bole Michael 4 2 4 7 3 2 2 -
7,335 50,344,919
41 BOLE17 2 2 2 2 - 1 - 1
2,887 56,438,538
42 Bosset 3 2 3 4 1 1 1 -
5,860 50,222,220

53
 Bulgaria
43 2 2 2 4 2 1 1 -
Mazoriya 4,478 49,106,343
44 Churchil Road 3 2 3 6 3 1 1 -
5,568 61,551,825
45 CMC 2 2 2 3 1 1 1 -
4,627 39,514,417
46 D.Dawa 5 5 5 9 4 2 3 (1)
10,154 195,695,594
47 D'AFRIQUE 2 2 2 5 3 1 - 1
2,270 29,622,729
48 Dembela 6 3 6 7 1 2 3 (1)
12,559 113,716,879
Derartu
49 2 2 2 2 - - - -
Adebabay 71 1,619,781
50 Dessie-Ber 3 2 3 6 3 1 1 -
5,558 19,643,839
51 Dil Gebeya 4 3 4 7 3 1 2 (1)
8,554 103,047,730
52 DUBAI TERA 2 2 2 3 1 1 1 -
3,353 73,722,219
53 Edaga Mekele 2 2 2 2 0 - 1 (1)
3,650 80,185,203
54 Edget 2 2 2 5 3 1 1 -
4,351 32,275,336
55 Enderase 2 2 2 3 1 1 1 -
4,448 30,834,937
56 Ertu Lebu 2 2 2 2 - 1 - 1
2,962 36,883,942
FERSENSAY
57 3 2 3 4 1 1 2 (1)
LEGASION 6,509 28,019,006
58 Finfine 9 5 9 16 7 3 4 (1)
17,367 212,187,640

54
59 Fitber 3 2 3 5 2 1 1 -
5,757 44,180,817
60 G.Shola 3 2 3 7 4 1 2 (1)
6,177 58,904,279
61 Ganda Gara 2 2 2 2 - - - -
1,020 6,174,721
62 Geja Sefer 2 2 2 5 3 1 1 -
4,539 64,266,571
63 Genet Hotel 2 2 2 3 1 1 1 -
3,001 56,918,494
64 Gerji 4 2 4 8 4 3 2 1
8,977 74,670,663
65 Gerji Giorgis 3 2 3 4 1 1 2 (1)
6,408 35,455,312
66 Gesho Tera 2 4 4 6 2 1 1 -
4,470 165,467,357
67 GISHE ABAY 2 2 2 6 4 1 1 -
3,766 98,947,669
68 Global Akababi 2 2 2 2 - - - -
21 282,594
GODANA
69 2 2 2 3 1 1 1 -
SELAM 4,321 53,708,798
Gofa Mebrat
70 2 2 2 3 1 1 1 -
Hayil 4,561 42,078,206
71 Gofa Sefer 5 3 5 14 9 4 2 2
9,886 119,935,407
72 Goffa Gebriel 4 2 4 7 3 1 2 (1)
8,414 85,798,161
73 Gojam Ber 2 2 2 4 2 1 - 1
2,856 20,941,589
74 Gojam Berenda 2 2 2 4 2 1 - 1
2,161 43,767,337

55
75 Gotera 3 2 3 5 2 2 1 1
5,825 93,974,201
76 Gulele 3 2 3 5 2 1 2 (1)
6,303 95,880,773
77 Gulele Finance 2 2 2 6 4 1 1 -
4,002 55,932,564
Gurd Sholla
78 2 2 2 4 2 1 1 -
Jakros 3,557 29,061,282
79 Habte Giorgis 5 4 5 11 6 3 2 1
9,886 142,761,282
80 HAFATE ISSA 3 2 3 4 1 1 1 -
5,826 55,640,786
81 Hana Mariam 2 2 2 3 1 2 1 1
3,737 11,266,197
82 Harufa 2 2 2 7 5 1 1 -
4,476 44,891,112
Hawassa Areb
83 2 2 2 3 1 1 - 1
Sefer 1,866 32,440,015
Hawassa
84 2 2 2 3 1 - - -
Menaharia 2,251 18,069,970
85 Hayat Adebabay 3 2 3 3 0 1 2 (1)
6,288 38,963,571
86 Head Office 10 5 10 18 8 5 5 -
19,156 190,861,456
87 HURBU 2 2 2 4 2 1 1 -
4,519 33,749,198
88 Imperial Akababi 2 2 2 2 - 1 - 1
977 11,924,539
89 Jackros 2 2 2 3 1 1 1 -
3,993 44,258,510
90 Jemo 5 2 5 8 3 1 2 (1)
9,901 77,608,900

56
91 JIBRUK 2 3 3 5 2 1 1 -
3,977 105,871,030
KALITY
92 3 2 3 3 0 2 1 1
GEBRIEL 5,418 42,324,709
KALITY
93 2 2 2 4 2 1 1 -
GUMRUK 3,633 31,903,024
94 KARA ALO 2 2 2 2 0 1 1 -
4,105 52,016,861
95 KARA MAZORIA 2 2 2 1 (1) - - -
326 2,332,616
96 Kara Road 3 2 3 5 2 1 1 -
5,634 66,817,806
97 Karakore 4 2 4 7 3 1 2 (1)
7,866 63,390,664
98 Kazanchis 4 2 4 11 7 2 2 -
8,561 87,968,746
99 Kebena 2 2 2 5 3 1 1 -
4,643 36,799,718
100 Kechema 3 3 3 5 2 1 1 -
5,900 123,080,516
101 KECHENE 2 2 2 2 - 1 - 1
729 3,836,844
Kechene Chilot
102 2 2 2 4 2 1 - 1
Adebabay 2,180 30,516,883
103 Ketena Hulet 2 2 2 2 - 1 - 1
693 5,670,841
104 Kezira 2 2 2 2 - - - -
2,373 18,360,235
105 Kirkos 4 2 4 7 3 2 2 -
7,422 64,039,540
106 Kirkos-45 2 2 2 2 - - - -
515 8,301,291

57
107 Kokeb 2 2 2 2 - 1 - 1
2,529 25,555,633
108 Kolfe 4 2 4 11 7 4 2 2
8,612 96,371,730
109 Korea Hospital 2 2 2 4 2 - 1 (1)
4,629 30,319,536
110 Kotebe 7 2 7 12 5 4 4 -
14,791 57,138,658
111 Kuas Meda 2 2 2 3 1 - 1 (1)
3,753 47,673,188
112 Lafto 4 2 4 9 5 3 2 1
7,697 54,957,718
113 LAMBERET 2 2 2 4 2 1 1 -
3,372 46,280,978
114 Lebu 3 2 3 8 5 2 2 -
6,518 56,725,011
115 Legehar 5 3 5 12 7 2 2 -
9,538 126,302,239
116 LEKA 6 2 6 8 2 1 3 (2)
11,206 53,290,354
117 Lideta 5 3 5 8 3 2 3 (1)
10,223 101,225,354
118 M.Arada 3 2 3 8 5 2 2 -
6,874 89,287,184
119 Megenagna 22 2 2 2 2 - 1 1 -
3,656 25,631,622
Megenagna
120 5 3 5 7 2 2 3 (1)
Adebabay 10,310 102,007,405
121 Megenegna 4 2 4 6 2 2 2 -
7,603 63,803,951
122 Mehal Gebeya 4 3 4 9 5 2 2 -
7,919 135,821,810

58
123 Mehal Gofa 3 2 3 5 2 1 1 -
5,331 62,664,230
124 Mekanisa 2 2 2 6 4 1 1 -
4,162 23,766,303
125 Mekanisa Abo 2 2 2 2 0 1 1 -
4,855 29,423,006
126 Mekele 3 3 3 5 2 - 1 (1)
5,206 118,282,750
127 Merkato 6 7 7 22 15 4 3 1
11,265 293,144,228
Merkato Kagnew
128 3 3 3 5 2 1 1 -
Shaleka 5,905 129,295,545
129 Merkato Tana 2 2 2 4 2 1 - 1
2,201 46,400,524
130 MESALEMIYA 3 2 3 4 1 1 1 -
5,051 91,465,441
131 Meskel flower 2 2 2 5 3 1 1 -
4,839 81,152,069
132 Mexico 4 2 4 7 3 1 2 (1)
7,803 55,277,729
133 Micky Land 2 2 2 2 - 1 1 -
3,881 22,930,885
MILLENNIUM
134 2 2 2 3 1 1 1 -
AKABABI 3,236 34,490,821
135 Mirab Merkato 2 2 2 3 1 1 1 -
4,191 89,218,259
136 Moenco 2 2 2 2 - 1 - 1
2,245 22,678,848
137 N.Silk 3 2 3 6 3 2 1 1
5,048 40,360,822
138 NEKEMTE 5 2 5 10 5 2 2 -
9,073 78,364,010

59
139 ODA 2 2 2 3 1 1 1 -
4,623 37,360,312
140 Olompiya 3 2 3 5 2 1 2 (1)
6,189 59,822,652
141 Piassa 2 2 2 7 5 1 1 -
4,716 39,371,560
142 Rufael 2 2 2 3 1 2 - 2
2,679 28,453,355
Rwanda
143 Embassy 2 2 2 1 (1) - - -
21 120,311
Akababi
144 S.Tera 4 4 4 12 8 3 2 1
8,381 145,559,316
145 Sabian 5 2 5 7 2 1 3 (2)
10,287 62,575,344
146 SALOGORA 4 2 4 5 1 1 2 (1)
7,430 38,588,595
147 Sandford 2 2 2 2 - 2 - 2
1,992 10,452,985
148 Sar Tera 2 2 2 3 1 1 - 1
2,553 26,849,097
149 Sarbet 2 2 2 4 2 1 1 -
3,903 52,742,920
150 Saris 4 2 4 6 2 1 2 (1)
8,453 37,724,674
151 Saris Addis Sefer 2 2 2 3 1 1 1 -
4,819 55,719,320
152 Sebategna 4 2 4 11 7 3 2 1
8,770 73,140,020
153 SENGATERA 2 2 2 2 - 1 - 1
2,236 25,732,791

60
154 Shalla 2 2 2 5 3 1 1 -
3,090 53,670,338
155 Shashemene 5 4 5 11 6 2 2 -
9,647 157,667,092
156 Sheger 2 2 2 3 1 1 1 -
4,487 34,453,054
157 SHEGOLE 2 2 2 3 1 1 - 1
2,889 22,420,148
158 Shiro Meda 2 2 2 2 - - - -
2,482 8,085,623
159 Sidest Kilo 2 2 2 3 1 1 1 -
3,516 16,347,426
160 Signal 3 2 3 4 1 1 1 -
5,083 47,217,312
161 Stadium 3 2 3 9 6 2 2 -
6,526 69,014,747
STADIUM
162 2 2 2 2 - 1 - 1
ZURIA 930 12,485,276
163 SUMMIT 2 2 2 3 1 1 - 1
1,961 17,012,731
164 T.yaj 3 2 3 6 3 1 1 -
5,346 51,543,056
165 TABOR 2 2 2 5 3 1 1 -
4,101 66,917,345
166 Tekle Haimanot 5 6 6 11 5 3 2 1
9,466 229,533,552
167 TORHAYILOCH 2 2 2 2 - 1 1 -
3,521 34,368,073
168 Trafic Tsihfetbet 3 2 3 6 3 2 1 1
5,730 47,711,873
169 Urael 3 2 3 8 5 2 2 -
6,727 71,816,625

61
 Urael Nigist
170 2 2 2 1 (1) 1 - 1
Sefer 1,888 16,541,763
171 Wollo Sefer 2 2 2 3 1 1 - 1
2,372 30,781,856
172 Worku Sefer 2 2 2 3 1 1 - 1
1,959 8,979,239
173 World Bank 2 2 2 2 - - - -
1,633 11,091,854
174 Wosen Sefer 2 2 2 3 1 1 - 1
2,317 13,070,947
175 Wuha Limat 3 2 3 5 2 1 1 -
5,076 44,312,365
176 YARED 2 2 2 2 - - - -
2,688 13,626,935
177 YEKA 2 2 2 2 - 1 1 -
3,236 20,667,943
178 YEKA ABADO 2 2 2 2 - 1 - 1
2,000 7,402,831
179 Yerer 3 2 3 3 0 1 1 -
5,447 38,389,893
Yeshi Debele
180 2 2 2 4 2 1 1 -
Sefer 3,829 24,268,852
181 Yoseph 2 2 2 2 0 1 1 -
4,002 22,261,236
182 ZENEBEWORK 2 2 2 3 1 - - -
1,913 7,543,812

Total 945,691 10,220,472,751 530 410 536 934 398 233 209 24

62
 Annex III

Outlying Branches-Summary of CSO and Auditors Right sizing Proposal

CSO

Excess/shortage
Total

Recommended

Recommended
Existing CSOs
AVERAGE needed by

CSO Excess/
(Average

Number of

Number of

Number of
Final CSO

Shortage

Auditors

Auditors
Existing
CASH

Auditor
S. No Branch cash and

Transaction
COLLECTIO

Amount
Non cash)
N (Amount)
Txn

1 ADA'A 6,162 70,841,352.47 3 2 3 6 3 1 2 (1)

2 Adaba 1,097 6,900,494.37 2 2 2 2 - 1 - 1

3 ADIGRAT 4,307 44,570,552.11 2 2 2 3 1 1 1 -

4 AdolaWeyu 2,752 32,174,475.56 2 2 2 1 (1) 1 - 1

5 AGARO 8,636 83,875,028.71 4 2 4 11 7 1 2 (1)

6 AlabaKulitu 3,222 31,294,304.60 2 2 2 4 2 1 1 -

7 Alamata 2,925 19,343,528.62 2 2 2 2 - 1 - 1

8 Aleltu 1,167 4,381,641.67 2 2 2 3 1 1 - 1

9 Alemgena 5,388 34,227,787.49 3 2 3 4 1 1 1 -

10 AletaWendo 1,472 15,783,331.58 2 2 2 3 1 - - -

11 AMBO 10,793 63,630,467.58 5 2 5 7 2 1 3 (2)

12 Anger Gutte 3,346 52,687,279.01 2 2 2 3 1 1 1 -

13 ARBA MINCH 4,343 64,485,742.49 2 2 2 3 1 1 1 -

14 ARSI 5,815 46,425,882.98 3 2 3 5 2 1 1

-
NEGELE

15 ARSI ROBE 1,100 5,719,950.90 2 2 2 2 - 2 - 2

16 Assasa 3,993 30,810,125.57 2 2 2 3 1 1 1 -

17 Assella 12,935 67,542,752.35 6 2 6 11 5 3 3 -

18 ASSOSA 7,081 72,963,665.66 4 2 4 5 1 1 2 (1)

19 AWASH 3,536 32,598,915.72 2 2 2 3 1 1 1

-
SEBAT KILO
20 AWEDAY 3,693 89,129,637.89 2 2 2 6 4 1 1 -

21 Axum 1,475 14,957,080.90 2 2 2 2 - 1 - 1

22 AYIRA 616 1,764,255.91 2 2 2 2 - - - -

23 AZEZO 2,198 10,833,925.22 2 2 2 2 - 1 - 1

24 BABILE 607 4,347,828.52 2 2 2 3 1 - - -

64
25 BAKO 5,130 27,281,651.72 3 2 3 3 0 1 1 -

26 BALE ROBE 7,585 91,142,133.35 4 2 4 9 5 2 2 -

27 Bambasi 2,091 12,805,052.70 2 2 2 1 (1) 1 - 1

28 BATU 5,646 29,844,902.72 3 2 3 3 0 1 1 -

29 BEDELE 3,978 40,367,999.91 2 2 2 2 - 1 1 -

30 BEDESSA 5,393 65,632,104.50 3 2 3 6 3 1 1 -

31 BEGI 4,151 29,905,279.07 2 2 2 2 0 1 1 -

32 BEKOJI 6,281 49,099,875.27 3 2 3 4 1 1 2 (1)

33 BeshaleFiga 2,727 32,328,670.06 2 2 2 3 1 1 - 1

34 Bishoftu 6,864 37,184,884.52 3 2 3 6 3 1 2 (1)

35 Bonga 1,294 4,561,579.12 2 2 2 1 (1) - - -

36 Bote 86 479,561.49 2 2 2 1 (1) - - -

37 BULE HORA 5,734 93,598,970.07 3 2 3 8 5 1 1 -

38 BURAYOU 5,290 25,553,825.23 3 2 3 3 0 1 1

-
KETA
39 Burayou 4,043 26,273,256.27 2 2 2 2 0 1 1
-
Mariam

65
40 Bure Damot 1,328 12,852,466.37 2 2 2 4 2 1 - 1

41 Butajira 3,532 54,773,764.81 2 2 2 3 1 1 1 -

42 CHAGNI 2,761 29,342,171.66 2 2 2 4 2 1 - 1

43 Chancho 1,600 9,327,270.07 2 2 2 2 - 1 - 1

44 CHILALO 3,797 21,029,833.57 2 2 2 3 1 1 1 -

45 Chiro 6,125 40,800,717.17 3 2 3 5 2 1 2 (1)

46 DalleDembel 2,293 8,426,711.57 2 2 2 2 - 1 - 1

47 Dambi 2,877 19,885,228.92 2 2 2 1 (1) - - -

48 Dangela 290 1,716,556.93 2 2 2 2 - - - -

49 DEBRE 3,907 27,906,922.99 2 2 2 1 (1) 1 1

-
BERHAN
50 DEBRE 3,836 35,349,259.22 2 2 2 5 3 - 1
(1)
MARKOS
51 DEBRE 2,439 21,107,042.46 2 2 2 2 - 2 -
2
TABOR
52 DEMBI DOLO 6,285 37,023,682.63 3 2 3 3 0 1 2 (1)

53 Dera 979 4,342,900.07 2 2 2 2 - 1 - 1

54 DeraGundoMe 537 3,982,527.16 2 2 2 3 1 - -

-
skel

66
55 Dessie 5,986 118,395,744.71 3 3 3 5 2 1 1 -

56 DILLA 4,926 56,024,195.40 2 2 2 4 2 1 1 -

57 Dodola 4,255 32,261,045.03 2 2 2 3 1 1 1 -

58 Dolomena 2,030 19,814,020.62 2 2 2 2 - 1 - 1

59 Dukem 7,319 51,927,871.09 4 2 4 6 2 1 2 (1)

60 Edaga Hamus 1,158 4,831,738.00 2 2 2 2 - 1 - 1

61 Ejaji 665 2,092,491.83 2 2 2 2 - - - -

62 Eteya 3,443 16,746,491.51 2 2 2 3 1 - 1 (1)

63 FICHE 3,906 18,300,119.80 2 2 2 2 - 1 1 -

64 FINCHAWA 2,187 8,983,544.61 2 2 2 2 - 1 - 1

65 Finoteselam 337 2,492,484.78 2 2 2 2 - 1 - 1

66 Furi 3,808 36,043,172.14 2 2 2 2 - 1 1 -

67 GAMBELA 5,154 34,481,066.40 3 2 3 6 3 1 1 -

68 Gambela New 125 239,631.48 2 2 2 1 (1) - -

-
Land
69 Gedo 941 4,382,017.78 2 2 2 2 - 1 - 1

70 Gefersa Nono 3,415 67,183,004.15 2 2 2 3 1 1 1 -

67
71 GERBA 5,270 31,297,963.24 3 2 3 4 1 1 1
-
GURACHA
72 GIDAMI 1,334 7,677,839.88 2 2 2 2 - - - -

73 GIMBI 9,385 73,260,094.29 5 2 5 6 1 2 2 -

74 GINCHI 1,232 5,931,576.65 2 2 2 2 - 1 - 1

75 GINNIR 4,292 79,965,970.41 2 2 2 4 2 1 1 -

76 GOBA 813 5,073,901.06 2 2 2 2 - 1 - 1

77 Gode 663 3,662,252.33 2 2 2 3 1 - - -

78 Gonder 4,594 35,455,094.48 2 2 2 7 5 1 1 -

79 GUDATU 1,292 11,928,445.17 2 2 2 2 - - -

-
ARJO
80 Guder 795 5,095,620.07 2 2 2 2 - 1 - 1

81 Guduru 2,327 13,069,111.79 2 2 2 3 1 1 - 1

82 Gulisso 1,700 22,100,468.05 2 2 2 3 1 1 - 1

83 Harar 3,824 11,006,035.06 2 2 2 2 - 1 1

-
Arategna Sefer
84 Harar 7,826 109,271,252.93 4 3 4 5 1 1 2 (1)

85 HARO SEBU 935 3,868,414.63 2 2 2 3 1 - - -

68
86 Haromaya 2,590 22,330,110.54 2 2 2 2 - 1 - 1

87 HIRMATA 3,627 38,218,163.64 2 2 2 4 2 1 1 -

88 HIRNA 689 4,307,168.53 2 2 2 2 - 1 - 1

89 Holeta 5,397 40,066,023.93 3 2 3 4 1 1 1 -

90 HOSSANA 4,424 48,741,605.02 2 2 2 2 0 1 1 -

91 HUMERA 2,176 44,133,451.42 2 2 2 2 - 2 - 2

92 INJIBARA 2,633 27,100,329.79 2 2 2 3 1 1 - 1

93 Jardaga Jarte 776 4,372,034.77 2 2 2 2 - - - -

94 Jeldu 451 2,698,423.16 2 2 2 2 - - - -

95 JIGJIGA 6,084 51,342,718.49 3 2 3 4 1 2 2 -

96 JIMA ARJO 684 3,380,958.49 2 2 2 2 - - - -

97 Jimma 10,642 73,367,817.73 5 2 5 11 6 - 3 (3)

98 Jinka 1,684 21,027,233.23 2 2 2 3 1 - - -

99 Kachisi 961 3,926,309.54 2 2 2 2 - - - -

100 KALI 3,446 31,193,058.67 2 2 2 2 - 1 1 -

101 Kemissie 1,721 15,795,203.32 2 2 2 2 - 1 - 1

69
102 Kerecha 1,101 12,902,986.26 2 2 2 2 - 1 - 1

103 Kersa 1,092 5,869,885.66 2 2 2 2 - 1 - 1

104 Kobo 1,311 12,118,100.44 2 2 2 2 - - - -

105 KOMBOLCHA 4,120 50,733,120.10 2 2 2 5 3 1 1 -

106 Lalibela 156 473,806.71 2 2 2 1 (1) - - -

107 Legetafo 6,795 43,981,108.93 3 2 3 4 1 1 2 (1)

108 Logia 4,015 53,117,042.42 2 2 2 5 3 - 1 (1)

109 Maraki 2,672 13,397,062.19 2 2 2 2 - 1 - 1

110 MECHARA 2,903 37,796,153.56 2 2 2 1 (1) 1 - 1

111 MEKI 3,382 24,038,459.33 2 2 2 5 3 1 1 -

112 MENDI 3,801 27,499,089.58 2 2 2 2 - 1 1 -

113 Metehara 3,052 17,482,124.44 2 2 2 2 - 1 1 -

114 METU 5,679 49,558,580.13 3 2 3 5 2 1 1 -

115 MizanTeferi 1,035 9,729,552.51 2 2 2 1 (1) - - -

116 Mojo 5,921 48,376,018.47 3 2 3 4 1 1 1 -

117 Moyale 1,684 46,833,870.05 2 2 2 2 - 1 - 1

70
118 Mugad 2,490 39,572,142.59 2 2 2 3 1 2 - 2

119 MUGI 1,143 4,076,688.65 2 2 2 2 - - - -

120 MUKATURI 754 2,836,717.38 2 2 2 1 (1) 1 - 1

121 Negelle 2,757 23,643,557.96 2 2 2 2 - 1 - 1

122 NEJO 3,822 31,924,136.71 2 2 2 3 1 1 1 -

123 NOLE KABA 1,048 7,156,408.27 2 2 2 3 1 - - -

124 Olenchiti 2,202 14,887,442.77 2 2 2 2 - 1 - 1

125 Sebeta 4,902 58,174,079.99 2 2 2 2 0 1 1 -

126 Sendafa Beke 2,334 20,121,683.47 2 2 2 2 - 1 - 1

127 Shakiso 3,077 98,124,407.26 2 2 2 2 0 1 1 -

128 Shambu 4,334 30,960,294.57 2 2 2 4 2 1 1 -

129 Sheno 127 826,470.53 2 2 2 1 (1) - - -

130 Shinshecho 939 6,173,141.37 2 2 2 1 (1) 1 - 1

131 SHIRE 2,926 49,240,421.35 2 2 2 2 - 1 -
INDASILLASI 1
E
132 Sofomer 3,815 53,170,337.76 2 2 2 3 1 1 1 -
133 Sululta 3,999 22,941,246.28 2 2 2 4 2 1 1 -

71
134 Tepi 1,456 8,415,211.04 2 2 2 2 - - - -

135 TOGOCHALE 4,157 354,400,632.78 2 9 9 3 (6) 1 1 -

136 Tulubolo 1,676 16,834,304.45 2 2 2 2 - 1 - 1

137 Wechecha 2,141 17,385,909.42 2 2 2 2 - 1 - 1

138 Welete 3,262 20,084,501.34 2 2 2 2 - 1 1 -

139 Weliso 5,113 35,555,739.29 3 2 3 5 2 1 1 -

140 Werabe 1,787 10,874,395.15 2 2 2 2 - 1 - 1

141 WOLAITA 5,080 64,290,273.86 3 2 3 4 1 1 1

-
SODO
142 WOLDIA 2,520 14,211,150.07 2 2 2 3 1 1 - 1
143 Wolkite 1,718 12,582,374.31 2 2 2 2 - 1 - 1
144 WUKRO 3,683 25,100,269.28 2 2 2 3 1 1 1 -
145 YABELO 4,393 46,758,225.22 2 2 2 3 1 1 1 -
146 Yebu 1,852 18,292,699.74 2 2 2 2 - - - -

Total 479,683 4,682,601,923 337 302 344 455 111 124 91 33

72
 Annex IV
Summary of Cleaner Messenger Right Sizing

Cleaner-Messengers Messengers

Number of Cleaner-

Cleaner- Messenger
Number of Existing

Number of Existing
Cleaner-Messenger

Excess/ shortage on

Excess/ shortage on
Area of the office

Transaction (four
Total Number of

Average Txn per

Recommended

recommended
Txn per day

Number of
Messenger

Messenger

Messenger

Messenger
Months)
per M2
S/No Branches

month
1 22 Mazoria 1 205.63 1 - 2 81 20 1 0 2
2 22 Wuha Limat 1 80.48 1 - 1 12 3 0 0 1
3 Addis Ketema 2 304.83 1 1 2 40 10 0 0 2
4 Africa Andinet 0 160.69 1 (1) 2 103 26 1 1 1
5 Africa Avenue 2 379.64 1 1 1 31 8 0 0 1
6 Arada Ghiorgis 1 187.56 1 - 1 8 2 0 0 1
7 Arat Kilo 1 185 1 - 1 30 8 0 0 1
8 Asko 2 176 1 1 0 15 4 0 0 0
9 Bole 2 190.17 1 1 2 144 36 2 1 1
10 Bole Michael 0 315 1 (1) 1 0 - 0 1
11 Churchil Road 1 246 1 - 1 24 6 0 0 1
12 Dil Gebeya 1 285.93 1 - 1 35 9 0 0 1
13 Finfinne 2 2 - 2 137 34 1 1 1
14 Fit Ber 1 161 1 - 1 24 6 0 0 1
15 Genet Hotel Akababi 2 134.4 1 1 0 22 6 0 0 0
16 Gerji 1 209.7 1 - 1 77 19 1 0 1

73
17 Gerji Ghiorgis 2 182.96 1 1 1 2 1 0 0 1
18 Gofa Gebriel 1 231.04 1 - 1 8 2 0 0 1
19 Gofa Sefer 2 432.56 2 - 4 99 25 1 1 3
20 Gullele 1 182.63 1 - 1 23 6 0 0 1
21 Gurd Shola 1 204.5 1 - 1 55 14 1 0 1
22 Habte Ghiorgis Dildiy 2 300 1 1 2 93 23 1 0 2
23 Head Office 6 1313 4 2 3 594 149 6 3 0
24 Jemo 2 342.2 1 1 1 8 2 0 0 1
25 Kara Kore 2 308.4 1 1 0 0 - 0 0
26 Kazanchis 2 269.9 1 1 2 98 25 1 1 1
27 Kebena 1 173 1 - 1 2 1 0 0 1
28 Kirkos Akababi 1 1 1 81 20 1 0 1
29 Kolfe 2 212.57 1 1 2 46 12 0 0 2
30 Kotebe 1 112 1 - 1 39 10 0 0 1
31 Lafto 1 152.88 1 - 1 21 5 0 0 1
32 Legehar 2 304.26 1 1 4 261 65 3 2 2
33 Lideta 2 144 1 1 2 84 21 1 0 2
34 Megenagna Adebabay 2 284.3 1 1 0 24 6 0 0 0
35 Megenagna 0 310.68 1 (1) 2 108 27 1 1 1
36 Mehal Arada 1 226 1 - 2 134 34 1 1 1
37 Mehal Gebeya 2 223.9 1 1 1 37 9 0 0 1
38 Mehal Gofa 2 93.38 1 1 0 2 1 0 0 0
39 Merkato 4 310.68 1 3 4 66 17 1 0 4
40 Meskel Flower 1 159.52 1 - 2 61 15 1 0 2
41 Millenium 2 144.06 1 1 0 13 3 0 0 0

74
42 Nifas Silk 1 231.17 1 - 3 50 13 1 0 3
43 Piazza 2 253.8 1 1 0 8 2 0 0 0
44 Saris Akababi 1 125 1 - 1 95 24 1 0 1
45 Sebategna Akababi 3 307.08 1 2 2 20 5 0 0 2
46 Sidamo Tera 2 231.1 1 1 1 20 5 0 0 1
47 Stadium 2 258.51 1 1 1 52 13 1 0 1
48 Teklehaimanot 2 253.49 1 1 2 57 14 1 0 2
49 Temenja Yaj 1 264.42 1 - 1 49 12 1 0 1
50 Traffic Tsihifetbet 1 218 1 - 1 73 18 1 0 1
51 Urael 1 178 1 - 2 39 10 0 0 2

Sub Total 81 56 25 72 3,205 801 33 12 60

1 Adama 5 5 - 1 0 - 0
2 Agaro 4 4 0 0 - 0
3 Arsi Negele 1 129.35 1 - 1 0 - 0
4 Assela 2 296.04 1 1 1 0 - 0
5 Aweday 1 204 1 - 1 0 - 0
6 Bahir Dar 1 154 1 - 1 0 - 0
7 Bale Robe 2 440 2 - 0 0 - 0
8 Batu 1 154.14 1 - 1 0 - 0
9 Bedessa 1 128 1 - 1 0 - 0
10 Bishoftu 1 188 1 - 1 0 - 0
11 Bokoji 1 160 1 - 1 0 - 0
12 Chiro 1 320 1 - 1 0 - 0
13 Dembela 1 220 1 - 1 0 - 0
14 Dire Dawa 2 393 1 1 1 0 - 0

75
15 Gambela 1 121 1 - 1 0 - 0
16 Ghimbi 3 140 1 2 1 0 - 0
17 Ghinir 1 80.85 1 - 1 0 - 0
18 Gonder 1 134.75 1 - 1 0 - 0
19 Harufa 2 231.96 1 1 0 0 - 0
20 Hawassa 2 2 1 0 - 0
21 Jigjiga 1 147 1 - 1 0 - 0
22 Jimma 3 220 1 2 1 0 - 0
23 Leka 3 3 1 0 - 0
24 Mettu 1 150 1 - 1 0 - 0
25 Nekemte 1 184 1 - 1 0 - 0
26 Sabian Sefer 2 140 1 1 0 0 - 0
27 Sar Tera 2 87 1 1 0 0 - 0
28 Sebeta 1 140 1 - 1 0 - 0
29 Shashemene 2 2 0 0 - 0
30 Woliso 1 136.65 1 - 1 0 - 0
Sub Total 51 42 9 24 0 0 - 0 0
Grand Total 132 98 34 96 3205 801 33 12 60

76