EthSwitch posted a record-high annual profit after a sharp increase in its interoperable transactions services fuelled by the growing adoption of digital payment in Ethiopia.
The company, fully owned by all banks in the country, said its pre-tax profit in the 2022/23 financial year jumped by 172% to more than 534.5 million Birr.
The record performance saw earnings per share of Br. 1000 shares increase to 719.93, states the report presented at the 10th Annual Shareholders Meeting held on Nov 21, 2023.
The achievement was attributed to enhanced cost optimization as well as operational efficiency.
Ethswitch was established in 2011 to offer e-payment infrastructure services to retail payment service providers, and through them, to end users.
Its executives say interoperable transactions jumped “by an impressive 130%, reflecting the growing adoption of digital payments in Ethiopia.”
In the reported year, there were a total of 7,858 Automated Teller Machines (ATMs) as well as 12,016 Point of Sales (POS) active terminals, per central bank data.
EthSwitch report says the banking industry made close to 71.5 million interoperable ATM transactions worth 89.76 Billion Birr.
The total value figure shows a 79 percent year-on-year jump, says the report and puts the average transaction success rate for ATMs at 93%.
The increase in interoperable POS purchases was even higher. EthSwitch recorded 970,434 successful POS transactions, surpassing its annual target by 138%.
These transactions were valued at more than 2.6 Billion Birr showing a 169% increase from the preceding year. The average transaction success rate for POS was 89%, the report indicates.
A sharp increase was also reported in digital banking interoperability transactions. EtHSwitch began the Person-to-Person (P2P) interoperable service in 2021 with 30 participants, including banks and microfinance institutions.
The P2P service involving transfer services using internet-based and USSD channels, and mobile apps, processed 14.4 million transactions – a 584% increase from the preceding year.
Last year, MasterCard ATM service was implemented to enable receiving cross-border money, and the trial process of POS service is being carried out by member banks, per EthSwitch.