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WOLATIA SODO UNIVERSITY
COLLAGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF ACCOUNTING AND FINANCE
INTERNSHIP REPORT ON
DEVELOPMENT BANK OF ETHIOPIA WOLAITA SODO BRANCH
INTERNSHIP REPORT SUBMITTED TO DEPARTMENT OF ACCOUNTING AND
FINANCE IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR BA DEGREE IN ACCOUNTING AND FINANCE
REPORTED BY: BESUAFEKADE SHIBESHI
ID NO: - ACC/WE/078/12
APRIL, 2024
WOLATIA SODO, ETHIOPIA
I ACKNOWLEDGEMENT First of all I would like to express my internal and endless thanks to Almighty God who helped in every aspects of my life and made me one of the participants in this practical attachment.
Next, I would like to thank the Wolaita Sodo University, Accounting and Finance Department for providing me with an opportunity to come up with an internship opportunity that has resulted in widening my knowledge greatly.
Similarly, I offer my sincerest gratitude to manager Mr. of Development Bank Ethiopia,
Wolaita Sodo branch, whose encouragement; supervision and support from the starting to the end date during the entire my internship period enabled me to develop a deeper understanding of the subject and nature of the banking industry
I EXCUTIVE SUMMARY
The aim of this report is to explain about my internship experience at Development Bank Ethiopia, Wolaita Sodo Branch. And also, the background of the Development Bank Ethiopia, Wolaita Sodo Branch followed by role and responsibilities of mine in that specific organization. Also I tried to explain the overall benefit gained from the internship experience that are in terms of improving my practical skill ,improving my team playing skill, improving my leader ship skill, and entrepreneurship skill. Lastly, I discussed with conclusion and recommended the problem that is really presented in the program and activities that must be taken to solve the problem.
II TABLE OF CONTENTS ACKNOWLEDGEMENT.........................................................................................................I
EXCUTIVE SUMMARY........................................................................................................ II
IV CHAPTER ONE INTRODUCTION OF THE REPORT 1.1. Background of the organization The internship report focuses on the Development Bank of Ethiopia Wolaita Sodo Branch, providing a brief overview of the organization's operations and functions. The report aims to analyze the branch's performance and practices from a financial perspective, utilizing various analytical tools and techniques to assess its strengths, weaknesses, opportunities, and threats.
1.2. Purpose The purpose of this report is to gain insights into the operations and financial management practices of the Development Bank of Ethiopia Wolaita Sodo Branch. The analysis will be conducted using financial ratios, common-size analysis, trend analysis, and other relevant techniques to evaluate the branch's financial health and performance. The report also aims to identify areas for improvement and strategic recommendations to enhance the branch's efficiency and effectiveness.
1.3. Data Collection
The data for this report will be collected through a combination of primary and secondary sources. Primary data will be gathered through direct observation, interactions with staff members, and interviews with key personnel at the Wolaita Sodo Branch. Secondary data will be obtained from the branch's financial reports, annual statements, and other relevant documents to support the analysis and findings.
1.4. Scope Due to the limited duration of the internship period, the focus of this report will be on specific departments or functions within the Development Bank of Ethiopia Wolaita Sodo Branch. The intern will concentrate on areas such as financial management, operational efficiency, customer service, or any other relevant aspect based on the assigned tasks and responsibilities during the internship period.
This chapter sets the foundation for the internship report, outlining the purpose, scope, and methodology for analyzing the Development Bank of Ethiopia Wolaita Sodo Branch from a financial perspective. Subsequent chapters will delve deeper into the findings, analysis, and recommendations based on the data collected and observations made during the internship period.
1 CHAPTER TWO OVERVIEW OF THE ORGANIZATION 2.1. Brief Overview of the organization The Development Bank of Ethiopia (DBE) is a state-owned financial institution established in 1909 with the objective of promoting economic development in Ethiopia. The bank plays a crucial role in providing financial support to various sectors of the economy, including agriculture, industry, and infrastructure development. The DBE aims to contribute to the country's economic growth by offering affordable financing solutions to businesses and projects that have a positive impact on the economy.
2.2. Major Activities of the organization
The DBE engages in a wide range of activities to support economic development in Ethiopia. Some of its major activities include:
1. Providing long-term financing: The bank offers long-term loans to businesses and projects in key sectors such as agriculture, manufacturing, and infrastructure development. These loans help to stimulate economic growth and create employment opportunities.
2. Supporting small and medium enterprises (SMEs): The DBE has programs in place to support SMEs by providing them with access to finance, technical assistance, and capacity building initiatives. This support is crucial for the growth and sustainability of SMEs in Ethiopia.
3. Infrastructure development: The bank plays a significant role in financing infrastructure
projects such as roads, railways, energy, and water supply systems. These projects are essential for improving the country's infrastructure and promoting economic development.
2.3. Products The Development Bank of Ethiopia offers a variety of financial products tailored to meet the needs of different sectors and clients. Some of the key products offered by the bank include:
1. Term loans: Long-term financing solutions for businesses and projects in sectors such as agriculture, manufacturing, and services.
2. Working capital loans: Short-term financing to meet the day-to-day operational needs of businesses.
2 3. Trade finance: Products such as letters of credit, guarantees, and export financing to facilitate international trade transactions.
4. Project finance: Tailored financing solutions for large-scale infrastructure projects and industrial ventures.
2.4. Hierarchy and Organogram
The DBE follows a hierarchical structure with clear lines of authority and reporting. At the top of the hierarchy is the Board of Directors, responsible for setting strategic direction and overseeing the bank's operations. The Managing Director leads the executive management team, which includes department heads responsible for different functions such as finance, credit, risk management, and operations.
The Wolaita Sodo Branch of the Development Bank of Ethiopia operates under the guidance of the head office in Addis Ababa. The branch has its own management team led by a Branch Manager, who is responsible for overseeing day-to-day operations, customer service, and business development activities at the branch level.
This chapter provides an overview of the Development Bank of Ethiopia and its Wolaita Sodo Branch, highlighting its major activities, products, hierarchy, and organogram. Subsequent chapters will delve deeper into the branch's performance and financial management practices based on the analysis conducted during the internship period.
Organizational structure is the most important part for office to achieve its objectives and mission. Branch Manager
Supporte rs Customer Officers Audi
Securit y Cashie Accountant
Figure 1 Organogram of Development Bank of Ethiopia Wolaita Sodo Branch
3 CHAPTER THREE WHAT I HAVE LEARNED During my internship at the Development Bank of Ethiopia, Wolaita Sodo Branch, I had the opportunity to gain valuable insights and hands-on experience in various departments. The duration of my internship was three months, during which I was assigned to different departments to broaden my understanding of the bank's operations.
3.1. Duration of Internship
I completed my internship at the Wolaita Sodo Branch of the Development Bank of Ethiopia over a period of ten days, from 13/04/2024 G.C to 22/04/2024 G.C.
3.2. Departments Assigned
1. Credit Department: In the Credit Department, I learned about the process of evaluating loan applications, assessing creditworthiness, and analyzing financial statements. I assisted in conducting credit risk assessments and preparing loan documentation.
2. Operations Department: In the Operations Department, I gained practical experience in
handling customer transactions, processing loan disbursements, and managing account operations. I also learned about the importance of maintaining accurate records and ensuring compliance with banking regulations.
3. Customer Service Department: In the Customer Service Department, I interacted with
clients, addressed their queries and concerns, and provided assistance in opening new accounts and processing customer requests. This experience enhanced my communication skills and customer service capabilities.
3.2.1. List of Activities Performed
1. Assisted in reviewing loan applications and conducting financial analysis to assess creditworthiness.
2. Prepared loan documentation and assisted in the loan approval process.
3. Processed customer transactions, including deposits, withdrawals, and fund transfers.
4. Interacted with clients to address their inquiries, resolve issues, and provide information on banking products and services.
5. Participated in team meetings and training sessions to enhance my knowledge of banking
operations and procedures.
4 3.2.2. Performance Evaluation Throughout my internship, I strived to actively engage in all assigned tasks, demonstrate a strong work ethic, and seek opportunities to learn from experienced professionals within the bank. I received positive feedback from my supervisors for my dedication, attention to detail, and willingness to take on new challenges.
3.3. Overall Experience
My internship at the Development Bank of Ethiopia, Wolaita Sodo Branch, was a valuable learning experience that provided me with a comprehensive understanding of banking operations, credit evaluation processes, and customer service practices. I had the opportunity to apply theoretical knowledge gained from my academic studies in a practical setting and develop essential skills relevant to a career in the banking sector. The exposure to different departments and hands-on experience has greatly enriched my professional growth and prepared me for future endeavors in the financial industry.
5 CHAPTER FOUR ANALYSES 4.1. Financial Analyses 4.1.1. Ratio Analysis I conducted a ratio analysis of the Development Bank of Ethiopia, Wolaita Sodo Branch, to evaluate its financial performance and efficiency. Key ratios such as liquidity ratios (current ratio, quick ratio), profitability ratios (return on assets, return on equity), and leverage ratios (debt-to-equity ratio) were calculated and analyzed to assess the bank's financial health.
4.1.2. Index Analysis
An index analysis was performed to compare the bank's financial performance over time and against industry benchmarks. This analysis helped in identifying trends and potential areas for improvement.
4.1.3. Common Size Analysis
A common size analysis was conducted to analyze the bank's financial statements by expressing each line item as a percentage of total assets or total revenue. This allowed for a better understanding of the composition of the bank's financial statements.
4.1.4. Trend Analysis
Trend analysis was carried out to identify patterns and changes in the bank's financial performance over a period of time. This analysis helped in forecasting future trends and making informed decisions.
4.2. SWOT Analysis
4.2.1. Opportunities of Development Bannk of Ethiopia Wolaita Sodo Branch
1. Expansion into new markets and regions to increase market share.
2. Introduction of innovative banking products and services to attract a wider customer
base.
3. Collaborations with international financial institutions to access funding and expertise.
4.2.2. Threats of Development Bannk of Ethiopia Wolaita Sodo Branch
1. Intense competition from other banks and financial institutions.
6 2. Economic downturns and fluctuations in interest rates impacting profitability.
3. Regulatory changes and compliance requirements affecting operations.
4.2.3. Strengths of Development Bannk of Ethiopia Wolaita Sodo Branch
1. Strong brand reputation and trust among customers.
2. Skilled and experienced workforce dedicated to delivering quality services.
4.2.4. Weaknesses of Development Bannk of Ethiopia Wolaita Sodo Branch
1. Limited branch network impacting reach and accessibility.
2. Lack of diversification in revenue streams leading to dependency on traditional banking
services.
3. Need for continuous investment in training and development to keep pace with industry advancements.
The SWOT analysis provides a comprehensive overview of the Development Bank of
Ethiopia, Wolaita Sodo Branch's internal strengths and weaknesses, as well as external opportunities and threats that may impact its performance and strategic decision-making. This analysis serves as a valuable tool for identifying areas of improvement and formulating strategies to capitalize on opportunities and mitigate risks in the competitive banking industry.
7 CHAPTER FIVE RECOMMENDATIONS AND CONCLUSIONS 5.1. Recommendations 1. Utilize Opportunities
Specific Recommendation: Maximize the branch network to underserved
regions in Wolaita Sodo to increase market penetration and customer outreach. Concrete Action: Conduct a feasibility study to identify potential locations for new branches and allocate resources for their establishment within the next fiscal year.
2. Mitigate Threats
Specific Recommendation: Implement a robust risk management framework
to address economic fluctuations and interest rate risks. Concrete Action: Develop contingency plans and hedging strategies to minimize the impact of external threats on the bank's profitability and financial stability.
3. Leverage Strengths
Specific Recommendation: Enhance customer service through personalized
banking experiences and tailored financial solutions. Concrete Action: Invest in training programs for frontline staff to improve customer interactions and satisfaction levels, leading to increased loyalty and retention.
4. Address Weaknesses:
Specific Recommendation: Diversify revenue streams by introducing new
financial products and services catering to diverse customer segments. Concrete Action: Form a product development team to research market demands and trends, and launch innovative banking solutions to attract a wider customer base and generate additional income streams.
8 5.2. Conclusions In conclusion, the Development Bank of Ethiopia, Wolaita Sodo Branch, has significant potential for growth and success by leveraging its strengths, addressing weaknesses, capitalizing on opportunities, and mitigating threats identified through the SWOT analysis. By implementing the specific and practical recommendations outlined above, the bank can enhance its competitive position, improve financial performance, and better serve its customers in the dynamic banking landscape of Ethiopia. It is imperative for the bank to focus on strategic planning, operational efficiency, and customer-centric initiatives to achieve sustainable growth and long-term success.
9 REFERENCES From https://www.developmentbankofethiopia.com
