WOLAITA SODO UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ACCOUNTING AND FINANCE

INTERNSHIP REPORT
ON
AHADU BANK KAWO TONA 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: BENJAMIN KINFE

ID NO: - ACC/WE/081/12

MAY, 2024
WOLATIA SODO, ETHIOPIA

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 COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF ACCOUNTING AND FINANCE

INTERNSHIP REPORT
ON
AHADU BANK KAWO TONA BRANCH

REPORTED BY:
BENJAMIN KINFE

SUPPERVISORY COMMITTEE
ADVISOR NAME______________________Date__________________Sign____________
EXAMINOR NAME____________________Date__________________Sign____________

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 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. Tesfalidet W/Yohannes of Ahadu

Bank, Kawo Tona 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

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EXCUTIVE SUMMARY
This internship report provides an in-depth analysis of the Ahadu Bank Kawo Tona Branch,
focusing on its organizational structure, operations, products, services, and overall
performance. The Ahadu Bank Kawo Tona Branch is a prominent financial institution in
Ethiopia, dedicated to providing banking services to individuals, businesses, and
communities across the country.
The report begins with an overview of the Ahadu Bank Kawo Tona Branch, highlighting its
mission to promote financial inclusion, economic development, and community
empowerment through innovative banking solutions. The bank's commitment to ethical
practices, customer satisfaction, and social responsibility is emphasized as core values
guiding its operations.
The report then delves into a detailed analysis of the Kawo Tona Branch, located in the
Wolaita Sodo town, outlining its organizational structure, key activities, and customer base.
The branch's team composition, including branch manager, relationship managers, tellers,
and customer service representatives, is described to provide insight into its operational
framework.
Furthermore, the report explores the range of banking products and services available at the
Kawo Tona Branch, such as savings accounts, current accounts, loans, remittances, and
electronic banking facilities. The branch's focus on serving both individual customers and
businesses, supporting financial transactions, and promoting digital banking solutions is
highlighted as key components of its service offerings.
Additionally, the report evaluates the Kawo Tona Branch's performance in terms of key
performance indicators (KPIs) such as deposit mobilization, loan disbursement, customer
satisfaction, and profitability. It analyzes the branch's strengths, weaknesses, opportunities,
and threats (SWOT analysis) to identify areas for improvement and strategic growth.
Overall, this internship report aims to provide valuable insights into the operations and
performance of the Ahadu Bank Kawo Tona Branch, offering recommendations for
enhancing customer experience, expanding product offerings, and leveraging technology to
drive financial inclusion and sustainable development in Ethiopia.

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 TABLE OF CONTENTS
ACKNOWLEDGEMENT.......................................................................................................................................II

EXCUTIVE SUMMARY.......................................................................................................................................II

LIST OF FIGURE...................................................................................................................................................V

CHAPTER ONE......................................................................................................................................................1

INTRODUCTION....................................................................................................................................................1

1.1. Background...................................................................................................................................................1

1.2. Purpose..........................................................................................................................................................1

1.3. Data Collection..............................................................................................................................................1

1.4. Scope.............................................................................................................................................................1

CHAPTER TWO.....................................................................................................................................................3

OVERVIEW OF THE ORGANIZATION..............................................................................................................3

2.1. Brief Overview the bank...............................................................................................................................3

2.2. Major Activities.............................................................................................................................................3

2.3. Products.........................................................................................................................................................3

2.4. Hierarchy.......................................................................................................................................................3

2.5. Organogram...................................................................................................................................................4

CHAPTER THREE..................................................................................................................................................5

WHAT I HAVE LEARNED....................................................................................................................................5

3.1. Duration of Internship...................................................................................................................................5

3.2. Departments Assigned..................................................................................................................................5

3.3. List of Activities Performed..........................................................................................................................5

3.3.1. Performance Evaluation.........................................................................................................................5

3.3.2. Overall Experience.................................................................................................................................6

CHAPTER FOUR....................................................................................................................................................7

ANALYSES.............................................................................................................................................................7

4.1. Financial Analyses........................................................................................................................................7

4.1.1. Ratio Analysis........................................................................................................................................7

4.1.2. Index Analysis........................................................................................................................................7

4.1.3. Common Size Analysis..........................................................................................................................7

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 4.1.4. Trend Analysis.......................................................................................................................................7

4.2. SWOT Analysis............................................................................................................................................7

4.2.1. Key External Opportunities....................................................................................................................7

4.2.2. Key External Threats..............................................................................................................................8

4.2.3. Key Internal Strengths............................................................................................................................8

4.2.4. Key Internal Weaknesses.......................................................................................................................8

CHAPTER FIVE......................................................................................................................................................9

RECOMMENDATIONS AND CONCLUSIONS..................................................................................................9

5.1. CONCLUSION.............................................................................................................................................9

5.2. RECOMMENDATIONS..............................................................................................................................9

REFERENCES.......................................................................................................................................................11

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 LIST OF FIGURE

Figure 1 Organizational Structure of Ahadu Bank, Kawo Kawo Tona Branch........................4

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 CHAPTER ONE
INTRODUCTION

1.1. Background
Ahadu Bank is one of the leading banks in the region, known for its innovative financial
products and services. The bank has a strong presence in the market and is committed to
providing excellent customer service. As an intern at Ahadu Bank, I had the opportunity to
gain valuable insights into the banking industry and the operations of a successful financial
institution.

1.2. Purpose
The purpose of this report is to analyze Ahadu Bank from a Finance perspective. By studying
the financial performance of the bank and conducting various analyses such as SWOT,
PESTEL, Ratio, Common-size, Index, and Trend analysis, I aim to gain a deeper
understanding of the bank's financial health and performance.

1.3. Data Collection

The data for this report was collected through a combination of primary and secondary
sources. Primary data was gathered through interviews with bank employees and observation
of daily operations. Secondary data was obtained from the bank's financial reports, industry
publications, and online sources.

1.4. Scope
Due to the limited duration of my internship (10 days), I focused my work on the Finance
department of Ahadu Bank. Specifically, I analyzed the bank's financial statements,
conducted ratio analysis, and assessed the bank's financial performance using various
financial analysis techniques.

In the following chapters, I will present a detailed analysis of Ahadu Bank's financial
performance and provide recommendations for improvement based on my findings.

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 CHAPTER TWO
OVERVIEW OF THE ORGANIZATION

2.1. Brief Overview the bank

Ahadu Bank is a leading financial institution in the region, known for its innovative products
and services. The bank was established in 2022 with the aim of providing comprehensive
banking solutions to individuals, businesses, and institutions. With a strong focus on
customer satisfaction and financial inclusion, Ahadu Bank has grown to become a trusted
name in the banking industry.

2.2. Major Activities

Ahadu Bank offers a wide range of financial products and services, including savings
accounts, current accounts, loans, credit cards, investment options, and wealth management
services. The bank also provides online banking facilities, mobile banking, and other digital
services to enhance customer convenience. In addition, Ahadu Bank is actively involved in
community development initiatives and corporate social responsibility programs.

2.3. Products
1. Savings Accounts: Ahadu Bank offers various types of savings accounts with competitive
interest rates and flexible withdrawal options.
2. Current Accounts: The bank provides current accounts for individuals and businesses,
allowing for easy transactions and payments.
3. Loans: Ahadu Bank offers personal loans, business loans, home loans, and other types of
credit facilities to meet the diverse needs of its customers.
4. Investment Options: The bank provides investment opportunities such as fixed deposits,
mutual funds, and securities trading.
5. Wealth Management Services: Ahadu Bank offers personalized wealth management
services to help clients achieve their financial goals.

2.4. Hierarchy
Ahadu Bank follows a hierarchical organizational structure with clear lines of authority and
responsibility. The top management team includes the CEO (Chief Executive Officer), CFO
(Chief Financial Officer), COO (Chief Operating Officer), and other senior executives who

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oversee the overall operations of the bank. The middle management consists of department
heads and managers who are responsible for specific functions such as finance, marketing,
operations, and human resources. The front-line staff includes customer service
representatives, tellers, and relationship managers who interact directly with customers on a
daily basis.

2.5. Organogram
Ahadu Bank Kawo Kawo Tona branch has total employees of 10. Among them 7 are males
and 3 are females.
 Branch manager ……1
 Supporter…………..2
 Security …………....2
 Accountant ………..1
 Cashier …………….1
 Customer officer…...2
 Auditor …………....1

In summary, Ahadu Bank is a dynamic organization with a strong focus on customer service
and innovation. The bank's diverse range of products and services cater to the financial needs
of a wide range of clients, making it a preferred choice for banking solutions in the region.

Organizational structure is the most important part for office to achieve its objectives and
mission.

Branch Manager

Supporters
Customer
Audi Officers

Securi
Accountant Cashie ty

Figure 1 Organizational Structure of Ahadu Bank, Kawo Kawo Tona Branch

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 CHAPTER THREE
WHAT I HAVE LEARNED

3.1. Duration of Internship

During my internship at Ahadu Bank, which lasted for a period of ten days starting from
13/04/2024 G.C to 22/04/2024 G.C, I had the opportunity to work in various departments and
gain valuable insights into the banking industry. The experience was enriching and provided
me with a deeper understanding of the operations and functions of a financial institution.

3.2. Departments Assigned

1. Retail Banking Department: In this department, I was exposed to the day-to-day operations
of retail banking, including customer service, account management, and loan processing.
2. Marketing Department: I also had the chance to work in the marketing department, where I
learned about promotional activities, market research, and customer acquisition strategies.

3.3. List of Activities Performed

 Assisted in customer inquiries and account opening procedures in the retail banking
department.
 Conducted market research and analysis to identify potential customer segments in
the marketing department.
 Prepared promotional materials and assisted in organizing marketing events and
campaigns.
 Participated in team meetings and brainstorming sessions to develop marketing
strategies.
 Shadowed senior executives and managers to understand their roles and
responsibilities within the organization.

3.3.1. Performance Evaluation

Throughout my internship, I strived to perform my tasks diligently and efficiently. I actively
participated in all assigned activities, sought guidance from mentors, and demonstrated a
willingness to learn and adapt to new challenges. I received positive feedback from
supervisors for my dedication, teamwork, and proactive approach in completing tasks.

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3.3.2. Overall Experience
My internship at Ahadu Bank was a transformative experience that allowed me to apply
theoretical knowledge gained from my academic studies to real-world scenarios. I developed
practical skills in customer service, marketing, and teamwork, which will be valuable for my
future career endeavours. The exposure to different departments provided me with a holistic
view of the banking industry and broadened my perspective on the diverse functions within a
financial institution.

In conclusion, my internship at Ahadu Bank was a rewarding experience that not only
enhanced my professional skills but also instilled in me a sense of responsibility and
commitment towards excellence in the workplace. I am grateful for the opportunity to learn
and grow within a reputable organization like Ahadu Bank.

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 CHAPTER FOUR
ANALYSES

4.1. Financial Analyses

4.1.1. Ratio Analysis

 Liquidity Ratios: Calculated to assess the bank's ability to meet short-term
obligations. Key ratios include the current ratio and quick ratio.
 Profitability Ratios: Analyzed to evaluate the bank's ability to generate profits relative
to its assets, equity, and sales. Key ratios include return on assets (ROA) and return on
equity (ROE).
 Efficiency Ratios: Examined to measure the bank's operational efficiency in
managing assets and liabilities. Key ratios include the asset turnover ratio and the net
interest margin.
 Solvency Ratios: Assessed to determine the bank's long-term financial stability and
ability to meet debt obligations. Key ratios include the debt-to-equity ratio and the
interest coverage ratio.

4.1.2. Index Analysis

- Market Index Performance: Analyzed to evaluate the bank's stock performance relative to
market indices such as the S&P 500 or industry-specific indices.

4.1.3. Common Size Analysis

- Balance Sheet: Prepared to analyze the composition of the bank's assets, liabilities, and
equity as a percentage of total assets.
- Income Statement: Examined to assess the bank's revenue sources, expenses, and
profitability margins as a percentage of total revenue.

4.1.4. Trend Analysis

- Financial Statement Trends: Reviewed to identify patterns or changes in key financial
metrics over time, such as revenue growth, profit margins, and asset utilization.
4.2. SWOT Analysis

4.2.1. Key External Opportunities

 Expansion into new markets or geographical regions.
 Introduction of innovative financial products and services.

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  Strategic partnerships with Ethio Tele Communication for digital transformation.
 Regulatory changes that favour the banking industry.

4.2.2. Key External Threats

 Intense competition from other banks and financial institutions.
 Economic downturns affecting loan demand and credit quality.
 Cyber security threats and data breaches.
 Regulatory changes impacting banking operations and compliance costs.
4.2.3. Key Internal Strengths
 Strong brand reputation and customer loyalty.
 Diversified product portfolio catering to various customer segments.
 Robust risk management practices and internal controls.
 Talented workforce with expertise in banking and finance.
4.2.4. Key Internal Weaknesses
 Legacy IT systems hindering digital transformation initiatives.
 High operating costs impacting profitability margins.
 Limited cross-selling opportunities among existing customers.
 Dependency on traditional banking channels for customer acquisition.
By conducting comprehensive financial analyses and SWOT analysis, Ahadu Bank can
leverage its strengths, capitalize on opportunities, mitigate threats, and address weaknesses to
enhance its competitive position in the banking industry.

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 CHAPTER FIVE
RECOMMENDATIONS AND CONCLUSIONS
5.1. CONCLUSION
In conclusion, Ahadu Bank has the opportunity to enhance its competitive position in the
banking industry by leveraging its strengths, addressing weaknesses, capitalizing on
opportunities, and mitigating threats. By implementing the recommended strategies focused
on digital transformation, customer engagement, risk management, and market expansion,
Ahadu Bank can achieve sustainable growth, improve operational efficiency, and deliver
superior value to customers. It is imperative for the bank to prioritize these initiatives to stay
ahead in a rapidly evolving financial landscape.

5.2. RECOMMENDATIONS
Based on the SWOT analysis conducted for Ahadu Bank, the following specific and practical
recommendations are proposed to capitalize on strengths, address weaknesses, leverage
opportunities, and mitigate threats:

1. Develop a Digital Transformation Strategy

 Utilize strategic partnerships with Ethio Tele Communication to enhance
digital banking capabilities.
 Upgrade legacy IT systems to improve operational efficiency and customer
experience.
 Implement innovative digital solutions for seamless transactions and
personalized services.

2. Enhance Customer Engagement and Cross-Selling

 Leverage customer data analytics to identify cross-selling opportunities and
tailor product offerings.
 Implement targeted marketing campaigns to increase customer engagement
and loyalty.
 Train frontline staff on effective cross-selling techniques to maximize revenue
potential.

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3. Strengthen Risk Management Practices
 Enhance credit risk assessment processes to maintain high-quality loan
portfolio.
 Implement robust cyber security measures to protect customer data and
prevent cyber threats.
 Conduct regular internal audits to ensure compliance with regulatory
requirements and internal controls.
4. Expand Market Presence and Product Portfolio
 Explore opportunities for geographic expansion into underserved markets with
growth potential.
 Introduce new financial products and services tailored to diverse customer
segments.
 Develop strategic alliances with key industry players to broaden market reach
and enhance competitiveness.

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REFERENCES
● Through interview with employees of the bank.
● Information from written documents of the organization (2015).
● Direct information from the supervisor of the organization.
● Some from daily activities.

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