Addis Ababa University College of Business and Economics

Department of Accounting and Finance

Internship Report on Accounting and Finance in Commercial Bank

of Ethiopia: Motta/Kambo/Branch

By: Lake Bewket

Acknowledgements

First of all my deepest thanks goes to the Almighty God for his endless help and make me to stay
in life to this day and enables me to complete my internship. Next I wish to register my heartfelt
gratitude to the following for their constructive contributions and assistance in having this report
complete and for the internship. I have Special thanks to the branch manager of Commercial
Bank of Ethiopia for his willingness to get the chance for internship in the organization. I have
also additional thanks to all workers in the branch for their brief explanation for my entire
questions on site and in office work without boredom.

ABBREVIATIONS

 CBE----------------------------Commercial Bank of Ethiopia

 ATM-----------------------------Automatic Teller Machine

 LCY-------------------------------Local Currency

 CSM-----------------------------Customer Service Manager

 TOT------------------------------Transfer of Training
Executive summary

Internships provide an experience to those looking to explore or gain the relevant knowledge and
skills required to enter into a particular career field. Internships are relatively short term in nature
with the primary focus on getting some on the job training and taking what’s learned in the
classroom and applying it to the real world.

This report discuses my overall internship experience that lasted for two months. It has four main
portions. The first chapter discusses the company’s background and company information. In
this portion I explain the company’s objectives, missions and achievements.

The second chapter is about knowledge and skills acquired during the internship.

The third chapter is about evaluation of the internship.

The fourth is about conclusion and recommendations.

Table of content
Chapter 1

1. Background of the company

1.1 History

Commercial Bank of Ethiopia (CBE) is one of the oldest public banks established in 1942 as a
State Bank. Since then, CBE has gone through different reforms and mergers coming out as one
of the most reputable and biggest commercial banks in the country. It has more than 22 million
account holders in its 1500 plus branches stretching throughout the country. Its outreach to
individual depositors, small and medium scale businesses and private and public mega
investment projects has made it the largest single bank in the country to have a significant impact
on the economy of the country .CBE played a significant role as both the engine of the country’s
economic growth and mobilizing savings for further investment. In its effort in being part of the
solution for the environmental degradation and its subsequent impact on individual citizens and
businesses, CBE has the capacity to reach out to millions in both increasing awareness and
building adaptive capacity through providing environmentally friendly credit lines. Furthermore,
as a responsible corporate institute, CBE has the mandate to formulate Environmental and Social
internal policies that reflect the current local and global climate change realities and its
subsequent impacts particularly on its business customers and partners throughout the country

. According to June 30,2021 data CBE is a leading bank in Ethiopia. According to the data CBE
has the following numerical values

- Total asset of birr 991.7 billion

- Total number of employees 37,725

- Total capital of birr 53.2 billion.

- Total number of branch 1,700

- Total deposit (lcy) 735.2 billion

- Total outstanding loan birr 805.8 billion

- Total gross profit of the bank 2020/2021 birr 20.3 billion.

- Total number of ATM card holders 6.84 millions

- Total mobile banking user 5.23 million

- Total internet banking user 731 thousand

- CBE birr agency and mobile money.

- Agents -------- 17,000

- Merchants----------26,000

- Customer {user} ------- 5.7 million

1.2 Vision Statement

To become world class commercial bank with reduced environmental footprint, leading by
example in 2025

1.3 CORE VALUES

Our core values detailed below are the operating principles that guide our internal conduct as
well as our relationship with our customers, partners, and shareholders.

1. Integrity

· We are committed to the highest ideal of honor and integrity.

· We strive to act in an honest and trustworthy manner.

· We firmly adhere to ethical principles.

2. Service Excellence and customer satisfaction

· We strive to excel in our business and satisfy our customers.

· We are committed to offer the highest quality service to our customers and aspire to be branded
with quality in the minds of our customers and the general public.
3. Professionalism

· We are committed to employee training and professional growth.

· We distinguish our employees as valuable organizational resources.

· We recognize our employees as valuable organizational resources.

4. Innovative Organization

· We are committed to anticipate and respond to internal and external changes through constant
improvement and adaptation.· We strive to establish a culture that nurtures individual and group
learning.

5. Teamwork and collaboration

· We recognize the importance of teamwork for our success.

· We support to one another and working co-cooperatively

6. Public Trust

· We understand that the sustainability of our business depends on our ability to maintain and
build up the public's confidence.

7. Corporate Citizenship

We value the importance of our role in national development endeavor and step-up for
commitment.

We abide by the law of Ethiopia and other countries in which we do business.

 We care about society's welfare and the environment.

8. Value for Money

· We use resources carefully to save expense, time or effort.

· We deliver the same level of service for less cost, time or effort.

· We deliver a better service or getting a better return for the same amount of expense, time or
effort

1.4 MISSION

We are committed to realize stakeholder’s values through enhanced financial intermediation

using the best professionals and technology. We are committed to best realize stock holders
needs without compromising the wellbeing of our environment and society through enhanced
financial intermediation globally, supporting national development priorities developing highly
motivated skilled and disciplined employer as well as state of the art technology, we strongly
believe that winning the public confidence and developing sustainable business model are the
basis of our success.

1.5 Objectives

The main objectives of Environmental and Social Policy of Commercial Bank of Ethiopia are the
followings:

(i) Be the avant-garde of Environmental and Social issues among financial institutions in East
African Region implementing environmental treaties and conventions and leading by example;

(ii) Understand its entire carbon footprint and create an internal mechanism and external auditing
system to significantly reduce it;

(iii) Create an environmental department that looks after the bank’s direct and indirect
Environmental and Social management systems;

(iv) Evaluate businesses and projects for their Environmental and Social compliance with its own
internal experts and give equal weight for financial, Environmental and Social sustainability;

(v) Enhance the Environmental and Social awareness and understanding of its employees to help
them make an informed decision in relation to internal environmental footprints and external
customer dealings;
(vi) Ensure the different levels of CBE’s management and staffs are taking appropriate
responsibility for the implementation of the policy through making an informed decision.

1.6 Action Taken by the Bank to realize its Visions & Mission and the

Performance of the bank in relation to its objectives

Currently, commercial bank of Ethiopia goes various steps to realize its goals and objectives. It
has been opening various branches across the country and launching various products & services
to meet the dynamic needs of the society.

CBE implemented various actions to modernize and increase quality of service such as IT
infrastructure, the card banking system, integrated Banking Solution (Core Banking), internet
and mobile banking. It has been installing ATM cash dispensers & other e-banking systems
across the country and providing Visa-branded card payment service. Even though the number of
mobile & internet banking users are few compared with total population of the country, the bank
has been taking various measures to increase the number of mobile and internet banking users.

The bank trains its employee in order to improve quality of service deliverance, to develop their
skill and to create awareness on the policy and objectives of the bank. A corporate human
resource development strategy had been developed and implemented such as:-

 Competency gap analysis, training need assessment conducted ;

 Competency directory and a training curriculum developed;

 Agreement signed with international and consultancy firms and higher education
institutions like Frankfurt business & Management University to provide the developmental
training on continuous basis;

 Large developmental and technical trainings programs are provided;

 Succession planning and career Management system developed;

 Performance Management System (PMS) developed and implemented

In addition to that CBE opened its own library at Addis Ababa to develop its employee
knowledge and skill.

The bank establishes reliable information system and database for customer profiles and other
relevant information centrally stored and accessed.

CBE has been using various measures to increase its deposit amount, customer base and foreign
exchange earnings. Some of the measures taken by the bank are:-

 It create intensive awareness throughout the country to bring non-banked society to bank
and to mobilize resources.

 It use prize linked saving promotion

 Higher interest rate for targeted societies such as Women, Youth teen and student than
ordinary saving interest rate.

/- Intensive promotion by using various channels such as TV, Radio, Browsers, etc… about
the products & services of the bank.

1.7 Organization Structure

Figure 1.1 Branch organization structure

1.7.1. Branch Manager 

Branch managers are responsible for directing all operational aspects including distribution,
customer service, human resources, administration and sales in accordance with the bank's
objectives Providing training, coaching, development and motivation for bank personnel

1.6.2 Customer Service Manager (CSM)

They contribute to the banks success by delivering outstanding service and supporting corporate
social responsibility team members CSM demonstrate through understanding of all branch
related products system processes and procedures. Responsibilities are:
 -supervise customer service team

-respond to customer inquiries

-develop policies and procedures

-focus on customer satisfaction

-Train the staff

-develop goals and reports progres

1.7.3. Digital banking officer

Delivering banking services through high level of process automated machines and web-based. It
provides easy, convenient, flexible and secure banking services for CBE customers using their
digital cards, mobile phone, or internet accesses.

• Mobile Banking (*889#)

• Internet banking (https://cbeib.com.et)

• CBE Birr (Wallet Account) (*847#)

• ATM

• POS

1.7.4. Chief cashier

The senior banking officer role activity maintains updates and navigates, records and data
management system to resolve enquires. Cash officer is a person who takes responsibilities of
effective functioning of the cash department in the bank branch. -supply cash/cash boxes to
single window operators (SWO) in the morning and complete estimated over draft(EOD)
exercise for cash after completion of business hours. Major responsibilities are:

-ensure that all the notes received are shrouded and shorted into issuable and non-issuable notes.

-arrange for receipt/payment of bank cash from important customers

-Generate and check relevant reports

-ensure operation of the currency chest as per norms

-save the cash related reports daily and beeps a hard copy all the reports properly filed for future
reference

-verify the cash balance in the currency chest for greatly

1.7.5. Senior quality management and control officer

A senior quality manager designs and creates high standard control techniques. Implementing
and executing inspection, texting and evaluation method to insure that products adhere closely to
company standards and she/he prepare reports by collecting data on inspection or other aspects
such as production line clean linear which are analyzed in detail. The main duty in this
department is auditing the daily transaction of in the staff.

1.7.7. Branch banking officer front

Those are the employees of CBE in Motta Kambo branch have different responsibilities in the
staff those are:-

- give withdrawals to customers and take deposits from customers

- perform day to day activities in the staff

- operate transfers between account to account

1.8 Strength, Weakness, Opportunity and Treat (SWOT) Analysis of CBE

Like any financial organizations Commercial bank of Ethiopia can also be affected by changing
environment. Therefore, it is necessary to know SWOT analysis of the bank. It provides a
strategic SWOT analysis of the bank business and operations. The following are some of the
SWOT analysis of CBE:-

Strength of CBE-

 Secure and reliable services tailored to meet customers’ needs;

 Gives priority to public interest;

 Over 60,000 committed, skilled and experienced employees

 Strong management-it can help CBE reach its potential by utilizing strengths and
eliminating weakness;

 Decentralized working environment

 Innovative Culture: it helps CBE to produce unique products and services that meet their
customers need ;

 Size advantages: it lowers CBE’s risk’s, the larger CBE gets, the more resources they
have to pursue new markets and defend themselves;

 Economies of Scale: it is the cost advantages that CBE obtains due to size, the greater the
volume, the greater the advantages;

 Technology: superior technology allows CBE to better meet the needs of their customer’s
in ways that competitors can’t imitate;

 Customer loyalty

Weakness: -

 Competitive market

 Investment in research & development

 Low salary of employees compared with many private banks

 Presence of offline branches

Opportunities:-

 Income level is at a constant increase

 Population growth

 New product and Services:-

 Growing economy

 New Technology

 Vision to become World Class Commercial Bank in 2025

Threats:-

 Increase in labor costs

 Growing competition

 External business risks

1.9 Challenges & Problems of CBE

Like any financial organizations, CBE has faces various challenges in its day to day activities
and in its strategic action. The following are among the problems that faces CBE at current time

1. Inflation: - Since recent times inflation has become the main global and domestic economic
challenge. Before the 2008 global financial crisis there was also inflation and as the economies
of Asian countries like China and India grew at a faster rate the demands for raw materials rose,
and it was mainly caused by international demand hikes. But after the crisis many developed
countries followed the policy of financial easing and released their currencies in to the global
economy. And increase in the money supply has created a massive global inflation and that is
felt here in Ethiopia.
For CBE the high rate of inflation has serious implication. Since it gives loans at a fixed rate of
interest as inflation rises their profit margin will be diminished. And as for a long period of time
the rate of inflation is higher than the deposit saving interest rate, the depositors will be less
motivated to deposit their money in a bank.

2. Low infrastructure in the country: - absence of basic infrastructure in the country hinders
the bank not to provide modern banking services to the society. The following are some of
challenges of CBE related with poor infrastructural facility of the country:-

Low telecommunication infrastructure-absence of modern telecommunication infrastructure

especially in peripheral part of the country hinders the bank to provide modern bank services to
the society. In addition to that frequent failure of network creates customer dissatisfaction of the
bank. Even though CBE introduces some modern banking service like ATM, Visa cards, mobile
and internet banking in capital city and in some regional cities, majority of the society missed to
enjoy with the technological advancement which has been entertained elsewhere in Africa and
the rest of the world due to the absence of infrastructural facilities.

• Lack of roads creates rural society not to use bank

• Frequent Electric power Failure

3. Lack of awareness on the bank products and services by the society- even though the
number of customers that used bank increased periodically, majority of the society of our
country has no awareness on bank products and services.

4. Competition from other Bank - there are many other bank that compete with CBE. They
always provide new products and service to their customers and their service excellence
increases from time to time. In addition to that private banks provide credit service to private
sector and CBE gives priority to provide credit service to government & sectors that have impact
on national economic development.

As CBE planned to become world class bank in 2025 it apply various approaches to solve or
minimize its problem & challenge in order to achieve its goals. It provides financial support to
government in order to minimize poor infrastructural facility like telecommunication and electric
power supply.
CBE also used various methods to create awareness and to increase its customer base. It used
Door to door, browser, various TV, and Radio channels, discussion with stakeholders and other
methods to create awareness on bank products and services to the society.

CBE also introduces new and modern technology to its customer periodically. The users of
modern banking services increasing from time to time and the number of branches opened across
the country reached more than 1616 now.

Today, more than ever before, CBE aggressively expanded its presence in all directions of the
country. Despite the flourishing of other private commercial banks in the country, CBE has
remained potent and is in the lead in terms of assets, deposits, capital, and customer’s base.hey
are relatively large in number.
Chapter Two: Knowledge and Skills

2.1 Position and responsibility

In my internship time I was doing different tasks in the organization. In the first four days I know
how to serve customers and I help the customers to fill the form in the ticket and other services.

Some of the tasks are the following

- I opened new accounts for customers by supporting employees

- I check the name, date and signature of the customer to be filled properly.

-I participated in different writing and typing activities that help for customer service.

-I accomplish a given work punctual and honestly by obeying the rules and regulation of the
organization.

-I gave different service for department and customers.

-I fill different forms by helping customers.

2.2 Knowledge Acquired in the internship

During the internship I acquired knowledge of doing the following

. I have mastered how to record cash withdrawal, cash deposit and account to account transfers
and other services

After the internship I mastered the following

.How accounts are open for new customers and existed but their account books are expired.

.How ATM cards are activated systematically

.How daily transaction are auditing by auditors

.How every day today ATM transactions are reconciled

.I have the knowledge of opening different type of accounts and services for example saving
account, internet banking, mobile banking, visa cards.

.after the internship I have the knowledge of what type of accounts are opened for customers
based on their choice ,for example, ordinary saving account, checking account ,education saving
account ,specific saving account women, youth saving account ,teen age account and different
type of accounts.

. I have the knowledge what the internal auditors are doing. Internal auditor’s activities are

-How cashes are transfer from cash officer to all front workers though systematically and in cash.
Cashes are transfer to front workers by cash officer and customer service manager by opening
the strong of the cash {volt} together to all front workers up to 150,000 once and to ATM
machine. Finally the cash officers are balance the transaction cash and volt cash.

2.3 Level Of Accomplishment of Duties and Responsibilities Assigned (Contribution In

terms Of New Knowledge and Skills Provided)

I contribute my experience to the staff of CBE, kambo branch by writing cash withdraw, deposit
and transfer forms to customers filling the forms of ATM card registration and account opening
forms and also auditing the day to day activities in the place the regular work and mostly my
contribution is in cash withdrawal, deposit and transfer from account to account in placing the
regular front workers.

2.4 Relation with Other Staff

The relationship of CBE in Motta kambo branch with other banks are mainly in competition for
profit and capture customers mainly related with other branches of CBE through technology and
cash transfer between in the branch. But its relation with other private banks is focused on
competition by capturing by delivering better service to customers than others.

2.5 Things Enjoyed Most in the internship and Why?

There are many things that enjoyed most, but the most I enjoyed is the polite response of the
employees and the staff members. All workers in the staff are happy to give information when I
asked them anything related to the internship and also they are happy to help me to know many
practical application of the internship period.

2.6 Things Enjoyed Least and Why?

Even if many things are fine there are some things which are not satisfied me. The manager and
employees are not allowed me to give computer and doing my practice

2.7. Major benefits derived from field attachment program

The practical attachment is important to me because my working capacity and my practical skill
is improved and it is used to get new knowledge and experience from theoretically to practically.
Know I am the one who knows how each worker in the staff operate and perform their activities.
Chapter Three: Internship Evaluation

Internship is an essential for the development of the practical and professional skills required for
a real work and an aid to prospective employment. It helps students for the opportunity to apply
knowledge in real work, exposing students to work methods not taught in the university and as
well as assessing students interest in the occupation he/she plans to undertake. In addition to that
it enables to know theories and principles I have learned in a class practically. Therefore, the
internship has paramount benefits to my study and to my future career in the field.

3.1Significance of the internship

There are a lot of significant of the internship for the students and for the society. Some of the
significances are listed below:-

-Internship gives students the opportunity to apply the knowledge and skill they have acquired on
campus in a real-life work situation.

-It enables student to be familiar with practical work when they complete their academic year;

-It develops student’s research making skill.

-It develops student’s skill to solve challenges or problem that they faced during academic year
or their practical work;

-It enables employers to recruit graduates familiarized with practical work

-It enhances employability skills of the students.

-It helps students’ to develop decision making skills, critical thinking skills, increased confidence
and self-esteem.

-It helps students to know work ethics and

-It helps students to know and understand organizational culture

3.2 Relevance of the internship to my studies

I have acquired a lot of benefits from practical attachment to my studies. Some of the relevance’s
of internship are stated below:-

Many operational part of the bank are related with theoretical knowledge that I acquired from
my study, so it enables me to develop my theoretical knowledge with practical skill;

It helps me to apply knowledge I gained in the classroom;

Practical work enables me to narrow the gap between theoretical knowledge and practical skills
related with my study;

It enhances learning and understanding of issues relevant to a particular area of study; Major
Challenges and Problems that I faced during the internship.

3.3 problems that I faced during my internship

Time constraint- the duration is not enough to cover all work processes.

Budget constraint-since there is no budget for the internship I was in difficulty to do the
internship

The linkage between university and the organization that I conducted practical attachment is not
strong

In order to overcome the above problems the following action should be considered:-

The practical work duration should be increases

The university should increase budget for practical attachment

The university should be actively involved in assisting students in getting organizations where
they conduct their attachment.
Chapter Four

Conclusion and Recommendation

4.1 Conclusion

Generally, CBE in Motta Kambo branch are much significance for the society in terms of
financial circulation. But it have their own strength and weakness. The major strength of the staff
is the activity is very fast for customers. The staff always opens from 2:00 o’clock to 11:30
o’clock but the worker is shift through the time and they get enough rest time. And the staff
improves digitalization system in the day to day activities to improve profit.

The major weakness of the staff as I see in the internship period the staff has few numbers of
customers as compared to other branch of CBE. And as a grade one staff there have not many
workers in the back office with relative to the grade 2,3 and soon. The other one is the shortage
of form writers and the ATM machine is not delivered in 24 hours for customer because of
system reasons.

4.2 Recommendation

I give recommendation to the CBE in Motta Kambo branch, it continuous its strength by
improving their digitalization as much as possible fast and improving and reforming its shortage
by giving different mileage and opportunities to its customers. In order to increase its size and to
improve the back office workers by employed new employees in order to others. Generally the
staff should satisfy the customer wants in order to get much followers and customers
Reference

Oral questions by asking the member of the staff

By referring to different written documents

Code of practical attachment guidance of CBE

Different text books

https://com bank.eth.et

https://banks Ethiopia.com

https://www.capacity plus.org

https://www.research get.net