Goh Betoch Bank’s Board of Directors has recommended a dividend distribution of 22.9 million birr to shareholders, allocated in proportion to their paid-up shares. This initiative is part of the bank’s strategy to encourage investors to reinvest their dividends, thereby supporting the bank’s capital growth.
In a remarkable financial turnaround, Goh Betoch Bank reported a gross profit before tax of 83.4 million birr for the 2023/24 fiscal year, marking an impressive increase of 77 million birr compared to last year’s profit of 6.4 million birr, which is more than a twelvefold increase.
During the fiscal year, the bank generated total income of 414.1 million birr, reflecting significant growth of 201.5 million birr (94.8%) compared to the previous year’s total of 212.6 million birr. This income surge was driven by both interest and non-interest earnings, which accounted for 66% and 34% of the total income, translating to 273.3 million birr and 140.8 million birr, respectively.
In compliance with regulatory requirements, Goh Betoch Bank successfully raised an additional 90.6 million birr in paid-up capital, increasing its total to 1.41 billion birr, a notable rise of 6.9% from last year. Following directives from the National Bank of Ethiopia (NBE), the bank aims to grow its capital to 5 billion birr over the next five years.
The bank’s deposits also increased, reaching 1.02 billion birr, an increase of 112.6 million birr (12.3%) from last year’s deposits of 911.8 million birr. The number of deposit accounts surged by 39.2%, rising from 21,932 to 30,530.
Furthermore, Goh Betoch Bank reported a rise in outstanding loans, which reached 1.55 billion birr, an increase of 233.3 million birr from the previous year’s total of 1.32 billion birr. Notably, loans for building and construction made up 60.7% of the bank’s loan portfolio.
Despite navigating a challenging macroeconomic environment and increased competition within the banking sector, Goh Betoch Bank continues to demonstrate resilience and growth, underscoring its commitment to delivering value to both shareholders and customers.
Although Goh currently provides commercial banking services, its primary goal is to focus on mortgage banking, aiming to become the only specialized bank in the financial industry. According to the draft banking business proclamation under review by parliament, the NBE will issue a directive allowing the establishment of specialized banking licenses, extending beyond the current scope of commercial banking services.
This draft proclamation defines a “specialized bank” as one, other than an investment bank, that is licensed by the NBE to provide focused banking services tailored to specific sectors of the economy or market segments. These sectors may include export-import, mortgage, agriculture, cooperatives, small and micro-enterprises, or other areas determined by the NBE through its directives.
