Oromia Bank has announced a significant increase in its loan reserves, reaching over 43 billion birr. The bank reported the disbursement of new loans totaling more than 1 billion birr in the last fiscal year, contributing to this impressive figure.
In its annual report for the fiscal year 2023/24, Oromia Bank revealed that its total revenue climbed to 9.5 billion birr, reflecting an increase of 1.01 billion birr compared to the previous year. Despite facing challenges such as supply disruptions, rising commodity prices, and increased costs associated with opening new branches, the bank has managed to maintain robust growth.
Teferi Mekonnen, CEO of Oromia Bank, noted that the costs associated with opening 176 branches over the past two fiscal years, combined with stringent monetary policies, hindered the bank from achieving its projected results. He stated that the bank’s total capital has risen to 9.5 billion birr while expenditures for the current fiscal year reached 8.5 billion birr.
The bank reported a pre-tax profit of 1.01 billion birr for the fiscal year, although this represents a 50% decrease compared to the previous year. At the end of the reporting period, Oromia Bank’s interest-free banking wing recorded deposits of 8.15 billion birr, marking a 4% increase from the same period last year.
During this fiscal year, total deposits surged to 56.42 billion birr, reflecting a growth of 4% compared to the previous year. The report also highlighted that foreign currency (FCY) deposits amounted to $327.2 million, which is a decrease of 12% from the prior year.
The bank’s total expenditures for 2023/24 amounted to 8.5 billion birr, representing a substantial increase of 35% from last year’s total of 6.27 billion birr. This rise in expenses was primarily driven by personnel costs (37.3%), interest expenses (35.4%), other operating expenses (16.8%), amortization of right-of-use assets (4.9%), and depreciation and impairment of property and equipment (2.9%).
Oromia Bank is also making strides in infrastructure development, announcing that construction is well underway for its new headquarters at Goma Kuteba. The structural work has been completed, with approximately 31.33% of the project finished.
Additionally, the first phase of the Gelan Excellence and Convention Center construction project has been completed, with the second phase commencing during the current fiscal year.
The bank has seen significant growth in its digital user base, now reaching 3.77 million customers—a remarkable annual growth rate of 47%. This expansion reflects Oromia Bank’s commitment to enhancing its digital services and improving customer engagement.
