Geda Bank, a newly established financial institution, has announced a net loss of 87 million birr in its first year of operation.
The bank, which commenced operations in August 2021 with a paid-up capital of 550 million birr, managed to collect 1.6 billion birr in deposits over the course of the year.
Geda Bank faced significant financial challenges that led to its disappointing financial results.
During its inaugural year, the bank successfully opened 73 branches across the country, attracting over 75,000 depositors. However, its revenues amounted to only 114.3 million birr, while expenses reached a substantial 246.3 million birr. This significant gap between revenues and expenses contributed to the bank's substantial loss.
Wolde Bulto, the president of Geda Bank, acknowledged that the bank's acquisition of buildings was a primary factor driving up expenses and ultimately resulting in the loss.
The President of the bank explained that the first year of operation is typically a time for investment, and such losses were expected as the bank aimed to establish its infrastructure and expand its presence in the market.
