First Private Mortgage Bank Steps a Milestone

Dec 10 , 2022

Goh Bank, the first private mortgage bank in Ethiopia, registered a 7.9 million Br gross profit during its first year of operation. The Bank disbursed 298 million Br in loans and advances, while the provision for impairment of loans and advances stood at 3.1 million Br. Raising 780 million Br in equity, Goh mobilised a 256.6 million Br deposit in 2021/22 from over 5,000 customers. Goh provides services through four branches: three in Addis Abeba and another in Dire Dewa city administrations. It opened its doors dedicated to providing mortgage finance with industry veterans such as Mulugeta Asmare as the president and Getahun Nana, former central bank's vice governor, chairing the board. Goh bank commenced its operation on October 25, 2021. The Bank's President said that the effects of the pandemic, inflation, Russia's war in Ukraine and new entrants in the financial sector are attributed to the Bank's challenges in the operational year. However, he said Goh Bank achieved a milestone that placed it on "solid ground." The mortgage Bank will begin implementing a five-year strategy to raise its capital and operational base. However, long-term funds mobilisation will be a significant challenge in the coming years, said Getahun.



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