Tsehay Bank’s paid-up capital growth remained modest in the 2024/25 fiscal year, underscoring ongoing constraints on the Bank’s expansion plans. Paid-up capital reached 1.28 billion Br, a 9.9 pc increase from the previous year. The Bank has shown a growth trajectory in total operational income, with a 33.7 percent increase in 2024/25 operational revenue reaching 1.03 billion Br. As of the end of the fiscal year, the Bank’s total liabilities stood at 7.4 billion Br. Delays in capital mobilization limited the Bank’s ability to convert deposits into income-generating loans and investments, affecting capital and asset utilisation. In a statement to shareholders, the Chairman emphasized that strengthening the capital base remains a priority. The Bank reiterated its commitment to meeting the National Bank’s five billion birr paid-up capital requirement, noting that the target is critical for long-term stability, resilience, and future growth beyond regulatory compliance. Operating expenses rose in line with expansion efforts and investments in service delivery and operational capacity. Total expenses reached 1.30 billion Br during the fiscal year. General expenses amounted to 419.8 million Br, making them the second-largest cost component after salaries and benefits. Major expense items included depreciation on right-of-use assets, depreciation on property, plant, and equipment, and outsourced services. Despite strong growth in total income, Tsehay Bank reported a provisional loss of 238.8 million Br after other comprehensive income. According to the report, this result primarily reflects the structural imbalance created by rapid operational expansion outpacing the slower, constrained growth in resources and paid-up capital.

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