Goh, if operated as planned here, promises a very healthy earning profile and a respectable return for its shareholders. Return on Equity starts at a low percentage of 6.3 and then grows to 31.9% in year-5. The ROE obtained in year 4 and 5 are respectable and close to the industry average. The overall gain over the project period indicates that the investment pays back itself by the end of year-5.

The graph below shows the projected profitability of the Bank.

Growth in millions of birr; ROE/A %

Benefits for shareholders

Two basic benefits

  • Like any commercial private banks in Ethiopia, Goh distributes profitable dividends per year. Those who purchase shares before general assembly takes peace are called founders. Founders are entitled to additional 6% from net income for three years from the time the bank starts generate profit.
  • Goh bank extends mortgage loan for construction purchase, completion, improvement and extension of residential house in acceptable interest for affordable time for re-payment.