2022/2023

ANNUAL
REPORT
 GBE Future
Head Quarter's
Building Design

2 ANNUAL REPORT 2022/23

ANNUAL REPORT 2022/23 3
4 ANNUAL REPORT 2022/23
CONTENTS PAGE

Chairperson's Statement...................................................................................................................................... 8
The Chief Executive Officer Message........................................................................................................10
Director's Report...................................................................................................................................................... 14
Shari’ah Advisory Committee Report......................................................................................................... 21
Annual Financial Statements.......................................................................................................................... 23
Directors and Professional Advisers.......................................................................................................... 24
Report of the Directors....................................................................................................................................... 25
Statement of Directors' Responsibilities................................................................................................. 26
Independent Auditor’s Report..........................................................................................................................27
Statement of Profit or Loss and Other Comprehensive Income.............................................. 29
Statement of Financial Position.................................................................................................................... 30
Statement of Changes in Equity.................................................................................................................... 31
Statement of Cash Flows.................................................................................................................................. 32
Notes to The Financial Statements............................................................................................................ 34

የቦርድ ሰብሳቢ መልዕክት................................................................................................................. 94

የዋና ስራ አስፈፃሚ መልዕክት......................................................................................................... 96
የዳይሬክተሮች ቦርድ ሪፖርት.............................................................................................................100
የሼሪዓ አማካሪ ኮሚቴ ሪፖርት........................................................................................................ 106
የገንዘብ ፍሰት መግለጫ................................................................................................................ 107
የትርፍ ወይም ኪሳራ እና ሌሎች ገቢዎች መግለጫ..........................................................................108
የሀብትና ዕዳ መግለጫ.................................................................................................................. 109

ANNUAL REPORT 2022/23 5

BOARD OF
DIRECTORS

Dr. Bikila Hurissa

Board Chairman

Yonas Ayalew Biset Beyene Dereje Desalegn Desta Beyore

Vice Chairperson Board Director Board Director Board Director

Hailu Hurgi Tadesse Melaku Sileshi Tilahun Hana Wondemagegn

Board Director Board Director Board Director Board Director

6 ANNUAL REPORT 2022/23

EXECUTIVE
MANAGEMENT
Dr. Tesfaye Boru
Chief Executive Officer

Dasa Gobe S/michael Mekonnen Tesfaye Salilew Wubshet Zegeye

Chief Finance and Support Chief Retail Chief Information Chief Corporate Banking
Service Officer Banking Officer Technology Officer Officer

Meaza Wendimu Sisay Ayele Abiy Alemayehu Amsalu Senbata

Ass. Chief Corporate Strategy Assistant Chief Information
& Transformation Officer Technology Officer Director, Risk & Compliance Director, Finance &
Dep’t Accounts Dep’t

Biniyam Fikadu Daniel Mamo Efrem Belay Eskindir Daba

Director, Marketing & Director, Human Capital Director, IT Infrastructure Director, International
Communications Dep’t Management Dep’t Management Dep’t Banking Dep’t

Gile Fekadu Ibsa Abera Kassahun Kunde Kassa Mikoro

Director, Credit Management Director, Eastern Addis Ababa Director, Legal Director, Property and Facility
Dep’t District Service Dep’t Administration Dep’t

Mekdes Bekele Meseret Assefa Solomon Girma Teketel Gebrehiwot Tewodros Akalu
Director, Internal Audit
Director, Digital Banking Dep’t Director, Customer Director, Western Addis Ababa Bank Secretary
Department
Relationship Management District
ANNUAL REPORT 2022/23 7
CHAIRPERSON’S
STATEMENT
Dear Shareholders,
On behalf of the Board of Directors and myself, I extend a
warm welcome to you all. I am greatly honored to present
the annual report of the Bank for the fiscal year ended June
2023.

The year 2022/23 was a challenging year for the global economy. The world faced multiple shocks,
including historic inflationary pressures, and persistent lockdowns in China. Additionally, the war between
Russia and Ukraine added to the tumultuous environment for businesses and financial markets.

The Ethiopian economy also faced several challenges during the year under report. These include but
not limited to social and political instability in different parts of the country, spillover effects of the
Ukraine war, ever-increasing inflationary pressure, and liquidity and forex crunches.

The Ethiopian financial sector has on the other side witnessed intense competition in recent years as
can be evidenced from the continued establishment of new commercial banks, graduation of long-
established microfinance institutions into commercial banks and the introduction of mobile money
services by telecom operators and other fintech service providers.

Despite the grim circumstances, Global Bank has maintained its financial and operational resilient.
The bank has excelled in all the major measures of performance by achieving operational excellence,
positioning itself as the first-rated bank of the future. This was enabled by the efforts, commitment,
and dedication of the bank’s management and staff and steadfast commitment of the Bank’s Board of
Directors in executing their oversight responsibilities with due diligence.

The year under review was a year when our bank implemented a robust cost management strategy
with a focus on creating a cost-conscious mindset in addition to the resource mobilization strategy. As
a result of these efforts, the bank recorded a gross profit of Birr 696.1 million, up by 88% and an EPS of
Birr 292, grew by 61%, reflecting its financial strength.

The year 2022/23 was a period when our strategy to modernize our digital and technology landscape
and stay at the forefront with innovative digital banking services and products gained momentum.
Accordingly, the bank invested heavily in upgrading its core banking system and deploying a state-
of-the-art digital banking platform (OBDX). The bank has already started introducing innovative digital
products and services via mobile, internet, and USSD channels for its customers.

The bank not only invested in enhancing its digital capabilities, but also grew its branch network across
the country to provide fast and convenient services to its customers. This led to a 14% growth in the
branch count and a 75% increase in the customer base.

8 ANNUAL REPORT 2022/23

As part of our strategy, we acquired a plot of land from Addis Ababa city administration to build our
headquarters in the city’s financial district. Moreover, following the approval at the 10th annual General
Assembly meeting, the bank has begun implementing its rebranding.

As part of our ambition to create a positive impact in our communities, we contributed significantly
to numerous projects related to environmental protection, social welfare, humanitarian aid, and
development in line with our motto, “Our shared success.” A prominent example of our contribution
is our investment of Birr 17 million to create a beautiful park in Kirkos Sub-city of Addis Ababa city
administration, where we plan to build our future Head quarter.

Esteemed Shareholders,
Cognizant of the increasingly significant role digital technology plays in the financial sector, we will
continue to enhance our existing digital capabilities to provide our customers with valuable products
and services, while also remaining competitive and relevant.

As we move forward, we are committed to going the extra mile in fulfilling NBE’s paid-up capital
requirements, boosting the Bank’s image and reputation and commencing the construction of the new
head quarter building.

To sum up, I would like to express my gratitude to all the shareholders, board colleagues, and management
team for their unwavering support and commitment. Your contributions have been instrumental in
delivering impressive results for the Bank. I also extend my heartfelt appreciation to our employees for
their dedication and zeal.

Finally, I would like to thank our customers for their continued patronage. Your trust and loyalty have
been invaluable to us.

Bikila Hurissa (PhD)

Chairperson, Board of Directors

ANNUAL REPORT 2022/23 9

CHIEF EXECUTIVE
OFFICER STATEMENT

Dear Shareholders,

On behalf of the management team and myself, I am privileged

to present our Bank Annual Performance Report for the
financial year ended June 30, 2023.

The year 2022/23 has been a challenging period, the economy has been plagued by political instability,
market volatility characterized by high inflation, extensive currency depreciation, and a liquidity crunch.
Besides, macroeconomic challenges were exacerbated by the spillover effects of the war in Ukraine.

Despite the challenging and volatile environment, we are pleased to have delivered a robust set of
results in 2022/23. To fund our growth and offset inflationary pressures, we are implementing a cost
management strategy and cultivate a cost-conscious culture. We are integrating this into an ongoing
continuum of efficiency improvements to drive profit growth ahead of revenue growth over time

Accordingly, In the year 2022/23, our bank has achieved a meritorious gross profit of Birr 696.1 million,
which is 88% higher than the previous year and an Eps of 292. Our total deposits have exceeded Birr 14
billion with over 1 million accounts, contributing to a total revenue of above Birr 3 billion. During the same
period, our paid-up capital has surpassed Birr two billion. These results are a testament to the strength
of our leadership, the resilience of our employees, and the relevance of our strategy.

To keep pace with accelerating trends, we are boosting digitization on the path to becoming the best-
connected bank. Shaping the future is also about digitizing our route to-consumer to unlock more value
for our customers. Accordingly, during the period under review, we have successfully completed several
information technology and digital banking projects that have the potential to transform our business.
Among these upgrading our core banking system and deploying a state-of-the-art mobile and internet
banking platform are the most significant ones.

Having a skyscraper as a headquarter building is often considered a symbol of financial strength for
any institution. Based on this fact, we have managed to acquire a 5,500 square meter plot of land in
the Mexico area of Kirkos sub-city to construct our headquarters building. And we recently concluded
a design competition for the building during a colorful closing ceremony held on the eve of the Ethiopian
New Year. We are now finalizing preparations to commence construction work.

After the new brand was approved at the bank’s 10th annual AGM, we have officially launched our
rebranding subsequently obtaining the legal permissions from government agencies, including NBE. We
have also conducted publicity and advertising campaigns to raise awareness, establish our image and
reputation in the public’s view, and improve our brand positioning with a more attractive and suitable
branding.

10 ANNUAL REPORT 2022/23

In the coming years, we will be dedicating ourselves even more to our initiatives from the previous
fiscal year. We will be focusing on repositioning the bank’s brand through innovative and differentiating
products and services, targeted expansion of our customer touchpoints, and emphasis on service
excellence. To this end, we are committed to revamping our digital capabilities and upskilling/reskilling
our employees.

We will also give due attention to a strict execution of our resource mobilization and cost management
strategies. Fulfilling paid-up capital requirements of NBE will also remain top priority.

Looking ahead, I am confident that the forthcoming years will bring more success both in operational
and financial aspects.

To conclude, I would like to extend my deepest gratitude to our valued customers for their loyalty and
continued support, the Board of Directors for their relentless endeavor in providing strong leadership
and guidance, the Management and our employees for their commitment and passion that led to the
remarkable performance registered during the year. I would also like to express my appreciation to the
National Bank of Ethiopia for their support and guidance.

Last but by no means the least, I would like to extend my deepest gratitude and appreciation to you - our
esteemed shareholders, for your trust, unwavering support and always acting with the best interests
of the bank at heart.

Tesfaye Boru (PhD)

Chief Executive Officer

ANNUAL REPORT 2022/23 11

GBE
DASH BOARD
BRANCHES 14% NO. OF CUSTOMERS 75% DEPOSIT 30%

152 1.06 MILLION 14.25 BILLION

LOAN AND ADVANCE 46% PAID UP CAPITAL 25% TOTAL REVENUE 46%

13.66 BILLION 2.03 BILLION 3.02 BILLION

TOTAL EXPENSE 33% GROSS PROFIT 88% EPS 29.2%

2.32 BILLION 696.1 MILLION 2,391

RETURN ON ASSET 4.29% CAPITAL ADEQUACY RATIO 16%

12 ANNUAL REPORT 2022/23

 Major Performance Highlights

TOTAL DEPOSIT NUMBER OF DEPOSITORS

IN MILLIONS OF ETB

OUTSTANDING LOAN & ADVANCE NUMBER OF EMPLOYEES

IN MILLIONS OF ETB

TOTAL ASSET NUMBER OF BRANCHES

IN MILLIONS OF ETB

PAID UP CAPITAL TOTAL CAPITAL & RESERVE

(IN MILLIONS OF ETB)
IN MILLIONS OF ETB

ANNUAL REPORT 2022/23 13

DIRECTOR’S
REPORT
CONNECTING WITH CUSTOMERS
NUMBER OF CUSTOMERS NUMBER OF
BRANCHES
152
In today's highly competitive business landscape,
the task of retaining and attracting customers 133

is a challenging one. Cognizant of this, we have

made customer satisfaction through exceptional 111
service delivery a top priority. Accordingly,
we are constantly introducing innovative 82
banking products and services to cater to the
evolving needs of existing customers and more 52

importantly, tap into hitherto undiscovered

segments.
2018/19 2019/20 2020/21 2021/22 2022/23
We are also expanding our presence through
expansion of our branch network and digital
touchpoints. As a result of this, our customer DIGITALIZATION
base has grown at a brisk pace, surpassing
one million, which is a remarkable 75% increase
Digitalization: Technology
compared to the previous year.
Digital transformation is one of the strategic
NUMBER OF
pillars of Global Bank. In line with this, the bank
DEPOSITORS has been investing to revamp its inhouse digital
1,061,331 capabilities and collaborate with technology and
607,670 channel partners.

382,477 During the fiscal year, we managed to accomplish

a successful upgrade of our core banking system
203,426
to unlock new value, a major infrastructure
refresh, and deployment of a state-of-the-art
134,000
digital banking platform - Oracle Banking Digital
Experience (OBDX).

Continuing with the expansion of our digital

2018/19 2019/20 2020/21 2021/22 2022/23 touchpoints, we have completed the groundwork
for launching a self-service Digital Banking
BRANCH NETWORK Center.

Digitalization: Mobile and Internet banking

In our market, branches remain the primary
point of contact between banks and their During the fiscal year, the Bank successfully
clients. During the financial year under review, launched its digital banking platform and
we expanded our branch network across the commenced mobile, USSD, and internet banking
country, bringing the total number of branches services to its customers.
to 152. Of these, 53% (81 branches) are located
in the capital city, while the remaining 47% (71 Despite the recent launch of these services, the
branches) are located in other parts of the bank managed to attract more than 100,000
country. mobile and internet banking users.

14 ANNUAL REPORT 2022/23

Digitalization: Card Banking At the start of the 2022/2023 fiscal year, the
Bank has introduced an attractive salary and
The Bank made significant investment to benefit package with the primary goal of retaining
increase the number of ATM and POS terminals. existing skilled workforce and attracting new.
As a result, the total number of ATMs has
increased by 100% from the previous year. In line with the expansion of the bank's operations,
the number of employees has risen to 2,391 as of
During the reporting period, the total number of June 30, 2023.
card holders for both personalized normal cards
and our instant card called Global Liyu Card has During the same period, the bank created 539
grown by 50%. Meanwhile, the total number of career mobility opportunities for its employees
card transactions increased to 594,151 with a through promotions.
total transaction amount of Birr 654 million.

Digitalization: Partnership NUMBER OF EMPLOYEES

IN NUMBER
2,391
The Bank is committed to providing convenient
2,333
and seamless banking experience for its
customers. To this end, the bank has entered
into multiple systems integration partnership 2,027

with digital financial service providers such as

Telebirr, Safaricom, GuzoGo, and Kacha Digital 1,417
Financial Services.
915

INTEREST FREE BANKING

Two years ago, the Bank launched Interest- 2018/19 2019/20 2020/21 2021/22 2022/23
Free Banking (IFB) with various IFB products
and services. Since then, it has been working to In addition, we invested significantly in capacity
expand the service. The Bank offers the service development and offered numerous training
through two dedicated branches and 150 programs to both new and existing staff members.
dedicated windows.
These programs were designed to equip
During the reporting period, the Bank made employees with the necessary skillset, embed the
significant efforts to bolster its business by bank’s mission and vision, cultivate organizational
spreading awareness and forming strategic culture, and create exposure to the fast-changing
alliances with community groups, associations, world of banking and finance.
and institutions. As a result, Birr 180 million was
mobilized from 96,434 customers. Consequently, 43 short-term training programs
were conducted for a total of 3,711 employees.
NURTURING HUMAN CAPITAL
RE-BRANDING
We have been working to develop a highly
motivated, capable, and engaged workforce to The bank’s new identity, including name, logo,
achieve our strategic aspirations. and color, was approved by the shareholders at
the 10th Annual General Assembly Meeting.

ANNUAL REPORT 2022/23 15

The bank has completed the official launch The bank also donated around Birr 13 million to
of its new brand following the obtention of the various governmental and non-governmental
necessary authorizations from government initiatives during the fiscal year under
agencies, including NBE. consideration.

Currently, bank is conducting campaigns to

embed the bank’s new identity and image in the
BANKING OPERATION
public’s hearts and minds.
DEPOSIT MOBILIZATION
PHYSICAL FACILITIES
Despite the impact of multitude of factors and
The bank acquired a 5,500 square meter plot various stringent decisions by the National Bank
of land in the Kirkos sub-city from the Addis of Ethiopia (NBE) that have affected resource
Ababa city administration for the construction mobilization activities in the banking industry,
of its headquarters building. The bank held a Global Bank continued to register outstanding
design competition for its future headquarters growth in deposit mobilization.
building and selected the winning design.
The construction of the bank’s iconic twin During the fiscal year, the bank grew its deposit
skyscrapers is set to begin soon. The bank has by 30%, bringing the total deposit of the bank to
also acquired a building located at the center Birr 14 billion. Out of the total deposit, Birr 180
of Shashemene and subeta town and another million was collected from IFB service.
one in Addis Ababa around Summit, ferensay
legasion and kara kore.
TOTAL DEPOSIT
IN MILLIONS OF BIRR
CORPORATE SOCIAL RESPONSIBILITY 14,248
10,985
During the fiscal year, the bank dedicated
adequate attention and resources to initiatives 8,703
that benefit societies in which it operates,
upholding one of its core values. 5,289

In line with its motto of “shared success”, 3,523

the bank made significant contributions to
numerous projects related to environmental
protection, social welfare, humanitarian aid, and
developmental initiatives. 2018/19 2019/20 2020/21 2021/22 2022/23

In addition to actively participating in the Green

Legacy initiative, the bank commissioned the CREDIT MANAGEMENT
construction of park in woreda 4 of Kirkos sub-
city in Addis Ababa at a cost of above Birr 17 During the fiscal year, Global Bank extended Birr
million. 4.3 billion in loans to various economic sectors,
increasing the bank’s total loan portfolio to Birr
The bank takes pride in contributing towards 13.6 billion, which represents a 46% growth from
efforts by the City Administration to make Addis the previous year.
Ababa habitable for its residents.

16 ANNUAL REPORT 2022/23

International trade (both export and import)
SHARE OF FOREIGN CURRENCY
accounted for the largest share of gross loans BY SOURCE
and advances, constituting 47% of the total.
Domestic trade services followed distantly International Cash
Fund Transfer: Purchase
with 28% (Birr 3.95 billion) and building and 34% 2%
construction with 9% (Birr 1.22 billion), jointly
making up 84% of the Bank’s total loan portfolio.
The remaining 16% was constituted by other
segments, including manufacturing, consumer
loans, and the transport sector.
Export Inter-bank
Earning Market
OUTSTANDING LOAN & ADVANCE 17%
47%
IN MILLIONS OF ETB
13,661
9,350

Global Bank was able to mobilize USD 64 million

8,292 of foreign currency during the fiscal year,
representing a 98% increase from the previous
4,521 year. Foreign exchange earnings from exports
accounted for 47% of the total. International fund
2,452 transfers followed at 34%, while the interbank
market accounted for 17%, and cash purchases
made up the remaining 2%.
2018/19 2019/20 2020/21 2021/22 2022/23
FINANCIAL POSITION
INTERNATIONAL BANKING
Global Bank Ethiopia has achieved remarkable
success in mobilizing and utilizing resources.
The banking sector has encountered several
By investing mobilized resources wisely and
challenges throughout the fiscal year due to
managing costs effectively, the bank has been
various external and internal factors. These
able to maintain a sound financial book.
include the long-lasting global spillover effects of
the Ukraine war and political instability in various
parts of the country, and strict regulations,
REVENUE
including forex surrender requirements and forex
retention rights. Global Bank Ethiopia has once again proven its
mettle by earning a whopping Birr 3 billion in
To overcome these issues, Global Bank total revenue during the fiscal year under review.
implemented several strategies, including This marks an impressive upsurge of 46% over
creating an environment that fosters the the previous year.
recruitment of new and retention of existing
exporters and partnerships with potential clients. The main source of revenue was interest income
from loans and advances, which made up 75% of
Opening of correspondent accounts and the total revenue generated during the year. The
establishment of relationships with various bank’s total revenue from fees & commission
domestic and international banks are the other income and other operating incomes accounted
important activities undertaken during the year. for 13% and 12%, respectively.

ANNUAL REPORT 2022/23 17

 PROFITABILITY
TOTAL REVENUE
3,026
The Bank's gross profit for the fiscal year under
2,118 review stood at Birr 696 million, a remarkable
increase of 88% versus the previous year’s
1,717
gross profit of Birr 370 million.

Our bank’s EPS of Birr 292 for the year

1,110
demonstrated its financial health and its superior
performance in the industry, as well as its growth
695 (61%) from the previous year’s.

PROFIT
2018/19 2019/20 2020/21 2021/22 2022/23 696

EXPENSE
370
Conversely, the Bank was able to manage the
total expense at Birr 2.3 billion during the fiscal 262
243
year under consideration, showing a growth of
33% vis-à-vis a year earlier.

In terms of composition, the largest share went

to interest expense (49%), followed by salary &
benefit expenses (31%) and other general and 2019/20 2020/21 2021/22 2022/23
operating expenses (20%).
ASSET
TOTAL EXPENSE
2,329
At the end of the fiscal year, the Bank's total
assets reached Birr 19 billion, showing a
1,748 significant growth of 34% or Birr 4.8 billion over
the balance in the same period of the previous
1,454 year.
TOTAL ASSET
IN MILLIONS OF ETB 18,854
867

14,086
411

11,628

2018/19 2019/20 2020/21 2021/22 2022/23

7,813

5,488

2018/19 2019/20 2020/21 2021/22 2022/23

18 ANNUAL REPORT 2022/23

EQUITY also been established and implemented by the
bank at all levels to effectively combat money
The bank’s paid-up capital increased by Birr laundering and counter terrorist financing.
404 million, resulting in a total paid-up capital of
above Birr 2 billion at the end of the year under Throughout the reporting period, the bank
review. organized several short-term training sessions
with the aim of instilling a risk culture. A total of
The bank’s total capital, which includes paid-up 438 bank employees participated in these training
capital, retained earnings, and other legal and sessions.
regulatory risk reserves, rose to above Birr 3
billion. This represents a 35% increase (Birr 774 ORGANIZATIONAL DEVELOPMENT
million).
Global Bank has been engaged on generating
PAID UP CAPITAL innovative ideas and driving change programs
IN MILLIONS OF ETB that align with the bank’s grand strategy.
Throughout the fiscal year, the bank embarked
2,033
on several initiatives in people, processes, and
technology.
1,628
1,390
The Bank has redesigned its organizational
986
structure to align with and support its strategic
722
objectives and realize the bank's vision to be a
first-rated bank in east Africa by 2035.

Throughout the year, the bank has taken

significant steps to optimize its processes and
2018/19 2019/20 2020/21 2021/22 2022/23 procedures, with the aim of improving efficiency,
reducing costs, and enhancing customer
satisfaction. Furthermore, the bank leveraged its
RISK MANAGEMENT AND
technological capabilities and launched various
COMPLIANCE banking products and services that cater to the
needs of its customers.
The Bank has been pursuing sound risk
management practices by drawing lessons from The year ended has also been one where the
best experiences as well as regulatory standards. bank reintroduced itself with a new image and
brand identity.
A comprehensive compliance management
framework and risk management program have

ANNUAL REPORT 2022/23 19

BOARD OF DIRECTIVE RENUMERATION FEE
The NBE Directive No. SBB/ 67/2018, which limits the number of employees who can serve on a bank board
and the amount of remuneration they can receive, guides the bank’s pay policy for its board members. The
bank rewards its board members with a monthly allowance and an annual compensation that depend on
their attendance record.

THE WAY FORWARD

The Bank will continue to explore the operating environment, paying close attention to potential adverse
consequences while taking advantage of opportunities that the coming year is expected to present.

In the years ahead, the bank will focus building on efforts so far to drive operational excellence, digital
transformation, and business growth.

To grow our business beyond the conventional banking, we will strive to tap into the IFB customer base
with vast potential by launching a range of Interest-Free Banking products and services, as well as
opening full-fledged IFB branches.

Strengthening our internal control and risk management to ensure compliance with regulatory requirements
will be awarded due attention.

To shape the public’s perception, we will focus on activities, products and services that enhance the bank’s
new brand identity.

The year ahead will be one where we renew our commitment to rise up to the challenge of firmly putting
Global Bank on a path of strong growth and transformation.

VOTE OF THANKS
In the end, the Board of Directors of the Bank would like to express its sincere gratitude to its esteemed
customers, employees, shareholders, and other stakeholders, as well as the National Bank of Ethiopia, for
their dedication and commitment, resulting in the Bank to achieve an outstanding success in the ended
fiscal year.

THE BOARD OF DIRECTORS

30TH OCTOBER 2023

20 ANNUAL REPORT 2022/23

GLOBAL BANK ETHIOPIA S.C
REPORT OF THE SHARI’AH ADVISORY COMMITTEE
FOR THE FINANCIAL YEAR ENDED JUNE 30, 2023

As part of the roles and responsibilities of the shari’ah advisory committee governance framework
and chart of the bank. Considering Shari’ah standards we hereby submit a report for the financial year
ended June 30, 2023. As well understood, the sharia advisory committee shall be responsible to form
an independent sharia opinion based on review of operations, business affairs and activities in relation
to interest free banking business of the bank. Generally, the roles of this function include providing
sharia advisory, managing sharia non-compliance risk, delivering sharia opinion/fatwa and conducting
sharia review.

During the period under the review, the committee has held successive regular and extraordinary
meeting and reviewed the bank’s IFB products, terms, and conditions, IFB financing contracts in order to
determine that the relevant sharia principles and rules are properly applied. Among key developments
and activities of the Committee, we have approved the Mudarabah deposits (Profit-Loss Sharing) and
the profit allocated to customers and we believe that such activities shall be encourages to attract
prospective customers to the bank. We have also issued different fatwas (ruling) on all shari’ah related
matters referred to us by the bank.

In addition, we have approved the penalty fund collected from late payment of Interest free banking
Financing to be distributed to eligible recipients through legally registered charity organizations. As
regards to the operations, we have reviewed the IFB Financing contracts, gave sharia opinions on issues
that requires sharia matters and visited IFB windows to check the operational correctness (segregations),
on a sample basis. In our Opinion, To the best of our knowledge, based on the information provided and
disclosed to us during discussions and meetings, we hereby confirm that the operations of the Bank for
the financial year ended 30 June 2023 have been conducted in conformity with the Shari’ah principles.

All the Products, Contracts, Terms and Conditions of Bank’s Interest Free Banking Operations during
the financial year ended June 30,2022 that we have reviewed are in compliance with the relevant
sharia principles and rules. Finally, the member of Sharia Advisory Committee of the bank would like to
appreciate the dedication and commitment of bank’s Board of Directors, Executive Management and
Employees of the bank toward strengthening Shari’ah Compliance in the bank’s Interest Free Banking
business realm.

_________________ _________________ __________________

Sheik Tahir Abdulkadir Ustaz Mohammed Faraj Ustaz Abubaker Mohammed
(Chair – Man SAC) (Member SAC) (Member SAC)

ANNUAL REPORT 2022/23 21

 አሁን ባሉበት ይችላሉ!!
ባንክ መሄድ ሳይጠበቅብዎ ባሉበት ሆነው ለክፍያ እና
ሌሎች አገልግሎት አማራጭዎ በግሎባል ሞባይል
ባንኪንግ ቀላል ሆኗል፡፡
22 ANNUAL REPORT 2022/23
 GLOBAL BANK ETHIOPIA

Annual
Financial
Statements

CORRESPONDENT BANKS

MONEY TRANSFER PARTNER

ANNUAL REPORT 2022/23 23

 Issued on
April 20,2012
Directors
Bikila Hurissa Wolde (Dr.) Chairman
Yonas Ayalew Tekele Vice Chairma
GLOBAL BANK ETHIOPIA SHARE COMPANY Hailu Hurji Hayu Member
Biset Beyene Molla Member
ANNUAL FINANCIAL STATEMENTS
GLOBAL BANK ETHIOPIA SHARE COMPANY Hana Wondimagegn Dessie Member
FOR THE YEAR ENDED 30 JUNE 2023
Tadesse Melaku Addis Member
ANNUAL FINANCIAL STATEMENTS DIRECTORS, PROFESSIONAL ADVISERS AND REGISTERED OFFICE Member
Dereje Desalegn Anebo
FOR THE YEAR ENDED 30 JUNE 2023 Desta Beyore Osebo Member
GLOBAL BANK ETHIOPIA SHARE COMPANY Sileshi Tilahun Mengesha Member
Bank license number LBB/019/2017
DIRECTORS, PROFESSIONAL ADVISERS AND REGISTERED OFFICE
ANNUAL FINANCIAL STATEMENTS Issued on Executive Management
April 20,2012
FOR THE YEAR ENDED 30 JUNE 2023 Tesfaye Boru Lelissa (Dr.) Chief Execuit
Directors Sahlemichael Mekonnen Demssie Chief Retail B
DIRECTORS, PROFESSIONAL ADVISERS AND REGISTERED OFFICE
Bikila Hurissa Wolde (Dr.) Chairman
Tesfaye Salilew Gifayehu Chief Informa
Yonas Ayalew Tekele Dasa Gobe Vice Chairman
Gossom Chief Finance
Bank license number LBB/019/2017
Hailu Hurji Hayu Wubshet Member
Zegeye Edossa Chief Corpora
Issued on Biset Beyene Molla MemberTadesse
Meaza Wondimu Assistance C
April 20,2012
Hana Wondimagegn Dessie Sisay AyeleMember
Habtewold Assistant Chi
Directors Tadesse Melaku Addis Member Lonsako
Teketel Gebrehiwot Bank Secreta
Bikila Hurissa Wolde (Dr.) Chairman
Dereje Desalegn Anebo Appointed
Wubshet Member
Fola Ganta 09 June 2021 Advisor & Ass
Yonas Ayalew Tekele Vice Chairman
Desta Beyore Osebo Appointed 09 June 2021
Member
Tewodros Akalu Getahun Director, Inter
Hailu Hurji Hayu Member Sileshi Tilahun Mengesha Appointed 09 June 2021
Member
Biset Beyene Molla Member Kassa Mikoro Mekengo
Appointed 09 June 2021 Director, Prop
Hana Wondimagegn Dessie Member Executive Management KassahunAppointed
Kunde Dugassa
09 June 2021 Director, Lega
Tadesse Melaku Addis Member Tesfaye Boru Lelissa (Dr.) Appointed
Biniyam Fikadu
Chief 09 June
W/Semayat
Execuitve 2021
Officer Director, Mark
Dereje Desalegn Anebo Member Sahlemichael Mekonnen Demssie Daniel MamoAppointed
Chief Retail09
Milky June 2021
Banking Officer Director, Hum
Desta Beyore Osebo Member Tesfaye Salilew Gifayehu Appointed
Chief
Eskindir Daba
21 SeptTechnology
Information
Gondel
2021 Officer Director, Inter
Sileshi Tilahun Mengesha Member Dasa Gobe Gossom Appointed
Chief 21 Sept 2021
Finance
Amsalu Senbata Tune and Support Service Officer
Director, Fina
Wubshet Zegeye Edossa Chief Corporate Banking Officer
Executive Management Abiy Alemayehu Kassa Director, Risk
Meaza Wondimu Tadesse Assistance Chief Corporate Banking Officer
Tesfaye Boru Lelissa (Dr.) Chief Execuitve
Sisay AyeleOfficer
Habtewold Appointed
Mekdes Bekele Lema
Assistant 16 Dec.
Chief 2019 TechnologyDirector,
Information Officer Digit
Sahlemichael Mekonnen Demssie Chief Retail Banking
Teketel OfficerLonsako
Gebrehiwot Solomon Girma
Bank Abera03 Oct. 2022
Appointed
Secretary Director, Wes
Tesfaye Salilew Gifayehu Chief Information
Wubshet FolaTechnology
Ganta Officer Appointed
Meseret Assefa
Advisor 14 Nov. 2022
Senbeta
& Assistant to CEO Director, Cust
Dasa Gobe Gossom Chief Finance and Support Service Officer Gile FekaduAppointed
Kenea 16 Dec. 2022 Department
Director, Cred
Tewodros Akalu Getahun Director, Internal Audit Department
Wubshet Zegeye Edossa Chief Corporate Banking Officer Efrem BelayAppointed
Ayele 03 Oct 2023 Director, IT In
Kassa Mikoro Mekengo Director, Propperty & Facility Administration Departm
Meaza Wondimu Tadesse Assistance Chief Corporate Banking Officer Ibsa AberaAppointed
Tucho 08 Dec 2022 Director, East
Sisay Ayele Habtewold Kassahun
Assistant Kunde Dugassa
Chief Information Technology Officer Director,
Appointed Legal Service
16 Aug. 2023Department
Teketel Gebrehiwot Lonsako Biniyam Fikadu W/Semayat
Bank Secretary Appointed
Director,
Independent auditor 01 Aug. 2022
Marketing & Communication Department
Wubshet Fola Ganta AdvisorDaniel
& Assistant
Mamo to CEO
Milky Appointed
Director, 14 Jul.Capital
Human 2023 Management Deprtment
Tafesse, Shisema and Ayalew Certified Audit Partnership (TM
Tewodros Akalu Getahun Director, Internal
Eskindir Audit
Daba Department
Gondel Appointed
Director, 15 May. 2019
International Banking Departement
Chartered Certified Accountants (UK)
Kassa Mikoro Mekengo Director, Propperty & Facility
Amsalu Senbata Tune Administration Department Appointed 01 Jul.&2019
Director, Finance Accounts Department
Authorized Auditors (ETH)
Kassahun Kunde Dugassa Director, Legal
Abiy Service Department
Alemayehu Kassa Appointed
Director, 01 &Jul.
Risk 2022
Compliance Department
P.O Box 110690
Biniyam Fikadu W/Semayat Director, Marketing
Mekdes & Communication
Bekele Lema Department Appointed
Director, 01 Aug.
Digital 2022Department
Banking
Solomon Addis Ababa
Daniel Mamo Milky Director, Human Girma
CapitalAbera
Management Deprtment Director,
Appointed Western
07 Oct.Addis
2022Ababa District
Ethiopia
Eskindir Daba Gondel Meseret
Director, AssefaBanking
International SenbetaDepartement Director,
Appointed Customer Relationship Management
07 Oct. 2022
Amsalu Senbata Tune Gile
Director, Fekadu& Kenea
Finance Accounts Department CorporateDepartment
Director,
office Credit
Appointed Management
24 Oct. 2022 Department
Efrem Belay Ayele Director, IT Infrastructure Mgt Department
Abiy Alemayehu Kassa Director, Risk & Compliance Department National Tower
Appointed 01 Nov. 2022
Ibsa Abera Tucho Director,
Behind Ethiopia Eastern Addis Ababa District
Hotel
Mekdes Bekele Lema Director, Digital Banking Department Appointed 28 Nov. 2022
P.O Box 100743
Solomon Girma Abera Director, Western Addis Ababa District Appointed 06 Jul. 2023
Independent auditor Stadium
Meseret Assefa Senbeta Director, Customer Relationship Management Appointed 11 Jul. 2023
Addis Ababa, Ethiopia
Gile Fekadu Kenea Tafesse,
Department Shisema and Ayalew
Director, Credit Management Department Certified Audit Partnership
Appointed(TMS Plus).
17 Jul. 2023
Efrem Belay Ayele Chartered Certified Accountants
Director, IT Infrastructure Mgt Department (UK) Company secretary
Appointed 16 Aug. 2023
Ibsa Abera Tucho Director, Eastern Addis
Authorized Ababa
Auditors District
(ETH) Appointed 04 Jul. 2023
National Tower
Behind Ethiopia Hotel
P.O Box 110690
Independent auditor P.O Box 100743
Addis Ababa Stadium
Ethiopia
Tafesse, Shisema and Ayalew Certified Audit Partnership (TMS Plus).
Addis Ababa, Ethiopia
Chartered Certified Accountants (UK)
Corporate office Principal bankers
Authorized Auditors (ETH)
National Tower NATIONAL BANK OF ETHIOPIA
P.O Box 110690 Behind Ethiopia Hotel BERHAN INTERNATIONAL BANK S.C.
Addis Ababa P.O Box 100743 COMMERCIAL BANK OF ETHIOPIA
Ethiopia Stadium BANK OF AFRICA MER ROUGE, DJIBOUTI
Addis Ababa, Ethiopia EBI SA GROUPE ECOBANK PARIS
Corporate office CAC INTERNATIONAL BANK
Company secretary
National Tower KENYA COMMERCIAL BANK
Behind Ethiopia Hotel National Tower BANK OF BEIRUT S.A.L
P.O Box 100743 Behind Ethiopia Hotel BANK OF BEIRUT(UK)LTD
Stadium P.O Box 100743
AKTIFE YATIRIM BANKASI A.S
Addis Ababa, Ethiopia Stadium EXIM BANK (Djibouti) S.A
Addis Ababa, Ethiopia EAST AFRICA BANK
Company secretary
Principal bankers BANK OF BEIRUT(UK)LTD EUR
National Tower NATIONAL BANK OF ETHIOPIA
Behind Ethiopia Hotel BERHAN INTERNATIONAL BANK S.C.
P.O Box 100743
COMMERCIAL BANK OF ETHIOPIA
Stadium
BANK OF AFRICA MER ROUGE, DJIBOUTI
Addis Ababa, Ethiopia
24 EBI SA GROUPE ECOBANK PARIS ANNUAL REPORT 2022/23
Principal bankers CAC INTERNATIONAL BANK
NATIONAL BANK OF ETHIOPIA KENYA COMMERCIAL BANK
BERHAN INTERNATIONAL BANK S.C.
GLOBAL BANK ETHIOPIA SHARE COMPANY
ANNUAL FINANCIAL STATEMENTS
GLOBAL BANK ETHIOPIA SHARE COMPANY
FORANTHE YEAR ENDED 30 JUNE 2023
NUAL FINANCIAL STATEMENTS
FOR THOF
REPORT E YETHE
AR EDIRECTORS
NDED 30 JUNE 2023
REPORT OF THE DIRECTORS

The Board of directors submit their report together with the financial statements for the period
ended 30 June 2023, to the members of Global Bank Ethiopia Share Company ("Global Bank
Ethiopia or the Bank"). This report discloses the financial performance and state of affairs of the
Bank.
Incorporation and address
Global Bank Ethiopia Share Company was established in Addis Ababa in August 2009 and
registered as a share company in accordance with the Commercial Code of Ethiopia of 1960, and is
domiciled in Ethiopia.
The Bank obtained its business license on 20 April 2012 incompliance with Banking Business
Proclamation no. 592/2008 with subscribed capital of Birr 266.9 Million and with a paid up capital
of Birr 138.9 million. Moreover, as of 30 June 2023 the paid-up capital increased to ETB 2 billion.

Principal activities

Results and dividends

The Bank's results for the year ended 30 June 2023 are set out on page 6. The profit for the year
has been transferred to retained earnings. The summarized results are presented below.

30 June 2023 30 June 2022

Birr'000 Birr'000
Interest income 2,280,025 1,718,437
Profit before tax 696,146 370,330
Tax (charge) / credit (173,085) (93,169)
Profit for the year 523,061 277,161
Other comprehensive profit / (loss) net of taxes 32,647 25,417
Total comprehensive profit for the year 555,708 302,578

Directors
The directors who held office during the year and to the date of this report are set out on page 1.

Bikila Hurissa Wolde (Dr.)

Chairman Board of Directors
Addis Ababa, Ethiopia

ANNUAL REPORT 2022/23 25

GLOBAL BANK ETHIOPIA SHARE COMPANY
ANNUAL FINANCIAL STATEMENTS
GLOBAL BANK ETHIOPIA SHARE COMPANY
FOR THE YEAR ENDED 30 JUNE 2023
ANNUAL FINANCIAL STATEMENTS
STATEMENT
FOR THE YOF
EARDIRECTORS'
ENDED 30 JUNRESPONSIBILITIES
E 2023
STATEMENT OF DIRECTORS' RESPONSIBILITIES

In accordance with the Banking Business Proclamation No. 592/2008, the National Bank of
Ethiopia (NBE) may direct the Bank to prepare financial statements, whether their designation
changes or they are replaced, from time to time. Also, the Financial Reporting Proclamation No.
847/2014 requires the Bank to prepare its financial statements in accordance with the
International Financial Reporting Standards (IFRS).

The Directors are responsible for the preparation and fair presentation of these financial
statements in accordance with International Financial Reporting Standards, and for such internal
control as management determines is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error. The Bank is
required to keep such records as are necessary to:

a) Exhibit clearly and correctly the state of its affairs;

b) Explain its transactions and financial position; and

c) Enable the National Bank to determine whether the Bank had complied with the provisions of
the Banking Business Proclamation and regulations and directives issued for the implementation
of the aforementioned Proclamation.

The financial statements are prepared in accordance with International Financial Reporting
Standards and are based upon appropriate accounting policies and supported by reasonable and
prudent judgments and estimates.

The Bank's Directors accept responsibility for the annual financial statements, which have been
prepared using appropriate accounting policies supported by reasonable and prudent judgments
and estimates, in conformity with International Financial Reporting Standards.

The Bank's Directors are of the opinion that the financial statements present fairly in view of the
state of the financial position of the Bank and of its financial performance.

The Directors further accept responsibility for the maintenance of accounting records that may
be relied upon in the preparation of financial statements, as well as adequate systems of internal
financial control.
Nothing has come to the attention of the Directors to indicate that the Bank will not remain a
going concern for at least twelve months from the date of this Statement.

Signed on behalf of the Directors by:

Bikila Hurissa Wolde (Dr.) Tesfaye Boru Lelissa (Dr.)

Chairman Board of Directors President
24/20/2023 24/20/2023

26 ANNUAL REPORT 2022/23

GLOBAL BANK ETHIOPIA SHARE COMPANY
INDEPENDENT AUDITORS REPORT
FOR THE YEAR ENDED 30 JUNE 2023

INDEPENDENT AUDITOR'S REPORT ON THE ACCOUNTS OF

GLOBAL BANK ETHIOPIA SHARE COMPANY

ANNUAL REPORT 2022/23 27

GLOBAL BANK ETHIOPIA SHARE COMPANY
INDEPENDENT AUDITORS REPORT
FOR THE YEAR ENDED 30 JUNE 2023

•
•

5
28 ANNUAL REPORT 2022/23
INDEPENDENT AUDITOR'S REPORT ON
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
30 June 2023 30 June 2022
Notes Birr'000 Birr'000

Interest income 5 2,280,025 1,718,437

Interest expense 6 (1,141,146) (813,318)

Net interest income 1,138,879 905,119

Fee and commission income 7 397,341 198,936

Fee and commission expense 7 - -

Net fees and commission income 397,341 198,936

Other operating income 8 332,433 200,903

Total operating income 1,868,653 1,304,958

Loan impairment charge or reversal 9 15,830 (49,896)

Impairment losses on other Financial assets 10 (1,741) (2,412)

1,882,742 1,252,650
Net operating income

Personnel expenses 11 (739,286) (429,279)

Amortization of intangible assets 18 (683) (1,615)
Depreciation and impairment of property, plant
and equipment 19 (40,837) (32,862)
Depreciation of Right of use assets 20 (99,232) (84,425)
Other operating expenses 12 (306,558) (334,139)

Profit before tax 696,146 370,330

Income tax expense 13 (173,085) (93,169)

Profit after tax 523,061 277,161

Other comprehensive income (OCI) net of income tax
Items that will not be subsequently reclassified into profit or loss:

Re-measurement gain/(loss) on retirement

benefits obligations 24c (10,798) 2,263
Deferred tax (liability)/asset on re-measurement
gain or loss 13 3,239 (679)
(7,559) 1,584
Fair value through OCI on Financial assets
-Unrealized gain/(Loss) arising from
measurement at fair value 28 40,206 23,833
32,647 25,417

Total comprehensive income for the period 555,708 302,578

Basic & diluted earnings per share (Birr) 26 292 182

The notes on pages 10 to 64 are an integral part of these financial statements.

ANNUAL REPORT 2022/23 29

6
GLOBAL BANK ETHIOPIA SHARE COMPANY
STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023
30 June 2023 30-Jun-22
Notes Birr'000 Birr'000
ASSETS

Cash and bank balances 14 2,104,462 2,247,228

Loans and advances to customers 15 13,661,413 9,349,931
Investment securities:
-Financial asset at Fair value
through OCI 4.2, 16 119,381 66,425

-Financial asset at Amortized cost 16 1,125,894 1,065,805

Other assets 17 1,112,365 729,881
Right of Use Assets 20 343,191 317,506
Intangible assets 18 1,338 2,021
Property, plant and equipment 19 376,029 300,146
Deferred tax assets 13 9,919 6,680

Total assets 18,853,992 14,085,623

LIABILITIES

Deposits from customers 21 14,247,624 10,985,146

Borrowings 22 667,475 155,598
Current tax liabilities 13 173,085 93,169
Lease liabilities 20 17,047 40,590
Other liabilities 23 761,567 607,207
Retirement benefit obligations 24 33,870 15,372
Deferred tax liabilities 13 - -

Total liabilities 15,900,668 11,897,082

EQUITY

Share capital 25 2,032,523 1,628,055

Other equity/Treasury shares/ 27 (6,455) (6,455)
Other Reserves 28 73,390 40,743
Retained earnings 29 296,964 193,208
Legal reserve 30 412,430 281,664
Risk Regulatory Reserve 31 144,473 51,326
Total equity 2,953,325 2,188,541
Total equity and liabilities 18,853,992 14,085,623

The notes on pages 10 to 64 are an integral part of these financial statements.

The financial statements on pages 6 to 64 were approved and authorized for issue by the board
of directors on 20 October 2023 and were signed on its behalf by:

Bikila Hurissa Wolde (Dr.) Tesfaye Boru Lelissa (Dr.)

Chairman_____________________ C.E.O______________________

30 ANNUAL REPORT 2022/23

GLOBAL BANK ETHIOPIA SHARE COMPANY
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023

Risk
Share Other Other Regulator Retained Legal
capital equity reserves y Reserve earnings reserve Total
Notes Birr'000 Birr'000 Birr'000 Birr'000 Birr'000 Birr'000 Birr'000

As at 1 July 2021 1,390,481 (6,435) 15,326 36,665 113,769 212,374 1,762,180

Total change for the year 237,574 (20) 25,417 14,661 79,440 69,290 426,362
As at 30 June 2022 1,628,055 (6,455) 40,743 51,326 193,210 281,664 2,188,541
As at 1 July 2022 1,628,055 (6,455) 40,743 51,326 193,210 281,664 2,188,541
Prior years tax adjustment 29 - -
Profit for the period 29 - - - - 523,061 - 523,061
Dividend paid - - - - (193,208) - (193,208)
Directors allowances' - - - - - - -
Transfer to legal reserve - - - - (130,766) - (130,766)
Acquisition of treasury shares 25 404,468 - - - - - 404,468
Change between NBE provisions and - - - - (93,148) - (93,148)
IFRS Impairment

Other comprehensive income:

Re-measurement gains on 13 - - (7,559) - - - (7,559)
defined benefit plans (net of
Transfer to legal reserve 30 - - - - - 130,765 130,765
Change in FV through OCI
Financial assets -Unrealized
gain arising from measurement 27 - - 40,206 - - - 40,206
Transfer to Risk Regulatory 93,148
Reserve 30 - - - - - 93,148

Total change for the year 404,468 - 32,647 93,148 105,940 130,765 766,968
As at 30 June 2023 2,032,523 (6,455) 73,390 144,474 299,148 412,429 2,955,508

The notes on pages 10 to 64 are an integral part of these financial statements.

ANNUAL REPORT 2022/23 31

GLOBAL BANK ETHIOPIA SHARE COMPANY
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023

30 June 2023 30 June 2022

Notes Birr'000 Birr'000

Cash flows from operating activities

Cash generated from operations 32 (3,692,087) (1,899,188)
Directors' allowance 29 (2,184) -
Defined benefit paid 24 (2,796) (2,063)
Income tax paid 13 (93,169) (67,389)

Net cash (outflow)/inflow from operating activities (3,790,236) (1,968,640)

Cash flows from investing activities

Purchase of investment securities 16 (113,045) (23,492)
Purchase of intangible assets 18 - (418)
Purchase of property, plant and equipment 19 (116,720) (68,813)
Proceeds from sale of property, plant and 32 803 -
Dividend received - -
Purchase of equity shares /Treasury shares/ 27 - (20)

Net cash (outflow)/inflow from investing activities (228,962) (92,743)

Cash flows from financing activities

Proceeds of deposits from customers 21 3,262,478 2,281,652
Proceeds from borrowings 22 511,877 (51,234)
Proceeds from issues of shares 25 404,468 237,574
Lease Liability payment (28,183) (16,024)
Dividend paid 29 (193,208) (113,769)
Prior years tax Adjusment 29 - -

Net cash inflow from financing activities 3,957,432 2,338,198

Net increase in cash and cash equivalents (61,766) 276,815

Cash and cash equivalents at the beginning of 14 1,206,979 930,164

the yearexchange (losses)/ gains on cash and
Foreign - -
cash equivalents
Cash and cash equivalents at the end of the year 14 1,145,213 1,206,979

The notes on pages 10 to 64 are an integral part of these financial statements.

32 9 ANNUAL REPORT 2022/23

ወጣትነት በራሱ ውብ ነው…
ከጠበቁት ይዘልቃል
በባንካችን የወጣቶች የቁጠባ ሂሳብ 8% ወለድ ያግኙ

ANNUAL REPORT 2022/23 33

GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

1 General information
Global Bank Ethiopia Share Company ("Global Bank Ethiopia or the Bank") is a private commercial Bank domiciled
in Ethiopia. The Bank was established in Addis Ababa in August 2009 and registered as a share company in
accordance with the provisions of the Licensing and Supervision of Banking Business Proclamation no.
592/2008 and the Commercial Code of Ethiopia of 1960. The Bank registered office is at:

National Tower
Behind Ethiopia Hotel
P.O Box 100743
Stadium
Addis Ababa, Ethiopia
The Bank is principally engaged in the provision of diverse range of financial products and services to corporate,
retail and SME clients.

2 Summary of significant accounting policies

2.1 Introduction to summary of significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These
policies have been consistently applied to all the years presented, unless otherwise stated.

2.2 Basis of preparation

2.2.1 Statement of compliance

The financial statements for the period ended 30 June 2023 have been prepared in accordance with
International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board
("IASB"). Additional information required by National regulations is included where appropriate.

For this Bank reporting purposes ,the financial statements comprise the statement of profit or loss and other
comprehensive income, the statement of financial position, the statement of changes in equity, the statement of
cash flows and the notes to the financial statements.

2.2.2 Basis of measurement

The financial statements have been prepared in accordance with the going concern principle under the historical
cost concept except for the following :

All values are rounded to the nearest thousand, except when otherwise indicated. The financial statements are
presented in thousands of Ethiopian Birr (Birr' 000) which Serves as functional and presentation currency.
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at
the dates of the transactions or valuation where items are re-measured.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting
estimates. It also requires management to exercise its judgment in the process of applying the accounting
policies. Changes in assumptions may have a significant impact on the financial statements in the period the
assumptions changed. Management believes that the underlying assumptions are appropriate and that the
Bank's financial statements therefore present the financial position and results fairly. The areas involving a higher
degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial
statements, are disclosed in Note 3.

34 ANNUAL REPORT 2022/23

10
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR
GLOTHE YEAR
BAL BANK ETHIENDED
OPIA SHAR30
E COJUNE
MPANY 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.2.3 Going concern

The financial statements have been prepared on a going concern basis. The Directors have no doubt that the
Bank would remain in existence after 12 months.

2.3 Foreign currency translation

a) Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economic
environment in which the Bank operates ('the functional currency'). The functional currency and presentation
currency of the Bank is the Ethiopian Birr (Birr'000).

b) Transactions and balances

Foreign currency transactions that are denominated, or that require settlement, in a foreign currency are
translated into the functional currency using the exchange rates prevailing at the dates of the transactions.
Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the
translation at exchange rates of monetary assets and liabilities denominated in currencies other than the Bank's
functional currency are recognized in profit or loss within other operating income.
2.4 Changes in accounting policies and disclosures

i) New standards, amendments and interpretations effective and adopted during the year

New standards, amendments and interpretations effective and adopted during the year
The Bank has applied the following standards and amendments for the first time for their annual reporting period
commencing 1 January 2020:

IFRS 9 - Financial Instruments

2.5 Financial assets and financial liabilities

a) Recognition and initial measurement

The Bank shall initially recognize loans and advances, deposits, debt securities issued and subordinated liabilities
on the date on which they are originated. All other financial instruments (including regular-way purchases and
sales of financial assets) shall be recognized on the trade date, which is the date on which the Bank becomes a
party to the contractual provisions of the instrument.

A financial asset or financial liability shall be measured initially at fair value plus, for an item not at fair value
through profit or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue.

ANNUAL REPORT 2022/23 35

GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

b) Classification and subsequent measurement

i) Financial assets
On initial recognition, a financial asset shall be classified either as measured at either amortized cost, fair value
through other comprehensive income (FVOCI) or fair value through profit or loss (FVTPL).

The Bank shall measure a financial asset at amortized cost if it meets both of the following conditions and is not
designated at FVTPL:

flows; and

payments of principal and interest (SPPI).

A debt instrument shall be measured at FVOCI only if it meets both of the following conditions and is not
designated at FVTPL:

flows and selling financial assets; and

On initial recognition, an equity investment that is held for trading shall be classified at FVTPL. However, for
equity investment that is not held for trading, the Bank may irrevocably elect to present subsequent changes in
fair value in other comprehensive income (OCI). This election is made on an investment-by-investment basis.

All other financial assets that do not meet the classification criteria at Amortized cost or FVOCI, above, shall be
classified as measured at FVTPL.

In addition, on initial recognition, the Bank may irrevocably designate a financial asset that otherwise meets the
requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or significantly
reduces an accounting mismatch that would otherwise arise (see 1.8).
Business model assessment
The Bank shall make an assessment of the objective of a business model in which an asset is held at a portfolio
level because this best reflects the way the business is managed and information is provided to management.
The information considered includes:

interest rate profile, matching the duration of the financial assets to the duration of the liabilities that are funding
those assets or realizing cash flows through the sale of the assets;

whether compensation is based on the fair value of the assets managed or the contractual cash flows collected);
and

future sales activity. However, information about sales activity is not considered in isolation, but as part of an

Financial assets that are held for trading or managed and whose performance is evaluated on a fair value basis
shall be measured at FVTPL because they are neither held to collect contractual cash flows nor held both to
collect contractual cash flows and to sell financial assets.

Financial assets shall not be reclassified subsequent to their initial recognition, except in the period after the Bank
changes its business model for managing financial assets.

36 ANNUAL REPORT 2022/23

GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

Assessment of whether contractual cash flows are solely payments of principal and interest

associated with the principal amount outstanding during a particular period of time and for other basic lending
risks and costs (e.g. liquidity risk and administrative costs), as well as profit margin.

In assessing whether the contractual cash flows are SPPI, the Bank considers the contractual terms of the
instrument. This includes assessing whether the financial asset contains a contractual term that could change
the timing or amount of contractual cash flows such that it would not meet this condition. In making the
assessment, the Bank considers:

loans); and

interest rates).

ii) Financial liabilities

The Bank shall classify its financial liabilities, other than financial guarantees and loan commitments, as measured
at amortized cost or FVTPL.

A financial guarantee is an undertaking commitment that requires the issuer to make specified payments to
reimburse the holder for a loss it incurs because a specified party fails to meet its obligation when due in
accordance with the contractual terms.

Financial guarantees issued by the Bank are initially measured at their fair values and, if not designated as at
FVTPL, are subsequently measured at the higher of: the amount of the obligation under the guarantee, as
determined in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets; and the amount
initially recognized less, where appropriate, cumulative amortization recognized in accordance with the revenue
recognition policies.
c) Impairment
At each reporting date, the Bank shall assess whether there is objective evidence that financial assets (except
equity investments), other than those carried at FVTPL, are impaired.
The Bank shall recognize loss allowances for expected credit losses (ECL) on the following financial instruments
that are not measured at FVTPL:

No impairment loss shall be recognized on equity investments.

The Bank shall measure loss allowances at an amount equal to lifetime ECL, except for the following, which are
measured as 12-month ECL:

significantly since their initial recognition.

Loss allowances for lease receivables shall always be measured at an amount equal to lifetime ECL.

ANNUAL REPORT 2022/23 37

GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

12-month ECL is the portion of ECL that result from default events on a financial instrument that are
possible within the 12 months after the reporting date. Financial instruments for which a 12-month ECL is

Life-time ECL is the ECL that result from all possible default events over the expected life of the financial
instrument. Financial instruments for which a lifetime ECL is recognized but which are not credit-impaired

i) Measurement of ECL
ECL is a probability-weighted estimate of credit losses. It shall be measured as follows:
for financial assets that are not credit-impaired at the reporting date (stage 1 and 2): as the present
value of all cash shortfalls (i.e. the difference between the cash flows due to the Bank in
accordance with the contract and the cash flows that the Bank expects to receive);

between the gross carrying amount and the present value of estimated future cash flows;

flows that are due to the Bank if the commitment is drawn down and the cash flows that the Bank
expects to receive; and

that the Bank expects to recover.

ii) Restructured financial assets

Where the terms of a financial asset are renegotiated or modified or an existing financial asset is replaced with a
new one due to financial difficulties of the borrower, then the Bank shall assess whether the financial asset
should be de-recognized and ECL are measured as follows:

cash flows arising from the modified financial asset are included in calculating the cash shortfalls
from the existing asset.

value of the new asset is treated as the final cash flow from the existing financial asset at the time of
its de-recognition. This amount is included in calculating the cash shortfalls from the existing
financial asset that are discounted from the expected date of de-recognition to the reporting date
using the original effective interest rate of the existing financial asset.

iii) Credit-impaired financial assets

At each reporting date, the Bank shall assess whether financial assets carried at amortized cost, debt financial

the estimated future cash flows of the financial asset have occurred.
Evidence that a financial asset is credit-impaired includes the following observable data:

consider otherwise;

reorganization; or

credit-impair unless there is evidence that the risk of not receiving contractual cash flows has reduced
significantly and there are no other indicators of impairment. In addition, a retail loan that is overdue for 90 days
or more shall be considered credit-impaired even when the regulatory definition of default is different.

38 ANNUAL REPORT 2022/23

GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

iv) Presentation of allowance for ECL in the statement of financial position

Loss allowances for ECL shall be presented in the statement of financial position as follows:

amount of the assets;

Bank cannot identify the ECL on the loan commitment component separately from those on
the drawn component: the Bank presents a combined loss allowance for both components.
The combined amount is presented as a deduction from the gross carrying amount of the
drawn component. Any excess of the loss allowance over the gross amount of the drawn
component is presented as a provision; and

of financial position because the carrying amount of these assets is their fair value.
However, the loss allowance shall be disclosed and is recognized in the fair value reserve.

v) Write-off

Loans and debt securities shall be written off (either partially or in full) when there is no reasonable expectation
of recovering the amount in its entirety or a portion thereof. This is generally the case when the Bank determines
that the borrower does not have assets or sources of income that could generate sufficient cash flows to repay
the amounts subject to the write-off. This assessment shall be carried out at the individual asset level.

the statement of profit or loss and OCI.

Financial assets that are written off could still be subject to enforcement activities in order to comply with the

vi) Non-integral financial guarantee contracts

Where the Bank determines that the guarantee is an integral element of the financial asset, then any premium
payable in connection with the initial recognition of the financial asset shall be treated as a transaction cost of
acquiring it. The Bank shall consider the effect of the protection when measuring the fair value of the debt
instrument and when measuring ECL.

Where the Bank determines that the guarantee is not an integral element of the debt instrument, then it shall
recognize an asset representing any prepayment of guarantee premium and a right to compensation for credit
De-recognition
d)
i) Financial assets
The Bank shall derecognize a financial asset when:

all of the risks and rewards of ownership of the financial asset are transferred; or

does not retain control of the financial asset.

On de-recognition of a financial asset, the difference between the carrying amount of the asset (or the carrying
amount allocated to the portion of the asset derecognized) and the sum of (i) the consideration received
(including any new asset obtained less any new liability assumed) and (ii) any cumulative gain or loss that had
been recognized in OCI shall be recognized in profit or loss.

Any cumulative gain/loss recognized in OCI in respect of equity investment securities designated as at FVOCI
shall not be recognized in profit or loss on de-recognition of such securities.

Any interest in transferred financial assets that qualify for de-recognition that is created or retained by the Bank
shall be recognized as a separate asset or liability.

15
ANNUAL REPORT 2022/23 39
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

ii) Financial liabilities

The Bank shall derecognize a financial liability when its contractual obligations are discharged or cancelled, or

e) Modifications of financial assets and financial liabilities

i) Financial assets
If the terms of a financial asset are modified, then the Bank shall evaluate whether the cash flows of the modified
asset are substantially different.
If the cash flows are substantially different, then the contractual rights to cash flows from the original financial
asset shall be deemed to have expired. In this case, the original financial asset shall be derecognized and a new
financial asset shall be recognized at fair value plus any eligible transaction costs. Any fees received as part of
the modification shall be accounted for as follows:

reimbursement of eligible transaction costs shall be included in the initial measurement of the
asset; and

If cash flows are modified when the borrower is in financial difficulties, then the objective of the modification is
usually to maximize recovery of the original contractual terms rather than to originate a new asset with
substantially different terms.

If the Bank plans to modify a financial asset in a way that would result in forgiveness of cash flows, then it shall
first consider whether a portion of the asset should be written off before the modification takes place.

Where the modification of a financial asset measured at Amortized cost or FVOCI does not result in de-
recognition of the financial asset, then the Bank shall first recalculate the gross carrying amount of the financial
asset using the original effective interest rate of the asset and recognizes the resulting adjustment as a
modification gain or loss in profit or loss. Any costs or fees incurred and fees received as part of the modification
adjust the gross carrying amount of the modified financial asset and shall be Amortized over the remaining term
of the modified financial asset.
Where such a modification is carried out because of financial difficulties of the borrower, then the gain or loss
shall be presented together with impairment losses. In other cases, it shall be presented as interest income
calculated using the effective interest rate method.
ii) Financial liabilities

The Bank shall derecognize a financial liability when its terms are modified and the cash flows of the modified
liability are substantially different. In this case, a new financial liability based on the modified terms shall be
recognized at fair value. The difference between the carrying amount of the financial liability derecognized and
consideration paid is recognized in profit or loss. Consideration paid shall include non-financial assets transferred,
if any, and the assumption of liabilities, including the new modified financial liability.
Where the modification of a financial liability is not accounted for as de-recognition, then the Amortized cost of
the liability shall be recalculated by discounting the modified cash flows at the original effective interest rate and
the resulting gain or loss is recognized in profit or loss. Any costs and fees incurred are recognized as an
adjustment to the carrying amount of the liability and Amortized over the remaining term of the modified financial
liability by re-computing the effective interest rate on the instrument.

f) Offsetting

Financial assets and financial liabilities shall be offset and the net amount presented in the statement of financial
position when, and only when, the Bank currently has a legally enforceable right to set off the amounts and it
intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

Income and expenses shall be presented on a net basis only when permitted under IFRS, or for gains and losses

40 ANNUAL REPORT 2022/23

16
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

g) Designation at fair value through profit or loss

i) Financial assets
At initial recognition, the Bank may designate certain financial assets as at FVTPL because this designation
eliminates or significantly reduces an accounting mismatch, which would otherwise arise.

ii) Financial liabilities

The Bank shall designate certain financial liabilities as at FVTPL in either of the following circumstances:

arise.

2.6 Net interest income

a) Effective interest rate and Amortized cost
Interest income and expense are recognized in profit or loss using the effective interest method. The
interest is the rate that exactly discounts estimated future cash payments or receipts through the expected
life of the financial instrument to:

When calculating the effective interest rate for financial instruments other than credit-impaired assets, the Bank
estimates future cash flows considering all contractual terms of the financial instrument, but not expected credit
losses. For credit-impaired financial assets, a credit-adjusted effective interest rate is calculated using estimated
future cash flows including expected credit losses.

The calculation of the effective interest rate includes transaction costs and fees and points paid or received that
are an integral part of the effective interest rate. Transaction costs include incremental costs that are directly
attributable to the acquisition or issue of a financial asset or financial liability.
b) Amortized cost and gross carrying amount

The of a financial asset or financial liability is the amount at which the financial asset or financial
liability is measured on initial recognition minus the principal repayments, plus or minus the cumulative
amortization using the effective interest method of any difference between that initial amount and the maturity
amount and, for financial assets, adjusted for any expected credit loss allowance (or impairment allowance before
1 July 2018).

The carrying amount of a financial is the amortized cost of a financial asset before adjusting for any
expected credit loss allowance.
c) Calculation of interest income and expense
In calculating interest income and expense, the effective interest rate is applied to the gross carrying amount of
the asset (when the asset is not credit-impaired) or to the amortized cost of the liability.

However, for financial assets that have become credit-impaired subsequent to initial recognition, interest income
is calculated by applying the effective interest rate to the amortized cost of the financial asset. If the asset is no
longer credit-impaired, then the calculation of interest income reverts to the gross basis.

For financial assets that were credit-impaired on initial recognition, interest income is calculated by applying the
credit-adjusted effective interest rate to the amortized cost of the asset. The calculation of interest income does
not revert to a gross basis, even if the credit risk of the asset improves.

ANNUAL REPORT 2022/23 41

17
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

d) Presentation

Interest income and expense presented in the statement of profit or loss and OCI include:

effective interest basis;

flow hedges of variability in interest cash flows, in the same period as the hedged cash flows
affect interest income/expense; and
the effective portion of fair value changes in qualifying hedging derivatives designated in fair value
hedges of interest rate risk.
Interest income and expense on all trading assets and liabilities are considered to be incidental to the
trading operations and are presented together with all other changes in the fair value of trading assets and
liabilities in net trading income.
Interest income and expense on other financial assets and financial liabilities at FVTPL are presented in net
income from other financial instruments at FVTPL.
Note:-The Bank does not have loan processing fee and the inspection fee collected from customers are
immaterial. Therefore, the contractual interest rate used by the bank is considered as effective interest rate.

e) Fees and commission

Fees and commission income and expenses that are integral to the effective interest rate on a financial asset or
liability are included in the measurement of the effective interest rate. Other fees and commission income such
as rental income, telephone and SWIFT are recognized as the related services are performed.

Other fees and commission expenses relates mainly to transaction and service fees are expensed as the services
are received.
f) Dividend income

This is recognized when the right to receive the payment is established, which is generally when the
shareholders approve and declare the dividend.

g) Foreign exchange revaluation gains or losses

These are gains and losses arising on settlement and translation of monetary assets and liabilities denominated in
foreign currencies at the functional spot rate of exchange at the reporting date. This amount is
recognized in the income statement and it is further broken down into realized and unrealized portion.

The foreign denominated monetary assets and liabilities include financial assets within the cash and bank
balances and foreign currencies deposits received.

2.7 Cash and bank balances

Cash and cash include notes and coins on hand, unrestricted balances held with central banks and
highly liquid financial assets with original maturities of three months or less from the date of acquisition that are
subject to an insignificant risk of changes in their fair value, and are used by the Bank in the management of its
short-term commitments. Cash and cash equivalents are carried at amortized cost in the statement of financial
position.

For the purposes of the cash flow statement, cash and cash equivalents include cash and restricted balances
with National Bank of Ethiopia.

42 ANNUAL REPORT 2022/23

GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.8 Property, plant and Equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment
losses, if any. Such cost includes the cost of replacing part of the property, plant and equipment if the recognition
criteria are met. When significant parts of property, plant and equipment are required to be replaced at intervals,
the Bank recognizes such parts as individual assets with specific useful lives and depreciates them accordingly.
All other repair and maintenance costs are recognized in income statement as incurred.

Subsequent costs are included in the carrying amount or recognized as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Bank and the cost
of the item can be measured reliably. The carrying amount of the replaced part is derecognized.
Depreciation is calculated using the straight-line method to allocate their cost to their residual values over their
estimated useful lives, as follows:

Asset class Depreciation rate (years)

Buildings 50
Motor vehicles 10
Furniture and fittings:
Medium-lived 10
Long lived 20
Computer and Accessories 7
Office equipment:
Short-lived 5
Medium-lived 10
The Bank commences depreciation when the asset is available for use.

An item of property, plant and equipment and any significant part initially recognized is derecognized upon
disposal or when no future economic benefits are expected from its use disposal. Any gain or loss arising on de-
recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying
amount of the asset) is included in income statement when the asset is derecognized.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at
each financial year end and adjusted prospectively, if appropriate.
i) Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition,
intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses, if
any. Internally generated intangibles, excluding capitalized development costs, are not capitalized and the related
expenditure is reflected in income statement in the period in which the expenditure is incurred .

The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets with finite lives
are amortized over the useful economic life. The amortization period and the amortization method for an
intangible asset with a finite useful life are reviewed at least at each financial year-end. Changes in the expected
useful life, or the expected pattern of consumption of future economic benefits embodied in the asset, are
accounted for by changing the amortization period or methodology, as appropriate, which are then treated as
changes in accounting estimates. The amortization expenses on intangible assets with finite lives is presented as
a separate line item in the income statement.

Amortization of computer software is calculated using the method to write down the cost of
intangible assets to their residual values over their estimated useful lives which is six years or the license
duration for purchased computer software.

ANNUAL REPORT 2022/23 43

GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
ii) Impairment of non-financial assets
The Bank assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any
indication exists, or when annual impairment testing for an asset is required, the Bank estimates the
recoverable amount. An recoverable amount is the higher of an or cash-generating (CGU)
fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset,
unless the asset does not generate cash inflows that are largely independent of those from other assets or
groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is
considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no
such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated
by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.

The Bank bases its impairment calculation on detailed budgets and forecast calculations, which are prepared

calculations generally cover a period of five years. For longer periods, a long-term growth rate is calculated and
applied to project future cash flows after the fifth year.

For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an
indication that previously recognized impairment losses no longer exist or have decreased. If such indication

since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset
does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net
of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized
in the income statement.
iii) Other assets
Other assets are generally defined as claims held against other entities for the future receipt of money. The other
assets in the Bank's financial statements include the following:
(a) Prepayment

Prepayments are payments made in advance for services to be enjoyed in future. The amount is initially
capitalized in the reporting period in which the payment is made and subsequently amortized over the period in
which the service is to be enjoyed.

(b) Other receivables

Other receivables are recognized upon the occurrence of event or transaction as they arise and cancelled when
payment is received.

The Bank's other receivables are accounts receivables from head office, accounts receivables from branches,
receivable from other banks, export bills purchased, sundry receivables.
2.9 Employee benefits
The Bank provides post-employment schemes, including both defined benefit and defined contribution pension
plans and post employment benefits.

(a) Wages, salaries and annual leave

Wages, salaries, other allowances, paid annual leave and sick leave are accrued in the period in which the
associated services are rendered by employees of the Bank. The Bank operates an accumulating leave policy;
this can be encashed when the employee is leaving employment. The Bank measures the expected cost of
accumulating compensated absences as the additional amount that the entity expects to pay as a result of the
unused entitlement that has accumulated at the end of each reporting period.

44 ANNUAL REPORT 2022/23

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GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

(b) Defined contribution plan

The Bank operates two defined contribution plans;

i) pension scheme in line with the provisions of Ethiopian pension of private organization employees
proclamation 715/2011. Funding under the scheme is 7% and 11% by employees and the Bank respectively;
ii) provident fund contribution, funding under this scheme is 7% and 11% by employees and the Bank
respectively;

Both schemes are based on the employees' salary. Employer's contributions to this scheme are charged to profit
or loss in the period in which they relate.
(c ) Defined benefits plan
The liability or asset recognized in the statement of financial position in respect of defined benefit pension plans
is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan
assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit
credit method.
The liability recognized in the statement of financial position in respect of defined benefit pension plans is the
present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets.
The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit
method. The present value of the defined benefit obligation is determined by discounting the estimated future
cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which
the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension
obligation.

The current service cost of the defined benefit plan, recognized in the income statement in employee benefit
expense, except where included in the cost of an asset, reflects the increase in the defined benefit obligation
resulting from employee service in the current year, benefit changes curtailments and settlements.

Past-service costs are recognized immediately in income.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged
or credited to equity in other comprehensive income in the period in which they arise.

(d ) Profit-sharing and bonus plans

The Banks recognizes a liability and an expense for bonuses and profit-sharing based on a formula that takes into
consideration the profit attributable to the shareholders after certain adjustments. The Bank
recognizes a provision where contractually obliged or where there is a past practice that has created a
constructive obligation.
2.10 Provisions
Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a
reliable estimate can be made of the amount of the obligation. When the Bank expects some or all of a provision
to be reimbursed, for example, under an insurance contract, the reimbursement is recognized as a separate asset,
but only when the reimbursement is virtually certain. The expense relating to a provision is presented in income
statement net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognized as other operating expenses.
2.11 Share capital
Incremental costs directly attributable to the issue of new shares or options or to the acquisition of a business
are shown in equity as a deduction, net of tax, from the proceeds.
2.12 Legal reserve

The legal reserve which is a statutory reserve to which no less than 25% of the net profits after taxation shall be
transferred each year until such fund is equal to the capital. When the legal reserve equals the capital of the Bank,
the amount to be transferred to the legal reserve account shall be 10% of the annual net profit.

21
ANNUAL REPORT 2022/23 45
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.13 Risk Regulatory Reserve

It represents an amount set aside to cover additional provision for loan losses required to comply with the
requirements of NBE guidelines. This amount is not available for distribution.

2.14 Earnings per share

The Bank presents basic earnings per share for its ordinary shares. Basic earnings per share are calculated by
dividing the profit or loss attributable to ordinary shareholders of the Bank by the weighted average number of
shares outstanding during the period.

2.15 Leases
At inception of a contract, the Bank assesses whether a contract is,or contains, a lease. A contract is, or contains,
a lease if the contract conveys the right to control the use of an identified asset for a period in exchange for
consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Bank
uses the definition
of a lease in IFRS 16.
A) Definition of a lease
Contracts that were not identified as leases under IAS 17 and IFRIC 4 were not reassessed for whether there is a
lease under IFRS 16. Therefore, the definition of a lease under IFRS 16 was applied only to contracts entered into
or changed on or after 1 July 2020.

B) As a lessee
As a lessee, the Bank leases many assets including property, equipment and motor vehicles. The Bank previously
classified leases as operating or finance leases based on its assessment of whether the lease transferred
significantly all of the risks and rewards incidental to ownership of the underlying asset to the Bank. Under IFRS

At commencement or on modification of a contract that contains a lease component, the Bank allocates the
consideration in the contract to each lease component on the basis of its relative stand-alone price.

Practical expedients applied

Right-of-use assets are measured at their carrying value as if IFRS 16 had been applied since the
commencement date, discounted using the incremental borrowing rate at the date of initial application.
The Bank used a number of practical expedients when applying IFRS 16 to leases previously classified as
operating leases under IAS 17. In particular, the Bank:

months
of the date of initial application; and

The Bank recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use
asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or before the commencement date.
The right-of-use asset is subsequently depreciated using the straightline method from the commencement date
to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Bank by the end
of the lease term or the cost of the right-of-use asset reflects that the Bank will exercise a purchase option. In
that case, the right of-use asset will be depreciated over the useful life of the underlying asset, which is
determined on the same basis as those of property and equipment. In addition, the right-of-use asset is
periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily

discount rate.

46 ANNUAL REPORT 2022/23

GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

Lease payments included in the measurement of the lease liability comprise the following:

as at the commencement date

payments in an optional renewal period if the Bank is reasonably certain to exercise an extension option, and
penalties for early termination of a lease unless the Bank is reasonably certain not to terminate early.

D) As a lesser
The Bank leases out its leasehold property and right-of-use assets. The Bank has classified these leases as
operating leases.
The Bank is not required to make any adjustments on transition to IFRS 16 for leases in which it acts as a lesser,
except for a sub-lease. The Bank does not sub-lease its properties. Under IAS 17, the head lease and sub-lease
contracts were classified as operating leases. On transition to IFRS 16, the right-of-use assets recognized from
the head leases are presented in property, plant and equipment, and measured at fair value at that date. The Bank
assessed the classification of the sub-lease contracts with reference to the right of :-

the contract to each lease and non-lease component

2.16 Income taxation

(a) Current income tax
The income tax expense or credit for the period is the tax payable on the current taxable income based
on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities
attributable to temporary differences and to unused tax losses.

The current income tax charge is calculated on the basis of the tax laws enacted, Income Tax Proclamation
979/2016, or substantively enacted at the end of the reporting period in Ethiopia. Management periodically
evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to
interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax
authorities.
(b) Deferred tax

Deferred tax is recognized on temporary differences arising between the tax bases of assets and liabilities and
their carrying amounts in the financial statements. However, deferred tax liabilities are not recognized if they
arise from the initial recognition of goodwill; deferred tax is not accounted for if it arises from initial recognition of
an asset or liability in a transaction other than a business combination that at the time of the transaction affects
neither accounting nor taxable profit or loss.

Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the
balance sheet date and are expected to apply when the related deferred tax asset is realized or the deferred tax
liability is settled.

Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available
against which the temporary differences can be utilized.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets
against current tax liabilities and when the deferred taxes assets and liabilities relate to income taxes levied by
the same taxation authority on either the same taxable entity or different taxable entities where there is an
intention to settle the balances on a net basis.
Deferred tax assets and liabilities are only offset when they arise in the same tax reporting group and where there
is both the legal right and the intention to settle on a net basis or to realize the asset and settle the liability
simultaneously.

ANNUAL REPORT 2022/23 47

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GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

3 Significant accounting judgments, estimates and assumptions

assumptions that affect the reported amount of revenues, expenses, assets and liabilities, and the accompanying
disclosures, as well as the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates
could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected
in future periods.

3.1 Judgments

In the process of applying the accounting policies, management has made the following judgments, which
have the most significant effect on the amounts recognized in the financial statements:

(a) Operating lease commitments - Bank as lessee

The Bank has entered into commercial property leases. The Bank has determined, based on an evaluation of the
terms and conditions of the arrangements, such as the lease term not constituting a substantial portion of the
economic life of the commercial property, that it does not retain all the significant risks and rewards of ownership
of these properties and accounts for the contracts as operating leases.
(b) Going concern basis

The management has made an assessment of its ability to continue as a going concern and is satisfied
that it has the resources to continue in business for the foreseeable future. Furthermore, management is not
aware of any material uncertainties that may cast significant doubt upon the ability to continue as a going
concern, except that it has to make significant effort to reach the minimum capital requirement. However, the
financial statements continue to be prepared on going concern basis.

3.2 Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation at the reporting date, that have
a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year, are described below. The Bank based its assumptions and estimates on parameters available when
the financial statements were prepared. Existing circumstances and assumptions about future developments,
however, may change due to market changes or circumstances beyond the control of the Bank. Such changes
are reflected in the assumptions when they occur.
(a) Impairment losses on loans and receivables

The Bank reviews its loan portfolios for impairment on an on-going basis. The Bank first assesses whether
objective evidence of impairment exists individually for financial assets that are individually significant, and
individually or collectively for financial assets that are not individually significant. Impairment provisions are also
recognized for losses not specifically identified but which, experience and observable data indicate, are present in
the portfolio at the date of assessment. For individually significant financial assets that has been deemed to be
impaired, management has deemed that cash flow from collateral obtained would arise within 24 months where
the financial asset is collaterised.

48 ANNUAL REPORT 2022/23

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GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

3 Significant accounting judgments, estimates and assumptions

assumptions that affect the reported amount of revenues, expenses, assets and liabilities, and the accompanying
disclosures, as well as the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates
could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected
in future periods.

3.1 Judgments

In the process of applying the accounting policies, management has made the following judgments, which
have the most significant effect on the amounts recognized in the financial statements:

(a) Operating lease commitments - Bank as lessee

The Bank has entered into commercial property leases. The Bank has determined, based on an evaluation of the
terms and conditions of the arrangements, such as the lease term not constituting a substantial portion of the
economic life of the commercial property, that it does not retain all the significant risks and rewards of ownership
of these properties and accounts for the contracts as operating leases.
(b) Going concern basis

The management has made an assessment of its ability to continue as a going concern and is satisfied
that it has the resources to continue in business for the foreseeable future. Furthermore, management is not
aware of any material uncertainties that may cast significant doubt upon the ability to continue as a going
concern, except that it has to make significant effort to reach the minimum capital requirement. However, the
financial statements continue to be prepared on going concern basis.

3.2 Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation at the reporting date, that have
a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year, are described below. The Bank based its assumptions and estimates on parameters available when
the financial statements were prepared. Existing circumstances and assumptions about future developments,
however, may change due to market changes or circumstances beyond the control of the Bank. Such changes
are reflected in the assumptions when they occur.
(a) Impairment losses on loans and receivables

The Bank reviews its loan portfolios for impairment on an on-going basis. The Bank first assesses whether
objective evidence of impairment exists individually for financial assets that are individually significant, and
individually or collectively for financial assets that are not individually significant. Impairment provisions are also
recognized for losses not specifically identified but which, experience and observable data indicate, are present in
the portfolio at the date of assessment. For individually significant financial assets that has been deemed to be
impaired, management has deemed that cash flow from collateral obtained would arise within 24 months where
the financial asset is collaterised.

ANNUAL REPORT 2022/23 49

GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Management uses estimates based on historical loss experience for assets with credit risk characteristics and
objective evidence of impairment similar to those in the portfolio, when scheduling its future cash flows. The
methodology and assumptions used for estimating both the amount and timing of future cash flows are reviewed
regularly to reduce any differences between loss estimates and actual loss experience.
The use of historical loss experience is supplemented with significant management judgment to assess whether
current economic and credit conditions are such that the actual level of inherent losses is likely to differ from that
suggested by historical experience. In normal circumstances, historical experience provides objective and
relevant information from which to assess inherent loss within each portfolio.
In other circumstances, historical loss experience provides less relevant information about the inherent loss in a
given portfolio at the balance sheet date, for example, where there have been changes in economic conditions
such that the most recent trends in risk factors are not fully reflected in the historical information. In these
circumstances, such risk factors are taken into account when calculating the appropriate levels of impairment
allowances, by adjusting the impairment loss derived solely from historical loss experience. The detailed
methodologies, areas of estimation and judgment applied in the calculation of the Bank's impairment charge on
financial assets are set out in the Financial risk management section.
The estimation of impairment losses is subject to uncertainty, which has increased in the current economic
environment, and is highly sensitive to factors such as the level of economic activity, unemployment rates,
property price trends, and interest rates. The assumptions underlying this judgment are highly subjective. The
methodology and the assumptions used in calculating impairment losses are reviewed regularly in the light of
differences between loss estimates and actual loss experience.
(b) Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in the statement of financial position
cannot be measured based on quoted prices in active markets, their fair value is measured using valuation
techniques including the discounted cash flow (DCF) model. The inputs to these models are taken from
observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing
fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in
assumptions about these factors could affect the reported fair value of financial instruments.
(c) Depreciation and carrying value of property, plant and equipment
The estimation of the useful lives of assets is based on judgment. Any material adjustment to the
estimated useful lives of items of property and equipment will have an impact on the carrying value of these
items.
(d) Impairment of non-financial assets
Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount,
which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal
calculation is based on available data from binding sales transactions, conducted at length, for similar
assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation
is based on a DCF model. The cash flows are derived from the budget for the next five years and do not include
restructuring activities that the Bank is not yet committed to or significant future investments that will enhance
the performance of the CGU being tested. The recoverable amount is sensitive to the discount rate used
for the discounted cash flow model as well as the expected future cash-inflows and the growth rate used for
extrapolation purposes.
(e) Taxes
Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the
amount and timing of future taxable income. Given the wide range of international business relationships and the
long-term nature and complexity of existing contractual agreements, differences arising between the actual
results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments
to tax income and expense already recorded. The amount of such provisions is based on various factors, such as
experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the
responsible tax authority.
Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be
available against which the losses can be utilized. Significant management judgment is required to determine the
amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable
profits together with future tax planning strategies.

50 ANNUAL REPORT 2022/23

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GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
(f) Defined benefit plans
The cost of the defined benefit pension plan, long service awards, gratuity scheme and post-employment medical
benefits and the present value of these defined benefit obligations are determined using actuarial valuations. An
actuarial valuation involves making various assumptions that may differ from actual developments in the future.
These include the determination of the discount rate, future salary increases, mortality rates and future pension
increases. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation
is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

ANNUAL REPORT 2022/23 51

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GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

4 Financial risk management

4.1 Introduction

individual within the Bank is accountable for the risk exposures relating to his or her responsibilities. The Bank is exposed to credit
risk, liquidity risk and market risk. It is also subject to country risk and various operating risks.

The independent risk control process does not include business risks such as changes in the environment, technology and industry.

4.1.1 Risk management structure

The Board Risk Sub-Committee, a subset of the Board of Directors is responsible for the overall risk management approach and for
approving the risk management strategies and principles. It also has the responsibility to monitor the overall risk process within the
Bank.

and controls, and to monitor risks and adherence to limits. The Bank has established a comprehensive risk management system in
line with internationally accepted risk management principles and best practices with the necessary adoption to suit its core
business activity. Risk management policies and systems are reviewed regularly to reflect changes in the market conditions,
4.1.2 Stress testing

The Bank has a strong commitment to stress testing performance on a regular basis in order to assess the impact of a severe
economic downturn on its risk profile and financial position. These exercises complement traditional risk measures and represent an
integral part of the Bank's strategy and capital planning process. The stress testing framework comprises of regular Bank wide stress
testing based on internally defined benchmark and more severe macroeconomic global downturn scenarios. All material risk types
are included in the stress testing exercises. These methodologies undergo regular scrutiny from internal experts as well as
regulators to review whether they correctly capture the impact of a given stress test scenario.

4.1.3 Risk identification and assessment

The Bank's risk identification and assessment process leverages on intelligence across organizational levels and utilize existing
information whenever possible. Operating process are in place across the organization to capture relevant measures and indicators.
The core aim of all processes is to provide adequate transparency and understanding of the existing and emergency risk issues, and
to ensure a holistic cross-risk perspective. The risk inventory is updated at least once a year or at other times if needed by running a
risk identification and materiality assessment process in line with Value at risk (VAR).

4.1.4 Risk measurement and reporting systems

The risk data systems support regulatory reporting and external disclosures, as well as internal management reporting for credit risk,
liquidity risk and market risk. The risk infrastructure incorporates the relevant legal entities and business divisions and provides the
basis for reporting on risk positions, capital adequacy and limit utilization to the relevant functions on a regular basis and ad-hoc
basis. Established units within Finance department and Risk Management assume responsibility for measurement, analysis and
reporting of risk while promoting sufficient quality and integrity of risk-based data. The risk management systems are reviewed by
Audit department following a risk-based audit approach.
4.1.5 Risk mitigation
In addition to determining counterparty credit quality and our risk appetite, the Bank uses various credit risk mitigation techniques to
optimize credit exposure and reduce potential credit losses. The Bank regularly agrees on collateral to be received from or to be
provided to customers in contracts that are subject to credit risk. Collateral is security in the form of an asset or third-party
obligation that serves to mitigate the inherent risk of credit loss in an exposure, by either substituting the borrower default risk or
improving recoveries in the event of a default. While collateral can be an alternative source of repayment, it generally does not
replace the necessity of high quality underwriting standards.

52 ANNUAL REPORT 2022/23

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GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

4.2 Financial instruments by category

The Bank's financial assets are classified into the following measurement categories: available-for-sale and loans and receivables and
the financial liabilities are classified into other liabilities at amortized cost.

Financial instruments are classified in the statement of financial position in accordance with their legal form and substance. The
Bank's classification of its financial assets is summarized in the table below:

Loans and
Financial Financial
asset at Fair assets at
value through Amortized
Notes OCI cost Total
30 June 2023 Birr'000 Birr'000 Birr'000

Cash and bank balances 14 - 2,104,462 2,104,462

Loans and advances to customers 15 - 13,661,413 13,661,413
Investment securities:
-Financial
asset at Fair
value 4.2, 16 119,381 - 119,381
- Financial
asset at
Amortized
cost 16 - 662,600 662,600
Other assets 17 - 1,112,365 1,112,365

Total financial assets 119,381 17,540,840 17,660,221

Loans and
Financial Financial
asset at Fair assets at
value through Amortized
Notes OCI cost Total
30 June 2022 Birr'000 Birr'000 Birr'000

Cash and bank balances 14 - 2,247,228 2,247,228

Loans and advances to customers 15 - 9,349,931 9,349,931
Investment securities:
-Financial
asset at Fair
value 4.2, 16 66,425 - 66,425
- Financial
asset at
Amortized
cost 16 - 986,600 986,600
Other assets 17 - 729,881 729,881

Total financial assets 66,425 13,313,640 13,380,065

ANNUAL REPORT 2022/23 53

27
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

4.3 Credit risk

Credit risk is the risk of financial loss to the Bank if a customer of counterpart to a financial instrument fails to meet its contractual

Exposure to credit risk is managed through periodic analysis of the ability of borrowers and potential borrowers to determine their
capacity to meet principal and interest thereon, and restructuring such limits as appropriate. Exposure to credit risk is also mitigated,
in part, by obtaining collateral, commercial and personal guarantees.

The Bank structures the levels of credit risk it undertakes by placing limits on the amount of risk accepted in relation to one
borrower, or groups of borrowers, and to term of the financial instrument and economic sectors.

The National Bank of Ethiopia (NBE) sets credit risk limit for a single borrower, one related party and all related parties to not exceed

Credit management is conducted as per the risk management policy and guideline approved by the board of directors and the Risk
Management Committees. Such policies are reviewed and modified periodically based on changes and expectations of the markets
where the Bank operates, regulations, and other factors.

4.3.1 Credit quality analysis

(a) Credit quality of loans and Receivables

The following table sets out information about the credit quality of financial assets measured at amortized cost, FVOCI debt
investments (2023). Unless specifically indicated, for financial assets, the amounts in the table represent gross carrying amounts.

The loss allowance for loans and advances to customers also includes the loss allowances for loan commitments and financial
guarantee contracts.
Note 2.4. (c)

In Birr'000 2023 2022

Loans and
advances to
customers at Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
amortized
cost

12,749,981 - - 12,749,981 9,045,578 - - 9,045,578

Pass

Special - 607,288 - 607,288 - 296,210 - 296,210

mention
Stage 3 - Non
- - 421,988 421,988 - - 141,817 141,817
performing
Total gross
12,749,981 607,288 421,988 13,779,257 9,045,578 296,210 141,817 9,483,605
exposure
Loss
(20,405) (432) (97,007) (117,844) (3,936) (727) (129,010) (133,673)
allowance

Net carrying
12,729,576 606,856 324,981 13,661,413 9,041,642 295,483 12,807 9,349,932
amount

54 ANNUAL REPORT 2022/23

28
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

In Birr'000 2023 2022

Off balance
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
sheet items

- - - - 433,585 - - 433,585
Pass

Special - - - - - - - -
mention

Stage 3 - Non
- - - - - - - -
performing
Total gross
- - - - 433,585 - - 433,585
exposure
Loss
(15) - - (15) (11) - - (11)
allowance

Net carrying
15 - - 15 433,596 - - 433,596
amount

In Birr'000 2023 2022

Gross Loss Net carrying Gross Loss Net carrying
Other financial assets
exposure allowance amount exposure allowance amount
Cash and balances with
1,958,525 (98) 1,958,427 1,925,968 (96) 1,925,872
banks

Investment securities (debt

662,600 (35) 662,565 986,600 (54) 986,546
instruments)

Other receivables and

- (10,619) (10,619) 21,347 (14,222) 7,125
financial assets

Emergency staff loans - - - 52,478 (3) 52,475

Totals 2,621,125 (10,752) 2,610,373 2,986,393 (14,375) 2,972,018

(b) Credit quality of cash and bank balances

The credit quality of cash and bank balances and short-term investments that were neither past due nor impaired at as 30 June
2022 and
30 June 2021 are held in Ethiopian banks have been classified as non-rated as there are no credit rating agencies in Ethiopia.
However, cash and bank balances that held in foreign banks can be assessed by reference to credit rating agency designation as
shown in 30 June
30 June2023
2022
Birr'000
Birr'000
A- - -
BBB+ - -
B - -
BB - -
Not rated 2,104,462 2,247,228
2,104,462.00 2,247,228
Definitions of ratings

A: High credit This denote expectations of low default risk. The capacity for payment of financial commitments is considered
quality strong. This capacity may, nevertheless, be more vulnerable to adverse business or economic conditions than is the
case for higher ratings.

ANNUAL REPORT 2022/23 55

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GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

BBB: Good This indicates that expectations of default risk are currently low. The capacity for payment of financial commitments
credit quality is considered adequate, but adverse business or economic conditions are more likely to impair this capacity.

BB: This indicates an elevated vulnerability to default risk, particularly in the event of adverse changes in business or
Speculative economic conditions over time; however, business or financial flexibility exists that supports the servicing of financial
commitments.

B: Highly This indicates that material default risk is present, but a limited margin of safety remains. Financial commitments are
speculative currently being met; however, capacity for continued payment is vulnerable to deterioration in the business and
economic environment.
Not rated This indicates financial institutions or other counterparties with no available ratings and cash in hand.

A "+ "(plus) or "-" (minus) may be appended to a rating to indicate the relative position of a credit within the rating category. This is
based on Fitch national long-term issuer default ratings.
4.3.2 Credit related commitments risks
The Bank holds collateral against loans and receivables to customers in the form of bank guarantees and property. Estimates of fair
value are based on the value of collateral assessed at the time of borrowing, and generally are not updated except when a loan is
individually assessed as impaired.

4.3.3 Maximum exposure to credit risk before collateral held or credit enhancements
(a) Types of collateral or credit enhancement

The Bank holds collateral against certain of its credit exposures. The following table below sets out the principal types of collateral
held against different types of financial assets as at 30 June 2023 and 30 June 2022.

Maximum Secured
exposure to against real Plant and Motor
credit risk estate Machinery vehicles Others Total
Birr'000 Birr'000 Birr'000 Birr'000 Birr'000 Birr'000
30 June 2023

Cash and bank balances 2,104,462 -

Loans and advances to customers
- Agriculture 17,892 15,818 6,504 - - 22,322
- Construction 1,206,840 2,256,060 490,177 398,294 - 3,144,531
' - Domestic trade and services 3,994,209 4,545,296 1,254 23,363 1,506 4,571,419
- Export 5,772,581 4,150,618 559,180 1,058,104 5,767,902
- Import 766,892 2,149,566 107,333 528,785 930,805 3,716,489
- Manufacturing 788,752 221,569 3,699 517,659 133,308 876,235
- Transportation 417,331 13,121 - 495,518 508,639
- Individual loans 267,839 26,756 - 3,867 19,196 49,819
- Staff loans and advances 532,941 420,939 - 129,933 204,075 754,947
- Finance & Advance IFB 13,980 - - - - -
13,779,257 13,799,743 608,967 2,656,599 2,346,994 19,412,303
Investment securities:
- Loans and receivables 662,600
662,600 - - - - -
Other assets
- Receivable from other banks 79,929 - - - - -
- Export bills purchased 241,590 - - - - -
- Sundry receivables 106,165 - - - - -
427,684 - - - - # -
Loan commitments 457,750 - - - - -
Other commitments 5,150,651 - - - - -
22,582,404 13,799,743 608,967 2,656,599 2,346,994 19,412,303

56 ANNUAL REPORT 2022/23

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GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

Maximum Secured
exposure to against real Plant and Motor
credit risk estate Machinery vehicles Others Total
30 June 2022 Birr'000 Birr'000 Birr'000 Birr'000 Birr'000 Birr'000

Cash and bank balances 2,247,228 - - - - -

Loans and advances to customers - - -

- Agriculture 17,857 18,780 6,261 82,628 109,448 217,117

- Construction 945,232 1,688,046 101,964 - - 1,790,010
- Domestic trade and services 2,674,693 3,690,934 - 217,517 371,215 4,279,666

- Export 3,987,730 2,688,788 - 4,875 55,091 2,748,754

- Import 621,645 1,443,172 - 85,119 79,040 1,607,331
- Manufacturing 651,686 1,298,681 - 150,049 9,179 1,457,909
- Transportation 107,466 64,710 3,750 41,951 3,630 114,041
- Individual loans 129,549 104,479 - 37,300 23,109 164,888
- Staff loans and advances 347,747 246,398 - - - 246,398
9,483,605 11,243,988 111,975 619,439 650,712 12,626,114
Investment securities:
- Loans and receivables 986,600 - - - - -
986,600 - - - - -
Other assets
- Receivable from other banks 35,260 - - - - -
- Export bills purchased 331,623 - - - - -
- Sundry receivables 107,123 - - - - -
474,006 - - - - -
Loan commitments 19,313 - - - - -
Other commitments 4,127,664 - - - - -
17,338,416 11,243,988 111,975 619,439 650,712 12,626,114

Collateral held and their financial effect

i) Loans and advances to corporate customers

The general creditworthiness of a corporate customer tends to be the most relevant indicator of credit quality of a loan extended to
it. However, collateral provides additional security and the Bank generally requests that corporate borrowers provide it. The Bank
may take collateral in the form of a first charge over real estate, floating charges over all corporate assets and other liens and
guarantees.

collateral held against all loans to corporate customers. Valuation of collateral is updated when the loan is put on a watch list and the
loan is monitored more closely. For credit-impaired loans, the Bank obtains appraisals of collateral because it provides input into
determining the management credit risk actions.

At 30 June 2023, the net carrying amount of credit-impaired loans and advances to corporate customers amounted to ETB 19.40
billion (2023: ETB 19.40 billion) and the value of identifiable collateral held against those loans and advances amounted to ETB 13.77
billion (2023: ETB 13.77 billion). For each loan, the value of disclosed collateral is capped at the nominal amount of the loan that it is
ii) held against.securities designated as at FVTPL
Investment

At 30 June 2022, the Bank had no exposure to credit risk of the investment securities designated as at FVTPL

ANNUAL REPORT 2022/23 57

31
 PARTNER TO
YOUR GLORY
58 ANNUAL REPORT 2022/23
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

4.3.4 Loans and receivables at amortized cost

(a) Gross loans and receivables to customers per sector is analyzed as follows:

30 June 30 June
2023 2022
Birr'000 Birr'000

Agriculture 17,892 17,857

Construction 1,206,840 945,232
Domestic trade and services 3,994,209 2,674,693
Export 5,772,581 3,987,730
Import 766,892 621,645
Manufacturing 788,752 651,686
Transportation 417,331 107,466
Individual loans 267,839 129,549
Staff loans and advances 532,941 347,747
Finance & Advance IFB 13,980

13,779,257 9,483,605

(b) Gross loans and receivables to customers per National Bank of Ethiopia's impairment guidelines is analyzed as follows:

30 June 30 June
2023 2022
Birr'000 Birr'000

Pass 12,749,981 9,045,578

Special 607,288 296,210
mention
Substandard 100,423 58,918
Doubtful 158,824 67,060
Lost 162,741 15,839
13,779,257 9,483,605

The above table represents a worse case scenario of credit risk exposure of the Bank as at the reporting dates without taking
account of any collateral held or other credit enhancements attached. The exposures are based on net carrying amounts as reported
in the statement of financial position.

Management is confident in its ability to continue to control and effectively manage the credit risk exposure in the Bank's loan and
advances portfolio.

4.3.5 Amounts arising from ECL

i) Inputs, assumptions and techniques used for estimating impairment:-

ii) Significant increase in credit risk

When determining whether the risk of default on a financial instrument has increased significantly since initial recognition, the Bank
considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both
quantitative and qualitative information and analysis, based on the historical experience and expert credit assessment and
including forward-looking information.

The objective of the assessment is to identify whether a significant increase in credit risk has occurred for an exposure by
comparing:

of the exposure (adjusted where relevant for changes in prepayment expectations).

The Bank uses three criteria for determining whether there has been a significant increase in credit risk:

ANNUAL REPORT 2022/23 59

32
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

iii) Credit risk Grades

The Bank allocates each exposure to a credit risk grade based on a variety of data that is determined to be predictive of the risk of
default and applying experienced credit judgment. Credit risk grades are defined using qualitative and quantitative factors that are
indicative of risk of default. These factors vary depending on the nature of the exposure and the type of borrower.

Credit risk grades are defined and calibrated such that the risk of default occurring increases exponentially as the credit risk
deteriorates so, for example, the difference in risk of default between credit risk grades 1 and 2 is smaller than the difference
between credit risk grades 2 and 3. Each exposure is allocated to a credit risk grade on initial recognition based on available
information about the borrower. Exposures are subject to ongoing monitoring, which may result in an exposure being moved to a
different credit risk grade. The monitoring typically involves use of the following data;

a) Term loan exposures

and projections. Examples of areas of particular focus are: gross profit margins, financial leverage ratios, debt service coverage,
compliance

business activities

b) Overdraft exposures

iv) Generating the term structure of PD

Credit risk grades are a primary input into the determination of the term structure of PD for exposures. The Bank collects
performance and default information about its credit risk exposures analyzed by type of product and borrower as well as by credit
risk grading. The Bank employs statistical models to analyze the data collected and generate estimates of the remaining lifetime PD
of exposures and how these are expected to change as a result of the passage of time.

v) Determining whether credit risk has increased significantly

The Bank assesses whether credit risk has increased significantly since initial recognition at each reporting date. Determining
whether an increase in credit risk is significant depends on the characteristics of the financial instrument and the borrower.
The credit risk may also be deemed to have increased significantly since initial recognition based on qualitative factors linked to the

will be the case for exposures that meet certain heightened risk criteria, such as placement on a watch list. Such qualitative factors
are based on its expert judgment and relevant historical experiences.
As a backstop, the Bank considers that a significant increase in credit risk occurs no later than when an asset is more than 30 days
past due. Days past due are determined by counting the number of days since the earliest elapsed due date in respect of which full
payment has not been received. Due dates are determined without considering any grace period that might be available to the
borrower.
If there is evidence that there is no longer a significant increase in credit risk relative to initial recognition, then the loss allowance on
an instrument returns to being measured as 12-month ECL. Some qualitative indicators of an increase in credit risk, such as
delinquency or forbearance, may be indicative of an increased risk of default that persists after the indicator itself has ceased to
exist. In these cases, the Bank determines a probation period during which the financial asset is required to demonstrate good
behavior to provide evidence that its credit risk has declined sufficiently. When contractual terms of a loan have been modified,
evidence that the criteria for recognizing lifetime ECL are no longer met includes a history of up-to-date payment performance
against the modified contractual terms.

60 ANNUAL REPORT 2022/23

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GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

The Bank monitors the effectiveness of the criteria used to identify significant increases in credit risk by regular reviews to confirm
that:

ANNUAL REPORT 2022/23 61

GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

vi) Definition of default

The Bank considers a financial asset to be in default when:

realizing security (if any is held);

smaller than the current amount outstanding; or

to pay its credit obligations.

In assessing whether a borrower is in default, the Bank considers indicators that are:

reflect changes in circumstances.

The definition of default largely aligns with that applied by the Bank for regulatory capital purposes.

vii) Incorporation of forward-looking information

The Bank incorporates forward-looking information into both the assessment of whether the credit risk of an instrument has
increased significantly since its initial recognition and the measurement of ECL.

For each segment, the Bank formulates three economic scenarios: a base case, which is the median scenario, and two less likely

output, a measure of the predictive power of the model, as well as base macroeconomic projections for identified macroeconomic
variables for each sector. The upside and downside scenarios are based on a combination of a percentage error factor of each sector
model as well as simulated optimistic and pessimistic macroeconomic projections based on a measure of historical macroeconomic
volatilities.

External information considered includes economic data and forecasts published by Business Monitor International, an external and

Periodically, the Bank carries out stress testing of more extreme shocks to calibrate its determination of the upside and downside
representative scenarios. A comprehensive review is performed at least annually on the design of the scenarios by a panel of experts

The Bank has identified and documented key drivers of credit risk and credit losses for each portfolio of financial instruments and,
using an analysis of historical data, has estimated relationships between macro-economic variables and credit risk and credit losses.

4.3.6 Credit concentrations

Credit concentration indicates the relative sensitivity of the performance to developments affecting a particular industry or
geographical location. Excessive concentration arises when a number of counterparties are engaged in similar business activities or
activities in the same geographic region, or have similar economic features that would cause their ability to meet contractual
obligations to be similarly affected by changes in economic, political or other conditions.

The Bank monitors concentrations of credit risk by social sector. An analysis of concentrations of credit risk at 30 June 2023 and 30
June 2022 . The Bank concentrates all its financial assets in Ethiopia.

62 35 ANNUAL REPORT 2022/23

GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

Public
Enterprise Private Total
30 June 2023 Birr'000 Birr'000 Birr'000
Cash and bank Balances 1,405,759 698,703 2,104,462
Loans and Advances to Customers - - -
Investment securities:
- Available for sale - 119,381 119,381
- Loans and receivables 662,600 - 662,600
Other assets - 427,684 427,684
2,068,359 1,245,768 3,314,127
Public
Enterprise Private Total
30 June 2022 Birr'000 Birr'000 Birr'000

Cash and bank Balances 1,794,662 452,566 2,247,228

Loans and Advances to Customers - - -
Investment securities: -
- Available for sale - 66,425 66,425
- Loans and receivables 986,600 - 986,600
Other assets - 474,006 474,006

2,781,262 992,997 3,774,259

4.3.7 Commitments and guarantees

The maximum exposure to credit risk relating to a financial guarantee is the maximum amount the Bank could have to pay if the
guarantee is called upon. The maximum exposure to credit risk relating to a loan commitment is the full amount of the commitment.

30 June 30 June
2023 2022
Birr'000 Birr'000

Letters of credit 457,750 19,313

Guarantees issued 5,150,651 4,127,664

Total maximum exposure 5,608,401 4,146,977

4.4 Liquidity risk

Liquidity Risk is a risk that the Bank will encounter difficulty in meeting obligations from its financial liabilities. The approach to
managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both

4.4.1 Management of liquidity risk

Compliance with the regulatory framework is monitored consistently. The Licensing & Supervision of Banking Business Directive No
SBB/44/08 of the National Bank of Ethiopia provides that any licensed Bank should maintain liquid assets of not less than 25% of its
total current liabilities, which is the sum of demand deposits, saving deposits and time deposits and similar liabilities with less than
one-month maturity period. Weekly liquidity position showing end of week balance is required by the National Bank.

The Asset and Liability Management Committee (ALCO) is responsible for managing funding mismatches and attaining the desired
level of liquidity in the manner described in the risk management policy. The liquid assets are more than 15% of the total
current liabilities as required by the National Bank of directives. Moreover off-balance sheet commitments are within the
internal limits set by the Bank.

ANNUAL REPORT 2022/23 63

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GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

4.4.2 Maturity analysis of financial liabilities

The table below analyses the financial liabilities into relevant maturity groupings based on the remaining period at the
statement of financial position date to the contractual maturity date. The cash flows presented are the undiscounted amounts to be
settled in future.

0 - 30 31 - 90 91 - 180 181 - 365 Over 1

days days days days year

Birr'000 Birr'000 Birr'000 Birr'000 Birr'000

30 June 2023

Deposits from customers 1,275 410 893 1,693 9,717

Borrowings - 25 550 25 50
Other liabilities 334 407 35 47 301
Total financial liabilities 1,609 842 1,477 1,765 10,068

0 - 30 31 - 90 91 - 180 181 - 365 Over 1

days days days days year
30 June 2022 Birr'000 Birr'000 Birr'000 Birr'000 Birr'000

Deposits from customers 792,924 255,184 554,799 1,053,300 6,047,287

Borrowings 29,857 - - 26,975 150,000
Other liabilities 362,503 249,792 28,913 96,288 89,179
Total financial liabilities 1,185,284 504,976 583,713 1,176,563 6,286,465

4.5 Market risk

Market risk is the risk that changes in the market prices, such as interest rate, equity prices, and foreign exchange rates will affect
the future cash flows of the financial instruments. The objectives of market risk management are to manage and control
market risk exposures within acceptable parameters, while optimizing the return on risk.

4.5.1 Management of market risk

The main objective of Market Risk Management is to manage and control market risk exposures within acceptable parameters, while
optimizing the return on risk. Market risk is monitored regularly by the risk management department to identify any adverse
movement in the underlying variables.

64 37
ANNUAL REPORT 2022/23
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

(i) Interest rate risk

Interest rate risk is a risk resulting from changes in interest rates. It is the probability that the rising and falling of interest rates will
adversely affect the interest margin or the value of its net worth. The Bank often revises its lending rate across segments of
the credit portfolio based on the changes in the cost of funds, reserve requirements and the perceived risk in each credit portfolio
segment to keep the overall profitability.

ALCO is responsible for managing rate sensitivity assets and liabilities and the effects of rate, volume and mix changes in order to
preserve and optimize the interest return.

The investment portfolio is comprised of National Bank of Ethiopia bills and cash deposits. The table below sets out
information on the exposures to fixed and non-interest instruments.

Non-interest
30 June 2023 Fixed bearing Total
Birr'000 Birr'000 Birr'000
Assets
Cash and balances with banks 1,958,525 145,937 2,104,462
Loans and advances to customers 13,779,257 - 13,779,257
Investment securities 662,600 119,381 781,981
Other assets 321,519 95,413 416,932
Total 16,400,382 265,318 16,665,700

Liabilities
Deposits from customers 14,247,624 - 14,247,624
Other liabilities 538,286 - 538,286
Borrowings 667,475 - 667,475
Total 15,453,385 - 15,453,385

Non-interest
30 June 2022 Fixed bearing Total
Birr'000 Birr'000 Birr'000
Assets
Cash and balances with banks 1,925,968 321,260 2,247,228
Loans and advances to customers 9,483,604 - 9,483,604
Investment securities 986,600 66,425 1,053,025
Other assets 366,883 92,751 459,634
Total 12,396,172 387,685 12,783,857

Liabilities
Deposits from customers 10,985,146 - 10,985,146
Other liabilities 467,460 - 467,460
Borrowings 155,598 - 155,598
Total 11,608,204 - 11,608,204
(ii) Foreign exchange risk

Foreign exchange risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to the changes in
foreign exchange rates. Foreign exchange risks are controlled by maintaining balances in major currencies whose exchange rates
against the reporting currency are expected to appreciate. The National Bank controls exchange rates due to which the rates are not
fluctuating significantly.
The Bank is exposed to exchange rate risks to the extent of balances and transactions denominated in a currency other than the
Ethiopian Birr. The foreign currency bank accounts act as a natural hedge for these transactions. Management has set up a
policy to manage the Bank's foreign exchange risk against its functional currency.

The table below summarizes the impact of increases/decreases of 10% on equity and profit or loss arising from the Bank's foreign
denominated borrowings and cash and bank balances.

ANNUAL REPORT 2022/23 65

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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

Foreign currency denominated balances

30 June 30 June
2023 2022
Birr'000 Birr'000

Cash and bank balances 366,939 132,670

Other assets 241,590 331,623
Deposits from customers (102,895) 11,598
Other liabilities (443) (505,664)
505,191 (29,773)

Sensitivity analysis for foreign exchange risk

The sensitivity analysis for currency rate risk shows how changes in the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market rates at the reporting date. The sensitivity of the Bank's earnings to fluctuations in exchange
rates is reflected by varying the exchange rates at 10% as shown below:
Increase/
(decrease) 30 June 30 June
in basis 2023 2022
points Birr'000 Birr'000

USD 10% 61,055 (5,780)

USD 10% (61,055) 5,780

EUR 10% (10,548) 2,791

EUR 10% 10,548 (2,791)

GBP 10% 12 11
GBP 10% (12) (11)

4.6 Capital management

The objectives when managing capital are to comply with the capital requirements set by the National Bank of Ethiopia,
safeguard its ability to continue as a going concern so that it can continue to provide returns for the shareholders and benefits for
the other stakeholders, to maintain a strong capital base to support the current and future development needs of the business and
to comply with the capital requirements set by the National Bank of Ethiopia (NBE).

Based on the National Bank of Ethiopia requirement, the Bank was required to raise its paid-up capital to Birr 2 Billion.

4.6.1 Capital adequacy ratio

According to the Licensing & Supervision of Banking Business Directive No SBB/50/2011 of the National Bank of Ethiopia, the Bank
has to maintain capital to risk weighted assets ratio of 8% at all times, the risk weighted assets being calculated as per the provisions
of Directive No SBB/9/95 issued on August 18, 1995.

66 ANNUAL REPORT 2022/23

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GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

Capital includes capital contribution, legal reserve and other reserves to be approved by the National Bank of Ethiopia.

30 June 30 June
2023 2022
Birr'000 Birr'000
Capital and reserves
Share capital 2,032,523 1,628,055
Other equity (6,455) (6,455)
Legal reserve 412,430 281,664
2,438,498 1,903,264
Risk weighted assets
Risk weighted balance for on-balance sheet items 14,386,000 10,282,022
Credit equivalents for off-balance Sheet Items 1,121,680 829,395
15,507,680 11,111,417
Risk-weighted Capital Adequacy Ratio (CAR) 16% 17%
Minimum required capital 8% 8%
Excess 8% 9%
4.7 Fair value of financial assets and liabilities

IFRS 13 requires an entity to classify measured or disclosed fair values according to a hierarchy that reflects the significance of
observable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value
hierarchy, which comprises of three levels as described below, based on the lowest level input that is significant to the fair value
measurement as a whole.

4.7.1 Valuation models

IFRS 13 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or
unobservable. Observable input reflect market data obtained from independent sources; unobservable inputs reflect the Bank's
market assumptions.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value
hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole.

● Level 1: Inputs that are quoted market prices (unadjusted) in active markets for identical assets or liabilities.

●Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices) .This category includes instruments valued using: quoted market prices in active markets
for similar instruments; quoted prices for identical or similar instruments in markets that are considered less than active, or other
valuation technique in which all significant inputs are directly or indirectly observable from market data.

In conclusion, this category is for valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable.

● Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs). This category includes
all assets and liabilities for which the valuation technique includes inputs not based on observable date and the unobservable inputs
have a significant effect on the asset or liability's valuation. This category includes instruments that are valued based on quoted
prices for similar instruments for which significant unobservable adjustments or assumptions are required to reflect differences
between the instruments.

4.7.2 Financial instruments not measured at fair value

The following table summarizes the carrying amounts of financial assets and liabilities at the reporting date. The amounts are based
on the values recognized in the statement of financial position.

ANNUAL REPORT 2022/23 67

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GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

30 June 2023 30 June 2022

Carrying Carrying
amount Fair value amount Fair value
Birr'000 Birr'000 Birr'000 Birr'000
Financial assets

Cash and balances with banks 2,104,462 2,104,462 2,247,228 2,247,228

Loans and advances to customers 13,661,413 13,661,413 9,349,931 9,349,931
Investment securities:
-Financial asset at Fair value through
OCI - - - -
- Financial asset at Amortized cost
1,125,894 1,125,894 1,065,805 1,065,805
Other assets 427,684 427,684 474,006 474,006
Total 17,319,453 17,319,453 13,136,970 13,136,970

30 June 2023 30 June 2022

Carrying Carrying
amount Fair value amount Fair value
Birr'000 Birr'000 Birr'000 Birr'000
Financial liabilities
Deposits from customers 14,247,624 14,247,624 10,985,146 10,985,146
Borrowings 667,475 667,475 155,598 155,598
Other liabilities 538,286 538,286 467,460 467,460
Total 15,453,385 15,453,385 11,608,204 11,608,204

4.7.3 Fair value methods and assumptions

(a) Loans and advances to customers

Loans and advances to customers are carried at amortized cost net of provision for impairment. The estimated fair value represents
the discounted amount of estimated future cash flows expected to be received. Expected cash flows are discounted at current
market rates to determine fair value.

4.7.4

The Bank has no financial asset measured at fair value on subsequent recognition.

4.7.5 Transfers between the fair value hierarchy categories

During the reporting periods covered by these annual financial statements, there were no movements between levels as a result of
significant inputs to the fair valuation process becoming observable or unobservable.

4.8 Offsetting financial assets and financial liabilities

There are no offsetting arrangements. Financial assets and liabilities are settled and disclosed on a gross basis.

68 ANNUAL REPORT 2022/23

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GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

30 June
30 June 2023 2022
Birr'000 Birr'000
5 Interest income

Interest on Agriculture loans 3,134 4,707

Interest on Construction loans 205,853 181,369
Interest on Domestic trade and services 701,499 441,489
Interest on Export term loans 856,114 577,021
Interest on Import term loans 212,031 270,628
Interest on Manufacturing loans 107,975 115,622
Interest on Transportation loan 35,443 19,273
Interest on Staff loans and advances loans 47,347 29,681
Interest on Individual loans 24,353 12,026
Interest on Investment securities 80,172 66,385
Interest on fund placement 6,104 236

2,280,025 1,718,437

Included within various line items under interest income for 30 June 2023 is a total of Birr 2,280,025 millions
(30 June 2022: Birr 1,718,437 millions) relating to impaired financial assets.
The Bank does not have loan processing fee and the inspection fee collected from customers are immaterial.
Therefore, the contractual interest rate used by the bank is considered as effective interest rate.

30 June
30 June 2023 2022
Birr'000 Birr'000
6 Interest expense

Interest on Savings deposits 421,426 339,191

Interest on Special saving deposits 4,847 4,317
Interest on Fixed time deposits 649,967 448,125
Interest on Short term borrowings 54,389 6,668
Interest on Long term borrowings 10,517 15,017

1,141,146 813,318

30 June
30 June 2023 2022
Birr'000 Birr'000
7 Fee and commission income

Commission Income on CPO and FT 121 128

Commission on letters of credit 36,900 10,025
Commission on letter of guarantees issued 189,716 140,599
Commission on other financial services 1,421 1,206
Service charges 169,183 46,978

397,341 198,936

ANNUAL REPORT 2022/23 69

41
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

30 June
30 June 2023 2022
Birr'000 Birr'000
8 Other operating income

Penalty charge income 72,670 40,230

Dividend earned on investment 4,076 2,041
Swift charge 556 170
Estimation and inspection fees 1,411 644
Gain on foreign exchange dealings and fluctuations 201,339 139,385
Share subscription fee 8,352 4,743
Other income 44,029 13,690

332,433 200,903

30 June
30 June 2023 2022
Birr'000 Birr'000
9 Loan impairment charge

Loans and advances - charge or reversal for the year (note 15a) (15,830) 49,896

(15,830) 49,896

30 June
30 June 2023 2022
Birr'000 Birr'000
10 Impairment losses on off and on Balance Sheet Accounts ( IFRS9)

IFRs Impairment on NBE Bills 19 1

IFRs Impairment on Bank balance 2 33
IFRs Impairment on LCs & Guarantees 4 33
Other assets - charge for the year 1,716 2,345

1,741 2,412
30 June
30 June 2023 2022
Birr'000 Birr'000
11 Personnel expenses

Salaries and wages 463,908 277,435

Staff allowances 105,016 52,647
49,279 29,152
Pension costs - Defined benefit plans 7,700 3,190
Other staff expenses 113,383 66,855

739,286 429,279

70 ANNUAL REPORT 2022/23

42
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
30 June
30 June 2023 2022
Birr'000 Birr'000
12 Other operating expenses

Fuel and lubricants 4,754 1,940

Audit fees 315 373
Directors fee 840 970
Repairs and maintenance 25,405 15,472
Internet, broadband and website 7,909 8,862
Stationary, printing and office supplies 12,350 10,083
Rental expenses 345 1,379
Donations and gift 14,100 4,159
Entertainment 1,067 473
Transport and travelling expenses 6,469 5,402
Annual reception fees 8,143 3,455
Advertisement and publicity 2,196 2,655
Insurance 2,296 2,395
Representation allowance - 2,047
Swift charges 897 997
Legal and professional fees 4,173 843
Bank charges 1,136 362
Share commission fee 6,168 7,760
Security expenses - 6
Wages for non-employees 720 1,047
Loss on foreign exchange dealings and fluctuations 189,268 245,674
Sundry expenses 18,007 17,785

306,558 334,139
30 June
30 June 2023 2022
Birr'000 Birr'000
13 Current income tax and deferred tax
13a Current income tax
Company income tax 173,085 93,169
Prior year (over)/ under provision - -
Capital gains tax - -
Tax on foreign deposit interest - -
Deferred income tax/(credit) to profit or loss - -
Total charge to profit or loss 173,085 93,169
Tax (credit) on other comprehensive income (3,239) 679
Total tax in statement of comprehensive income 169,846 93,848

ANNUAL REPORT 2022/23 71

GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
13b Reconciliation of effective tax to statutory tax
The tax on the profit before income tax differs from the theoretical amount that would arise using the
statutory income tax rate as follows:
30 June
30 June 2023 2022
Birr'000 Birr'000
Profit before tax 696,146 370,330

Add: Disallowable expenses

Entertainment 1,067 473
Donation 12,724 3,132
Gift & Award 1,376 1,028
Penalty 4,903 4,669
Unrealized Foreign Exchange Loss 308 -
Accrued Leave Expense for Budget year 2022/23 11,496 4,125
Severance pay as per IFRS actuarial valuation estimate 7,700 3,190
Depreciation in the Right of use Asset and Interest expense on
lease liability as per IFRS 16 102,896 90,624
Provision for other asset variation between IFRS 9 & NBE 1,741 2,412
Provision for loans and advances variation between IFRS 9 & NBE - 49,896
Provision for on and off balance sheet as per IFRS9 15 11
Depreciation and amortization for accounting purpose 41,520 34,477

Total Disallowable expenses 185,746 194,037

Less: Allowable expenses
Depreciation for tax purposes (49,054) (44,486)
Unrealized Foreign Exchange Gain 76 -
Provision for loans and advances Allowable at 80% (50,125) (38,791)
Provision for other assets Allowable at 80% 4,286 925
Amortization of prepaid office rent (115,898) (101,254)
Dividend income taxed at source (4,076) (2,041)
Interest income taxed at source (86,276) (65,478)
Accrued Leave Actually paid for Budget year 2022/23 (3,874) (2,679)
Sub total (304,942) (253,805)

Taxable profit 576,950 310,562

Taxable profit at 30% 173,085 93,169
Withholding tax paid - -
Current tax 173,085 93,169

30 June
30 June 2023 2022
13c Current income tax liability (Contd) Birr'000 Birr'000

Balance at the beginning of the year 93,169 67,389

Charge for the year:
Education tax - -
Capital gains tax - -
Income tax expense 173,085 93,169
Prior year (over)/ under provision - -
WHT Notes utilized - -
Payment during the year (93,169) (67,389)

Balance at the end of the year 173,085 93,169

44
72 ANNUAL REPORT 2022/23
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

13d Deferred income tax

Deferred income tax assets/(liabilities) are recognized only to the extent that it is probable that future taxable
profit will be available against which the temporary differences can be utilized. Deferred tax assets/(liabilities) of
Birr 9.91 million and 6.68 million for the Bank have not been recognized as at 30 June 2023 and 30 June
2022 respectively.

30 June
30 June 2023 2022
Birr'000 Birr'000

The analysis of deferred tax assets/(liabilities) is as follows:

To be recovered after more than 12 months 9,919 6,680

To be recovered within 12 months - -

9,919 6,680

Deferred income tax assets and liabilities, deferred income tax charge/(credit) in profit or loss ("P/L), in equity
and other comprehensive income are attributable to the following items:
Deferred income Credit/ Credit/ (charge)
tax At '30 June (charge) to to equity 30 June
assets/(liabilities): 2022 P/L 2023
Birr'000 Birr'000 Birr'000 Birr'000

Property, plant and equipment 5,487 - - 5,487

Provisions - - - -
Unrealized exchange gain - - - -
Tax losses charged to profit or loss - - - -
Post employment benefit obligation 1,193 - 3,239 4,432
Total deferred tax assets/(liabilities) 6,680 - 3,239 9,919

30 June
30 June 2023 2022
Birr'000 Birr'000
14 Cash and bank balances

Cash in hand 145,937 321,260

Balance held with National Bank of Ethiopia 1,405,759 1,794,662
Deposits with local banks 193,006 5,089
Deposits with foreign banks 359,760 126,217
Gross amount 2,104,462 2,247,228

30 June
Maturity analysis 30 June 2023 2022
Birr'000 Birr'000

Current 1,145,213 1,206,979

Non-Current 959,249 1,040,249

2,104,462 2,247,228

ANNUAL REPORT 2022/23 45 73

GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

Included in balance held with National Bank of Ethiopia (NBE) is the cash reserve requirement of the NBE.
These balances are subject to regulatory restrictions and therefore are not available for day to day operations
by the Bank and have been excluded for cash flow purposes.

14a Cash and cash equivalents (contd)

Cash and cash equivalents include the following for the purposes of the statement of cash flows:

30 June
30 June 2023 2022
Birr'000 Birr'000

Balance as above 2,104,462 2,247,228

Cash reserve held with the National Bank of Ethiopia (959,249) (1,040,249)

1,145,213 1,206,979
14b Impairment allowance on Bank balance (IFRS9)

A reconciliation of the allowance for impairment losses for Bank Balance is as follows:
30 June
30 June 2023 2022
Birr'000 Birr'000
Bank Balance at the ending of the year 2,104,462 2,247,228
(Reversal)/charge for the year (98) (96)

Balance at the end of the year 2,104,364 2,247,132

30 June
30 June 2023 2022
Birr'000 Birr'000
15 Loans and advances to customers
Agriculture 17,892 17,857
Construction 1,206,840 945,232
Domestic trade and services 3,994,209 2,674,693
Export 5,772,581 3,987,730
Import 766,892 621,645
Manufacturing 788,752 651,686
Transportation 417,331 107,466
Individual loans 267,839 129,549
Staff loans and advances 532,941 347,747
Finance & Advance IFB 13,980 -
Gross amount 13,779,257 9,483,604
Less:
IFRS Impairment allowance (note 15a and 15b)
stage 1 (20,405) (3,936)
stage 2 (432) (727)
stage 3 (97,007) (129,010)
13,661,413 9,349,931

30 June
Maturity analysis 30 June 2023 2022
Birr'000 Birr'000
Current 2,760,036 2,760,036
Non-Current 11,019,221 6,723,568
13,779,257 9,483,604

46

74 ANNUAL REPORT 2022/23

GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

Impairment allowance on loans and advances to customers as per IFRS 9 - See accounting policy in Note 2.4.
15a (c)

A reconciliation of the allowance for impairment losses for loans and advances to customers by class, is as
follows:

As at 30 June Charge for As at 1 July Charge for the As at 30

2021 the year 2022 year June 2023
Birr'000 Birr'000 Birr'000 Birr'000 Birr'000
IFRS Impairment
stage 1 16,447 (12,511) 3,936 16,469 20,405
stage 2 699 27 727 (295) 432
stage 3 66,630 62,380 129,010 (32,004) 97,007
Total Impairment allowance 83,777 49,897 133,673 (15,830) 117,844

30 June
30 June 2023 2022
Birr'000 Birr'000
16 Investment securities:

Financial asset at Fair value

through OCI
Equity Investments 119,381 66,425
- -
Financial asset at Amortized
cost (2023-Loans and
receivables): - -
Investment in National Bank of Ethiopia (NBE) bills - -
Investment in National Bank of Ethiopia Treasury Bills 662,600 986,600
Investment in Development Bank of Ethiopia (DBE) Bond 168,875 79,205
Investment in National Bank of Ethiopia Treasury Bond 294,419 -

1,125,894 1,065,805
Gross amount 1,245,275 1,132,230

30 June
Maturity analysis 30 June 2023 2022
Birr'000 Birr'000
Current 12,519 12,519
Non-Current 1,232,756 1,119,711

1,245,275 1,132,230

ANNUAL REPORT 2022/23 75

GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
16a The Bank equity investment comprises
30 June 2023 30 June 2022
Actual Cost Actual Cost of
of Equity Fair value Equity Fair value
Birr'000 Birr'000 Birr'000 Birr'000

Eth-Switch Solution Share co. 18,233 103,617 14,480 60,877

Lucy Insurance Company 8,843 11,158 6,106 3,850
ET Inclusive Finance Technology S.C. 1,064 234 1,064 629
Addis Africa Int. Convention & Exhibition Center 5,000 1,739 1,250 1,068
Capital Financial Excellence Center 2,000 2,123 - -
Zemen Insurance S.co 510 510 - -

Total 35,648 119,381 22,900 66,425

Summary on the Bank's equity Investment

Birr'000
Movement in Fair value less current
acquired equity (Unrealized Gain/(Loss) due
Additional equity acquired Fair Value to remeasurement-OCI)
Fair Value 2022 during the period -2023 2023 2023

66,425.11 12,748 119,381 40,208

During the period the Bank acquired equity investemnts for the amount of Birr 12,748,000 in different
companies.
The fair value of the unquoted equity securities carried at cost has been reliably estimated for the three equity
Investments as at June 30, 2023.
The Bank hold equity investments in Eth-switch of 1.94% (30 June 2023: 1.94%), Lucy Insurance Share
Company of 4.81% (30 June 2023: 4.81%) , ET Inclusive Finance Technology S.C. of 1.09% (30 June 2023:
1.09%), Addis Africa International convention & exhibition center of 0.30% (30 June 2023: 0.30%) and Capital
Financial Excellence Center S.C of 3.24% (30 June 2023: 3.24%).
16b Impairment allowance on NBE Bills (IFRS9)
A reconciliation of the allowance for impairment losses for NBE Bill is as follows:
30 June
30 June 2023 2022
Birr'000 Birr'000
NBE Treasury Bill Balance at the beginning of the year 662,600 986,600
(Reversal)/charge for the year (35) (54)
Balance at the end of the year 662,565 986,546

intention is to hold these investments to maturity and they are not held for trading. The reconciliation section
present NBE Bill at cost less impairment.
30 June
30 June 2023 2022
Birr'000 Birr'000
17 Other assets
Financial assets
Receivable from other banks 79,929 35,260
Export bills purchased 241,590 331,623
Sundry receivables 106,165 107,123
Gross amount 427,684 474,006
Less: Impairment allowance (note 17a)-(i),14b,16b (10,752) (14,372)
416,932 459,634

48
76 ANNUAL REPORT 2022/23
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

Non-financial assets

Prepaid staff expense 165,172 66,144

Prepayments 363,109 133,241
Inventory 22,845 15,745
Assets waiting for resale 144,307 55,117
Gross amount 695,433 270,247

Gross amount 1,112,365 729,881

30 June
Maturity analysis 30 June 2023 2022
Birr'000 Birr'000

Current 561,239 514,751

Non-Current 551,126 215,130

1,112,365 729,881

17a Impairment allowance on other financial assets

I) A reconciliation of the allowance for impairment losses for other assets is as follows:
30 June
30 June 2023 2022
Birr'000 Birr'000
Balance at the beginning of the year (14,222) (11,809)
(Reversal)/charge for the year (note 10) 3,603 (2,413)
Balance at the end of the year (10,619) (14,222)

For assessing impairment loss for other financial asset especially receivables, the bank used both historical
ageing trend analysis and qualitative assessment.

17b Inventory

A breakdown of the items included within inventory is as follows:

30 June
30 June 2023 2022
Birr'000 Birr'000

Cheque book 2,113 1,010

Other supplies 7,617 7,059
Stationary 13,115 7,676

22,845 15,745

17c Impairment allowance on off balance sheet Accounts

I) A reconciliation of the allowance for impairment losses for LC & Financial Guarantees is as follows:
30 June
30 June 2023 2022
Birr'000 Birr'000
Balance at the beginning of the year (11) (44)
(Reversal)/charge for the year (4) 33
Balance at the end of the year (15) (11)

49
ANNUAL REPORT 2022/23 77
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

Software
Purchased Developed under
software software development Total
Birr'000 Birr'000 Birr'000 Birr'000
18 Intangible Assets
Cost:
As at 1 July 2022 22,864 - - 22,864
Acquisitions - - - -
Internal development
Transfer from property, plant and equipment
As at 30 June 2023 22,864 - - 22,864

Accumulated amortization and impairment losses

As at 1 July 2022 20,843 - - 20,843

Amortization for the year 683 - - 683
Impairment losses -
As at 30 June 2023 21,526 - - 21,526

Net book value

As at 30 June 2022 2,021 - - 2,021
As at 30 June 2023 1,338 - - 1,338

The Bank considers its software's (Fex Cube core banking solution, Cheque Point, and Kaspersky anti-virus) as
part of intangible assets. The Bank did not have capitalized borrowing costs related to the internal development
of software and software under development during the reporting years (30 June 2023 and 30 June 2022 ).

Office and Computer

other Motor Furniture and
equipment vehicles and fittings accessories Premises Total
Birr'000 Birr'000 Birr'000 Birr'000 Birr'000 Birr'000

19 Property, plant and equipment

Cost:

As at 1 July 2022 62,412 90,407 79,238 85,169 93,452 410,678

Additions 14,490 28,833 41,257 33,072 - 117,652
Disposals (678) (2,055) (567) (916) - (4,216)
Reclassification - - - - - -

PPE Loss due to fire Damage - - - - - -

As at 30 June 2023 76,224 117,185 119,928 117,325 93,452 524,114
Accumulated depreciation
As at 1 July 2022 21,163 33,747 18,272 35,117 2,233 110,532
Charge for the year 8,986 8,930 8,451 12,694 1,776 40,837
Disposals (623) (1,761) (287) (613) - (3,284)
PPE Loss due to fire Damage - - - - - -
As at 30 June 2023 29,526 40,916 26,436 47,198 4,009 148,085

Net book value

As at 30 June 2022 41,249 56,660 60,966 50,052 91,219 300,146
As at 30 June 2023 46,698 76,269 93,492 70,127 89,443 376,029

50
78 ANNUAL REPORT 2022/23
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

20 Right of Use Assets and Financial Lease Obligation

The Bank Leases a number of asset including Buildings office use. Information regarding leases for which the
Bank as a Lessee has been presented below:

i. Right of Use Assets:

Building Total
Cost Birr'000 Birr'000

Balance at 01 July 2022: 526,559 526,559

Additions during the period 124,917 124,917

Balance at 30 June 2023 651,476 651,476

Depreciation:

Balance as at 01 July 2022 209,053 209,053

Additions during the period 99,232 99,232
Balance at 30 June 2023 308,285 308,285
Net Carrying Value as at 2022 317,506 317,506
Net Carrying Value as at 2023 343,191 343,191

ii. Finance Lease Obligation: Building Total

Birr'000 Birr'000
Cost
Balance at 01 July 2022: 20,800 20,800

Deductions during the period (27,207) (27,207)

Balance at 30 June 2023 (6,407) (6,407)

Interest

Balance as at 01 July 2022 19,790 19,790-

Additions during the period 3,664 3,664
Balance at 30 June 2023 23,454 23,454

Net Carrying Value as at 2022 40,590 40,590

Net Carrying Value as at 2023 17,047 17,047

The Bank recognizes lease liability at the present value of the lease payments that are not paid at that date. Bank
uses incremental borrowing rate that is based on the weighted average cost of deposits across the years. The
rates to compute present values of buildings lease liabilities as at 30 June 2023 was 13.85%.

Bank leases for its office space and branches. The Building leases typically run for a period between 1 and 10
years with majorities of contracts running for 5 years.

ANNUAL REPORT 2022/23 79

GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

30 June
30 June 2023 2022
Birr'000 Birr'000
21 Deposits from customers

Demand deposits 1,981,937 1,524,041

Savings deposits 6,325,518 5,267,750
Special savings deposits 164,817 164,452
Fixed time deposits 5,775,352 4,028,903

14,247,624 10,985,146

22 Borrowings
30 June
30 June 2023 2022
Birr'000 Birr'000

Short term borrowings 563,776 59

Long term borrowings 103,699 155,539

667,475 155,598
22a Reconciliation of bank borrowings

A reconciliation of the changes in borrowings is as follows:

30 June
30 June 2023 2022
Birr'000 Birr'000

Balance at the beginning of the year 155,598 206,832

Proceeds from borrowings 667,475 155,598
Repayment of borrowings (155,598) (206,832)

Balance at the end of the year 667,475 155,598

30 June
30 June 2023 2022
Birr'000 Birr'000
23 Other liabilities

Financial liabilities
Account payable special 206,274 385,623
C.P.O's and certified cheques issued 34,144 12,111
Blocked account 2,852 467
Margin on letters of credit 265,948 26,550
Old drafts and payments out 2,769 2,588
MTS And TTS Payable 20,749 9,490
Exchange commission payable To NBE 3,051 2,359
Audit fee 315 373
Board of Directors fee 2,184 379
Dividend payable - 27,520
538,286 467,460

80 ANNUAL REPORT 2022/23

GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
30 June
30 June 2023 2022
23 Other liabilities (Contd) Birr'000 Birr'000
Non-financial liabilities

Defined contribution liabilities 7,586 3,604

Accrual for leave liability 16,904 9,282
Provision for bonus payment 63,424 40,000
Stamp duty charges 5,283 1,083
Other tax payable 18,781 13,881
Deferred revenue 98,488 71,448
Sundry payable 6,522 116
Withholding tax and Valued added tax payables 6,278 322
Financial guarantee & LCs impairment - (Off Balance sheet ) 15 11
223,281 139,747

Gross amount 761,567 607,207

30 June
Maturity analysis 30 June 2023 2022
Birr'000 Birr'000

Current 701,114 575,980

Non-Current 60,453 31,227

761,567 607,207

30 June 30 June
2023 2022
Birr'000 Birr'000
24 Retirement benefit obligations
Defined benefits liabilities:
33,870 15,372
Liability in the statement of financial position 33,870 15,372

Income statement charge included in personnel expenses:

10,496 5,253
Total defined benefit expenses 10,496 5,253

Remeasurements for:
(7,559) 1,584
(7,559) 1,584
24a Retirement benefit obligations
The income statement charge included within personnel expenses includes current service cost, interest
cost, past service costs on the defined benefit schemes.
Maturity analysis 30 June 2023 30 June 2022
Birr'000 Birr'000

Current - -
Non-Current 33,870 15,372

33,870 15,372

ANNUAL REPORT 2022/23 81

GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

The employee benefit plan is made up of two (2) unfunded schemes which are severance benefits that
are paid on voluntary withdrawal and retirement gratuity paid on retirement. These plans have been
aggregated in determining the retirement benefit obligation as the inherent risks applicable to these plans
have been assessed not to be materially different.

The key financial assumptions are the discount rate and the rate of salary increases. The provision for
gratuity was based on an independent actuarial valuation performed by QED Actuaries & Consultants
(Pty) Ltd using the projected unit credit method.

The Bank does not maintain any assets for the schemes but ensures that it has sufficient funds for the
obligations as they crystallise.

Severance gratuity
(i) benefit
The severance benefits are based on statutory severance benefits in Ethiopia. The statutory severance
benefits are set out in Labour Proclamation No. 1156/2019. This benefit is summarised below:

Clause 39 (1) (h) of the Labour Proclamation sets out that any worker who has completed their probation
and who is not eligible for pension is entitled to a severance benefit:

h) Where he has given service to the employer for a minimum of five service and his contract of
employment is terminated because of sickness or death or his contract of employment is terminated on
his own initiative provided that he has no contractual obligation relating to training to render service to
the employer

Clause 40 of the Labour Proclamation sets out the amount of the benefit, as follows:
The benefit applicable would be:
thirty times the average daily wages of their last week of service for the first year of service, with part-
years pro-rata, plus
ten times the average daily wages of their last week of service for each completed year of service after
the first.

To a maximum of one wages payable to the member.Where the Company closes or reduces its
work force, an additional multiple of sixty times the average daily wages of their last week of service is
payable.
Bank Paid Benefits
The bank valued severance benefits payable on death or resignation after a minimum of 5
only for all employees, as it has been confirmed that this is applied by the Bank.
Furthermore, one salary is divided by 30 to get the daily salary applied in the severance benefit
calculation.

(ii) Retirement gratuity scheme

Age 60 for all employees is the normal retirement age.

Under this scheme, employees who reach the retirement age are paid for two month of salary.
The following tables summarise the components of net benefit expense recognised in the statement of
profit or loss and other comprehensive income and in the statement of financial position for the
respective plans:
30 June
30 June 2023 2022
Birr'000 Birr'000

A Liability recognised in the financial position 33,870 15,372

30 June 2023 30 June 2022

B Amount recognised in the profit or loss Birr'000 Birr'000

Current service cost 2,558 2,818

Interest cost 3,902 2,435
Past Service Cost 4,036
10,496 5,253

54
82 ANNUAL REPORT 2022/23
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
24a Retirement benefit obligations
30 June 2023 30 June 2022

C Amount recognised in other comprehensive income: Birr'000 Birr'000

Remeasurement (gains)/losses arising from changes in

Economic assumptions (948) 486
Remeasurement (gains)/losses arising from changes in the
financial assumptions (9,850) 1,777
(10,798) 2,263
Deferred tax (liability)/asset on remeasurement gain or loss 3,239 (679)

(7,559) 1,584

D Changes in the present value of the defined benefit obligation

30 June
30 June 2023 2022
Birr'000 Birr'000
At the beginning of the year 18,926 14,445
Current service cost 2,558 2,818
Interest cost 3,902 2,435
Past Service Cost 4,036
Remeasurement (gains)/losses arising from changes in
Economic assumptions 948 (486)
Remeasurement (gains)/losses arising from changes in the
financial assumptions (9,850) 1,777
Benefits paid (2,796) (2,063)

At the end of the year 17,724 18,926

24a Retirement benefit obligations (Contd)

E The principal assumptions used in determining defined benefit obligations
30 June 30 June
2023 2022
Birr'000 Birr'000

Discount rate(p.a) 20.70% 23.60%

Inflation rate(p.a) 15.10% 17.30%
Long term salary increases(p.a) 17.10% 19.30%
Net pre-retirement rate 3.07% 3.60%
(i) Discount rate

IAS19 requires that the discount rate be set based on the yields of appropriate term high quality
corporate bonds. If no deep market in such bonds is available, accounting standards require that the yield
on government bonds of appropriate term be applied in the setting of this assumption.

In Ethiopia, there is neither a deep market in corporate nor government bonds. There have been auctions
of short-term treasury bills since 2019, although we note that the longest dated treasury bill is only 180
days. This is significantly shorter than the duration of the liabilities.

For previous valuations we have used the yields derived from the zero-coupon government bond yield

sovereign credit rating has been downgraded, meaning that theoretically there should be a country risk
premium between instruments in Kenya and Ethiopia to compensate investors for the additional risk now
present in Kenya.
QED Actuaries & Consultants (Pty) Ltd have obtained the country risk premia for Kenya and Ethiopia from
Damodaran Online, which is a widely used source for relative risk premia. The relative country risk premia
for Kenya and Ethiopia
(relative to the USA) are as follows:

ANNUAL REPORT 2022/23 83

GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Ethiopia Country Risk Kenya Country Risk
Premium Premium Difference
15.54% 9.49% 6.05%

In addition to the sovereign rating differential between Kenya and Ethiopia, we would expect the yields on
instruments in these countries to reflect the difference in expected inflation between these countries
too.

consider general economic conditions in each country, which include future projections of inflation..
The actual and projected inflation rates from these reports are as follows:

From the table above it can be seen that the inflation differential between Kenya and Ethiopia is expected
to be around 23% for 2023 but tending towards 7.4% in the longer term..

Combining the country risk premium, the future longer term inflation differential, and the yields on
Kenyan government bonds results in a set of discount rates which are based on Kenyan bonds but
adjusted to allow for the relative differences in risk and inflation between the two countries.
The resulting discount rate was rounded to the nearest 0.1%.

(ii) Inflation rate

We note that inflation in Ethiopia has been volatile in recent years leading up to the valuation dates. In
addition, there are no index-linked government bonds or securities which could provide a market-based
indication of future inflation..

In order to determine an estimate of long-term future inflation, we have considered historical inflation,
projections made by the IMF, and we consider a country risk premium approach to countries where
market-determined projections are available..

Based on data provided by the IMF (and shown under A 3.4 above), inflation over the last 3 years has
exceeded the 10% target cap of government, and even longer-term trends are expected to exceed this.
We have applied the average projected IMF inflation for 2023 to 2027 to determine the projected long-
term inflation in a manner consistent with the setting of the discount rate.

Long term Salary

(iii) increases

Future salary increases are usually linked with a long-term future inflation assumption, plus a margin in
respect of merit or promotional increases. In the long term, salary will increase by 2% higher than the
assumed long-term inflation rate on average, as previously advised by the Bank.

84 ANNUAL REPORT 2022/23

GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
(iv) Pre-retirement Mortality rate

Mortality rates are commonly set with reference to standard tables published by reputable institutions
(such as the Actuarial Society of South Africa and the Ethiopian Insurers. Association) who have access
to statistically significant data from which to derive mortality rates.
In determining an appropriate mortality table to use for the valuations, we have used the same approach
as for the previous valuation, by considering the mortality rates published in Demographic and Health
Survey 2016 report compiled by the CSA. The DHS report provides male and female mortality
rates for 5-year age bands from age 15 to age 49. Since
the rates are provided in 5-year bands, we have used the rates provided per band as the mortality rate
for the age in the middle of each band and interpolated linearly for rates in between these ages.
No more recent or credible Ethiopian based adult mortality studies are available; so, we have maintained
the DHS 2016 table.
For ages over 47 we assumed that mortality will be in line with the SA85/90 ultimate standard South
African mortality tables published by the Actuarial Society of South Africa since the rates in
these tables are similar to the DHS female mortality rate at age 47.
Sample mortality rates are shown in the table below:
Males Females
20 0.00306 0.00223
25 0.00303 0.00228
30 0.00355 0.00314
35 0.00405 0.00279
40 0.00515 0.00319
45 0.0045 0.00428
50 0.00628 0.00628
55 0.00979 0.00979
60 0.01536 0.01536

(v) Resignations
Generic resignation rates that assume that fewer employees resign as they get older has been applied.
The resignation rates decrease by 2.5% for each age from 15% at age 20 (and below) to 0% at age 50. No
specific allowance for retrenchments were made in the valuation assumptions as the Bank is not aware
or specifically planning on such action in the near future.
(vi) Duration
The duration of the liabilities, on which the assumptions have been set, was calculated to be 7 years on
the current valuation assumptions and data.
F Quantitative sensitivity analysis for significant assumption
The sensitivity of the main results to changes in the principal assumptions rate have been calculated. The
changes in the 30 June 2023 Defined Benefit Obligation are reflected below
30 June 2023
DBO on
Base DBO changed
assumptions
Sensitivity % change ETB '000 ETB '000
Discount rate + 1% -6.1% 33,870 31,789
Discount rate - 1% 6.6% 33,870 36,106

Salary increase +
Salary
1% increase - 6.8% 33,870 36,157
1% -6.4% 33,870 31,709
The sensitivity of the main results to changes in the assumed salary escalation rates and the discount
rate have been calculated based on the duration of the liabilities. The changes in the 30 June 2021
Defined Benefit Obligation are reflected below:
30 June 2022
DBO on
Base DBO changed
assumptions
Sensitivity % change ETB '000 ETB '000
Discount rate + 1% 5.0% 15,372 14,602
Discount rate - 1% 5.3% 15,372 16,189
Salary increase
increase+ - 5.5% 15,372 16,212
1% 5.2% 15,372 14,569

ANNUAL REPORT 2022/23 57 85

GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
The above sensitivity analysis is based on a change in an assumption while holding all other assumptions
constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated.
When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the
same method (present value of the defined benefit obligation calculated with the projected unit credit
method at the end of the reporting period) has been applied as when calculating the pension liability
recognised within the statement of financial position.

The projected benefit payments for the next 5 years have been estimated as follows:
30 June
30 June 2023 2022
Birr'000 Birr'000

Within the next 12 months (next annual reporting period)

Year ending 30 June 2023 1,719
Year ending 30 June 2024 2,979 2,288
Year ending 30 June 2025 4,640 3,564
Year ending 30 June 2026 6,508 4,997
Year ending 30 June 2027 9,623 6,816
Year ending 30 June 2028 12,088 -

Total projected benefit payments over 5 years 35,838 19,384

G Risk exposure
The liabilities are in respect of an unfunded defined benefit promise, providing promised benefits to
employees on retirement, death, or resignation. The benefits are based on service to the Bank and salary
at the time of exit.

(i) Inflation risk:

if salary increases are significantly higher than assumed the ultimate benefits will be higher, leading to
higher costs to the Bank

(ii) Demographic risk:

If fewer employees resign or die with less than 5 years of service than expected the cost to the Bank will

(iii) Cash Flow risk:

Similarly, if more employees leave in a particular period than expected, the Bank will need to allocate
additional cashflows to pay for the benefits;

(iii) Discount rate risk:

If bond yields drop significantly from year to year, the liabilities and costs will increase. This will not

(iv) Discount rate risk:

If the data provided in respect of the employees or benefits is incomplete or incorrect, the liabilities and
costs may be different than estimated.
30 June
2023 30 June 2022
Birr'000 Birr'000
25 Share capital
Authorised:
Ordinary shares of Birr 1,000 each 5,000,000 5,000,000

Issued and fully paid:

Ordinary shares of Birr 1,000 each 2,032,523 1,628,055

The authorized share capital of the Bank is Birr 5 Billion comprising 5,000,000 ordinary shares at par
value of Birr 1,000 each. The total subscribed shares at the balance sheet date is Birr 2,565,606 out of
which Birr 2,032,522 (June 2022: Birr 1,628,055) is fully paid.

86 ANNUAL REPORT 2022/23

58
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

26 Earnings per share

Basic earnings per share (EPS) is calculated by dividing the profit after taxation by the weighted average
number of ordinary shares in issue during the year.
30 June
30 June 2023 2022
Birr'000 Birr'000

Profit attributable to shareholders 523,061 277,161

Adjusted Profit attributable to shareholders 523,061 277,161
Weighted average number of ordinary shares in issue 1,790 1,525

Basic & diluted earnings per share (Birr) 292 182

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares
outstanding to assume conversion of all dilutive potential ordinary shares. There were no potentially
dilutive shares at the reporting date (30 June 2021:nil, 30 June 2022: nil), hence the basic and diluted
loss per share have the same value.

30 June
30 June 2023 2022
Birr'000 Birr'000
27 Other equity/Treasury shares/

At the beginning of the year 6,455 6,435

Acquisition of shares by the Bank - 20
Resale of shares
At the end of the year 6,455 6,455

Treasury shares are shares in Global Bank Ethiopia that are held by foreign nationals of Ethiopian origin for
which the National Bank of Ethiopia issued guideline No. FIS/01/2016 for the relinquishment of those
shares. No gain or loss is recognised in equity for the sale or purchase of these shares.

ANNUAL REPORT 2022/23 87

GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
28 Other reserves
30 June
30 June 2023 2022
Defined Benefit Plan Birr'000 Birr'000

At the beginning of the year (2,782) (4,366)

Re-measurement gains on defined benefit plans (net of tax) - (Note 23) (7,559) 1,584

At the end of the year (10,341) (2,782)

30 June
30 June 2023 2022
Fair value reserve Birr'000 Birr'000

At the beginning of the year 43,525 19,692.00

FV through OCI Financial assets-Unrealized

gain arising from measurement at fair value - -
FV through OCI Financial assets- Unrealized
gains /loss from measurement at fair value 40,206 23,833
At the end of the year 83,731 43,525

Total Other Reserve 73,390 40,743

The fair value reserve arises from marking to market of investment securities classified under FVTOCI
(2018-AFS) category. The reserves are recognized in income statement once the underlying asset has
been derecognized. This amount is not available for distribution.

30 June
30 June 2023 2022
Birr'000 Birr'000
29 Retained earnings

At the beginning of the year 193,208 113,769

Prior years tax adjustment - -

Adjustment related to variation between NBE
provisions and IFRS Impairment (93,148) (14,662)
Dividend paid (193,208) (113,769)
Transfer to legal reserve (130,765) (69,290)
Profit/ (loss) for the year 523,061 277,161
Directors Allowances' (2,184) -

At the end of the year 296,964 193,208

88 ANNUAL REPORT 2022/23

GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
30 June
30 June 2023 2022
Birr'000 Birr'000
30 Legal reserve
At the beginning of the year 281,664 212,374
Transfer from profit or loss 130,765 69,290
At the end of the year 412,430 281,664

The NBE Directive No. SBB/4/95 requires the Bank to transfer annually 25% of its annual net profit to its
legal reserve account until such account equals its capital. When the legal reserve account equals the
capital of the Bank, the amount to be transferred to the legal reserve account will be 10% (ten percent) of
the annual net profit.

31 Risk Regulatory Reserve

30 June
30 June 2023 2022
Birr'000 Birr'000

At the beginning of the year 51,326 36,665

Transfer to Risk
Regulatory Reserve 93,147 14,661

Total Risk Regulatory Reserve 144,473 51,326

30 June
30 June 2023 2022
Notes Birr'000 Birr'000
32 Cash generated from operating activities
Profit before tax 696,146 370,330
Adjustments for non-cash items:
Depreciation of property, plant and equipment 19 40,837 32,862
Amortisation of intangible assets 18 683 1,615
Depreciation of Right of use assets 20(i) 99,232 84,425
Interest expense on lease liability 20(ii) 3,664 6,199
Gain/(Loss) on disposal of property, plant and equipment 19 983 2
Gain/(Loss) on disposal of property, plant and equipment (1,786) (1)
Impairment Loss(reversal) on loans and advance 9 (15,830) 49,896
Impairment Loss on other Financial assets(On/
Off Balance sheet Account) 17 (3,620) 2,412
Retirement benefit obligations 24 10,496 5,253
Gain/(Loss) on equity investment at FV through OCI 30 40,206 23,833
Changes in working capital:
-Decrease/ (Increase) in loans and advances 15 (4,295,653) (1,107,477)
-Decrease/ (Increase) in restricted deposits 14 81,000 (610,079)
-Decrease/ (Increase) in Right of use assets 20(i) (124,917) (84,200)
-Decrease/ (Increase) in other assets 17 (378,864) (457,801)
-Increase/ (Decrease) in lease liabilities 20(ii) 976 3,011
-Increase/ (Decrease) in other liabilities 23 154,360 (219,468)

(3,692,087) (1,899,188)

In the statement of cash flows, profit on sale of property, plant and equipment (PPE) comprise:
30 June
30 June 2023 2022
Birr'000 Birr'000
Proceeds on disposal 803 -
Net book value of
property, plant and
equipment disposed (Note
19) - -
Gain/(loss) on sale of property, plant and equipment 803 -

ANNUAL REPORT 2022/23 89

61
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

33 Related party transactions

The Licensing & Supervision of Banking Business Directive No SBB/53/2012 of the National Bank of Ethiopia defined a
related party as a shareholder, a director, a chief executive officer, or a senior officer of a commercial Bank and/or their
spouse or relation in the first degree of consanguinity or affinity; and a partnership, a common enterprise, a private limited
company, a share company, a joint venture, a corporation, or any other business in which officers of the Bank and/or their
spouse or relation in the first degree of consanguinity or affinity of the officers of the Bank has business interest as
shareholder, director, chief executive officer, senior officer, owner or partner . The directive stipulates that the identification
of related parties shall be the responsibility of the Bank.

33a Transactions with related parties

The balance with related parties complies with the limitations on loans and advances stipulated in the directive. The
aggregate sum of loans or advances extended to one related party at any one time should not exceed 15% of the total
i)
capital of the Bank. The breakdown of the outstanding loan balance to related parties as at 30 June 2023 and 2022 is as
follows:

30 June 2023 30 June 2022

Relationship ETB'000 ETB'000

Key management personnel and Board of

Board of Directors 270,230 260,000

Loans and advances
Executive Management 18,940 10,000

Breakdown of balance with Major shareholders & related parties which have Foreign exchange transactions as at 30 June
ii)
2023 and 2022 is as follows:

30 June 2023 30 June 2022

Name ETB'000 ETB'000

Rimon Trading (Yonas Ayalew Tekle) 4,133 110,000

Adem Kedir (Hora - 150,000
Abebe Dinku Gudeta 4,985 -
9,118 260,000

33b Key management compensation

Key management has been determined to be the members of the Board of Directors and the Executive Management of the
Bank. The compensation paid or payable to key management is shown. There were no sales or purchase of goods and
services between the Bank and key management personnel as at 30 June 2023.

According to Licensing & Supervision of Banking Business Directive No SBB/67/2018 of the National Bank of Ethiopia,
annual board compensation shall not exceed Birr 150,000 and monthly allowance shall not exceed Birr 10,000 effective
August 29, 2018.This directive indicates that no Bank shall pay financial or otherwise remuneration or benefits other than
the stated.

Annual Board remuneration is determined and approved at the Annual General meeting of the shareholders of the Bank. The
Bank records the remuneration only in the year in which it is decided and approved for payment by the General Meeting,
rather than accruing it every year. During the year the Bank paid remuneration of Birr 150,000 to each director on account of
year 2022; and a monthly allowance of Birr 10,000 to each director throughout the year. The total amount paid is as follows:

90 ANNUAL REPORT 2022/23

 GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

GLOBAL BANK ETHIOPIA SHARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
30 June
2023 30 June 2022
Birr'000 Birr'000

Total Monthly Allowances 840 970

Board of directors remuneration - 379
840 1,349

Compensation of the Bank's key management personnel includes salaries, non-cash benefits and contributions to the post-
employment defined benefits plans.

34 Directors and employees

i) The average number of persons (excluding directors) employed by the Bank during the year was as follows:

30 June
2023 30 June 2022
Number Number

Executive Management 5
Senior Management 17
Middle Level Managers 177
Managerial 128
Professionals 125
Clerical 724 729
Non Clerical 1,308 1,435
2,356 2,292

35 Contingent liabilities

35a Claims and litigation

As per the legal department's Internal Memo dated July 06, 2022; the Bank is a party to eighteen pending civil suits
instituted by the Bank. The maximum exposure of the Bank to these legal cases as at 30 June 2022 is Birr 92.64 million
.(Out to these legal cases, around Birr 2.27 Million outcomes are unfovorable and the remaining Birr 90.37 million outcomes
are favorable to the Bank ) (30 June 2022: Birr 92.64 million).
No provision has been made in the financial statements as the Directors believe that it is not probable that the economic
benefits would flow out of the Bank in respect of these legal actions.

35b Guarantees and letters of credit

In the ordinary course of business, the Bank conducts business involving guarantees and acceptances, and performance
bonds. These facilities are offset by corresponding obligations of third parties. At the year end, the contingencies were as
follows:

30 June
30 June 2022
2023
Birr'000 Birr'000

Letters of guarantee and performance bonds 5,150,651 4,127,664

Letters of credit 457,750 19,313
5,608,401 4,146,977

ANNUAL REPORT 2022/23 91

 GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
GLOBAL BANK ETHIOPIA SHARE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

The table above discloses the nominal principal amounts of guarantees and other contingent liabilities. It also reflects the
Bank's maximum exposure under a large number of individual guarantee undertakings. Nominal principal amounts represent
the amounts at risk, should contracts be fully drawn upon and clients default.

Letters of guarantee are issued by the Bank, on behalf of customers, to guarantee payment or performance by customers to
third parties. The Bank will only be required to meet these obligations in the event of default by the customers. The Bank
holds collateral, letters of undertaking or other security in respect of the guarantee issued. As a significant portion of
guarantees is expected to expire without being drawn upon, the total of these nominal principal amounts is not
representative of future liquidity requirements.

Letters of credit commit the Bank to make payments to third parties, on production of documents, and the amounts are
subsequently reimbursed by customers.

36 Commitments

36 a Other Commitments:
The Bank did not have other commitments as at 30 June 2023 .

37 Events after reporting period

In the opinion of the Directors, there were no significant post balance sheet events which could have a material effect on the
state of affairs of the Bank as at 30 June 2023 and on the profit for the period ended on that date, which have not been
adequately provided for or disclosed.

GLOBAL BANK ETHIOPIA s.c

Headquarters Behind Ethiopian Hotel, National Tower
Tel: (+251) 115 581 194 (+251) 115 581 245
Fax: (+251) 115 581 225
Swift Code: DEGAETAA
Website: globalbankethiopia.com

92 ANNUAL REPORT 2022/23

64
 2015
ዓመታዊ
ሪፖርት
ANNUAL REPORT 2022/23 93
የቦርድ ሰብሳቢ
መልዕክት
ውድ ባለአክሲዮኖች

በእኔ እና በባንካችን የዳይሬክተሮች ቦርድ ስም እንኳን ደህና መጣችሁ እያልኩ

የ2015 ዓ.ም በጀት አመት ሪፖርትን ሳቀርብ ከፍ ያለ ደስታ ይሰማኛል፡፡

2015 ዓ.ም ለዓለም ኢኮኖሚ ፈታኝ ዓመት ነበር፡፡ በቻይና በታሪክ ከፍተኛ
የሆነ የዋጋ ግሽበት እና ተደጋጋሚ የሆነ የጉዞ እገዳ የነበረ መሆኑ፤ ከዚህም
በተጨማሪ በራሺያ እና በዩክሬን መካከል የነበረው ጦርነት ውዥንብር ውስጥ ላለው የዓለም ኢኮኖሚ ተጨማሪ ችግር ነበር፡፡

የሐገራችን ኢኮኖሚም ባሳለፍነው በጀት አመት ፈተናዎች አጋጥመውት አልፏል፡፡ ከነዚህም መካከል በሐገሪቱ የተለያዩ አካባቢዎች
የተከሰቱ ማህበራዊ እና ፖለቲካዊ አለመረጋጋቶችእና ግጭቶች፣ የዩክሬን ጦርነት ያስከተለው ከፍተኛ ተጽእኖ፣ በየጊዜው እየጨመረ
የሚሄደው የዋጋ ግሽበት እንዲሁም የውጭ ምንዛሪ እና የጥሬ ገንዘብ እጥረት የሚጠቀሱ ናቸው፡፡

በሌላ በኩል የኢትዮጵያ የፋይናንስ ሴክተር ከቅርብ ጊዜ ወዲህ ከፍተኛ ውድድር እየታየበት ይገኛል፡፡ እንደማሳያም አዳዲስ የንግድ
ባንኮች ወደ ገበያው መቀላቀላቸው፣ ከረጅም አመታት በፊት የተቋቋሙት የብድርና ቁጠባ ተቋማት ወደ ባንክ ማደጋቸው፣
የቴሌኮም ኦፕሬተሮች እና ሌሎች የቴክኖሎጂ ተቋማት የሞባይል ባንኪንግ አገልግሎት መስጠት መጀመራቸው ተጠቃሾች ናቸው፡፡

ምንም እንኳን ከላይ የተገለፁት አስቸጋሪ ሁኔታዎች ቢኖሩም ባንካችን በአሰራር እና በፋይናንስ ረገድ ጥንካሬዉን ማስጠበቅ ችሏል፡፡
ባንካችን ራሱን የወደፊት ቀዳሚ ባንክ አድርጎ በማስቀመጥና የአሰራር ብቃትን በመጎናፀፍ በዋና ዋና መለኪያዎች ላቅ ያለ ውጤት
ማስመዝገብም ችሏል፡፡ ይህ የሆነው የባንኩ የስራ አመራር አባላትና ሰራተኞች ባሳዩት ጥረትና ትጋት እንዲሁም የባንኩ የቦርድ አባላት
ኃላፊነታቸውን ለመወጣት ባሳዩት ጽኑ ቁርጠኝነት ነው፡፡

ያሳለፍነው በጀት ዓመት ባንካችን ከኃብት ማሰባሰብ ስትራቴጂ በተጨማሪ ወጪ የመቆጠብ አስተሳሰብ መፍጠር ላይ ትኩረት
በማድረግ ጠንካራ የወጪ ቁጠባ ስልት ተግባራዊ ያደረገበት ዓመት ነበር፡፡ በውጤቱም ባንካችን ያልተጣራ 696.1 ሚሊዮን ብር
ማትረፍ የቻለ ሲሆን ይህም ካለፈው በጀት ዓመት የ88 በመቶ ጭማሪ ያለው ሲሆን ከአንድ አክሲዮን ብር 292 ሲገኝ ይህም
ካለፈው ዓመት የ61 በመቶ እድገት በማዝመዝገብ ባንካችን ያለውን የፋይናንስ ጥንካሬ ማሳየት ችሏል፡፡

የ2015 በጀት ዓመት ባንካችን በዲጂታል እና ቴክኖሎጂ ረገድ ራሱን ለማዘመን እና በዲጂታል የባንክ አገልግሎት ግንባር ቀደም
ለመሆን ስትራቴጂ ተዘጋጅቶ በብርቱ የተሰራበት ዓመት ነበር፡፡ በዚህም መሰረት ባንካችን ከፍተኛ መዋዕለ ነዋይ በመመደብ
የባንኩን የኮር ባንኪንግ ስርዓት የማዘመን እና ዘመኑን የሚመጥን የዲጂታል ባንኪንግ አገልግሎት ወደ ተግባር ለማስገባት የተቻለ
ሲሆን፤ ይህን ተከትሎም የሞባይል ባንኪንግ፣ የኢንተርኔት ባንኪንግ እና ዩ.ኤስ.ኤስ.ዲ አገልግሎቶችን ለደንበኞቻችን ማቅረብ ችለናል::

ባንካችን የዲጂታል አቅሙን ከማሳደግ በተጨማሪ ለደንበኞቹ ምቹና ቀልጣፋ አገልግሎት ለመስጠት ያስችለው ዘንድ በተለያዩ
የሀገሪቱ ክፍሎች ተጨማሪ ቅርንጫፎችን ከፍቷል፡፡ በዚህም መሰረት የቅርንጫፍ ቁጥሩን በ14 በመቶ ማሳደግ የተቻለ ሲሆን
የደንበኞች ቁጥሩን ደግሞ በ75 በመቶ ከፍ እንዲል ማድረግ ተችሏል፡፡

የወደፊት የዋና መ/ቤት ግንባታ ቦታ መውሰድ የስትራቴጂያችን አንዱ አካል የነበረ ሲሆን የግንባታ ቦታውን ከአዲስ አበባ ከተማ
አስተዳደር መረከብ ችለናል፡፡ ከዚህም በተጨማሪ በ10ኛው የባለአክሲዮኖች ጠቅላላ ጉባኤ በተወሰነው መሰረት ባንካችን አዲሱን
የባንኩን ብራንድ ወደ ትግበራ አስገብቷል፡፡

94 ANNUAL REPORT 2022/23

በማህበረሰባችን ውስጥ በጎ ተጽእኖ ለመፍጠር ካለን መነሳሳት እና ለጋራ ስኬታችን በሚለው መሪ ቃላችን መሰረት ባንካችን
በአካባቢ ጥበቃ፣ በማህበራዊ ዋስትና፣ በበጎ አድራጎት እና የልማት ስራዎች ዙሪያ የበኩሉን ማበርከት ችሏል፡፡ ከአበርክቷችን
መካከልም የወደፊት የዋና መ/ቤት ህንፃ ግንባታ በምናካሂድበት ቂርቆስ ክ/ከተማ ቄራ አደባባይ 17ሚሊዮን ብር በማውጣት
ውብ የሆነ የፓርክ ግንባታ ማከናወናችን የሚጠቀስ ነው፡፡

ውድ ባለአክሲዮኖቻችን
የዲጂታል ቴክኖሎጂ በፋይናንስ ዘርፉ ያለውን ጉልህ ሚና በመገንዘብ ደንበኞቻችን የተሻለ አገልግሎት እንዲያገኙ እና በገበያው
ውስጥም ተፎካካሪና ጠቃሚ ሆነን ለመገኘት አሁን ያለንን የዲጂታል አቅም የማሳደግ ስራ የምንሰራ ይሆናል፡፡

በቀጣይም ብሔራዊ ባንክ ያስቀመጠውን የተከፈለ ካፒታል መስፈርትን ማሟላት፣ የባንኩን መልካም ስምና ገጽታ ከፍ ባለ ደረጃ
የመገንባት እና የዋና መ/ቤት ግንባታን ማስጀመር ትኩረት ሰጥተን የምንሰራቸው ስራዎች ይሆናሉ፡፡

በአጠቃላይ ለባንኩ ባለአክሲዮኖች፣ የቦርድ አባላት፣ እና ለስራ አመራር አባላት ባንኩ ባስመዘገበው ውጤት ለነበራቸው ከፍተኛ
አስተዋጽኦ እና የማይወላውል ድጋፍና ቁርጠኝነት ያለኝን ምስጋና ለማቅረብ እወዳለሁ፡፡ ከዚህም በተጨማሪ የባንኩ ሰራተኞች
ላሳዩት ትጋትና ቅንዓት ያለኝን ልባዊ አድናቆት እገልፃለው፡፡

በመጨረሻም ደንበኞቻችን ለነበራቸው የማያቋርጥ ድጋፍ እያመሰገንኩ የእናንተ ታማኝነት እና በባንኩ ላይ የነበራችሁ እምነት
ከፍተኛ ቦታ የምንሰጠው መሆኑን ለመግለጽ እወዳለሁ፡፡

ቢቂላ ሁሪሳ (ዶ/ር)

የዳይሬክተሮች ቦርድ ሊቀመንበር

ANNUAL REPORT 2022/23 95

የዋና ሥራ አስፈፃሚ
መልዕክት
ውድ ባለአክሲዮኖች

በማኔጅመንቱና በራሴ ስም እ.ኤ.አ. ጁን 30/2023 የተጠናቀቀውን የበጀት

ዓመት የባንካችንን የክንውን ሪፖርት ሳቀርብ ታላቅ ደሰታ ይሰማኛል፡፡

የ2022/23 ዓመት በተለያዩ ምክንያቶች በተግዳሮት የተሞላ ዓመት ነበር::

ከነዚህም መካከል የፖለቲካው ያለመረጋጋት በኢኮኖሚው ላይ ተጽዕኖ ማሳደሩ፤ በከፍተኛ የዋጋ ግሽበት የተነሳ የገበያው
ተለዋዋጭ መሆን፤ መጠነ ሰፊ የሆነ የገንዘብ ዋጋ መውደቅና የጥሬ ገንዘብ እጥረት ቀውስ ይጠቀሳሉ፡፡ በሌላም ጎን በዩክሬይን
እየተካሄደ ያለው ጦርነት መጠነ ሰፊ ጂኦግራፊያዊ ተጽዕኖ የማክሮ-ኢኮኖሚክ ተግዳሮቱን ያባባሰ ሆኗል፡፡

ምንም እንኳን በዚህ ለመተንበይ በሚያስቸግር ተለዋዋጭ እና አዳጋች ከባቢያዊ ሁኔታ ውስጥ ሆነን ብንሰራም በ2022/23
በጠንካራ ክንውን የታጀቡ ውጤቶችን ማስመዝገባችንን ስገልጽ በደስታ ነው፡፡ ዕድገታችንን ዕውን ለማድረግ እና የዋጋ ግሽበት
ያመጣብንን ጫና ለማካካስ የሚያስችል የዋጋ አስተዳደር ስትራቴጂ እየተገበርን እና ውጤታማ የሆነ የወጪ አተገባበር ባህልን
እያዳበርን እንገኛለን፡፡ ይህንንም ቀጣይነት ካለው የተሰናሰለ የመፈፀም የብቃት ማሻሻል ጋር በማስተሳሰር ከገቢ ማሳደግ በዘለለ
በጊዜ ሂደት የትርፋማነት ዕድገትን ለማረጋገጥ እየተሰራ ነው፡፡

በዚህም መሰረት በ2022/23 ባንካችን አመርቂ የሆነና ያልተጣራ ትርፍ ብር 696.1 ሚሊዮን ማሳካት የቻለ ሲሆን ይህም
በቀደመው ዓመት ከተመዘገበው ትርፍ በ88 በመቶ ብልጫ ያለው ነው፡፡ የትርፍ ድርሻ በአክሲዮን ምጣኔውም 292 ደርሷል፡
፡ አጠቃላይ የተቀማጭ መጠናችንም ከብር 14 ቢሊዮን የበለጠ ሲሆን ይህም ከ1 ሚሊዮን በላይ ከሚሆኑ ሂሳቦች የተገኘ ነው፡፡
ውጤቱም ከብር 3 ቢሊዮን በላይ ለሆነው የገቢ መጠን አስተዋጽዖ አድርጓል፡፡ በዚሁ ተመሳሳይ ወቅት የባንካችን የተከፈለ ካፒታል
ከብር 2 ቢሊዮን የተሻገረ ሆኗል፡፡ የተመዘገቡት ውጤቶችም የጠንካራ አመራር ማሳያ፣ የሰራተኞቻችንን ያልተቆጠበ ጥረት እንዲሁም
የስትራቴጂያችንን ውጤታማነት ያስመሰከሩ ናቸው፡፡

ከፈጣኑ የለውጥ ማዕበል ጋር አብሮ ለመጓዝ ከየትኛውም ተወዳዳሪ በበለጠ በግንኙነት ኔትዎርክ የተሳሰረ ባንክ ለመሆን
የዲጂታላይዜሽን ጉዟችንን እያሳደግንና እያሻሻልን እንገኛለን፡፡ የወደፊቱን መዳረሻችንን ለመተለምም ለደንበኞች ከፍ ያለ እሴትን
ለማቅረብ እንችል ዘንድ ወደ አገልግሎታችን ተጠቃሚዎች የሚደርሰንን መንገድ ዲጂታላይዝ ማድረግ ነው፡፡ በዚህም መሰረት
በተጠናቀቀው ዓመት አሰራራችንን የማዘመን አቅም ያላቸውን በርካታ የኢንፎርሜሽን ቴክኖሎጂ እና የዲጂታል ባንኪንግ ፕሮጀክቶችን
በስኬት ለማጠናቀቅ ችለናል፡፡ ከነዚህ ፕሮጀክቶች መካከልም የኮር ባንኪንግ ሲስተማችንን ማሳደግና ማሻሻል እንዲሁም ዘመኑን
የዋጀ የሞባይል እና ኢንተርኔት ባንኪንግ መተግበሪያዎችን በሥራ ላይ ማዋል ዋነኞቹ ናቸው፡፡

ለማንኛውም ኩባንያ ሰማይ-ጠቀስ የዋና መስሪያ ቤት ሕንጻ ባለቤት መሆን ብዙ ጊዜ የጠንካራ የፋይናንስ አቅም ማሳያ ሆኖ
ይታመናል፡፡ በዚህ እውነታ ላይ በመመስረት በቂርቆስ ክ/ከተማ ሜክሲኮ አካባቢ የዋና መስሪያ ቤት ህንጻ ለመገንባት 5500
ካሬ ሜትር ቦታ ለመረከብ ችለናል፡፡ በቅርቡም የህንጻ ዲዛይን ማወዳደር ሂደቱን በአዲሱ ዓመት ዋዜማ ደማቅ በሆነ ሥነ-ሥርዓት
ያካሄድን ሲሆን የህንጻ ግንባታውን ለማስጀመርም ዝግጅቱ እየተጠናቀቀ በመሆኑ ግንባታው በቅርቡ ይጀመራል፡፡

የባንኩ አዲስ የገጽታ መለያ (ብራንድ) በባንኩ የባለእክሲዮኖች 10ኛ ዓመታዊ ጉባዔ ከጸደቀ በኋላ የኢትዮጵያ ብሄራዊ ባንክን ጨምሮ
ከሚመለከታቸው መንግስታዊ ተቋማት ፈቃድ በማግኘት አዲሱን ብራንድ በይፋ የማስጀመር መርሃ-ግብር ተከናውኗል፡፡ ከዚህ
በተጨማሪም ስለአዲሱ መለያ ያለውን ግንዛቤ ከፍ ለማድረግ፤ የባንኩን ገጽታና መልካም ስም በህብረተሰቡ ዘንድ ለማስረጽ፤
ብሎም እጅግ ሳቢ የሆነና ተገቢ ብራንድን በመጠቀም የባንኩ የገጽታ መለያ (ብራንድ) በማህበረሰቡ ዘንድ ያለውን ቦታ ከፍ ለማድረግ
የህዝብ ግንኙነትና የማስተወቂያ ዘመቻዎችን አካሂደናል፡፡

96 ANNUAL REPORT 2022/23

በመጪዎቹ ዓመታት ከቀዳሚው ዓመት በበለጠ ላስቀመጥናቸው ውጥኖች መሳካት ያለንን አቅም አሟጠን ለመጠቀም
ለራሳችን ቃል ገብተናል፡፡ በተለይ ደግሞ የባንኩን የገጽታ መለያ (ብራንድ) በህብረተሰቡ አዕምሮ ውስጥ ያለውን ቦታ በከፍታ
ለማስቀመጥና ለማስረጽ በዘመኑና በተለዩ የምርትና የአገልግሎት ዓይነቶች ላይ ትኩረት ሰጥተን በመስራት፤ በታለሙ የደንበኞች
መዳረሻዎች ረገድም የማስፋፊያ ሥራዎችን በመስራት እና የአገልግሎት አሰጣጣችንን በማዘመን የተለየ አጽንዖት ሰጥተን
ለመሥራት ተዘጋጅተናል፡፡ ለዚሁም መሳካት የዲጂታል አቅማችንን ለማዘመን እና የሰራተኞቻችንን ክሂሎት ለማሳደግና ለማሻሻል
ተዘጋጅተናል፡፡

ከዚህ በተጨማሪም የኃብት ማሰባሰብና ውጤታማ የወጪ አስተዳደር ስትራቴጂዎችን በቁርጠኝነት በመተግበር ረገድ የተለየ
ትኩረት ሰጥተን የምንሰራ ይሆናል፡፡ በኢትዮጵያ ብሄራዊ ባንክ የተቀመጠውን የተከፈለ ካፒታል መጠን የማሟላት ተግባርም ከፍተኛ
ትኩረት ሰጥተን የምንሰራበት አንገብጋቢ ጉዳይ ነው፡፡

መጪውን ጊዜ በብሩህ ምልከታ ስናየው ከፊታችን ያሉት ዓመታት የላቀና አመርቂ የፋይናንሺልና ኦፕሬሽናል ውጤቶችን
የምናስመዘግብባቸው እንደሚሆኑ የምገልጸው በጽኑ እምነት ነው፡፡

ለማጠቃለልም ላልተቋረጠ ድጋፋቸው እና ለታማኝ አጋርነታቸው እጅግ ውድ ለሆኑ ደንበኞቻችን ጥልቅ የሆነ ልባዊ ምስጋና ማቅረብ
እፈልጋለሁ፡፡ እንዲሁም ለጠንካራ አመራር ሰጪነታቸው እና ዕረፍት አልባ ለሆነ ትጉህ ሥራቸው የዳይሬክተሮች ቦርድ አባላትን
ለማመስገን እወዳለሁ፡፡ በዓመቱ ለተመዘገበው አመርቂ ውጤትም በፍጹም የሥራ ፍቅርና መሰጠት ላበረከቱት አስተዋጽዖ
የባንኩን ማኔጅመነት እና ሰራተኞች ላመሰግን እወዳለሁ፡፡ ያለማቋረጥ ለሚያደርግልን ድጋፍና ለሚሰጠን አዎንታዊ የሆነ ምክርና
መመሪያ የኢትዮጵያ ብሄራዊ ባንክ ያለኝን ከፍተኛ አድናቆትና ምስጋና ለመግለጽ እወዳለሁ፡፡

በመጨረሻም ለእናንተ ለተከበራችሁ ለባለአክሲዮኖች ለጣላችሁብን ጽኑ ዕምነት፣ ላልተቋረጠ ድጋፋችሁ እንዲሁም የባንኩን ጥቅም
በሚመለከት ጉዳይ በፍጹም ቀና ልቦና ለምታደርጉት ለጋስነት የተሞላ ፈጣን ምላሽ እጅግ ልባዊና ታላቅ ምስጋና አቀርባለሁ፡፡

ተስፋዬ ቦሩ (ዶ/ር)
ዋና ስራ አስፈፃሚ

ANNUAL REPORT 2022/23 97

ግሎባል ባንክ ኢትዮጵያ
በጨረፍታ
ቅርንጫፍ 14% ደንበኞች 75% ተቀማጭ 30%

152 1.06 MILLION 14.25 BILLION

ብድርና አድቫንስ 46% የተከፈለ ካፒታል 25% ጠቅላላ ገቢ 46%

13.66 BILLION 2.03 BILLION 3.02 BILLION

ጠቅላላ ወጪ 33% ያልተጣራ ትርፍ 88% EPS 29.2%

2.32 BILLION 696.1 MILLION 2,391

ከአጠቃላይ ሃብት የተገኘ ትርፍ 4.29% ከአጠቃላይ ካፒታል የተገኘ ትርፍ 13.92%

98 ANNUAL REPORT 2022/23

 ዋና ዋና የአፈፃፀም መለኪያዎች

ተቀማጭ ገንዘብ የአስቀማጮች ብዛት (በቁጥር)

በሚሊዮን ብር

ብድር የሰራተኞች ብዛት (በቁጥር)

በሚሊዮን ብር

ጠቅላላ ሐብት የቅርንጫፍ ስርጭት (በቁጥር)

በሚሊዮን ብር

የተከፈለ ካፒታል
ጠቅላላ ሐብት በሚሊዮን ብር
በሚሊዮን ብር
2,953

ANNUAL REPORT 2022/23 99

የዳይሬክተሮች ቦርድ
ሪፖርት
የደንበኞች አገልግሎት
የቅርንጫፍ ስርጭት
በቁጥር
የደንበኞች ቁጥር 152
133
ባለንበት የውድድር ዓለም ደንበኞችን ማቆየትና አዳዲስ
ደንበኞችን መሳብ ከፍተኛ ጥረት ይጠይቃል፡፡ ይህንንም 111
በመረዳት ደንበኞቻችንን በአገልግሎታችን ለማርካት
የአገልግሎት አሰጣጥ ጥራት ቀዳሚ ተግባራችን አድርገናል፡፡
82
በዚህም መሰረት ባንካችን በቋሚነት አዳዲስ አገልግሎቶችን
ለነባር ደንበኞቹና በይበልጥ ደግሞ ከዚህ ቀደም ተደራሽ 52
ላልሆናቸው አዳዲስ ደንበኞች በየጊዜው እያስተዋወቀ
ይገኛል፡፡

ባንካችን በቅርንጫፍ ከፈታ እና የዲጂታል አማራጮችን 2018/19 2019/20 2020/21 2021/22 2022/23
በመጠቀም ተደራሽነቱን እያሰፋ ይገኛል፡፡ በዚህም ምክንያት
የደንበኞቻችን ቁጥር በፍጥነት በማደግ ከአንድ ሚሊዮን በላይ
የደረሰ ሲሆን ይህም ካለፈው አመት ጋር ሲነፃፀር የ75 በመቶ ዲጂታላይዜሽን
እድገት አሳይቷል፡፡
ቴክኖሎጂ
የደንበኞች
ብዛት
1,061,331 የዲጂታል ትራንስፎርሜሽን የባንካችን አንዱ የስትራቴጂ ምሰሶ
607,670 ነው፡፡ በመሆኑም ያለንን የዲጂታል የውስጥ አቅም ከፍ
ለማድረግ እና ከቴክኖሎጂ አጋሮች ጋር በትብብር ለመስራት
ከፍተኛ በጀት በመመደብ እየሰራን እንገኛለን፡፡
382,477

ባሳለፍነው በጀት ዓመትም የባንካችንን የኮር ባንኪንግ

203,426 ሲስተም በተሳካ ሁኔታ የማሻሻል እና ዘመኑ የደረሰበትን
134,000 የዲጂታል ባንኪንግ ቴክኖሎጂ (Oracle Bank Digital
Experience/OBDX) ተግባራዊ ማድረግ ችለናል፡፡

የዲጂታል አገልግሎት አድማሳችንን በማስፋት በቀጣይም

ከሰው ንክኪ ነፃ የሆነ የዲጂታል ባንኪንግ ማዕከል ወደ ስራ
2018/19 2019/20 2020/21 2021/22 2022/23
ለማስገባት ቅድመ ዝግጅታችንን አጠናቀናል፡፡

የቅርንጫፍ ማስፋፊያ ሞባይልና ኢንተርኔት ባንኪንግ

ባሳለፍነው በጀት ዓመት በሀገሪቱ የተለያዩ አካባቢዎች ባንካችን ባሳለፍነው በጀት ዓመት የዲጂታል ባንኪንግ
የቅርንጫፍ ተደራሽነታችንን የማስፋት ስራ የተሰራ ሲሆን አገልግሎቶችን በተሳካ ሁኔታ ተግባራዊ ያደረገ ሲሆን በዚህም
በዚህም በጥቅሉ 152 ቅርንጫፎች ተከፍተዋል፡፡ ከዚህም የሞባይል ባንኪንግ፣ የኢንተርኔት ባንኪንግ እና የዩ.ኤስ.ኤስ.ዲ
ውስጥ 53 በመቶ ወይም 81 ቅርንጫፎች በአዲስ አበባ አገልግሎቶችን ለደንበኞቹ አቅርቧል፡፡
ከተማ የተከፈቱ ሲሆን ቀሪው 47 በመቶ ወይም 71
ቅርንጫፎች ከአዲስ አበባ ውጪ በሚገኙ የተለያዩ ከተሞች እነዚህ አገልግሎቶች በቅርቡ ወደ ስራ የገቡ ቢሆንም ባንካችን
የተከፈቱ ናቸው፡፡ 100,000 የሞባይል እና የኢንተርኔት ባንኪንግ ተጠቃሚዎችን
በአጭር ጊዜ ውስጥ ማፍራት ተችሏል፡፡

100 ANNUAL REPORT 2022/23

ካርድ ባንኪንግ ከባንኩ እንቅስቃሴ መስፋፋት ጋር ተያይዞ እስከ ሰኔ 30,
2015 ዓ.ም ድረስ የባንካችን ሰራተኞች ቁጥር ወደ 2,391
ባንካችን ያለውን የኤቲኤም እና የፖስ ማሽን ቁጥር ከፍ ከፍ ያለ ሲሆን በበጀት ዓመቱ 539 ሰራተኞች የስራ እድገት
ለማድረግ ሲሰራ ቆይቷል፡፡ በዚህም መሰረት ያለንን የኤቲኤም እንዲያገኙ ተደርጓል፡፡
ማሽኖች ቁጥር በእጥፍ ለማሳደግ ተችሏል፡፡
ከዚህም በተጨማሪ የሰራተኞቻችንን አቅም ለመገንባት
ባሳለፍነው በጀት ዓመት የመደበኛው የክፍያ ካርድ እና የልዩ ለአዲስ እና ለነባር ሰራተኞቻችን የተለያዩ ስልጠናዎች
ካርድ ተጠቃሚዎች ቁጥር በ50 በመቶ ለማሳደግ የተቻለ ተሰጥተዋል፡፡
ሲሆን የክፍያ ካርዶቹን በመጠቀም 654 ሚሊዮን ብር
የሚሆን በገንዘብ፤ 594,151 ክፍያዎች በቁጥር መፈፀም ይህ የስልጠና መርሐ ግብር ሰራተኞቻችን ተገቢው ክህሎት
ችለዋል፡፡ እንዲኖራቸው፣ የባንኩን ራዕይና ተልእኮ በአግባቡ እንዲረዱ፣
የባንኩን የስራ ባህል ለማዳበር እና ተለዋዋጭ ስለሆነው
የባንክ ኢንደስትሪ ልምድ እንዲኖራቸው ያግዛል፡፡ በዚህም 43
አጋርነት የስልጠና ፕሮግራሞች ለ3,711 ሰራተኞች መስጠት ተችሏል፡፡
ባንካችን ለደንበኞቹ ምቹ እና እንከን የለሽ የባንክ አገልግሎት
ለመስጠት ቁርጠኛ ነው፡፡ በዚህም መሰረት ከቴሌ ብር፣ የሰራተኞች ብዛት
ሳፋሪኮም፣ ጉዞ ጎ እና ካቻ የዲጂታል ፋይናንስ አገልግሎት በቁጥር
አቅራቢ ድርጅቶች ጋር የሁለትዮሽ የአጋርነት ስምምነቶችን 2,391
አድርጓል፡፡ 2,333

የወለድ ነፃ የባንክ አገልግሎት 2,027

ባንካችን ከሁለት ዓመት በፊት ከወለድ ነፃ የባንክ አገልግሎት 1,417

መስጠት የጀመረ ሲሆን ከተከፈተበት ጊዜ ጀምሮ የአገልግሎት
አድማሱን ለማስፋት እየሰራ ይገኛል፡፡ በአሁኑ ሰዓት በ150 915
ቅርንጫፎች ለአገልግሎቱ በተለዩ መስኮቶች እና ሙሉ
በሙሉ ከወለድ ነፃ የባንክ አገልግሎት ብቻ በሚሰጡ ሁለት
ቅርንጫፎች አገልግሎት እየተሰጠ ይገኛል፡፡
2018/19 2019/20 2020/21 2021/22 2022/23
ባሳለፍነው በጀት ዓመት ባንካችን ለተለያዩ የማህበረሰብ
አካላት፣ ተቋማት እና ማህበራት የግንዛቤ የማስጨበጫ
ስራዎችን በመስራትና አጋርነት በመፍጠር አገልግሎቱን ሪብራንዲንግ
ለማጠናከር ከፍተኛ ጥረት አድርጓል፡፡ በዚህም መሰረት
ከ96,434 ደንበኞች 180 ሚሊዮን ብር ማሰባሰብ ተችሏል፡፡
የባንካችን አዲስ ማንነት፣ ስያሜ፣ ዓርማ፣ እና ቀለም በ10ኛው
የባንካችን ጠቅላላ ጉባኤ ላይ መጽደቁ ይታወቃል፡፡ በዚህም
የሰው ኃብት መሰረት አዲሱን ዓርማ እና ስያሜ አስፈላጊውን ፈቃድ
ከሚመለከታቸው የመንግስት አካላት ካገኘን በኋላ ይፋዊ
ስትራቴጂክ እቅዶቻችንን ማሳካት እንችል ዘንድ ከፍተኛ የምረቃ ስነ ስርዓት ተከናውኗል፡፡
ተነሳሽነትና አቅም ያለው እንዲሁም ስራን በአግባቡ
መስራት የሚችል የሰው ኃይል ለማፍራት እየሰራን ሲሆን በመሆኑም በአሁኑ ሰዓት አዲሱን የባንኩን ማንነት
በ2014/2015 በጀት ዓመት መጀመሪያ ነባርና የሰለጠነውን በህብረተሰቡ አዕምሮ ውስጥ ለማስረጽ እንዲረዳን የህዝብ
የሰው ኃይል ለማቆየት እና አዳዲስ ሰራተኞችን ወደ ባንካችን ግንኙነትና የማስታወቂያ ስራዎች እየተሰሩ ይገኛል፡፡
ለመሳብ አዲስ የደመዎዝ እና የጥቅማ ጥቅም መመሪያ
ተግባራዊ ተደርጓል፡፡

ANNUAL REPORT 2022/23 101

መገልገያዎች ከአጠቃላይ የተቀማጭ ገንዘብ ውስጥ ብር 180ሚሊዮን
ከወለድ ነፃ የባንክ አገልግሎት የተሰበሰበ ነው፡፡
ባንካችን ለወደፊት የዋና መ/ቤት ሕንፃ ግንባታ የሚውል
ከዚህም በተጨማሪ ባንካችን በሻሸመኔ ከተማ እና በአዲስ
5,500 ካሬ ሜትር ቦታ ከቂርቆስ ክፍለ ከተማ ተረክቧል፡፡
አበባ ሰሚት አካባቢ በብድር ማካካሻነት የተያዙ ህንፃችን
ይህን ተከትሎም ባንካችን የኪነ ሕንፃ ውድድር በማካሔድ
ተረክቧል፡፡
የወደፊት የዋና መ/ቤት ህንፃ የሚሆነውን ዲዛይን የመረጠ
ሲሆን የግንባታ ሂደቱም በቅርቡ የሚጀመር ይሆናል፡፡ የተቀማጭ ገንዘብ
በሚሊዮን ብር
ከዚህም በተጨማሪ ባንካችን በሻሸመኔ እና በሰበታ ከተሞች 14,248

እንዲሁም በአዲስ አበባ ሰሚት፣ ፈረንሳይ ለጋሲዮን እና ካራ 10,985

ቆሬ አካባቢዎች በብድር ማካካሻነት የተያዙ ህንፃዎችን
ተረክቧል፡፡ 8,703

ማህበራዊ ኃላፊነትን መወጣት 5,289

ማህበራዊ ኃላፊነትን መወጣት ከባንኩ እሴቶች መካከል 3,523

አንዱ ሲሆን በተጠናቀቀው በጀት ዓመት ማህበረሰብ

ተኮር ለሆኑ ስራዎች ተገቢውን ትኩረት በመስጠትና ኃብት
በመመደብ እንዲሁም ለጋራ ስኬታችን ከሚለው የባንካችን
2018/19 2019/20 2020/21 2021/22 2022/23
መሪ ቃል ጋር በማስተሳሰር የአካባቢ ጥበቃ፣ የማህበራዊ
ዋስትና፣ የሰብዓቂ እርዳታ እና ልማት ስራዎችን በመስራት የብድር ስርጭት
አስተዋጽኦ አድርጓል፡፡

በሌላ ኩል ከአርንጓዴ አሻራ ተሳትፎ በተጨማሪ በአዲስ አበባ በተጠናቀቀው በጀት አመት ግሎባል ባንክ ኢትዮጵያ ለተለያዩ
ከተማ ቂርቆስ ክፍለ ከተማ ቄራ አደባባይ 17ሚሊዮን ብር የኢኮኖሚ ዘርፎች 4.3ቢሊዮን ብር ብድር በመስጠት አጠቃላይ
በማውጣት የፓርክ ግንባታ በማከናወን ለወረዳ 04 አስተዳደር በባንኩ የተሰጠው የብድር መጠን ወደ 13.6ቢሊዮን ከፍ
አስረክበናል፡፡ የአዲስ አበባ ከተማ አስተዳደር ከተማዋ ያለ ሲሆን፤ ይህም ካለፈው አመት ጋር ሲነፃፀር የ46በመቶ
ለነዋሪዎቿ ምቹ ከተማ እንድትሆን በሚያደርገው ጥረትም ብልጫ አለው፡፡
ባንካችን የበኩሉን በማድረጉ ኩራት ይሰማናል፡፡ ከዚህም
በበጀት አመቱ ከተሰጠው ብድር 47በመቶ ድርሻ የያዘው
በተጨማሪ ባንካችን ባሳለፍነው በጀት አመት መንግስታዊ እና
የወጪ እና ገቢ ንግድ ዘርፍ ሲሆን የሐገር ውስጥ ንግድ
መንግስታዊ ላልሆኑ ድርጅቶች በአጠቃላይ የብር 13ሚሊዮን
28በመቶ፣ የግንባታ ዘርፍ 9በመቶ ድርሻ ያላቸው ሲሆን
ድጋፍ አድርጓል፡፡
የማኑፋክቸሪንግ፣ ኮንሲውመር ብድር እና የትራንስፖርት ዘርፉ
ቀሪው 16በመቶ ድርሻ አላቸው፡፡
የባንክ ኦፕሬሽን
የብድር ስርጭት
የተቀማጭ ገንዘብ 13,661
9,350
በባንክ ኢንደስተሪ ውስጥ የሐብት ማሰባሰብ ስራ ላይ ተጽእኖ
የሚያሳድሩ የተለያዩ ጉዳዮች እንዲሁም የብሔራዊ ባንክ 8,292
ጥብቅ መመሪያዎች ቢኖሩም ባንካችን በሐብት ማሰባሰብ
ረገድ ከፍተኛ እድገት ማስመዝገብ ችሏል፡፡
4,521

ባንካችን ባሳለፍነው በጀት ዓመት የተቀማጭ ገንዘብ 2,452

መጠኑን በ30በመቶ ከፍ እንዲል በማድረግ አጠቃላይ
የተቀማጭ ገንዘብ ብር 14ቢሊዮን እንዲሆን አስችሏል፡፡

2018/19 2019/20 2020/21 2021/22 2022/23

102 ANNUAL REPORT 2022/23

ዓለም አቀፍ የባንክ አገልግሎት ጠቅላላ ገቢ

የባንክ ኢንዱስትሪው ባሳለፍነው በጀት ዓመት የተለያዩ ባንካችን ባሳለፍነው በጀት ዓመት ብር 3ቢሊዮን አጠቃላይ ገቢ
ውጫዊና ውስጣዊ ፈተናዎች አጋጥመውታል፡፡ ከነዚህም ያገኘ ሲሆን ይህም ካለፈው አመት ጋር ሲነፃፀር የ46 በመቶ
መካከል ረዥም ጊዜ የወሰደው የዩክሬን ጦርነት፣ በሀገራችን እድገት አሳይቷል፡፡ ከአጠቃላይ ገቢ ውስጥ 75 በመቶው
የተለያዩ አካባቢዎች የነበሩ ፖለቲካዊ አለመረጋጋቶች፣ የውጭ የተገኘው ከብድርና ወለድ ሲሆን ከኮሚሽን እና አገልግሎት
ምንዛሪን የተመለከቱ ጥብቅ መመሪያዎች ይጠቀሳሉ፡፡ ክፍያ 13 በመቶ እንዲሁም 12 በመቶ ደግሞ ከሌሎች
ገቢዎች የተገኘ ነው፡፡
እነዚህን ችግሮች ለማለፍ ባንካችን በወጪ ንግድ ስራ ላይ
የተሰማሩ አዳዲስ ደንበኞችን ማግኘት የሚያስችል እና ነባር
ጠቅላላ ገቢ
ደንበኞችን ማቆየት የሚያስችል እንዲሁም አቅም ካላቸው 3,026
ደንበኞች ጋር አጋርነት መፍጠርን ጨምሮ በርካታ ስልቶችን
ተግባራዊ አድርጓል፡፡ ከዚህም በተጨማሪ በውጭ ሐገር 2,118
ከሚገኙ አጋር ባንኮች ሒሳብ በመክፈት እንዲሁም በሐገር
ውስጥ እና ከሐገር ውጭ ከሚገኙ ባንኮች ጋር ግንኙነት 1,717
መፍጠር በአመቱ ከተከናወኑ ዋነኛ ስራዎች ይጠቀሳል፡፡

ባንካችን በበጀት አመቱ 64ሚሊዮን የአሜሪካን ዶላር ገቢ 1,110

ያገኘ ሲሆን ይህ ገቢ ካለፈው አመት ጋር ሲነፃፀር የ98በመቶ

ብልጫ አለው፡፡ ከተገኘው ገቢ 47 በመቶ ከወጪ ንግድ፣ 34 695
በመቶ ከዓለም አቀፍ ዝውውር፣ 17 በመቶ ከባንክ ለባንክ
ስምምነቶች እንዲሁም የዶላር ግዢ 2 በመቶ ይሸፍናሉ፡፡
2018/19 2019/20 2020/21 2021/22 2022/23
የውጭ ምንዛሪ
ገቢ በዘርፍ ጠቅላላ ወጪ
ዓለማቀፍ ከዶላር
ዝውውር ግዢ የባንኩ ጠቅላላ ወጪ ብር 2.3ቢሊዮን ሲሆን ካለፈው
34% 2%
ዓመት ጋር ሲነፃፀር የ33 በመቶ ጭማሪ አሳይቷል፡፡ የወለድ
ወጪ 49 በመቶ በመያዝ ትልቁን ድርሻ ሲይዝ ደመወዝና
ጥቅማጥቅም 31 በመቶ እንዲሁም ሌሎች የስራ ማስኪያጃ
ወጪዎች 20 በመቶውን ይይዛሉ፡፡

ከወጪ ንግድ ከባንክ ለባንክ ጠቅላላ ወጪ

47% ስምምነት 2,329
17%

1,748

የሂሳብ ነክ ክንውን 1,454

ግሎባል ባንክ ኢትዮጵያ ሐብት በማሰባሰብ እና በአግባቡ 867

በመጠቀም እንዲሁም የተሰበሰበውን ሐብት ለታለመለት
ዓላማ ብቻ በማዋል እና ወጪውን በአግባቡ በመቆጣጠር 411
አመርቂ ውጤት አስመዝግቧል፡፡

2018/19 2019/20 2020/21 2021/22 2022/23

ANNUAL REPORT 2022/23 103

ትርፋማነት የባንኩ የተከፈለ ከፒታል በብር 404 ሚሊዮን ጭማሪ
በማሳየት በተጠናቀቀው በጀት አመት አጠቃላይ የተከፈለ
ባንካችን ባሳለፍነው በጀት ዓመት ከታክስ በፊት ብር 696 ካፒታል ከብር 2ቢሊዮን በላይ ሆኗል፡፡ የባንኩ አጠቃላይ
ሚሊዮን ብር ትርፍ ያገኘ ሲሆን ካለፈው ተመሳሳይ ወቅት ጋር ካፒታል ብር 3ቢሊዮን የደረሰ ሲሆን ይህም የ35 በመቶ ወይም
ሲነፃፀር የ88 በመቶ ብልጫ አስመዝግቧል፡፡ በአመቱ የአንድ የብር 774 ሚሊዮን ጭማሪ አስመዝግቧል፡፡
አክሲዮን የትርፍ ድርሻ (Earning Per Share) ብር 292 ሆኖ
የተመዘገበ ሲሆን ይህም በኢንደስትሪው ውስጥ የላቀ
ጠቅላላ ኃብት
አፈፃፀም ያለው መሆኑን ከማሳየቱም በተጨማሪ ካለፈው 18,854
በሚሊዮን ብር
ዓመት አንፃር የ61 በመቶ ጭማሪ አስመዝግቧል፡፡
14,086
ትርፋማነት
696
11,628

7,813
370
5,488
262
243

2018/19 2019/20 2020/21 2021/22 2022/23

2019/20 2020/21 2021/22 2022/23

የሪስክ አስተዳደር
ባንካችን ምርጥ ተሞክሮዎችን በመቀመር እና የተቀመጡ
የፋይናንስ አቋም መግለጫ ህጋዊ መስፈርቶችን መሰረት በማድረግ ጤናማ የሪስክ
አስተዳደር አሰራር ሲከተል ቆይቷል፡፡
በተጠናቀቀው በጀት ዓመት የባንካችን ጠቅላላ ሐብት ብር 19
ቢሊዮን የደረሰ ሲሆን ካለፈው ተመሳሳይ ወቅት ጋር ሲነፃፀር ህገ ወጥ የገንዘብ ዝውውር እና ሽብርተኝነትን በገንዘብ
የ34 በመቶ ወይም የብር 4.8 ቢሊዮን ጭማሪ አሳይቷል፡፡ የመደገፍ ተግባርን መከላከል የሚያስችል ሁሉን አቀፍ የሪስክ
አስተዳደር ስርዓት በማቋቋም ተግባራዊ ተደርጓል፡፡ ባሳለፍነው
የተከፈለ ካፒታል በጀት ዓመት በሪስክ አስተዳደር ዙሪያ ያለውን ግንዛቤ ከፍ
በሚሊዮን ብር ለማድረግ ለ438 የባንኩ ሰራተኞች ስልጠና ተሰጥቷል፡፡

2,033 ድርጅታዊ አቅም ግንባታ

1,628
1,390 ባንካችን ከዋናው የስትራቴጂክ እቅዱ ጋር የሚጣጣሙ
986 አዳዲስ የለውጥ ሃሳቦችን በማፍለቅ እየሰራ ሲሆን ባሳለፍነው
722
በጀት አመት በሰው ኃይል፣ በአሰራር እና በቴክኖሎጂ ዙሪያ
የተለያዩ ስራዎችን ሰርቷል፡፡

2018/19 2019/20 2020/21 2021/22 2022/23

104 ANNUAL REPORT 2022/23

ባንካችን በ2035 በምስራቅ አፍሪካ ከቀዳሚዎቹ ባንኮች ተርታ ለመሰለፍ የወጠነውን ራዕይ እና ያስቀመጣቸውን ስትራቴጂክ
ግቦች ማሳካት ያስችለው ዘንድ የመዋቅር ማሻሻያ አድርጓል፡፡

ባሳለፍነው በጀት ዓመት ባንካችን ያለውን የመፈፀም አቅም ለማሳደግ፣ ወጪን ለመቆጣጠር እና የደንበኞቻችንን እርካታ ከፍ
ማድረግን በማለም የአሰራር ስርዓቱን ለማሻሻል ጉልህ እርምጃዎችን ወስዷል፡፡ ከዚህም በተጨማሪ የቴክኖሎጂ አቅሙን
በመጠቀም የደንበኞቻችንን ፍላጎት የሚያሟሉ አገልግሎቶችን ከማስተዋወቁም በተጨማሪ ባንኩ አዲሱን ማንነት እና ገጽታ
ያስተዋወቀበት ነበር፡፡

የቦርድ አባላት ክፍያ

ባንካችን የቦርድ አባላት ቁጥርን እና የሚከፈላቸውን የአበል መጠን በሚደነግገው የብሔራዊ ባንክ መመሪያ ቁጥር
SBB/67/2018ን መሰረት በማድረግ ወርሐዊ እና አመታዊ የቦርድ አባላት ክፍያን ይፈጽማል፡፡

የባንኩ የ2023/2024 አቅጣጫዎች

ባንካችን በቀጣዩ ዓመት በባንክ ኢንዱስትሪው ሊኖሩ የሚችሉ እድሎችን ለመጠቀም እና ሊኖሩ የሚችሉ አሉታዊ ሁኔታዎችን
በሚገባ በማጤን የሚሰራ ሲሆን በአሰራር ልህቀት፣ በዲጂታል ዘርፍ እና አጠቃላይ እደገት ላይ በሚደረጉ ጥረቶች ላይ ትኩረት
ያደርጋል፡፡ ከመደበኛው የባንክ አገልግሎት በተጨማሪ አዳዲስ ከወለድ ነፃ የባንክ አገልግሎቶችን ወደ ስራ በማስገባት እና ሙሉ
በሙሉ ከወለድ ነፃ የባንክ አገልግሎት የሚሰጡ ቅርንጫፎችን በመክፈት አዳዲስ የአገልግሎቱ ተጠቃሚ የሆኑ ደንበኞችን ተደራሽ
ለማድረግ የምንሰራ ይሆናል፡፡

አሰራሮችና ህግጋቶች መከበራቸውን ለማረጋገጥ የውስጥ ቁጥጥር እና የስጋት አስተዳደር ስርአታችንን የምናጠናክር ይሆናል፡፡
በህብረተሰቡ ውስጥ ያለንን ገጽታ እንዲሁም አዲሱን የባንኩን ማንነት ከፍ ሊያደርጉ በሚችሉ አገልግሎቶችና ተግባራት ትኩረት ሰጥተን
እንሰራለን፡፡ ቀጣዩ ዓመት ባንካችን በጠንካራ የእድገት ጎዳና እንዲጓዝ በቁርጠኝነት ለመስራት ቃላችንን የምናድስበት አመት ይሆናል::

ምስጋና
በመጨረሻም ለተከበራችሁ ደንበኞቻችን፣ ሰራተኞቻችን፣ ባለአክሲዮኖቻችን፣ ባለድርሻ አካላት እንዲሁም ለኢትዮጵያ ብሔራዊ ባንክ
ባን ካችን በተጠናቀቀው በጀት አመት ላስመዘገበው ከፍተኛ ስኬት ላሳያችሁት ቁርጠኝነት የባንኩ የቦርድ አባላት ያለንን ምስጋና
ለማቅረብ እንወዳለን፡፡

የዲሬክተሮች ቦርድ
ታህሳስ 2015

ANNUAL REPORT 2022/23 105

ግሎባል ባንክ ኢትዮጵያ አ.ማ
የሼሪአ አማካሪ ኮሚቴ ሪፖርት
እ.ኤ.አ በሰኔ 30 ቀን 2023 ለተጠናቀቀው ዓመት

የባንኩ የሸሪዓ አማካሪ ኮሚቴ የአስተዳደር መዋቅርና የሸሪዓ መመዘኛዎችን ከግምት ውስጥ በማስገባት እ.ኤ.አ. ሰኔ 30 ቀን
2023 ለተጠናቀቀው የበጀት ዓመት ሪፖርት እንደሚከተለው እናቀርባለን።

እንደሚታወቀው የሸሪዓ አማካሪ ኮሚቴ ከወለድ ነፃ የባንክ አገልግሎት ጋር የተያያዙ ሥራዎች፣ ንግድ ነክ ጉዳዮች እና እንቅስቃሴዎች
ላይ ተመርኩዞ ራሱን የቻለ የሸሪዓ አስተያየት የመስጠት ኃላፊነት አለበት። በአጠቃላይ የዚህ ኮሚቴ ሚናዎች የሸሪዓ ምክር
መስጠት፣ ሸሪዓን ያለመከተል ስጋትን መቆጣጠር፣ የሸሪዓን ፍርድ/ፈትዋ ማቅረብ እና የሸሪዓ ግምገማ ማድረግን ያካትታሉ።

ኮሚቴው በግምገማው ወቅት ተከታታይ መደበኛ እና ድንገተኛ ስብሰባዎች በማድረግ የባንኩን ከወለድ ነፃ የባንክ አገልግሎት
ማለትም የተቀማጭና የፋይናንስ ውሎችን ገምግሟል። ከዚህም በተጨማሪ የሙዳረባህ ተቀማጭ ገንዘብ (የትርፍ-ኪሳራ
መጋራት) እና ለደንበኞች የተመደበውን ትርፍ አፅድቋል ፡፡ ባንኩ በላከልን ሁሉም ሸሪዓዊ ጉዳዮች ላይ የተለያዩ ፈትዋዎችን (ፍርድን)
አውጥተናል። እንደዚህ አይነት ተግባራት ወደፊት ደንበኞችን ወደ ባንክ ለመሳብ አበረታች ይሆናል ብለን እናምናለን።

ከወለድ ነፃ የባንክ አገልግሎት በሚሰጣቸው የፋይናንስ አገልግሎቶች ላይ ዘግይቶ በመክፈል የሚሰበሰበውን የቅጣት ፈንድ
በህጋዊ መንገድ በተመዘገቡ የበጎ አድራጎት ድርጅቶች በኩል ለሚመለከታቸው ተቀባዮች እንዲከፋፈል አጽድቀናል። ከዚህም
በተጨማሪ ከወለድ ነፃ የባንክ አገልግሎት የፋይናንስ ውሎችን ገምግመናል፤ ሸሪዓን በሚጠይቁ ጉዳዮች ላይ የሸሪዓ አስተያየት
ሰጥተናል እንዲሁም ከወለድ ነፃ የባንክ አገልግሎት መስኮቶችን ጎብኝተን የአሠራሩን ትክክለኛነት አረጋግጠናል፡፡ በአስተያየታችን፣
በውይይቶች እና በስብሰባዎች ወቅት በተሰጠንና በተገለጸልን መረጃ ላይ በመመርኮዝ እስከ ሰኔ 30 ቀን 2023 የባንኩን የሒሳብ
ዓመት ያከናወነው ተግባር ከሸሪዓ ጋር በተጣጣመ መልኩ መከናወኑን አረጋግጠናል።

ሰኔ 30, 2023 የገመገምናቸው ሁሉም የባንኩ የወለድ ነፃ አገልግሎቶች፣ ኮንትራቶች፣ ውሎች እና ሁኔታዎች ከሚመለከታቸው
የሸሪዓ መርሆች እና ህጎች ጋር የተጣጣሙ ናቸው።

በመጨረሻም የባንኩ የሸሪዓ አማካሪ ኮሚቴ አባል የባንኩ የዲሬክተሮች ቦርድ፣ ስራ አስፈፃሚ እና የባንኩ ሰራተኞች የሸሪዓን
ህግጋት በባንኩ ከወለድ ነፃ የባንክ አገልግሎት ለማጠናከር ላሳዩት ቁርጠኝነት ያለንን አድናቆት ለመግለጽ እንወዳለን።

_________________ __________________ __________________

ሼህ ጣሂር አብዱልቃድር ኡስታዘ መሐመድ ፈረጅ ኡስታዝ አቡበከር መሐመድ

የሸሪዓ አማካሪ ኮሚቴ ሰብሳቢ የሸሪዓ አማካሪ ኮሚቴ አባል የሸሪዓ አማካሪ ኮሚቴ አባል

106 ANNUAL REPORT 2022/23

ግሎባል ባንክ ኢትዮጵያ
የገንዘብ ፍሰት መግለጫ
እ.ኤ.አ በሰኔ 30 ቀን 2023 ለተጠናቀቀው ዓመት

ግሎባል ባንክ ኢትዮጵያ

የገንዘብ ፍሰት መግለጫ
እ.ኤ.አ በሰኔ 30 ቀን 2023 ለተጠናቀቀው ዓመት
እ.ኤ.አ. በሰኔ 30 እ.ኤ.አ. በሰኔ 30
ማስታወሻ 2023 2022
ብር "000 ብር "000
ከሥራ እንቅስቃሴዎች የታየ የጥሬ ገንዘብ ፍሰት
ከሥራ እንቅስቃሴዎች የተገኘ ጥሬ ገንዘብ 32 (3 , 6 92 , 08 7 ) (1 , 8 99, 1 8 8 )
የዳ ይ ሬ ክተ ሮ ች አ በል 29 (2 , 1 84 ) -
የተ ተ መ ነ ክ ፍያ 24 (2 , 7 96 ) (2 , 063)
የተ ከፈ ለ የገቢ ግ ብ ር 13 (93 , 1 6 9) (6 7 , 3 8 9)
ከሥራ እንቅስቃሴዎች የተገኘ የተጣራ (ወጪ/ገቢ) የጥሬ ገንዘብ ፍሰት (3,790,236) (1,968,640)

ከመዋዕለ ንዋይ ፍሰት እንቅስቃሴዎች የተገኘ የጥሬ ገንዘብ ፍሰት

ኢንቨስትመንት ሴኩሪቲስ ግዢ (Purchase of Investment Securities) 16 (1 1 3, 04 5) (2 3 , 4 92 )
የማ ይ ዳ ሰሱ ሐ ብ ቶ ች ግ ዢ 18 - (4 1 8)
የንብረት፣ የማምረቻ እና የመሳሪያዎች ግዢ 19 (1 1 6, 7 2 0) (68, 81 3)
ከንብረት፣ ከማምረቻ እና ከመሳሪያዎች ሽያጭ ገቢ 32 803 -
ከትርፍ ክፍያ ተሰብሳቢ /Dividend Received/ - -
የአክሲዮን ግዢዎች /Purchase of Equity Shares/ 27 - (2 0)
ከመዋዕለ ንዋይ ፍሰት እንቅስቃሴዎች የተገኘ የተጣራ የጥሬ ገንዘብ ፍሰት (228,962) (92,743)

ከገንዘብ ነክ እንቅስቃሴዎች የተገኘ የገንዘብ ፍሰት

የደ ን በኞ ች ተ ቀ ማ ጭ ጭማ ሪ (ቅ ና ሽ) 21 3, 2 62 , 4 7 8 2 , 2 81 , 652
የሌ ሎ ች እዳ ዎ ች ጭማ ሪ (ቅ ና ሽ) 22 51 1 , 87 7 (51 , 2 34 )
የተሸጡ መደበኛ አክሲዮኖች 25 4 04 , 4 68 2 37 , 57 4
የሊዝ ዕዳ ክፍያ 20 (2 8, 1 83) (1 6, 02 4 )
ለት ር ፍ ክ ፍያ የሚ ከ ፈ ል 29 (1 93 , 2 08 ) (1 1 3 , 7 6 9)
ላለፉት ዓመታት የግብር ማስተካከያ 29 - -
ከገንዘብ ነክ እንቅስቃሴዎች የተገኘ የተጣራ የገንዘብ ፍሰት 3,957,432 2,338,198
በ ጥ ሬ ገ ን ዘ ብ እ ና የ ጥ ሬ ገ ን ዘ ብ እ ኩ ያዎ ች የ ታ የ ል ዩ ነ ት (61 , 7 66) 2 7 6, 81 5

በዓ መ ቱ መ ጀ መ ሪ ያ ላ ይ የነ በረ ጥሬ ገን ዘ ብ እና የጥሬ ገን ዘ ብ እኩ ያ 14 1 , 2 06 , 97 9 93 0, 1 6 4
የውጭ ምንዛሪ ትርፍ/ኪሳራ በጥሬ ገንዘብ እና በጥሬ ገንዘብ እኩያዎች - -
በዓመቱ ማብቂያ ላይ የታየ የጥሬ ገንዘብ ሚዛን 14 1,145,213 1,206,979

ANNUAL REPORT 2022/23 107

ግሎባል ባንክ ኢትዮጵያ
የትርፍ ወይም ኪሳራ እና ሌሎች ገቢዎች መግለጫ
እ.ኤ.አ በሰኔ 30 ቀን 2023 ለተጠናቀቀው አመት

ግሎባል ባንክ ኢትዮጵያ

የትርፍ ወይም ኪሳራ እና ሌሎች ገቢዎች መግለጫ
እ.ኤ.አ በሰኔ 30 ቀን 2023 ለተጠናቀቀው አመት
እ.ኤ.አ. በሰኔ 30 እ.ኤ.አ. በሰኔ 30
ማስታወሻ 2023 2022
ብር "000 ብር "000
የወ ለ ድ ገ ቢ 5 2, 280, 025 1, 7 18 , 4 37
የወ ለ ድ ወ ጪ 6 ( 1, 14 1, 14 6) ( 8 13, 318 )

የተጣራ የወለድ ገቢ 1,138,879 905,119

የክፍያ እና የኮሚሽን ገቢ 7 397 , 34 1 198 , 936
የክፍያና የኮሚሽን ወጪ 7 - -

የተጣራ የክፍያ እና የኮሚሽን ገቢ 397,341 198,936

ከሌሎች የአገልግሎት ክፍያ የተገኙ ገቢዎች 8 332 , 4 33 2 0 0 , 90 3

ጠቅላላ የእንቅስቃሴ (አገልግሎት) ገቢ 1,868,653 1,304,958

ለ ደ ን በ ኞ ች የተ ሰ ጡ አ ጠ ራጣ ሪ ብ ድ ሮ ች መ ጠ ባ በ ቂ ያ ክ ፍ ያ 9 15 , 8 30 ( 4 9, 8 96 )
በሌሎች እንቅስቃሴዎች የመጡ አጠራጣሪ ኪሳራዎች 10 ( 1, 74 1) ( 2 , 4 12 )

የተጣራ የእንቅስቃሴ (የአገልግሎት) ገቢ 1,882,742 1,252,650

የሰራተኞች ደመወዝ እና ጥቅማ ጥቅም ክፍያዎች 11 ( 7 39, 2 8 6 ) ( 4 2 9, 2 7 9)

የማይዳሰሱ ሀብቶች የእርጅና ቅንስናሽ 18 ( 6 8 3) ( 1, 615 )
የንብረት፣የህንፃ እና የመሳሪያዎች የእርጅና ቅንስናሽ 19 ( 4 0 , 8 37 ) ( 32 , 8 6 2 )
20
የተጠቃሚነት መብት ቅንስናሽ (Depreciation of Right of Use Assets) ( 99, 2 32 ) (84 , 4 25 )
ሌሎች የእንቅስቃሴ (የአገልግሎት) ወጪዎች 12 ( 30 6 , 5 5 8 ) ( 334 , 139)
ትርፍ ከግብር በፊት 696,146 370,330
የገ ቢ ግ ብ ር ወ ጪ 13 ( 17 3, 0 8 5 ) ( 93, 16 9)
ትርፍ ከግብር በኃላ 523,061 277,161

ሌሎች የተጣመሩ ገቢዎች (Other Comprehensive Income) ከገቢ ግብር

በኋላ

በትርፍና ኪሳራ መዝገብ የማይካተቱ ገቢዎች ወይም ወጪዎች (Items that 24 c

will not be subsequently reclassifi ed into profi t or loss)፡ ( 10 , 7 98 ) 2, 263

በጡረታ ጊዜ ለሰራተኞች ሊከፈል የሚችል ጥቅማጥቅም (Remeasurement 13

g a i n /( l o ss) o n r e t i r e m e n t b e n e fi t s o b l i g a t i o n s) 3, 2 39 ( 6 7 9)

ወደፊት ሊከፈል የሚችል የትርፍ ግብር (Deferred tax (liability)/asset on

r e m e a su r e m e n t g a i n o r l o ss) ( 7 , 5 5 9) 1, 5 8 4

F a i r v a l u e t h r o u g h t O C I o n F i n a n c i a l a sse t s 28
- Un r e a l i z e d g a i n /( L o ss) a r i si n g fr o m m e a su r e m e n t a t fa i r v a l u e 4 0, 206 2 3, 8 33
32 , 6 4 7 2 5 , 4 17

የአመቱ አጠቃላይ የተጣራ ገቢ (Total comprehensive income for the

period) 555,708 302,578
የአንድ አክሲዮን የትርፍ ድርሻ (EPS) (ብር)
(Basic & diluted earnings per share (Birr)) 26
292 182

108 ANNUAL REPORT 2022/23

ግሎባል ባንክ ኢትዮጵያ
የሀብትና ዕዳ መግለጫ
እ.ኤ.አ በሰኔ 30 ቀን 2023 ለተጠናቀቀው ዓመት

ግሎባል ባንክ ኢትዮጵያ

የሀብትና ዕዳ መግለጫ
እ.ኤ.አ በሰኔ 30 ቀን 2023 ለተጠናቀቀው ዓመት
እ.ኤ.አ. በሰኔ 30 እ.ኤ.አ. በሰኔ 30
ማስታወሻ 2023 2022
ብር "000 ብር "000
ሐብቶች
በባንክና በእጅ የሚገኝ ጥሬ ገንዘብ 14 2 , 10 4 , 4 6 2 2,247,228
የ ደ ን በ ኞች ብ ድ ር እና ቅድ መ ክ ፍ ያ 15 13 , 6 6 1, 4 13 9 , 34 9 , 9 31
የአክስዮን ኢንቨስትመንት፡
- ለሽያጭ የተዘጋጀ አክሲዮን 4 . 2 , 16 119 , 3 81 66, 4 2 5
- የብሔራዊ ባንክ ቢል ኢንቨስትመንት 16 1, 12 5 , 89 4 1, 0 6 5 , 80 5
ሌ ሎ ች ሀብ ቶ ች 17 1, 112 , 3 6 5 7 2 9 , 881
የተጠቃሚነት መብት (Right of Use Assets ) 20 3 4 3 , 19 1 3 17 , 5 0 6
የ ማይ ዳ ሰ ሱ ሐ ብ ቶ ች 18 1, 3 3 8 2,021
ቋሚ ንብረት እና መሳሪያ 19 37 6, 0 2 9 3 0 0 , 14 6
ወደፊት የሚታሰብ የትርፍ ግብር (Deferred tax Asset) 13 9 , 9 19 6, 680
ጠቅላላ ሐብት 18,853,992 14,085,623

እዳዎች
የ ደ ን በ ኞች ተ ቀማጭ ሂ ሳብ 21 14 , 2 4 7 , 6 2 4 10 , 9 85 , 14 6
ብድ ር 22 667 , 4 7 5 15 5 , 5 9 8
የዚህ አመት ተከፋይ የገቢ ግብር 13 17 3 , 0 85 9 3 , 16 9
ሊዝ 20 17 , 0 4 7 4 0 , 59 0
ሌ ሎች እዳ ዎች 23 7 6 1, 5 6 7 60 7 , 2 0 7
ለሰራተኞች የአገልግሎት ጥቅም መጠባበቂያ (Retirement benefi t
24
o bligatio ns ) 3 3 , 87 0 15 , 3 7 2
የተቀመጠ የግብር ኃላፊነት (Deferred tax Liabilities) 13 - -
ጠቅላላ ኃላፊነት 15,900,668 11,897,082

የተጣራ ሐብት
የተከፈለ አክሲዮን ካፒታል 25 2 , 0 32 , 52 3 1, 6 2 8, 0 5 5
ሌሎች ድርሻዎች / Treasury shares/ 27 (6, 4 5 5 ) (6, 4 5 5 )
ሌ ሎ ች መጠባ በ ቂ ያዎ ች 28 7 3, 39 0 40,743
ያል ተ ከ ፋ ፈ ለ ት ርፍ 29 2 9 6, 9 64 19 3 , 2 0 8
ህ ጋ ዊ መጠባ በ ቂ ያ 30 4 12 , 4 3 0 2 81, 6 6 4
የሪስክ መጠባበቂያ 31 14 4 , 4 7 3 5 1, 3 2 6
ጠቅላላ የተጣራ ሐብት 2,953,325 2,188,541
ጠቅላላ የተጣራ ሐብት እና ኃላፊነት 18,853,992 14,085,623

ANNUAL REPORT 2022/23 109

 የነገ ተስፋቸው
እኛንም ግድ ይለናል

የልጆች የቁጠባ ሂሳብ በ8% ወለድ ካሁኑ ይቆጥቡላቸው

110 ANNUAL REPORT 2022/23

GLOBAL BANK ETHIOPIA
ADDIS ABABA BRANCHES
No. Branch Telephone

1 Beklobet 0114-67-40-68 43 Firash Tera 0112 31 00 08/47

2 Saris 0114-43-14-05 44 Kera-Sarbet 0116 69 19 67/68

3 Shiromeda 0111-54-00-66/95 45 CMC Michael 0116 67 15 26/28

4 Sidamo-Tera 0112-73-42-32/23 46 Bisrate Gebriel 0113 69 26 46/0545

5 Dubi-Tera 011-2-73-21-39/65 47 Gotera 0114 70 82 36/85 74

6 Atlas 0116-67-25-87 48 Kebena 0111 54 47 20/21

7 Messalemia 011-2-78-87-11 49 Haya Arat 0116 59 37 46/47

8 Kality 011-4-71-60-09 50 Lamberet 0116 73 40 82/83

9 Stadium 011-5-58-12-98/73/31 51 Ayer Tena 0113 69 37 41/42

10 Yerer 011-6-67-57-82/58-24 52 Arat Kilo 0115 33 61 80/81

11 Jemo 011-4-71-39-34/35 88 53 Jakros 0116 73 37 13/80

12 Summit 011-667-89-86 54 Akaki 0114 71 53 57/50 28

13 Gofa 011-4-70-48-70/71 55 Bole 0116 68 62 27/65 99

14 Bethel 011-3-69-67-55/56 56 Churchil 0115 33 62 70/61 58

15 Gerji 011-639-46-31/96 57 Dejach Wube 0111 70 20 08/96

16 Kality Gebriel 0114-71-77-53/18 58 Ayat Beshale 0118 13 20 77

17 Senga Tera 0115-57-46-82/57 04 59 Kotebe 0116 73 43 54/22 39

18 Hayahulet 011-668-40-33/42 78 60 Ferensay 0111 54 95 06/92 38

19 Bole Michael 0116 39 27 76/34 67 61 Tulu Dimtu Ferensay 0114 71 56 74/67 19

20 Atikilt Tera 0111 26 69 00 62 Gelan Condominium 0118 13 42 34

21 Teklehaymanot 011-273-39-53/37 54 63 CMC 0116 73 46 28/39 43

22 Bole Medhanialem 0116 68 64 52 64 Sholla 0116 58 72 02/66 91

23 Nifas Silk 0114 70 91 08/09 65 Goro 0116 66 15 58/68 37 53

24 Lideta 0115 57 40 44/54 80 66 Gurd Sholla 0116 73 36 55

25 Meskel Flower 0114 70 23 66/18 72 67 Yohannes 0111 71 32 24

26 Kolfe 0112 73 99 91/97 62 68 Wuhalimat 0116 66 32 56

27 Lebu 0114 62 53 39/31 69 Mehal Gurd Sholla 0116 66 07 33

28 Addisu Gebeya 0111 26 54 44/43 70 Popolare 0115 58 42 90/27 04

29 Wessen 0116 68 09 61 71 Bilal (Bethel) 0113 69 71 62/72 45

30 Ayat 0116 39 10 03/18 23 72 halal (frash tera) 0112 31 1046/10 84

31 Gulele 0112 73 73 71/79 89 73 Olympia 0115 57 48 40

32 Autobus Tera 0112 73 55 28 74 Kirkos 0114 62 86 09/89 66

33 Adey Abeba Stadium 0116 35 83 96 75 Amist Kilo

34 Lafto 0114 71 18 77/78 76 Wello Sefer

35 Megenagna 0116 68 68 73/63 12 77 Sholla Gebeya

36 Shalla 0116 89 42 74/76 78 Bulbula Medhanialem

37 Military Tera 0112 73 35 30/31 79 Megenagna 24

38 Mekanisa 0113 69 19 38/39 80 Ayat Tsebel 0116 39 14 25/05 43

39 Kazanchis 0115 57 95 46/47 81 Ayat 49 0116 39 15 96/11 24

40 Bole Bulbula 0114 71 44 83/42 99 82 Yeka Abado

41 Alem Bank 0113 69 39 58 83 Tafo Adebabay

42 Hana Mariam 0114 71 10 40/15 71 84 Gerji Lemlem

ANNUAL REPORT 2022/23 111

GLOBAL BANK ETHIOPIA
REGIONAL BRANCHES
No. Branch Telephone

1 Hawassa 046-2-20-46-73 39 Modjo 0222 236 46 53/64 43

2 Hossaena 046-555-08-00 40 Daye 0463 37 06 57/07 07

3 Adama 022-1-11-84-71 / 72 41 Welete 0118 13 48 02

4 Doyogena 046-2-44-03-39 /31 42 Ashewa Meda 0112 60 19 98

5 Dilla 046-3-31-00-19/12 / 01-54 43 Dedecha Arara (Adama) 0222 11 99 47/82 27

6 Wolkite 0113-30-02-25/24/ 0113-30-02-28 44 Boset (Adama) 0222 12 38 86/85

7 Worabe 046-7-71-01-17/18 / 046-7-71-01-05 45 Dessie 0333 12 52 38

8 Yirgachefe 046-332-05-79 /046-3-32-05-70 46 Tarcha 0463 45 08 25/26

9 Wolayta 046-551-41-53 /046-5-51-41-65 47 Metu 0471 41 49 86/34 66

10 Shashemene 046-211-00-75/77 / 046-211-00-72 48 Bonga 0473 31 23 89/24 37

11 Durame 046-554-02-35/0334 49 Batu 0461 41 57 98

12 Chuko 046-227-01-69/03 24 /046-227-04-09 50 Halaba Kulito 0465 56 11 08/15 91

13 Mekelle 034 -241-53-87/ 034-241-52-93 51 Gambella 0471 51 27 95/99

14 Aletawondo 046-224-15-44 /11 79 52 Shinshicho 0463 39 08 89

15 Arbaminch 0461 81 40 20 53 Naramo (Hossaena) 0468 55 99 78

16 Yirgalem 046-225-20-39 /046-225-20-29 54 Hossaena Arada 0118 12 82 68

17 Gondar 058-211-09-72/15 55 55 Bule Hora 0464 43 16 07

18 Dembela 022-1-12-07-33/022-2-11-65-25 56 Meki 0221 18 22 16

19 Tabor (Hawassa) 046-212-25-21/57 55 57 Fiche 0111 60 99 98/91 95

20 Dire Dawa 025 4 11 55 36 58 Agaro 0472 21 12 99/56 16

21 Bahirdar 0583 20 66 15/64 19 59 Areka 0465 52 14 48/15 47

22 Butajira 0461 45 35 93/77 83 60 Wendogenet 0462 22 03 27/04 62

23 Bishoftu 0114 30 12 81/82 61 Maraki (Gonder) 0582 11 15 59/ 23 98

24 Menaharia (Hosaena) 0461 78 01 19 62 Sebeta 0113 81 81 50/80 03

25 Adi Haki 034 240 43 23/42 56 63 Semera 0333 66 16 37/7638

26 Furi 0113 67 96 34/94 79 64 Bale Robe

27 Alem Gena 0113 67 94 19/92 91 65 Asella 0222 38 11 91/34 42

28 Jimma 0472 11 10 93/94 66 Adama Mebrat Hayil 0222 11 07 99/0222 11 47 56

29 Humera 0342 48 63 10/11 67 Chiro 0256 51 54 13

30 Jigjiga 0252 78 36 63/67 31 68 Dukem 0114 32 15 52/71 89 20

31 Harar 0254 66 40 59/64 29 69 Ambo 0112 60 21 69/20 24

32 Burayu 0112 62 51 97/ 55 42 70 Gish Abay 0582 20 63 27/20 66 51

33 Debrebirhan 0116 37 51 95/65 37 71 Sululta 0111 86 10 18/50 87

34 Woliso 0113 66 46 32/45 96 72 Taiwan 025 411 78 69

35 Tog Wuchale 0258 82 04 26 73 Bale Goba 0222 46 38 37

36 Hawassa Addisu Gebeya 0462 12 95 26/23 78 74 Ginir 0226 64 28 42/37 68

37 Mizan 0471 35 79 23/50 72 75 Metehara

38 Hawassa Menaheria 0462 12 13 07/80 68 76 Logiya

112 ANNUAL REPORT 2022/23

 የተሟላ ከወለድ ነፃ
የባንክ አገልግሎት

ANNUAL REPORT 2022/23 113

GLOBAL BANK ETHIOPIA s.c
Headquarters Behind Ethiopian Hotel, National Tower
Tel: (+251) 115 581 194 (+251) 115 581 245
Fax: (+251) 115 581 225
Swift Code: DEGAETAA
Website: globalbankethiopia.com