Gadaa Bank Cleared to Issue One Million New Shares After Profit Doubles

Gadaa Bank S.C. has secured regulatory approval to issue one million new shares after posting record financial results for the 2025/26 fiscal year, strengthening its capital base as it expands its presence in Ethiopia’s emerging capital market.

The Ethiopian Capital Market Authority (ECMA) announced that it approved the bank’s Registration Statement on June 29, 2026. Alongside registering 230,713 existing shares already held by shareholders, the Authority also approved the issuance of one million new ordinary shares to existing and new investors.

The approval comes just days after Gadaa Bank reported one of its strongest financial performances since its establishment.

The lender announced that pre-tax profit exceeded one billion birr during the 2025/26 fiscal year, representing a 113 percent increase compared with the previous year.

Customer deposits climbed to 12.6 billion birr, up 64 percent year-on-year, while total assets also increased by 64 percent to reach 16.5 billion birr, reflecting continued growth across the bank’s operations.

Gadaa Bank also expanded its physical presence during the year, increasing its branch network to 110 branches after opening ten new outlets across the country.

Beyond its commercial banking business, the lender has accelerated its participation in Ethiopia’s evolving financial markets. During the fiscal year, it established Gadaa Capital Investment Bank S.C., positioning itself among the first institutions to enter the country’s newly licensed investment banking sector.

The bank has also taken steps to align itself with Ethiopia’s capital market reforms, becoming one of the financial institutions participating in the Ethiopian Securities Exchange ecosystem as the country’s regulated securities market continues to develop.

According to ECMA, the latest approval was granted under the Public Offer and Trading of Securities Directive No. 1030/2024, which requires companies to register existing securities and obtain regulatory clearance before offering new shares.

While the approval authorizes Gadaa Bank to issue one million new shares, the Authority emphasized that the registration itself does not constitute an offer or solicitation to purchase securities. Any future share offering will proceed in accordance with applicable capital market regulations.

The bank is also investing in its long-term growth strategy. It announced that the first phase of its planned headquarters project has been completed, with feasibility studies and architectural designs finalized and the project now entering the tender stage.

The combination of stronger earnings, expanding operations, investment banking activities, and fresh capital raising reflects Gadaa Bank’s broader strategy to strengthen its position as Ethiopia’s banking sector enters a new phase of competition and capital market development.