Wegagen Bank has achieved record-breaking financial performance for the 2023/24 fiscal year, reporting a net income of Birr 9.8 billion and a gross profit of Birr 2.2 billion, marking a historic milestone. This impressive financial achievement was presented during the bank’s 31st Ordinary and 15th Extra Ordinary Shareholders’ General Assembly, held at the Hilton Addis Ababa.
In his address, the Board Chairperson, Ato Abdishu Hussein, highlighted that the bank’s income increased by a notable 40% compared to the previous fiscal year. The bank also achieved an impressive 86% increase in gross profit year-over-year, a testament to its resilience and strategic agility amidst domestic and global economic challenges. Additionally, earnings per share (EPS) reached an extraordinary 36.9%, up significantly from the 22.7% recorded last year.
Growth Across Key Financial Metrics and Strategic Investments in Capital
Wegagen Bank’s financial performance reflects robust growth in several key performance metrics. The paid-up capital increased by 27%, reaching Birr 5.1 billion by the end of the fiscal year, exceeding the National Bank of Ethiopia’s regulatory requirement. The bank’s total capital rose to Birr 9.2 billion, a 33% increase from the previous year, providing a strong foundation for future expansion and development.
Total deposits reached Birr 52.1 billion, representing a 22% increase over the previous year, thanks to focused resource mobilization efforts. The bank’s outstanding loans and advances reached Birr 45.1 billion, a 13% increase, supporting various sectors of the Ethiopian economy. Wegagen Bank’s assets have also grown substantially, totaling Birr 65.7 billion, a 22.9% increase compared to the prior year.
Expanding Shareholder Base and Community Contributions
Wegagen Bank’s shareholding structure continued to diversify, with the number of shareholders growing to nearly 12,000 as of June 30, 2024. Ato Abdishu underscored the importance of this growth as a reflection of increased public trust in the bank’s performance and strategic direction. Furthermore, the bank created over 5,400 jobs nationwide, demonstrating its commitment to social and economic development in Ethiopia.
As part of its corporate social responsibility, Wegagen Bank contributed Birr 75 million in donations to socioeconomic development initiatives, including support for philanthropic organizations focused on uplifting low-income communities. The bank has integrated an Environmental, Social, and Governance (ESG) framework into its operations, establishing a dedicated ESG function to strengthen its commitment to sustainable practices, including green financing initiatives.
Advancing Technology and Enhancing Service Accessibility
Wegagen Bank’s Chief Executive Officer, Dr. Aklilu Wubet, emphasized that the bank has actively invested in digital transformation to enhance customer experience and accessibility. As of June 30, 2024, the bank operates 436 branches across Ethiopia, providing both conventional and interest-free banking services. The bank has deployed 360 ATMs, 436 Point of Sale (POS) terminals, and a network of 4,784 agents to broaden service accessibility through internet, mobile, and card banking platforms.
Strategic Focus on Future Growth and Resilience
As Wegagen Bank looks toward the future, Ato Abdishu outlined key priorities, including expanding the bank’s capital base, optimizing resource mobilization, strengthening internal controls, and enhancing risk management frameworks. Improving service quality, advancing technological capabilities, and investing in human capital are also central to the bank’s long-term growth strategy.
CEO Dr. Aklilu expressed gratitude to the bank’s customers, Board of Directors, employees, and other stakeholders for their unwavering support, noting that their contributions have been essential to the bank’s success. He affirmed that Wegagen Bank will continue to monitor regulatory developments and adapt its strategies to ensure sustainable growth and resilience in the face of an evolving financial landscape.
