Wegagen Bank S.C. reported a 73% year-on-year surge in gross profit to 3.85 billion birr ($66.5 million), marking one of its strongest financial performances in years, the bank said on Tuesday.
At its annual general meeting held at the Hilton Hotel, Board Chairman Abdishu Hussien said the bank’s earnings were driven by robust income growth, digital transformation, and prudent lending amid the National Bank of Ethiopia’s (NBE) 18% credit cap, which was lifted last week.
Total income rose 38% to a record 13.5 billion birr, while paid-up capital reached 7 billion birr — surpassing the NBE’s 5-billion-birr minimum capital requirement nearly a year ahead of the June 2026 deadline.
Wegagen’s total assets grew 29% to 84.7 billion birr, with deposits at 66.5 billion birr and loans to various economic sectors expanding to 53.5 billion birr, according to the bank’s annual report.
The bank has also positioned itself at the forefront of Ethiopia’s emerging capital market, becoming the first financial institution to register its 6.2 million shares for trading on the new securities exchange. Chief Executive Officer Aklilu Wubet (PhD) told Shega that the bank had completed all technical and regulatory preparations, including share dematerialization.
“We are ready to do whatever is necessary whenever there are trades,” Aklilu said, adding that trading volumes would likely increase as the market develops.
Wegagen’s investment banking subsidiary—among the first licensed by the Ethiopian Capital Market Authority—reported an initial operating deficit of 10.19 million birr but plans to triple its paid-up capital from 385 million to 1 billion birr to bolster operations.
Abdishu said the subsidiary’s early-stage losses reflected strategic investment in capacity building rather than project financing, emphasizing its mandate to mobilize funds, conduct research, and provide advisory services.
During the meeting, shareholders also raised concerns about the absence of female board members, citing the NBE’s corporate governance directive requiring at least two women on the board. Abdishu pledged to address the issue in future appointments.
Source: Shega Media & Capital Ethiopia
