Wegagen Bank Posts 1.4 Billion Birr Gross Profit

ADDIS ABABA – Wegagen Bank disclosed on Friday that it has posted a gross profit of 1.4 billion Birr in 2021/22FY, showing a significant increase from the previous fiscal year,

The massive profit was reported after Wegagen’s profit plummeted by 85 percent to 126 million Birr in the previous year.

Its officials, then, said the drop was partly due to the disruption of the Bank’s operation due to the war in the north, where it has a significant presence, as well as the impact of a staggering 410% surge in loan impairment charges to 789.5 million birr.

In a statement on Friday, CEO of the Bank Aklilu Wubet said the bank has managed to come out of the weak performance in the previous year stronger, grossing a 1.4 billion birr profit in the concluded financial year.

The CEO attributed the significant rise to the efforts made by the board and management of the bank, in tandem with the workers, to win back customers’ trust.

He said the marked increase in profit was recorded while 112 of the Bank’s 400 branches are still out of service.

Wegagen’s deposit mobilization has also shown improvement, increasing from 31.5 billion Birr to 33.9 billion Birr.

The bank also saw its asset value increase from 39.7 billion Birr to 43.6 billion Birr in the fiscal year that concluded on July 7, 2022.

Wegagen Bank was established in 1997 with 16 shareholders and a paid-up capital of 30 million Birr. The Bank, with 5, 888 shareholders, has 5000 workers and operates with 6.1 billion Birr in capital.

Featured Image Caption: Wegagen appointed Aklilu Wubet as its CEO in the third quarter of the financial year. [Photo File]

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