Wegagen Bank Reports 40% Increase in Total Revenue

Wegagen Bank has reached a significant milestone in its financial performance for the 2023/24 fiscal year. Wegagen Bank announced that its foreign exchange revenue has exceeded $300 million. This marks an impressive increase of $241 million, or 65%, compared to the previous year’s revenue of Wegagen Bank’s just $27 million. This growth showcases the bank’s resilience in domestic and global economic challenges.

During the annual report presentation, Abdishu Hussien, Chairman of the Board of Directors, credited this success to strategic initiatives. The bank focused on attracting and retaining exporters while diversifying its foreign exchange sources. “This achievement results from our efforts to enhance service offerings and expand our market reach,” he stated. These strategies have strengthened Wegagen Bank’s position in Ethiopia’s financial sector.

Wegagen Bank’s total assets grew by 23%, reaching Birr 65.7 billion in the 2023/24 fiscal year. Loans and advances comprised 66% of the bank’s assets, while cash and bank balances accounted for 20%. The total revenue of Wegagen Bank rose to Birr 9.8 billion, up from Birr 7 billion in the previous year, an impressive growth of 40%.

Interest on loans and advances constituted 69% of total revenue. Commissions and charges contributed 22%, while interest on investments made up 5%. Other income accounted for the remaining 4%. This diverse income stream reflects Wegagen Bank’s solid operational framework.

At the end of the fiscal year, Wegagen Bank reported a total capital of Birr 9.2 billion, a 33% increase from last year’s Birr 6.9 billion. The paid-up capital rose to Birr 5.1 billion, up from Birr 3.98 billion. This growth demonstrates the bank’s commitment to strengthening its financial foundation.

With around 12,000 shareholders, Wegagen Bank achieved a net profit exceeding Birr 1.6 billion this fiscal year.

Wegagen Bank prioritizes technological advancements to improve service accessibility and customer experience. The introduction of digital banking platforms has significantly increased user engagement, with over 2.7 million mobile banking users and nearly 17,000 internet banking customers reported.

As Wegagen Bank plans for future growth, Abdishu Hussien outlined vital priorities. The bank aims to expand its capital base, optimize resource mobilization, strengthen internal controls, and enhance risk management frameworks. Improving service quality and advancing technological capabilities will be central to ensuring sustainable growth.

At the start of this month, Wegagen Bank shared that the total deposits of Wegagen Bank have exceeded 50 billion birr, reaching 52.1 billion birr. This marks a 22% growth from the previous year.

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