Wegagen Bank Gross Profit Hits a Billion Birr Mark
Addis Ababa, November 15, 2018- Wegagen Bank announced a gross profit of Birr 1 billion 50 million in the 2017/18 Fiscal Year ended June 30, 2018, showing a 49% increase over the previous year’s profit of 705 million. The Bank’s profit has seen a continuously rising trend over the past three years. The significant increase in the profit is attributed largely to the significant increase in the total income, which stood at 2.34 billion, a 39.6% increase over the previous fiscal year. This development puts Wegagen in the category of the few private Banks that managed to gross a billion birr profit.
The Bank has officially announced its achievements in the audited annual report presented at the 25th Ordinary and 13th Extraordinary Shareholders’ Meeting held at Hilton Addis Ababa on November 15, 2018.
CEO of the Bank Araya G/Egziabher remarked that the Bank registered a commendable growth in all aspects of operation highlighting key achievements of the Bank in the fiscal year ended on June 30, 2018. He indicated that the Bank’s paid up capital grew 11% to reach Birr 2.3 billion in 2017/18 from 2.1 billion at the end of 2016/17 Fiscal Year, . The total capital including reserves also increased by 19% to reach Birr 3.8 billion. According to the CEO, the Bank’s total asset rose to Birr 27.3 billion at the end of 2017/18 showing a 33% increase from Birr 20.9 billion last Fiscal Year. Similarly, the total deposit mobilized increased by 31% to reach Birr 20.5 billion in 2017/18 from Birr 15.6 billion in 2016/17. Similarly, the Bank’s total loans and advances grew to over Birr 15.1 billion from Birr 10.2 billion in 2016/17. The number of shareholders is also reached 3,199 while the number of employees increased to 4,451 in 2017/18 Fiscal Year from 3,856 last year. The Bank opened 64 new branches across the country expanding its network of branches to 277 at June 30. 2018.
The CEO also indicated that the Bank has carried out several projects aimed at modernizing its infrastructure in a bid to provide better services to its customers. The most notable of such projects carried out in the 2017/18 Fiscal Year was the replacement of its core banking system with Oracle Flex Cube which has significantly transformed its operational performance and customer service delivery to the highest level of efficiency. It is also undertaking a project to build a new state of the art data center in its newly inaugurated Headquarters building on Ras Mekonnen Street. Wegagen’s new IT infrastructure has enabled it to provide innovative & value adding financial services, including the newly introduced air travel payment services in collaboration with Ethiopian Airlines.
Wegagen Bank, as part its corporate social responsibility, has extended its support, in the amount of Birr 23 million, to the effort in the rehabilitation of people internally displaced due to conflicts in various parts of the country. It also donated Birr 2 million to support the fight against engulfment of Lake Tana with Water Hyacinth weed also known as “Emboch Arem.”
Wegagen Bank provides electronic banking services through its extensive network of ATMs and Point of Sale (POS) terminals as well as through its internet and mobile banking platforms in addition to the regular banking services through its ever-growing network of branches that reached 312. In an effort to boost accessibility of financial services to the unbanked segment of our population, Wegagen has introduced Agency banking service, deploying hundreds of Agents in the neediest part of the country including Gambella in partnership with Bellcash Technologies.
