Wegagen Bank has announced a remarkable achievement, reporting that its foreign exchange revenue has surpassed $300 million for the 2023/24 fiscal year. This marks a significant increase of $241 million, or 65%, compared to the previous year’s revenue of just $27 million, demonstrating the bank’s resilience amid various domestic and global challenges impacting international banking operations.
During the presentation of the bank’s annual report, Abdishu Hussien, Chairman of the Board of Directors, attributed this success to strategic initiatives aimed at attracting and retaining exporters while diversifying foreign exchange sources. “This significant achievement has been made possible through our focused efforts in enhancing our service offerings and expanding our market reach,” he stated.
The bank’s total assets also saw substantial growth, increasing by 23% to reach Birr 65.7 billion in the 2023/24 fiscal year. Loans and advances constituted the largest portion of the bank’s assets at 66%, followed by cash and bank balances at 20%.
Wegagen Bank’s total revenue for the fiscal year stood at Birr 9.8 billion, reflecting a notable increase from Birr 7 billion in the previous year—an impressive growth of Birr 2.8 billion or 40%. The income composition revealed that interest on loans and advances accounted for 69% of total revenue, while commissions and charges contributed 22%. Interest on investments represented 5%, with other income making up the remaining 4%.
At the end of the fiscal year, Wegagen Bank reported a total capital of Birr 9.2 billion, marking a 33% increase from the previous year’s performance of Birr 6.9 billion. The paid-up capital reached Birr 5.1 billion, up from Birr 3.98 billion in the prior year.
With approximately 12,000 shareholders, Wegagen Bank achieved a net profit exceeding Birr 1.6 billion in the fiscal year. The bank’s loans to various sectors of the economy reached Birr 45.1 billion, reflecting a growth rate of 22%.
Abdishu Hussien emphasized that Wegagen Bank’s strategic focus on enhancing its foreign exchange capabilities has positioned it well to navigate the complexities of international banking and contribute positively to Ethiopia’s economic landscape.
