Wegagen Bank has reported strong financial performance for the 2024/25 fiscal year, posting a pre-tax profit of 3.85 billion birr while maintaining its Non-Performing Loan (NPL) ratio within the National Bank of Ethiopia’s (NBE) regulatory threshold of below 5 percent. The results were released during the Bank’s 32nd Ordinary General Meeting of Shareholders held on October 7, 2025.

According to its annual report, Wegagen’s total assets increased by 29 percent, climbing from 65.7 billion birr in the previous year to 84.7 billion birr. The bank, which is owned by 14,871 shareholders, also reported robust loan portfolio expansion, with total loans and prepayments rising by 18 percent to reach 53.5 billion birr.

Board Chairperson Abdishu Hussein attributed the performance to the strategic focus on the bank’s core lending activities, achieved while maintaining disciplined risk management. “Our steady credit growth has been guided by prudent lending practices that align with the NBE’s regulatory standards,” Abdishu said. He added that the low NPL ratio demonstrates Wegagen’s ability to manage growth effectively while preserving portfolio quality.

The continued profitability also boosted returns for shareholders, with earnings per share rising to 46.10 percent and Return on Average Equity (ROE) reaching 25.3 percent. Capital adequacy remained strong, with a ratio of 14.97 percent—nearly double the central bank’s minimum requirement of 8 percent.

The detailed breakdown of the bank’s 53.5 billion birr lending portfolio shows diversified exposure across key economic sectors. The import sector led with a 25 percent share, followed by domestic trade and services (18 percent), export trade (16 percent), manufacturing (15 percent), and construction (15 percent). This portfolio composition underscores Wegagen’s alignment with Ethiopia’s broader economic development priorities.

Wegagen’s deposit base also surged by 28 percent to 66.5 billion birr, supported by a 20 percent increase in its customer base. The bank added 737,712 new customers during the year, bringing its total account holders to over 4.37 million. International banking operations performed strongly despite global trade challenges, generating 273 million U.S. dollars in revenue.

The bank’s total capital grew by 39 percent to 12.8 billion birr, driven primarily by a 2-billion-birr increase in paid-up capital, which brought total paid-up capital to 7 billion birr. Wegagen continues to make strides as a pioneer in Ethiopia’s financial sector, having been the first company listed on the Ethiopian Securities Exchange (ESX).

Wegagen also expanded its presence through the launch of Wegagen Capital Investment Bank S.C., the country’s first licensed investment bank. The report noted steady growth across digital and branch networks: mobile banking subscribers reached 3.4 million, cardholders increased by 29 percent to 369,872, and the physical branch network expanded to 455 locations, supported by 398 ATMs and 467 sales terminals.