Wegagen Bank’s provision expense has shown sharp reduction in the past financial year.
The year that ended on June 30, has seen the financial powerhouse netting in four folds in profits which catalyzed its recovery from previous year’s poor performances.
From the 2021/22 financial year report that the bank unleashed a few weeks ago, the bank finances highlighted that its deposit mobilization elevated by 2.4 billion birr to sit at 33.9 billion birr which is an eight percent increase compared to the preceding year.
As usual, the savings deposit took the lion’s share of the mobilization with 61 percent, followed by demand deposit which constituted 28 percent, while the deposit account stood at about 2.3 million with an unusual drop of 2.6 percent from the year prior.
“The decrease is attributable to the regulatory body’s directive of clearing customer’s account information and merging different accounts of the same person under one customers ID number,” the annual report explains.
Regarding the interest free banking segment, the bank’s outstanding mobilization stood at 1.6 billion birr with five percent increment while the sector financing leveled at 339 million birr.
The outstanding loans and advances rose by 2.9 billion birr or 11 percent in a single year to stand at 30.3 billion birr.
The investment in Treasury bills and other securities of the bank reached 4.3 billion birr at the end of the reporting period making the total loans and advances of Treasury bill and debt financing to stand at 34.5 billion birr as of June 30.
In the year under review, the bank’s asset increased by 9 percent to reach 43.1 billion birr while the paid up capital bulged to 3.4 billion birr.
In this period, Wegagen amassed 5.1 billion birr of which interest income from loans and advances contributed to 73 percent for the inflow.

A rare occurrence for the sector saw Wegagen’s expense for the year remarkably shrink compared to the 2020/21 financial year. The annual report indicated that the total expense had dropped by over six percent or 300 million birr from 4.8 billion birr a year ago to 4.5 billion birr.
“The decrease is primarily due to a huge reduction in provision expense following improved loan collection,” the annual report justified and added the cost management practice that the bank undertook contributed for the result. For the year, provision expense plummeted by 101 percent, while expense on interest took 40 percent of the total expense. The amortization intangible assets and staff salary and benefit increased by 23, 24 and 7 percentages respectively.
In the reporting period the bank was in a good position to mitigate challenges that it faced a year ago, leading to profit attainment. As a result the profit before tax for the financial firm rose to 572 million birr which is an almost three times increase from 193 million birr a year ago.
“Despite a myriad of challenges occurring during the reporting period and a year before, the bank recovered and rebounded on its growth trajectory,” the report read.
The profit after tax stood at 551.4 million birr that increased by 435 percent in contrast to 127 million birr from the previous year.
Similarly, for the year in review, the earnings per share inclined by four folds reaching 16.6 percent.

The Oromia Cooperative Promotion Agency (OCPA) and the state financial giant, Commercial Bank of Ethiopia (CBE) agree to work in tandem with regards to technology based loan repayment.
The agency which provides agricultural inputs for farmers in Oromia region has had a longstanding partnership with CBE for the last 28 years in terms of financial access for the procurement of inputs.

Similarly, the regional body has been providing inputs for farmers on credit bases, through a traditional recollection system in partnership with local bodies and cooperatives; however a much needed change was noted as paramount.
Meseret Assefa, Director General of the Agency, said that the loan collection scheme was risky, costly, consumes time and was vulnerable to theft or embezzlement. As a result, the OCPA developed a digital scheme where farmers are able to pay their dues through a cashless scheme.
Abie Sano, President of CBE said that farmers shall use CBE’s digital payment scheme to settle their payment in connection with the service they get from the agency.
He said that the scheme will allow for a smooth and fair distribution of inputs, as well as ease the agency’s operation besides timely settlement of arrears.
CBE has provided up to 35 billion birr in loans for the agency to acquire relevant agricultural inputs.

The 7th edition of Afri Print and Packaging Expo and the first A sign and graphics expo (SGE) has successfully been held from December 20-22 with 3,000 plus traders and visitors converging to have valuable discussions with exhibiting companies.
Organized by Prana events and its partner, Expo Team for Service Co. Ltd, the Expo showcased the premier paper, commercial printing, and packaging technology, inputs, and solutions international tradeshow aimed to promote the advertising value chain.

The three-day expo was held at the Ethiopian Skylight hotel gathering key stakeholders, leading industry experts, renowned sector professionals, valuable buyers, relevant government officials, and start-ups.
The signs business is expanding tremendously in the East African sub-region due to an increase in demand for outdoor signs and digital displays. The graphics business has also been booming because it allows companies to create customized images that represent their brand identity.
The event was recognized by the Chemical and Construction Inputs Industry Development Institute, Ministry of Industry in partnership with the Pan-African Chambers of Commerce and Industries (PACCI), and Ethiopia Publishers and Printers Associations.

Ashewa Technology Solution and Africom Technology forge synergetic partnerships to establish the biggest digital economy in Ethiopia.
During the ceremony held on Wednesday December 21 at the ICT park, the two local companies inked an MoU to develop technologies and ideas that shall create market linkage both in the country and abroad.
The pair also agreed to mobilize resources and conduct research and studies jointly.
The partnership was penned by Surafel Shimeles, CEO of ICT Park, Daniel Bekele, CEO of Ashewa, and Bahiru Zeynu, CEO of Africom.
Ashewa was formed recently to invest on 11 different IT sectors including ecommerce, while Africom is an IT firm that has been in operation for the last 18 years.