The Bank of Abyssinia (BoA), one of the first two private banks since the free market was reintroduced in the early 1990s, has continued with several achievements in the sector in addition to surpassing the one million mark in their number of depositors.
In the fiscal year that ended on June 30 BoA amassed a total income of 3.3 million birr which is a growth of 37.8 percent. Expenses grew significantly at 47 percent. Because of the increase of depositors interest took 42 percent of the total expenses.
During the year the bank registered nearly 766 million birr in gross profits before tax. Gross profits increased by 89 million birr which is a 13 percent increase from 201/17. Accordingly profits after tax reached 563 million birr which is a 52 million birr increased compared with the preceding year.
The bank that has 2.56 billion birr paid up capital has registered assets of 31.9 billion birr for the year, which was 25.8 billion birr a year ago, while the capital has also stood at 4.3 billion birr which is a 27 percent increase.
The number of depositors at the bank has dramatically increased. The statement of BoA indicated that in the 2016 /2017 fiscal year the number of depositors stood at 750,000, while it has now increased by 35 percent and reached more than one million.
Besides the growth of the number of customers the bank’s deposit mobilization went up by five billion birr within a single year.
The report indicated that the total deposit mobilization at the end of June reached 26 billion birr that was about 21 billion birr a year ago. The growth of deposit mobilization has placed the bank as one of the most competitive banks and a key factor in the sector.
In terms of advances and loans BoA has facilitated close to 4 billion birr for the fiscal year amounting to a total of 18 billion birr.
Loans and advances grew by 28 percent compared with the preceding year. For the year term loans and over drafts grew by 35 percent. According to BoA’s financial report, the proportion of loans indicated that term loans took the lion’s share by 66 percent and over draft and advances stood at 21.3 and 12 percent respectively. From the total loan’s domestic trade took the highest portion followed by exports, construction and industry.
The year saw a record shortage of hard currency but BoA was to mobilize USD 382 million which is a decline of 10 percent compared with the performance in 2016/17 financial year. Declines were in incoming transfers, money transfers, and interest on corresponding banks but other factors exhibited positive performance, according to the report.
Last fiscal year the bank has opened an additional 53 branches increasing the number of branches to 286. In terms of the modern IT banking sector development the bank has registered marvelous performance in mobile and card banking. The report stated that mobile banking users doubled and the card banking service grew by 83 percent.
Bank of Abyssinia reaches one million depositors
Wegagen Bank’s profits skyrocket
The gross profit of Wegagen Bank has climbed by fifty percent in the past fiscal year.
The statement that the bank sent to Capital indicated that in the 2017/18 fiscal year the bank earned 1.05 billion birr which is an increase of 49 percent compared with the 2016/17 financial year.
The Bank’s profit has consistently risen over the past three years.
“The significant increase in profits is largely because total income increased. It amounted to 2.34 billion birr which is a 39.6 percent increase from the previous fiscal year,” the statement elaborated.
“This development puts Wegagen in the category of one of the few private Banks that managed to gross a billion birr profit,” it added.
Araya Gebre-egziabher, president of the Bank, remarked that the Bank registered a commendable growth in all aspects of operation highlighting key achievements of the Bank in the fiscal year.
He indicated that the Bank’s paid up capital grew 11 percent to reach 2.3 billion birr in 2017/18 from 2.1 billion at the end of 2016/17 fiscal year.
The total capital including reserves has also increased by 19 percent to reach 3.8 billion birr, while the total assets rose to 27.3 billion birr with a 33 percent increase.
Similarly, the total deposits mobilized increased by 31 percent to reach 20.5 billion birr in 2017/18 from 15.6 billion birr in 2016/17.
For the year the Wegagen’s total loans and advances facilitated for customers grew to over 15.1 billion birr from 10.2 billion in 2016/17 twhich is almost a 50 percent growth rate. The Bank opened 64 new branches across the country expanding its network of branches to 277.
Araya 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 was the replacement of its core banking system with the 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 Headquarter Building on Ras Mekonnen Street. Wegagen’s new IT infrastructure has enabled it to provide innovative and value adding financial services, including the newly introduced air travel payment services in collaboration with Ethiopian Airlines.
The bank has inaugurated one of the icon 33 storey buildings that consumed more than 800 million birr for the capital as its headquarter.
Jigjiga welcomes students at Karamara Mountain
Jigjiga University and the city residents welcomed students going to the city gate, Karamara Mountain, in collaboration with religious leaders. Jigjiga, which is the capital of the Somali region, witnessed its worst ethnic conflict last year and many students were afraid to return to the university. After the appointment of a new regional president Mustafa Omer and the appearance of his new cabinet, the region is reported to be in relatively stable condition.
The University community including the president and vice presidents were present for the reception at the city gate.
Revitalizing hope
Once again, the prime minister made a wonderful speech to Ethiopians in Europe. The speech he delivered in Frankfurt made our hearts leap with joy. Moreover, the spirit of peace-loving people has been revived. Earlier, with the advent of the new government, I was full of confidence that the reform would bring about an end to our misery. But with the passage of time things seemed to have taken opposite directions. I should be frank to confess that I personally was on the brink of losing hope because of certain unexpected incidents happening in this poor country of ours. The incumbent government has openly given deaf ears (at least I feel so) to woes echoed on a daily basis by many innocent citizens. It has insignificantly been so patient that ill-wishers are taking advantages of this.
We have not forgotten the promise made by the PM that his government would not arrest any individuals before their cases are investigated. But to our dismay we have been witnessing the law being violated. Suffice it to mention the fact that young people numbering over one thousand were summarily arrested here in Addis Ababa and sent to prisons and military camps without due process of law. These and other similar occurrences caused me to lose hope. However, I don’t forget one important thing. What Dr. Abiy once said probably shows the problems he has been confronted with… “The challenges are abundant from within… challenges that are not talked over and listed out…” I can sense how he has been filled with fury.
Probably I am one of those who have no patience to wait and see until things come back to normal. I tell you that I need the government to take practical measures promptly against those who are pushing this country in to an abyss of misery. The government should also show in a tangible way that this country is owned by all Ethiopians irrespective of race, religion, ethnicity and gender. Then after, we definitely put trust in the reform. Of course, the marvelous speech made to Ethiopians residing in Europe can be regarded as a magic wand that reinvigorates our hope.
We all watched over television that Ethiopians numbering about 20,000 were completely swept off their feet by Dr. Abiy’s speech delivered at a stadium in Frankfurt. The premier said on the occasion that though the day looked dusky in Ethiopia, one should not be doubtful that the darkness would soon become a crack of dawn. I assumed this remarkable message was passed over not only to the diaspora community in Europe but also to all other Ethiopians who were likely giving up hope over the ongoing reform.
When the Prime Minister, Dr. Abiy Ahmed took the podium, all Ethiopians gathered from various European countries burst out in appreciation and extended tumultuous welcome to him. Soon after, with the big sound fading away he said, “as you made us feel proud by becoming united, I say my prayer so that your unity won’t be taken away”. The premier gave salutation with smiling face to the gathering using different European and local languages. He then touched on the misery befallen Europeans because of the few leaders who were blinded by their personal benefits. He said that the destructions followed by World War II were initiated by those who claimed with fantasies that their race excelled that of others. “This is a scar resulting from the malicious war that has still been recollected with regret,” he said.
The words the premier was using on the occasion moved almost all Ethiopians to tears. “My country might probably fall asleep; but not dead. Ethiopia might become weak; but not got defeated. My dear mom may probably become skinny; but not got snapped.” There can hardly be any mentally stabled Ethiopian whose eyes won’t be brimmed with tears while listening to these words of the premier.
Dr. Abiy has given a big lesson to those narrow-minded Ethiopians who claimed the entire country to be their personal property. Those xenophobic Ethiopians who are residing in overseas countries being given first level citizenship by the respective nations should pay heed to this important message. They should take time to stop and think of the adverse effects of their maliciously brewed poisons being disseminated across the country. They should try to draw lessons (unless they have hidden agendas) from the people (of overseas countries) who gave them shelters. Dr. Abiy reminded the xenophobic Ethiopians that all human beings are equal and should be handled the way they (these xenophobic Ethiopians) are being treated by the country they are now residing. He further touched on the consequences of World War one and two.
“The outcomes of the two world wars were impoverishment, wretchedness, migration, epidemic and destruction. However, reviving from the wars in a very short period of time, the resilient Europeans have thus given shelter to millions, including you, that flowed from all over the world. They have been able to defeat the entire world by putting aside their fighting with one another. They achieved this not by chance. They worked for their countries in unison without losing hope but enduring the miseries.”
What did we gain from the prolonged civil wars waged by narrow nationalists and xenophobic individuals of this country? Nothing… but hatred, nepotism, theft, narrow nationalism… It is unfortunate that we did not draw the good experiences of the Europeans. Being led by croaked leaders, we made ourselves suitable for disparity and racism. We built fences of ethnicity around us. We plunged in to the deep black sea of hatred, nepotism, corruption and chaos.
“After the wars,” the PM said, “the Europeans took choice of unity rather than disparity; and cooperation rather than hindrance; because they realized the advantages… The European people hated war because they themselves fell victim to it. They bitterly fought against racism and dominance for they had realized the devastating consequences. As a nation we, Ethiopians, can draw a big lesson from this.”
The premier gave emphasis to the very fact that here after no one would be given any chance to do whatever s/he likes in this country. “Respected compatriots, one thing you should be certain of is that Ethiopia is not a private domain anyone can bake it like a pan cake; but it is an age-old country brought in to being by a great nation.”
The PM has also underscored the significance of unity and diligence to establish a long-lasting nation. “If we don’t lose hope and are not divided, but rather work hard without spending our times over useless issues, it will never be tough [for us] to make our country bigger… So long as we are united, there won’t be any door we cannot open; no river we cannot cross. It is a privilege to serve Ethiopia. If you stand by us, we drop out the minor agendas and proceed ahead by grasping the big items on the agenda,” the premier noted.
He further highlighted the following points. “It is to light the candle; not preaching the weight and darkness of the night that can be the solution… Say what you did to your country… speaking of somebody doing this and that against your country won’t drop anything for Ethiopia.”
The premier has thus revitalized our hope that this poor country would one day become a suitable home for its citizens. “Believe it or not, Ethiopia will soon become a comfortable country for its people.” We hope so, dear prime minister!
By Haile-Gebriel Endeshaw


