Wegagen Bank, Ethiopia announced that it has earned 458.3 million birr in gross profit in the past financial year. The bank earned 251.7 million birr after tax showing an estimated 126 thousand birr in profit as compared to the previous financial year and the Earning per Share distributed to shareholders was 70 birr lower than the year before falling from 448 birr to 378 birr.
The bank’s earnings in general were stagnant in comparison to the previous year when the bank’s net profit and legal reserve had shown a growth of 9.3 million birr.
The bank needs to develop its deposit mobilization with total deposits for the last fiscal year 305 million birr less than the 5.73 billion birr in the previous fiscal year according to industry experts.
Wegagen’s assets have not shown any significant growth in the past year although the paid up capital of the bank has increased to 953 million birr from 779.3 million birr while loans and advances disbursed grew from 2.8 billion birr to 3.5 billion birr.The bank is committed to increased profit mobilization in the current financial year as well as the customer handling division and expansion of branch offices according to Sebhat Nega, Chair of the Board of Directors, speaking at the general assembly.
The general assembly agreed to increase the bank’s paid up capital from 1 billion birr to 2 billion birr as well as discussing the launch of construction on the bank’s headquarters, at the time.
Source: Capital
