Wegagen proves profitable yet again

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(Photo: Anteneh Aklilu)

Deposit mobilization north of 30 billion birr recorded

Wegagen Bank conducts its general assembly with absentia of majority board of directors including the chairperson, while it concluded the year with massive achievements.
Wegagen, which is one of the top profitable financial firms, conducted its general assembly on December 31, 2020 and reported that the earnings per share (EPS) has increased by more than 22 percent.
Like EPS, in the financial year that ended on June 30, 2020, the bank has registered magnificent growth on different measurements of its bookkeeping.
For instance the bank profit before tax has expanded by 47 percent and reached almost 1.1 billion birr in the 2019/20 financial year compared with the 2018/19 performance that was 735 million birr.
Similarly, in the reported year the bank profit after tax has almost attained 35 percent additional growth compare with the preceding year.
According to the annual report of Wegagen, on the 2019/20 financial year additional 217 million birr profit after tax gained and reached at 832 million birr from 621 million birr a year ago.
For the year, its total income was 4.4 billion birr with the growth of 38 percent or 1.2 billion birr compared with the 2018/19 performance.
“The growth registered was the result of the growth recorded in major income categories of commission and charges, which exhibited 71 percent increment, as well as interest on investment and interest on loans and advances that grew by 42 percent and 28 percent respectively,” the annual report of the bank explained.
The company asset has also boosted by 28 percent to reach at 38.2 billion birr that was about 30 billion birr a year ago.
Its total capital has also increased to 5.1 billion birr that was about 4.3 billion birr in financial year that was ended June 30, 2019.
From the total capital, the paid up capital has taken the lion share and reached at 2.9 billion birr from 2.5 billion birr.
One of the major achievement for the bank in the stated financial period was the deposit mobilization that reached at over 30 billion birr with 28 percent increment compared with the 2018/19, 23.5 billion birr.
Similar to other financial firms the saving deposit seat atop with 61 percent share from total deposit mobilization.
For the year the loans and advances that the bank disbursed has reached at almost 24 billion birr by increment of 44 percent, while export was the major beneficiary with 31 percent share and followed by domestic trade and service that consume 19 percent of loans and advances.
For the year the bank expense has also sky rocketed to 3.3 billion birr from 2.5 billion birr.
On the booming interest free banking that Wegagen called ‘Amana’ the deposit mobilization has expanded by 72 percent and reached 1.3 billion birr. The total interest free financing that bank has disbursed 381 million birr that increased by 62 percent from the preceding year.
The bank has over 1.8 million depositors and 383 branches as of June 30, 2020.
At the general assembly held on December 31, the board of Directors Chairperson, Mengisteab Gebrekidan and some other directors were not seen.
Unlike the usual trend, the board chairperson did not slot his annual message on the annual report.
Instead, Tefera Molla, Vice Chairperson gave the message for the year.
On his message, Tefera said that despite the challenging environment at global and national level that he mainly associated with COVID 19, the bank continues to be profitable and managed to record increment in the key performance indicators.