Wegagen Bank recovered from the profit slump it faced two years ago and netted 831.9 million Br in the last fiscal year, a 34pc rise from the previous year. A significant surge in financial and non-financial intermediation revenues helped the Bank in amassing higher profits.

Its earnings per shares (EPS), the net profit divided by the total number of shares owned by its 3,600 shareholders, also rose by 57 Br to 313 Br.

This is a remarkable performance for a mid-tier bank, according to Abdulmenan Mohammed, a financial statement analyst based in London. He attributed the increase in EPS to the growth in profit after tax combined with a reasonable rise in paid-up capital.

The Bank’s paid-up capital reached 2.9 billion Br at the end of last year, 16pc higher than the previous year.

Wegagen managed to recover and record growth despite the tough year, according to Tefera Molla, vice-chairperson of the board of directors at Wegagen.

The past fiscal year is peculiar as it witnessed different global incidents that have influenced the economic conditions, one of the major ones being the Novel Coronavirus (COVID-19) pandemic, according to Tefera. At the national level, the pandemic has also put pressure on the country’s economy, he added.

"Despite the challenging environment at the global and national levels," remarked Tefera, "the Bank continues to be profitable and managed to record increments in the key performance indicators."

The major reason for a massive increase in profit after tax is a significant rise in financial and non-financial intermediation revenues. Interest income on loans and advances, treasury bills, National Bank of Ethiopia (NBE) bonds and other deposits rose by 29.5pc to 3.2 billion Br. Non-interest earning activities – such as service charges and commissions – jumped by 75.5pc to 1.1 billion Br.

The growth in interest and non-interest income, which was driven by an increase in lending, is impressive, according to Abdulmenan.

The swelling income was accompanied by a rise in expenses. Interest paid on savings soared by 20.6pc to 1.2 billion Br due to expanding deposits. Salaries and benefits increased by 38.5pc to 1.1 billion Br, and other operating expenses surged by 42.4pc to 838.3 million Br.

Last year, the Bank opened 43 new branches, pushing its branch network to 383. Wegagen's total number of employees, excluding outsourced staff, rose to 4,907, showing an increment of eight percent compared to the preceding year.

In the reporting year, the Bank maintained a provision for the impairment of loans and other assets of 216.2 million Br, a sharp jump of 162.7pc.