Wegagen Bank Sees Encouraging Start to Recovery


Wegagen Bank Sees Encouraging Start to Recovery

Wegagen Bank's climb back to reclaim its former position under recently appointed President Aklilu Wubet has gotten off to a positive start as the Bank reported 1.4 billion Br in gross profits in the financial year that ended last month. It is a significant improvement on its dreary performance in the previous year, when its net profits plummeted by 85pc to 126 million Br. The drop in profit growth was largely due to the militarized conflict in the north, where Wegagen has a significant presence in Tigray Regional State. Over a quarter of its 400 or so branches are located in Tigray, cut off from the rest of the country since November 2020. The closure of branches in Tigray put pressure on Wegagen's deposit mobilisation. It increased by only five percent to 31.5 billion Br, a stark contrast to the industry's 25pc growth to an aggregate deposit of 1.3 trillion Br in 2020/21. Aklilu was appointed to take the helm as the Bank's seventh president in February 2022. Under his watch, Wegagen saw a marginal improvement in deposits mobilised – reaching 34 billion Br. The Bank's assets also grew 10pc to 43.6 billion Br.

[ssba-buttons]

Radar

Ethiopia, IFAD Sign 69.2m Dollar Deal to Promote Lowland Resilience

The Ethiopian Government and the International Fund for Agricultural Development (IFAD) have signed a 69.2 million dollar grant agreement to implement Phase II of the Lowland Livelihoods Resilience Project (LLRP II). The grant agreement was signed by Finance Minister Ahmed Shide and IFAD President Alvaro Lario. The project targets climate resilience and improved livelihoods for three million people in pastoral and agro-pastoral communities. Co-financed by the World Bank, LLRP II covers eight reg...


Radar

NBE Expands Diaspora Warning Over Unlicensed Remittance Firms

The National Bank of Ethiopia (NBE) has issued an expanded public warning targeting unlicensed remittance operators abroad, flagging four U.S.-based companies it says are undermining Ethiopia's financial regulations. The warning includes newly disclosed findings and specific cases that underscore growing concerns about illicit cross-border financial activity. Remittance flows remain a vital lifeline for Ethiopia's economy, supporting households and supplying critical foreign currency. But as...


Radar

Stricter Standards Unveiled for Public Auditors, Accounting Firms

The Accounting & Auditing Board of Ethiopia (AABE) has issued a new directive aimed at strengthening oversight and professional standards in the accounting and auditing sector. Grounded in the Financial Reporting Proclamation, the directive addresses long-standing regulatory gaps while preparing the sector for the country's emerging capital market. Key provisions introduce stricter licensing standards for public auditors, professionals permitted to audit public interest entities. Applican...