Wegagen Bank Profit Rises 12% to Birr 4.3 Billion in 2025/26
Wegagen Bank S.C. reported Birr 4.3 billion in profit before tax for the 2025/26 financial year, marking a 12 percent increase from Birr 3.85 billion a year earlier, as the bank expanded its balance sheet and capital base.
The results were presented at the bank’s 33rd Ordinary and 16th Extraordinary Shareholders’ General Meeting held at Hilton Addis Ababa Hotel on September 19, 2026.
After an income tax expense of Birr 1.15 billion, the bank’s net profit reached approximately Birr 3.15 billion, up 13.6 percent from Birr 2.78 billion in 2024/25.
Key Financial Results
| Indicator | 2024/25 | 2025/26 | Change |
| Profit before tax | Birr 3.85B | Birr 4.30B | +12% |
| Net profit | Birr 2.78B | Birr 3.15B | +13.6% |
| Total income | Birr 13.5B | Birr 16.4B | +21% |
| Total expenses | — | Birr 12.1B | +25% |
| Return on Average Assets | — | 3.2% | — |
| Return on Average Equity | — | 20.9% | — |
| Earnings per share | 46.10 | 34.40 | Declined |
The latest result follows a much stronger 73 percent increase in net profit recorded in 2024/25, when earnings rose from Birr 1.60 billion to Birr 2.78 billion.
Wegagen’s total income increased by 21 percent to Birr 16.4 billion, while expenses rose 25 percent to about Birr 12.1 billion. Interest expenses and employee salaries and benefits were among the major contributors to the increase in costs.
Capital Expansion Changes Earnings Per Share
The bank’s basic and diluted earnings per share stood at 34.40, compared with 46.10 in 2024/25.
The decline occurred despite higher total profit, as the bank significantly expanded its capital base during the year.
Paid-up capital increased from Birr 7 billion to Birr 10.09 billion, representing approximately 44 percent growth.
Total equity also increased 35 percent to Birr 17.3 billion, with the bank reporting 15,598 shareholders.
This means the increase in overall earnings was accompanied by a much larger capital base over which those earnings were measured.
Assets, Deposits and Loans Expand
Wegagen’s balance sheet expanded significantly during the year.
| Balance Sheet Item | 2024/25 | 2025/26 | Growth |
| Total assets | Birr 84.3B | Birr 111.3B | +32% |
| Total deposits | Birr 66.2B | Birr 81.3B | +23% |
| Gross loans | Birr 53.4B | Birr 67.3B | +26% |
| Total equity | Birr 12.8B | Birr 17.3B | +35% |
| Paid-up capital | Birr 7.0B | Birr 10.09B | +44% |
Total assets reached Birr 111.3 billion, up from Birr 84.3 billion a year earlier.
Deposits grew 23 percent to Birr 81.3 billion, while the gross loan portfolio increased 26 percent to Birr 67.3 billion.
The expansion continues a multi-year growth trend. Between 2021/22 and 2025/26, Wegagen’s deposits increased from Birr 33.9 billion to Birr 81.3 billion, while gross loans rose from Birr 30.1 billion to Birr 67.3 billion.
Foreign Exchange Mobilisation Increases
Wegagen also reported stronger performance in international banking, mobilising $366 million in foreign currency during 2025/26, a 34 percent increase from the previous year.
The bank attributed the increase to export proceeds, foreign-exchange market activities and remittance flows.
The increase comes as Ethiopian banks place greater emphasis on foreign-currency mobilisation amid the country’s ongoing foreign-exchange market reforms.
Digital Lending and Customer Base Expand
Wegagen said its Efoita digital lending platform disbursed more than Birr 9 billion in credit to 430,890 beneficiaries during the financial year, targeting micro, small and medium enterprises as well as women entrepreneurs.
The bank’s total customer base also exceeded 5 million.
Its reported digital customer figures included more than 4 million mobile banking users, 664,347 mobile wallet users, 537,651 cardholders and 41,494 corporate and retail internet banking subscribers.
Wegagen said its new five-year strategic plan will focus on customer-centric services, digital capabilities, risk management, institutional capacity and environmental, social and governance considerations.
The 2025/26 results show continued expansion across Wegagen Bank’s major balance-sheet indicators, with profit, assets, deposits, lending and capital all increasing during the year. At the same time, the faster expansion of the bank’s capital base contributed to a decline in earnings per share despite higher absolute profit.
Sources: Wegagen Bank, Capital, and Ethiopian Business Review.