Wegagen Capital Posts 46.6 Million Birr Profit as Investment Banking Activity Accelerates

Wegagen Capital Investment Bank has turned its first full year of commercial operations into a profitable one, reporting 46.6 million birr in pre-tax profit for the 2025/26 fiscal year as advisory and securities-market activities expanded.

The result represents a sharp turnaround from the 14.4 million birr loss recorded in the previous period, when the investment bank was still in the early stages of commercial operations. It also exceeded its annual profit target of 41.5 million birr by 12.2 percent.

The stronger performance was accompanied by a substantial increase in revenue. Total revenue reached 140.99 million birr, compared with just 7.99 million birr a year earlier.

Advisory Services Drive Revenue

Advisory services were the largest contributor to Wegagen Capital’s income, generating 89.89 million birr, or 63.8 percent of total revenue.

Net interest income contributed another 43.98 million birr, representing 31.2 percent of revenue, while brokerage commissions generated 6.85 million birr, or 4.9 percent.

The revenue composition highlights the importance of advisory work to the investment bank during its early commercial phase, as Ethiopia’s capital market develops and more companies seek assistance with fundraising, transactions and regulatory processes.

During the year, the Advisory department executed 22 mandates with a combined transaction value of 175.3 million birr.

It also supported three commercial banks in securing Registration Statement approvals from the Ethiopian Capital Market Authority, expanding its role in the country’s emerging securities market.

Brokerage Activity Expands

Wegagen Capital’s brokerage business also recorded significant growth.

The investment bank opened 3,850 trading accounts during the year, compared with only a small number during its debut period.

Securities trading turnover facilitated through the brokerage reached 2.69 billion birr.

Rights issues accounted for the largest portion of that activity, with transactions worth 2.22 billion birr. Treasury bills and IPO/FPO transactions also contributed to the total.

The growth in trading accounts and turnover provides an indication of increasing participation in Ethiopia’s developing capital market, where new securities, rights issues and government instruments are creating opportunities for investment banks and brokers.

Balance Sheet Strengthens

Wegagen Capital’s financial position also expanded during the year.

Total assets increased to 457.02 million birr as of June 30, 2026, from 387.8 million birr a year earlier.

Total equity reached 418.5 million birr, while paid-up share capital stood at 385 million birr.

Operating expenses amounted to 89.56 million birr, with salaries and employee benefits accounting for 63.1 million birr, making personnel costs the largest component of expenditure.

The combination of rapidly rising revenue and a growing asset base suggests that the investment bank is moving beyond its initial establishment phase and beginning to build a broader commercial operation.

Capital Market Creates New Growth Opportunities

Wegagen Capital’s performance comes as Ethiopia’s capital-market infrastructure continues to develop following the establishment of the Ethiopian Securities Exchange and the expansion of the regulatory framework overseen by the Ethiopian Capital Market Authority.

Abdishu Hussein, Vice Chairman of Wegagen Capital’s Board, told shareholders that Ethiopia’s capital markets continued to expand during the year, supported by a strengthening regulatory framework and a growing pipeline of potential issuers.

For Wegagen Capital, the challenge will be to convert that expanding market opportunity into sustained revenue growth while developing its advisory, brokerage and investment-banking capabilities.

The bank’s first full year of commercial operations provides an early indication of that potential: revenue has expanded more than seventeen-fold, the institution has moved into profitability, and thousands of investors have entered its brokerage platform.

As Ethiopia’s capital market matures, investment banks such as Wegagen Capital are likely to play an increasingly important role in connecting companies seeking capital with investors looking for new investment opportunities.

Source: EBR