Wegagen Bank Reports Record Profits but Faces Shareholder Scrutiny Over All-Male Board

Wegagen Bank S.C. has continued its steady rebound, reporting a 73% year-on-year surge in gross profit to 3.85 billion birr, with its strongest performances in years. The bank also surpassed the National Bank of Ethiopia’s (NBE) paid-up capital requirement ahead of schedule, reaching 7 billion birr—well above the 5-billion-birr threshold required by June 2026.

At the bank’s general assembly held on Tuesday at the Hilton Hotel, Board Chairman Abdishu Hussien presented key performance highlights to shareholders. He noted that Wegagen had successfully balanced growth with regulatory constraints, particularly the NBE’s credit cap of 18% until last week by keeping its loan and advance growth at a similar pace.

Abdishu also pointed to digital transformation as a key driver of the bank’s recent momentum. Wegagen received recognition from the central bank for progress in financial inclusion, part of a broader push to expand its suite of digital and retail services. Overall income for the year rose by 38%, reaching a record 13.5 billion birr.

Wegagen has also positioned itself as a first mover in Ethiopia’s nascent capital market. It became the first bank to register its 6.2 million shares for trading, even as activity on the new securities exchange remains limited. Chief Executive Officer Aklilu Wubet (PhD), told Shega that the bank had finalized all technical and regulatory requirements, including the dematerialization of shares.

“We are ready to do whatever is necessary whenever there are trades,” Aklilu said, adding that trading volumes would likely rise as the exchange matures.

Wegagen’s investment banking subsidiary, one of the first to receive a license from the Ethiopian Capital Market Authority, has drawn close attention from shareholders. During the assembly, some questioned the subsidiary’s early losses after it reported a net operating deficit of 10.19 million birr in its inaugural year.

Abdishu responded that the investment bank’s role was not to directly finance projects but to mobilize funds from investors and channel them to viable ventures, while also offering consultancy and research services.

 “We are benchmarking best practices and implementing structured systems,” he said.

The subsidiary, led by CEO Brutawit Dawit, announced plans two weeks ago to raise its paid-up capital nearly threefold—from 385 million birr to 1 billion birr—to strengthen its operations and market position.

One of the more contentious issues raised during the meeting concerned the composition of Wegagen’s board. Shareholders questioned why the board remains entirely male despite NBE’s corporate governance directive mandating at least two female members. The board pledged to address the issue in its next round of appointments.