Wegagen Bank of Ethiopia profit drops by $10 million

The annual gross profit (before tax) of Wegagen Bank of Ethiopia for the budget year ended June 30, 2019 has dropped to around 735.14 million birr (about $23.2 million) compared to 1.05 billion birr the previous budget year.

The profit has declined by about 315 million birr (about $10 million). This is indicated in the annual audit report of the Bank published this week on the state daily Amharic, Addis Zemen newspaper. Likewise the profit after tax of the Bank has also dropped to from about 793.6 million birr (about $25 million) to around 621 million birr (about $19.6 million).

Since the banking sector is opened for the private sector in Ethiopia almost all private bank profit has been increasing every year. It is not clear why the profit of Wegagen Bank has decreased by such an amount.

The earnings per share from 36.5% the previous year to 25.6% during the budget year ended June 30, 2019. The statement of profit or loss and other comprehensive income for the year ended June 30, 209 shows that as the result of the profit decline, the tax contribution of Wegagen Bank to the Government of Ethiopia has also reduced to about 114.8 million birr (about $3.6 million) from around 256.5 million birr (about $8.2 million) the previous year.

While the total liabilities of Wegagen bank during the budget year ended June 30, 2019 has increased to about 25.5 billion birr (about $804.4 million) from around 23.6 billion birr (about $744.5 million); the total asset of the Bank has gone up to about 29.8 billion birr (about $940 million) from 27.4 billion birr (about $864.4 million) the previous budget year.

The total equity of Wegagen Bank has increased to around 29.8 billion birr (about $940 million)during the budget year concluded June 30, 2019 from about 27.4 billion birr (about $864.4 million) the previous year, according to the financial statement.