Wegagen Bank, one of Ethiopia’s largest private lenders, has bolstered its financial position, reporting a paid-up capital of ETB 7.03 billion ($48.5 million) by the end of the 2024/25 fiscal year.
The figure represents a 37% increase from ETB 5.06 billion ($34.9 million) recorded a year earlier, placing the bank comfortably above the National Bank of Ethiopia’s (NBE) minimum capital requirement of ETB 5 billion ($33.9 million).
The NBE introduced this threshold under Directive No. SBB/78/2021, issued in April 2021, effectively more than doubled the previous capital requirement. Banks were given five years – until June 30, 2026 – to comply. The central bank has since cautioned that institutions unable to meet the benchmark risk to be forced into mergers or consolidations.
So far, privately owned banks, including Awash Bank, Zemen Bank, Bank of Abyssinia, Amhara Bank, and the Cooperative Bank of Oromia, have met the directive’s compliance requirements
The policy aims to strengthen the sector’s resilience and ensure institutions possess adequate buffers to support financial stability.
Wegagen’s management attributed the capital surge to strategic balance-sheet strengthening, business diversification, and an accelerated digital rollout.
The bank said the improved capital position would enhance its lending capacity and fund ongoing infrastructure and technology upgrades across its expanding network.
During the fiscal year, the bank disbursed ETB 53.5 billion ($369.2 million) in credit across key economic sectors – an 18% year-on-year increase – while total assets climbed 29% to ETB 84.7 billion ($584.4 million), supported by strong deposit mobilization and prudent asset management.
The bank also operates 455 branches, 398 ATMs, 467 point-of-sale devices, and 1,716 agent-banking outlets, underscoring its broadening national footprint. Its digital platforms have expanded access to financial services, particularly among rural and unbanked populations.
As of June 30, 2025, the bank employed 5,553 staff and contributed ETB 30 million ($207,000) to community development projects, with a focus on financial inclusion for women and youth.
Analysts note that Wegagen’s early compliance places it in a stronger competitive position within Ethiopia’s tightening financial landscape, as smaller lenders continue to race toward the 2026 deadline.
With the sector gearing up for capital-raising drives and possible mergers, Wegagen’s proactive stance underscores its ambition to remain a leading player in Ethiopia’s evolving banking industry.
Note: Financial figures were converted using the official average exchange rate of ETB 1/$0.0069 as of October 8, 2025.
