Zemen Bank’s Gross Profit Rises 9.7% to 10 Billion Birr as Total Assets Cross 116 Billion Birr

Betegbar yaregal

#EBR_News Oct 6, 2026

Zemen Bank reported gross profit before tax, depreciation and amortization of about 10 billion birr for the 2025/26 fiscal year, up 9.7 percent from the previous year, as total assets climbed 31.9 percent to 116.5 billion birr. The results were presented at the bank’s 18th Ordinary and 13th Extraordinary General Meeting of Shareholders held at the International Convention Center in Addis Ababa on October 6, 2026.

The bank’s net profit reached a record 6.75 billion birr, increasing 15 percent year-on-year and achieving 107 percent of its annual target. Total revenue rose 24 percent to 17.9 billion birr, equivalent to 113 percent of the bank’s target, while total operating income stood at 14.25 billion birr. Profit before tax reached 9.3 billion birr, with an income tax expense of 2.55 billion birr leaving the bank with its highest-ever net profit. Earnings per share stood at 53.9 percent, down from 68.3 percent in 2024/25, reflecting the expansion of the bank’s capital base.

The balance sheet expanded significantly during the year. Total assets increased from 88.4 billion birr to 116.5 billion birr, while deposits grew 32 percent to 85 billion birr, an increase of 20.6 billion birr that exceeded the bank’s target by 4.3 percent. Zemen Bank opened 103,013 new accounts during the year, bringing its total customer base to 394,955 account holders across 142 branches.

The bank’s outstanding loan portfolio reached 52.6 billion birr, rising by 10.3 billion birr, or about 24 percent, from the previous year. The growth came despite the National Bank of Ethiopia’s credit growth ceiling. The bank said the expansion was broadly aligned with the 24 percent regulatory limit. At the same time, its non-performing loan ratio declined to 2.48 percent, remaining below both the bank’s internal threshold of 4 percent and the regulatory limit of 5 percent.

Zemen Bank also strengthened its capital position during the year. Total capital increased 40.8 percent to 25.9 billion birr, while paid-up capital rose 52.2 percent to 14.29 billion birr. Its Capital Adequacy Ratio reached 40 percent, five times the regulatory minimum of 8 percent, providing a substantial capital buffer as the bank expands its balance sheet and lending operations.

Foreign exchange earnings reached $698 million, exceeding the bank’s annual target by 2.5 percent and increasing 19 percent from the previous year. Foreign trade accounted for 51.5 percent of the total, followed by inbound remittances at 33.9 percent, foreign exchange purchases and auctions at 10.61 percent, and international card transactions at 3.15 percent. Zemen Bank said the result placed it fourth among Ethiopia’s private banks in foreign exchange earnings.

Revenue growth was supported primarily by interest income, which generated 10.15 billion birr, or 57 percent of total revenue. Service fees and commissions contributed 5.1 billion birr, representing 28.5 percent, while foreign exchange sales generated 2.4 billion birr, or 14 percent. Other income contributed 273.1 million birr.

Total expenses, meanwhile, increased 38.4 percent to 8.58 billion birr. Interest paid on deposits accounted for 3.57 billion birr, followed by salaries and employee benefits at 2.7 billion birr, administrative expenses at 1.8 billion birr, and depreciation at 505.5 million birr.

Board Chairperson Enyie Bemir said the bank generated gross profit before tax, depreciation and amortization of 9.79 billion birr during the fiscal year, describing the result as evidence of continued growth despite a challenging operating environment. She said the global economy remained affected by geopolitical tensions, trade disruptions and persistent inflationary pressures, creating risks for financial institutions and businesses.

Enyie said Zemen Bank’s performance was achieved while maintaining asset quality and strengthening its financial position. The bank recorded a Return on Average Assets of 6.6 percent and a Return on Average Equity of 37.8 percent during the year. She said the combination of balance-sheet growth, improved profitability and controlled credit risk demonstrated the bank’s ability to expand without compromising the quality of its assets.

The Board of Directors proposed a dividend of 2.07 billion birr for distribution to shareholders. The proposed payout comes as the bank continues to expand its capital base, with paid-up capital increasing by more than half during the year.

Chief Executive Officer Dereje Zebene said the results represented one of the strongest performances in Zemen Bank’s 18-year history. He noted that the wider economy recorded $10.7 billion in export earnings and $4.32 billion in foreign direct investment during the year, while inflation stood at 13.9 percent.

Dereje also highlighted the bank’s expansion into interest-free banking under the Z-Qamar brand following the National Bank of Ethiopia’s approval, effective January 13, 2026. The bank said the operation now offers more than 11 Sharia-compliant products across its branch network and is overseen by an independent Sharia Advisory Board. The expansion allows Zemen Bank to serve customers seeking banking and financing services structured in accordance with Islamic finance principles.

Digital banking continued to expand during the year. Zemen Bank increased its network to 385 ATMs and 1,500 point-of-sale terminals, while internet and mobile banking subscribers reached 256,249. Digital transactions accounted for 69.7 percent of all core banking transactions, highlighting the growing role of electronic channels in the bank’s operations.

The bank also strengthened its information security and cyber-defence systems, obtaining ISO/IEC 27001:2022 certification for its Information Security Management System. It said the system is designed to protect information assets, digital services and customer data against growing cyber threats. The bank has also implemented Data Loss Prevention, Web Application and API Protection, and Security Information and Event Management systems.

Several digital platforms, including a Super App, Equb Collection App and Zemen Remittance App, have been developed and are ready for testing. The bank plans to move its Super App from the pilot stage to full production as part of its priorities for the coming financial year.

On its workforce, Zemen Bank said it maintained what it described as the highest workforce productivity in the Ethiopian banking industry, at more than twice the level of its nearest competitor. The bank hired 140 new employees during the year, including 29 fresh graduates, bringing its permanent workforce to 1,893. Staff retention stood at 97.43 percent, while employee turnover was 3.53 percent.

The bank contributed 33.8 million birr to corporate social responsibility initiatives during the year. These included a blood donation programme and the planting of 6,000 seedlings, among other activities.

Looking ahead, Zemen Bank has begun preparing its next five-year strategic plan covering 2027/28 to 2031/32. Priorities for the coming year include expanding digital infrastructure, moving the Super App into full production, improving cost efficiency, investing in employee development and expanding the range of Sharia-compliant products offered through Z-Qamar.

The bank’s 2025/26 results come as Ethiopia’s banking industry continues to expand in deposits, lending, capital and digital financial services, while banks face tighter regulatory requirements, rising competition and the need to strengthen foreign exchange generation and digital capabilities.

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