Ethiopia’s First Interest-Free Bank Achieves Record Deposits in Third-Generation Banks

ZamZam Bank S.C. announced that its deposits reached Birr 7.7 billion as of December 29, 2024, marking a 38% increase from the Birr 6.8 billion recorded during the 2023/24 fiscal year. The announcement was made during the bank’s 4th Shareholders’ Meeting and 3rd Immediate Meeting, held at Millennium Hall, Addis Ababa.

The bank reported a total income exceeding Birr 850 million and a pre-tax profit of Birr 148 million for the 2023/24 fiscal year. Its total assets doubled to reach Birr 1.6 billion by the end of the fiscal year and were recorded at Birr 11.5 billion as of December 29, 2024.

Melika Bedri, CEO of ZamZam Bank said that ZamZam Bank’s deposit figures are the highest among Ethiopia’s third-generation banks. She also noted a 66% increase in the customer base, surpassing half a million. Additionally, deposits grew by 22% in the last quarter alone.

The bank’s substantial investments in digital banking contributed to a 150% rise in digital service users. The CEO introduced Ansar Digital Financing, Ethiopia’s first Sharia-compliant digital financial service, designed to provide collateral-free access to MSMEs, youth, and women in the informal sector.

The CEO also reported that the bank achieved a pre-tax profit of Birr 800 million by December 29, 2024. She also emphasized the bank’s 36% annual growth in total assets compared to the 2022/23 fiscal year, which stood at Birr 9.3 billion.

The bank’s social initiatives included financing education for low-income students, empowering women entrepreneurs, and supporting community development projects. These efforts earned ZamZam Bank the Global Islamic Finance Award for the second consecutive year and recognition as Best Bank by Global Brands Magazine in 2022.

With 89 branches and over 1,500 employees, Zemzem Bank continues to establish itself as a key player in Ethiopia’s financial sector, prioritizing innovation and community-focused services. Beyond Ethiopia, Dr. Nassir Dino reiterated the bank’s ambitious plans to become the leading bank in Africa, with an ongoing focus on innovative financial products that are in line with Sharia principles.