Zemen Bank Reports Profit Growth Despite Economic Challenges

Zemen Bank announced a pre-tax profit of ETB 3.77 billion for the 2023/24 fiscal year, reflecting a 36.8% increase from the previous year. This was shared during the bank’s Annual General Meeting at the Millennium Hall, where shareholders noted an Earnings Per Share (EPS) of 37.6%.

The bank’s total assets grew by 23.9% to ETB 59.2 billion, while customers’ deposits increased by 17.6% to ETB 43.61 billion. Loans and advances rose by 13.5% to ETB 35.63 billion, and foreign exchange inflows reached USD 566 million, averaging USD 47.2 million per month.

Zemen Bank’s financial position remains solid, with a paid-up capital of ETB 7.5 billion, an increase of ETB 2.45 billion from the previous year. The bank’s capital adequacy ratio stood at 30.6%, exceeding the regulatory minimum of 8%. This capital position is expected to help the bank manage external economic challenges.

Enye Bemir, Chairperson of the Board of Directors, acknowledged the bank’s performance in a challenging economic environment. Dereje Zebene, Chief Executive Officer, reaffirmed the bank’s commitment to customers and stakeholders, mentioning plans for branch network expansion, investments in IT infrastructure, and improvements in digital capabilities.

Looking ahead, Zemen Bank plans to adjust its strategies to align with current economic conditions, regulatory requirements, and interests in Environment, Social, and Governance (ESG) factors. The bank aims to focus on product differentiation, delivery channels, and customer experiences to mobilize resources and support economic growth through tailored financing solutions.

The year also included partnerships, such as Zemen Bank’s membership in the International Finance Corporation’s Global Trade Finance Program (GTFP) and a financial services partnership with Safaricom M-PESA, along with an investment subscription agreement with the Ethiopian Securities Exchange.