Siinqee Bank Sees 897% Growth in Deposits, Surpassing 100 Billion Birr in Three Years

Siinqee Bank S.C., a three-year-old institution that evolved from a quarter-century legacy in microfinance, has increased its total deposits by an astounding 897% since its inception, reaching 102.5 billion Birr by the end of the current financial year. The bank, which managed to earn 3.5 billion Birr gross profits at the end of the current financial year, while its total deposit accounts surged to nearly 8 million.

The rapid growth has propelled Siinqee into the ranks of Ethiopia’s decades-old banking giants, having already surpassed the National Bank of Ethiopia’s minimum capital requirement of 5 billion Birr ahead of next year’s deadline.

At a press briefing held Thursday at the bank’s headquarters, Founding CEO Neway Mergassa reflected on Sinqee’s three-year journey. He credited the sharp rise in capital, deposits, and total assets to the “concerted efforts” of the bank’s staff.

“The pace of our growth will accelerate from here,” Neway told reporters.

While Siinqee now operates 590 branches across the country, the bank has also invested heavily in expanding its digital services. Its mobile banking app has garnered approximately 1.3 million users, with small and medium businesses favoring it for its higher transfer limit of 100,000 Birr.

Two months ago, Sinqee partnered with Ethio Telecom to launch Wabi, a digital credit and savings platform that has quickly gained traction. The bank reported disbursing around 1.6 billion Birr through Wabi, nearly half of which were 45-day microcredit loans.

Siinqee has maintained strong loan performance, extending credit to major enterprises including Kegna Beverages, which launched last month, backed by 3 billion Birr from the bank. The bank’s non-performing loan (NPL) ratio currently stands at 3.4%, well below the central bank’s 5% threshold.

Neway noted that many former microfinance clients who received small loans have returned as banking customers after expanding their businesses.

He also announced the formation of Siinqee Group, a new holding company composed of 10 subsidiaries all operating in the financial sector. Among them is an upcoming insurance subsidiary, and plans are underway to establish an investment bank.

In a notable achievement for a young bank, Siinqee also reported earning $136 million in foreign exchange dealings during the fiscal year.