Zemen Bank Powers Up Against Competition with Over Half a Billion Dollars in FX

Zemen Bank shareholders were rewarded bounteous dividends as the bank delivered a 37.6% Earnings Per Share (EPS) in a year marked by a 36.08% rise in profits, totaling 3.77 billion birr. The Bank’s EPS remains among the highest in the industry, while it falls short of the 44.28% average paid out over the past half a decade.

Despite challenges faced by several financial institutions as Ethiopia transitioned to a market-based exchange regime, Zemen Bank successfully mobilized over 566 million US dollars, setting a high standard for the banking sector. As the Bank marks sixteen years in Ethiopia’s financial landscape, it has established itself as a formidable force in corporate banking, further bolstered by new partnerships. The financial year saw Zemen joining the International Finance Corporation's Global Trade Finance Program (GTFP) as it secured a $30 million trade finance facility guarantee back in February.

Speaking during the general assembly meeting held at Millennium Hall on Saturday morning, Zemen’s CEO, Dereje Zebene, underscored the importance of prudent risk management and operational efficiency for continued growth.

“We are investing in our digital capabilities and service delivery,” he stated.

The CEO assured shareholders of pending product diversification as the Bank navigates the evolving economic realities of the country.

Zemen Bank's financial stability remains solid, with a paid-up capital now at 7.5 billion birr, giving the bank a 2.5 billion birr cushion above the central bank’s 2026 deadline. The Bank’s capital adequacy ratio stands at 30.6%, significantly exceeding the regulatory minimum of 8%, providing a buffer against external economic fluctuations.

In terms of assets, Zemen Bank reported a remarkable 23.9% growth, reaching Birr 59.2 billion, while customer deposits saw a healthy increase, rising to Birr 43.61 billion, up 17.6% from last year. Loans and advances climbed to Birr 35.63 billion, showcasing the bank’s expanding lending capacity with a 13.5% rise from last year. The growth in Zemen’s loans and advances was limited by the central bank’s credit cap growth set at 14% in a bid to mitigate inflation.

Zemen became the first commercial bank in Ethiopia to acquire equity in Ethiopia’s maiden securities exchange with a 47.5 million birr investment in January.

The Bank operated out of 125 branches nationwide while harboring plans to expand network and deepen accessibility.