Zemen Bank has reported a significant profit of 3.77 billion birr for the 2023 fiscal year, marking a milestone achievement in its 16th Annual General Meeting. The bank’s president, Dereje Zebene, highlighted the performance, emphasizing the bank’s growth amidst a challenging economic environment. The profit per share for shareholders stood at an impressive 37.6%, reflecting the bank’s resilience and strategic approach in navigating complex market conditions.
This profit is a substantial increase compared to the previous year, representing a growth of 36.8%, or 1.01 billion birr more than last year’s figures. Dereje Zebene attributed this success to the bank’s ability to adapt and innovate in a year characterized by inflationary pressures, ongoing macroeconomic reforms, and a severe foreign currency shortage that has strained many sectors across Ethiopia.
Zemen Bank’s overall assets experienced a notable increase of 23.9%, now totaling 59.2 billion birr, underscoring its expanding footprint in the banking industry. The bank’s paid-up capital has also seen a healthy rise, reaching 7.5 billion birr, and the total signed capital is now at 14.97 billion birr, positioning Zemen Bank among the top financial institutions in the country in terms of capitalization.
The bank has also seen a surge in customer deposits, growing by 17.6% from the previous fiscal year to reach 43.61 billion birr. This growth in deposits is a testament to the trust and confidence customers place in Zemen Bank, as it continues to offer competitive financial services in a highly competitive banking market.
However, the president also expressed concerns about the broader challenges facing the financial sector, particularly the impact of inflation and the National Bank of Ethiopia’s decision to impose credit limits on banks. According to Zebene, these credit restrictions may dampen business activities, potentially limiting access to credit for businesses and consumers and thereby affecting profitability across the banking sector.
Despite these challenges, Zemen Bank has demonstrated resilience by maintaining its growth trajectory and continues to play a pivotal role in Ethiopia’s financial sector. Zebene remarked that the bank is committed to leveraging its strong capital base and expanding its services, while staying vigilant of economic headwinds and regulatory changes that could affect its future growth.
As Zemen Bank looks ahead, the institution remains focused on optimizing its operations, introducing innovative products, and deepening customer engagement, all while navigating the ongoing economic reforms and addressing the critical shortage of foreign currency.
