Selects Winner for Second Building in Expansion Project of Headquarters
By our staff reporter
Zemen Bank has reported impressive financial results for the 2022/23 fiscal year, showcasing strong performance and growth. The bank achieved an earnings per share (EPS) of 43 percent, driven by a pre-tax profit of Birr 2.5 billion and an after-tax profit of Birr 1.8 billion, marking a significant increase of 22.8 percent compared to the previous year. Over the past five years, Zemen Bank has consistently delivered an average annual EPS of 43.9 percent to its shareholders.
The bank’s key performance indicators also demonstrated positive outcomes. The total assets of the bank grew by 36.1 percent, reaching Birr 47.7 billion. Customers’ deposits saw substantial growth, reaching Birr 37 billion, a 38 percent increase from the previous year. Loans and advances rose to Birr 31.3 billion, showing a notable increase of 48.6 percent. Zemen Bank also recorded foreign exchange inflows of USD 527 million during the fiscal year, averaging USD 43.9 million per month. The bank operates with a wide network of over 100 branches across the country.
Zemen Bank maintains a strong financial position, evident in its capital base and liquidity. The bank increased its paid-up capital by Birr 1.3 billion, reaching Birr 5 billion, with a subscribed capital of Birr 14.2 billion. The capital adequacy ratio as of June 2023 stood at 27.8, surpassing the regulatory requirement by more than three times.
The bank’s success is attributed to its distinctive business model, which focuses on delivering corporate and retail banking services through a range of alternative channels while maintaining high standards of customer service. Zemen Bank offers multiple service channels, including branches, ATMs, Internet Banking, Mobile Banking, Door-Step Banking, and Point of Sale (POS) services. This approach allows for efficient operations and tailored delivery of banking services to various client segments, including large corporations, foreign investors, institutions, SMEs, and individual retail clients.
In addition to its financial achievements, Zemen Bank has reached significant milestones. It inaugurated an impressive 36-story headquarters building and embarked on other mega projects. The bank has formed partnerships with Ethiopian Airlines to enhance its global presence and has collaborated with fintech companies and other corporate entities. Zemen Bank also actively fulfills its corporate social responsibility by engaging in philanthropic activities such as school feeding programs, supporting healthcare services, responding to humanitarian needs, and assisting disadvantaged members of society.
Overall, Zemen Bank’s performance highlights its robust growth, sound financial position, and commitment to delivering exceptional banking services while making a positive impact on the community.
In related development Zemen Bank has announced the winner of a design competition for the second building in its expansion project, following the recent inauguration of its 36-floor headquarters building. The bank has allocated approximately 1.5 billion birr for the project, which will extend its existing premises.
The design competition was won by Alebel Sadha consulting firm for the two-thousand-square-meter building, which will feature conference halls, fitness rooms, six elevators, parking for 200 cars, and other amenities. The building will occupy an area of 2,300 square meters.
The award ceremony took place at the Hilton Hotel in Addis Ababa, where Zemen Bank’s Board of Directors Chairman, Ermias Eshetu, presented awards to the top three winners. Ma Architecture secured second place, followed by Inlabs Business in third place, after Alebel Sadha Consulting Architects and Engineers.
