Extra ordinary financial service providers, Zemen Bank registered massive success in the past financial year which was above its projection.
The bank which concluded its general assembly a week ago announced that in the 2020/21 financial year it was able to attain success in different aspects of measure.
Most of the performances surpassed expectation which was designed for the financial firm at the beginning of the financial year.
On the stated financial year, the bank had projected to earn 2.54 billion birr in revenue from different banking services, while the actual performance reeled home 2.9 billion birr which was almost 13 percent higher than the projection set at the beginning of the year.
Similarly, the revenue performance has climbed by 34 percent compared with the 2019/20 financial year.
According to the Board of Directors report, the main reason for the expansion of the revenue was the contribution of interest earnings that stood at 1.9 billion birr with 22.2 percent increment compared with the preceding year.
The contribution of international banking and related services was over a billion birr of revenue which increased by 51 percent compared with the projection and 58 percent compared with the 2019/20 performance.
As per the directive of National Bank of Ethiopia (NBE) that ordered banks to surrender their 30 percent of hard currency earnings for NBE, Zemen has contributed USD 127 million. In the year the bank has generated USD 418 million from its international banking service, which is one of the strongest business sides for the bank.
The hard currency generation has increased by USD 35.7 million or 9.3 percent compared with the same period of last year.
According to the annual performance reported at the general assembly, Zemen Bank has secured gross profit of 1.35 billion birr that is higher by 21.3 percent compared with the target and 35 percent compared with the same period of the preceding year.
The profit before tax for the year stood almost at 1.3 billion birr showing increase of 30 and 16 percent from the preceding year and from projection respectively.
According to the annual report, the bank’s total asset stood at 25.2 billion birr that increased by 6.7 billion birr or 36 percent compared with a year ago performance, “the contribution of saving and loan amount is the major reason for the increment.”
The total outstanding loan of the bank that it provided for customers has expanded by over 44 percent and reached at 14 billion birr. Similarly the deposit mobilization has increased by 32 percent and stood at 19 billion birr which has also increased by over 6 percent compared with the projection to attain for the year.
For the year the earnings per share for the year has also stood 46.9 percent that was 46.2 percent a year ago.
As of June 30, 2021 the bank’s paid up capital has reached 2.75 billion birr which was 1.8 billion birr on June 30, 2020.