Zemen Bank ended an astonishing financial year by achieving 86 percent higher profit besides 39 percent higher revenue compared with the preceding year.
The bank’s 32-story head quarter building will also be finalized in August 2020.
The financial firm that joined the market by introducing new businesses scheme has registered several extraordinary achievements in the 2018/19 financial year.
The financial report of Zemen indicated that in the stated period it has generated close to 1.6 billion birr revenue that has an increment of 6 percent compared with the target. The revenue generation has also climbed by 39 percent compared with the performance of 2017/18 financial year, which was about 1.1 billion birr.
From the total revenue generated over one billion birr came from interest and 568 million birr came from international banking and other operations.
The bank also managed to earn 636 million birr gross profit with remarkable growth rate for the sector. A year ago its gross profit stood at 342 million birr.
At the same time the gross profit is also 55 percent higher when compared with the target set by the bank.
The net profit after tax has also increased to 490 million birr from 270 million birr a year ago. The bank also disbursed higher earnings per share (EPS) for the year compared with the preceding year. For the year the bank EPS reached 39.8 percent per share.
Improvement on loan and advance besides high performance on operation and services that it provides were key areas for the higher performance.
The report stated that the bank achieved consistent growth in key operational areas including deposit mobilization, loans and advances and foreign exchange funds.
In the stated period the bank has disbursed close to 2.6 billion birr in loans and advances that climbed the bank’s total lending book to close to 7.8 billion birr.
At the same time the despot mobilization has also increased by 13 percent and reached at 11.6 billion birr during the 2018/19 financial year.
For the year the bank has been earned USD 371.1 million form international banking that makes the bank one of the financial institutions that secured huge foreign currency on the stated period.
The bank’s asset has shoot up to 14.7 billion birr with the increment of 2.2 billion birr or 18 percent compared with the 2017/18 performance.
According to the statement of the bank, the paid up capital of Zemen has reached 1.4 billion birr that was 1.1 billion birr in the previous year.
Zemen is one of the late comers in the industry but is already on the final stage to get a sky scraper head quarter at the ‘financial district’ located at the heart of Addis Ababa around the central bank.
The head quarter project rests on a 2,300 square meter and the total area is 4,560 square meters. The head office has 32 floors with three underground floors for parking that shall accommodate 200 cars.
Currently the project is on the final stage according to the bank report, while the finishing work is being done aggressively to finalize the project by August 2020.