Sunday, November 3, 2024

Zemen plans to bulge its capital as it registers yet another successful year

Zemen Bank, a top tier performer in international banking, inclines to triple its capital as the financial firm registers massive success in its activities.
Despite being a relatively new entrant in comparison to its counterpart who set up shop in mid 1990s, Zemen has gone on to have an exponential growth in the market as one of the major players in the sector.
In its latest general assembly held on Saturday November 5, shareholders of the bank agreed to step up the bank’s capital to reach 15 billion birr within the coming five years time from the current five billion birr subscribed capital and paid up capital of over 3.6 billion birr.
In the 2021/22 financial year that was wrapped up on June 30, the bank surpassed the two billion birr profit mark for the first time.
According to Ermias Eshetu, Chairperson of Board of Directors, during the concluded financial period, Zemen Bank earned a gross profit of 2.2 billion birr, “which is a 59.8 percent increase when compared to the same period of last year this puts Zemen in the seventh position when ranking the industry players with this parameter.”
In the year, deposits grew by 41.5 percent or 7.9 billion birr when compared to the year that ended on June 30, 2021 to reach 27 billion birr.
“The success in deposit mobilization was championed through a moderate branch network expansion,” the bank stated on its annual report.
In a single year, the bank attracted about 32,000 new account holders, who came up with almost five billion birr in savings boosting the number of customers in terms of account holders to about 139,000.
Similarly, the loan and advances stretched to 21.1 billion birr with increments of 50.6 percent when compared to 14 billion birr at the end of the preceding year. In terms of share, the industry sector led by 23 percent followed by domestic trade and service and export which took 19.5 and 19.1 percent of share on loan and advance disbursement respectively.
“The bank’s asset quality was high after recording a 1.5 percent non performing loans ratio that is below the regulatory requirement of 5 percent and last year’s 2.25 percent,” Dereje Zebene, President of the bank said.
Regarding foreign currency mobilization the bank has surpassed half a billion dollars generation in the year. This makes the bank to continue on its strong position as one of the leaders in foreign currency generation throughout the banking system.
Zemen is one of the major partners for main source of export earning businesses like investments on industry and horticulture sector besides being one of the major allies for FDI.
The bank’s asset for the year has attained an increment of 39.6 percent to reach 35.1 billion birr, while the liability has also climbed to 39.6 percent to stand at 26 billion birr as of June 30.
The annual report indicated that the total capital of Zemen has expanded to 39.5 percent to cap at 6.3 billion birr.
“The capital adequacy of the bank stood at 26.4 percent, which is significantly higher than the minimum regulatory requirement of eight percent showing that the bank is well capitalized to withstand any external shock,” the annual report elaborated.
Similarly the bank’s total paid up capital has increased by one third in a single year’s time to attain 3.65 billion birr.
According to the annual report, the bank revenue for the reported period has climbed by 43.4 percent now standing at 4.1 billion birr, while its expenditure has increased by a third to 2.1 billion birr.
Regarding profit, in the reported period, the bank has secured a profit of about 1.5 billion birr after tax that increased by 55 percent when compared with the preceding year making the earnings per share to stand at 45.5 percent.

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