Siket Bank, formerly known as Addis Credit and Saving S.C., has marked a significant milestone in its first year as a full-fledged bank, reporting an impressive profit of 1.6 billion birr for the 2023/24 financial year. This marks the end of a successful inaugural year since its transition from a microfinance institution to a commercial bank.

The bank, which became Ethiopia’s 32nd commercial bank after receiving approval from the National Bank of Ethiopia last year, earned more than 2.3 billion birr in revenue during the fiscal year. This represents a 42 percent increase in income compared to the previous year, when the institution was still operating as a microfinance entity.

Speaking on the financial results, Damtew Alemayehu, President of Siket Bank, highlighted the remarkable growth the bank has achieved in its first year. “The profit for the fiscal year, excluding tax and provisions, reached 1.6 billion birr, reflecting a 49 percent increase compared to the same period last year,” he stated.

Siket Bank’s focus on micro and small enterprises (MSEs), youth, and women has been a key driver of its success. According to Damtew, 87 percent of the total loans distributed by the bank were allocated to MSEs, 69 percent to young entrepreneurs, and 57 percent to women-led businesses. These figures underscore the bank’s commitment to supporting economic empowerment and financial inclusion in Ethiopia.

As of June 30, 2024, Siket Bank had issued a total of 9.2 billion birr in loans to its customers, marking a 23 percent increase from the same period last year. The bank’s strong lending performance has been accompanied by a robust accumulation of savings, with deposits reaching 3.7 billion birr.

To enhance its operational efficiency and service delivery, Siket Bank has invested in modernizing its infrastructure. The implementation of Core Banking Software has fully integrated all branches of the bank, and the construction of a state-of-the-art data center has been completed, positioning the bank for continued growth and innovation.

Siket Bank started its operations with total assets of 15.8 billion birr and a paid-up capital of 5.9 billion birr. The bank, which is backed by 26 shareholders, boasts a subscribed capital of 10 billion birr.

Reflecting on the bank’s achievements, Damtew Alemayehu emphasized the importance of these foundational efforts in establishing Siket Bank as a key player in Ethiopia’s financial sector. “Our transition to a commercial bank has allowed us to better serve our customers and contribute to the economic development of our country. We are committed to continuing this progress and expanding our impact in the years to come,” he said.