Zemen Bank leaders have revealed an ambitious strategic plan to expand into the investment banking and capital markets sector, marking a transformative step in Ethiopia’s evolving financial landscape. This announcement follows the bank’s historic performance for the 2024/2025 fiscal year, in which Zemen Bank posted a net profit of Birr 5.87 billion, showcasing formidable financial strength and asset quality.
Notably, the bank maintained a low non-performing loan (NPL) ratio at 2.81% as of June 30, 2025—well below the National Bank of Ethiopia’s 5% threshold and Zemen’s own internal benchmark of 4%. The total amount of non-performing loans stood at Birr 1.19 billion, reflecting the bank’s disciplined credit management and customer-focused approach, including door-to-door service delivery.
In a statement to shareholders, Enye Bemir, Chairperson of the Board of Directors, emphasized that the bank’s total income reached Birr 14.4 billion for the fiscal year, underscoring one of the strongest profit margins in the bank’s history. Total assets rose by nearly 50% to Birr 88.6 billion, and compiled deposits climbed to Birr 64.67 billion. The bank’s total capital increased by over 50%, reaching Birr 18.43 billion, with a capital adequacy ratio of 37%, significantly surpassing regulatory requirements.
Eradicating financial weaknesses has positioned Zemen Bank to capitalize on Ethiopia’s financial sector reforms, including the upcoming launch of securities trading and expanded regulatory frameworks. CEO Dereje Zebene noted the reforms present both opportunities and challenges, but Zemen Bank views these as chances not only for compliance but to lead innovation and growth in the market.
Dereje outlined three strategic priorities underpinning the bank’s growth: bolstering capital to support sustainable expansion and resilience; advancing digital transformation by enhancing infrastructure, integrating artificial intelligence solutions, and partnering with fintech firms; and strengthening customer-centric approaches by elevating service standards and building staff capacity through training and leadership development.
Zemen Bank’s preparation to enter investment banking complements Ethiopia’s broader modernization agenda, signaling a commitment to expanding financial services and ensuring long-term competitiveness in a rapidly changing economic environment. With its prudent management and forward-looking strategy, Zemen Bank is poised to become a key player in Ethiopia’s deepening financial sector transformation.
