Zemen Bank S.C. reported a 31.9 per cent increase in total assets to 116.5 billion birr and a 15 per cent rise in net profit to 6.75 billion birr for the fiscal year ended June 30, 2026.
The bank said the results came amid tight monetary conditions and wide-ranging regulatory reforms.
The National Bank of Ethiopia maintained a policy interest rate of 15 per cent and a 24 per cent cap on credit growth. Zemen Bank’s credit volume nevertheless rose by 24.6 per cent to 51.7 billion birr.
The bank’s non-performing loan ratio stood at 2.48 per cent, below the regulatory limit of 5 per cent and its own internal threshold of 4 per cent.
Chief Executive Officer Dereje Zebene said operating income increased to 14.24 billion birr from 12.13 billion birr in the previous fiscal year. Net interest income contributed 6.57 billion birr, while service charges and commissions generated 5.04 billion birr.
The bank reported gross profit of 9.97 billion birr, an increase of 9.7 per cent, and net profit after tax of 6.75 billion birr.
Zemen Bank recorded a return on average equity of 37.8 per cent and a return on average assets of 6.6 per cent. Earnings per share reached 539 birr.
Paid-up capital rose by 52 per cent to 14.29 billion birr, while total capital increased by 40.8 per cent to 25.9 billion birr. The bank’s capital adequacy ratio reached 40 per cent, well above the minimum regulatory requirement of 8 per cent.
Total deposits grew by 32 per cent to 85 billion birr. The bank said the removal of the mandatory 7 per cent minimum deposit-interest rate had allowed interest rates to be set according to market conditions.
Zemen Bank expanded its physical network to 142 branches and increased its customer base to nearly 395,000.
The bank reported 256,249 internet and mobile banking subscribers, who completed more than 1.45 million transactions worth over 22.2 billion birr. Under its omni-channel strategy, the bank expanded its ATM network to 385 terminals. These processed 2.44 million domestic transactions valued at 4.61 billion birr, as well as more than 109,000 international transactions.
At its annual general shareholders’ meeting last week, the bank also reported mobilising US$698 million in foreign-exchange revenue during the fiscal year.
The board and executive management are using an agile framework to prepare the bank’s next strategic plan. The bank identified human-capital development, cybersecurity, digital trust and readiness for a more open and competitive financial sector as key priorities.
