Zemen Bank S.C. has reported a historic financial performance for the fiscal year 2024/25, recording a profit of 9 billion Ethiopian birr with total revenues reaching 14 billion birr. This marks the bank’s highest annual profit to date and reflects robust growth amid major reforms in Ethiopia’s financial sector. The outstanding results were disclosed by the bank ahead of formal auditing, as the fiscal year just ended in late June 2025.

Key Performance Highlights (FY 2024/25):

• Profit (Pre-Tax): 9 billion birr, up from 3.32 billion birr in 2023/24 (an increase of ~170%)
• Total Revenue: 14 billion birr, nearly double the 7.7 billion birr earned in the previous year
• Paid-up Capital: >9 billion birr, increased from 7.45 billion birr in 2023/24
• Customer Deposits: Projected to surpass 50 billion birr, building on 43.61 billion birr in deposits a year earlier

(Figures for 2024/25 are based on the bank’s preliminary report and may be subject to audit adjustments.)

Surging Profits and Income

Zemen’s profit soared to 9 billion birr, up dramatically from the 3.32 billion birr (gross) profit it achieved in the previous fiscal year. This jump of roughly 170% year-on-year far outpaced the 32.4% profit growth recorded in 2023/24. Total income nearly doubled as well – total revenue hit 14 billion birr, compared to about 7.7 billion birr last year. According to CEO Dereje Zebene, this outstanding performance stems from the bank’s strategic direction and operational efficiency amid a changing business climate. He noted that key developments like Ethiopia’s move toward a floating exchange rate and the launch of an Ethiopian capital market have created new opportunities. “These changes are creating a more competitive and transparent financial environment,” Dereje said, underscoring Zemen Bank’s readiness to adapt and lead in the evolving market.

The significant jump in earnings is noteworthy given that last year Zemen’s net profit (after tax) was about 3.32 billion birr – itself a 32.4% increase from the prior year. The 2024/25 results thus represent record profitability for the mid-sized bank. Strong growth in interest income and foreign exchange operations likely contributed to the revenue surge, as the bank capitalized on increased forex availability and demand. This year’s move to a more liberal exchange rate regime further boosted forex earnings, helping drive the exceptional profit figure.

Deposit Growth and Capital Strength

Customer deposits have continued to climb, providing the foundation for Zemen’s expansion. At the end of June 2024, the bank’s deposits stood at 43.61 billion birr. In the just-concluded year, management indicates that deposits have grown further – likely exceeding 50 billion birr by June 30, 2025 – despite a tight monetary environment. This robust deposit mobilization was achieved through focused resource mobilization efforts and a moderate expansion of the bank’s footprint. (Zemen modestly grew its branch network to roughly 130 branches by 2025, up from 125 branches a year ago, balancing growth with efficiency.) The surge in deposits underscores public confidence in Zemen Bank, even as the sector faced liquidity constraints and high inflation in the economy.

Meanwhile, shareholders’ equity and capital buffers have been markedly strengthened. The bank’s paid-up capital has now surpassed 9 billion birr. a significant rise from the 7.45 billion birr level of last year. This increase in core capital was achieved through new capital injections and retained earnings. With the latest boost in capital, the bank’s CAR in 2025 is expected to remain well above industry averages, providing a sizable cushion for future growth and risk absorption. “Building strong capital is a priority,” CEO Dereje has emphasized, reflecting the bank’s commitment to long-term stability.

Notably, Zemen’s solid capital position has also enabled healthy shareholder returns. In the previous year, the bank delivered an earnings per share (EPS) growth of 37.6% and paid out dividends while still meeting strict reserve requirements. The latest profit jump suggests that shareholders can anticipate higher dividends from the 2024/25 earnings, even as the bank retains a portion of profits to fund expansion.

In a further sign of confidence and long-term vision, Zemen Bank is also preparing to construct a second high-rise headquarters adjacent to its existing head office in Addis Ababa’s financial district. The modern architectural design, unveiled in 2023 and selected through a competitive process, is set to contribute to the city’s evolving skyline and the bank’s physical presence in the heart of Ethiopia’s banking hub.

Adapting to Reforms and Future Outlook

Zemen Bank’s stellar performance comes at a time of transformative reforms in the Ethiopian banking industry. Over the past year, the government initiated a major financial sector overhaul, including moves to float the Ethiopian birr’s exchange rate and to liberalize the banking sector. In a historic step, Ethiopia officially opened its doors to foreign banks and investors in June 2025, allowing international banks to apply for licenses to operate in the country. These changes are reshaping the competitive landscape. Zemen’s CEO notes that the bank has been proactive in adjusting to these shifts: leveraging opportunities from relaxed forex surrender requirements, preparing for capital market activities, and upgrading its systems and talent to international standards. “Timely and proper use of available resources was key to achieving the results,” President Dereje Zebene said, highlighting how strategic credit portfolio management and forex allocation were part of the success.

Looking ahead, Zemen Bank appears well-positioned to in the evolving market. The bank’s leadership has laid out plans to further boost its capital base in anticipation of heightened competition. Shareholders have resolved to raise Zemen’s paid-up capital to 15 billion birr by 2028, more than doubling the regulatory minimum that will be required by that time. This aggressive capital expansion plan will enable Zemen to invest in new technologies, broaden its services, and potentially pursue larger transactions as the market opens up. It also signals confidence that the bank can attract additional investment and grow its balance sheet prudently.

At the same time, Zemen is leveraging partnerships and new platforms to sustain growth. For example, the bank joined the IFC’s Global Trade Finance Program in early 2024, aiming to strengthen its trade finance offerings and international banking capabilities. Such initiatives enhance Zemen’s capacity to serve corporate clients and earn fee income in trade transactions. The bank is also eyeing opportunities in the forthcoming Ethiopian Securities Exchange (ESX) and other financial services innovations as the ecosystem develops.

Overall, Zemen Bank’s 2024/25 performance underscores its status as one of Ethiopia’s most dynamic and successful banks. Despite economic challenges and policy changes, the bank managed to “punch above its weight,” delivering record earnings and growth. Industry analysts have noted that Zemen consistently outperforms many of its peers on key metrics, thanks to operational efficiency and strategic agility. “All things considered, we did really good,” Dereje told one business publication after the latest results, expressing satisfaction with the bank’s achievements.

With a strengthened capital base, a growing deposit portfolio, and an experienced management team, Zemen Bank enters the new fiscal year poised to capitalize on Ethiopia’s financial liberalization. The bank’s readiness to embrace reform – from floating exchange rates to foreign competition – suggests it will continue to thrive in the “new era” of Ethiopian banking. Analysts expect Zemen to maintain its growth momentum, as it focuses on innovation, risk management, and creating value for shareholders and customers alike in 2025/26 and beyond.

Sources: The performance figures and statements are drawn from Zemen Bank’s end-of-year report and public disclosures, as well as last year’s annual report for comparative data. Additional context on Ethiopia’s financial sector reforms is provided by recent news reports and industry analyses. Zemen Bank’s executives and official communications have been cited to illustrate strategic insights. All data are preliminary and subject to final audit confirmation.