Milestone

Zemen Bank has achieved remarkable milestones and accomplishments in its first year of operations, setting a strong foundation for its future growth and success. Despite facing numerous challenges, the bank has demonstrated exceptional performance in various key areas, reflecting its commitment to innovation, customer service, and excellence in banking operations.

One of the most significant achievements of Zemen Bank is its outstanding success in deposit mobilization. Within just nine months of operation, the bank managed to mobilize Birr 278 million in deposits, a figure that surpasses the performance of other private banks in Ethiopia. This achievement is particularly noteworthy considering it was accomplished solely through a single branch. Moreover, the bank's focus on attracting high-value depositors has resulted in an average deposit size of approximately Birr 163,000 per depositor, reflecting the effectiveness of its targeted deposit mobilization strategies.

In terms of lending operations, Zemen Bank has also excelled by disbursing loans totaling Birr 189 million to a diverse range of borrowers. Notably, the bank's lending activities have been favorably skewed towards exporters, with the majority of loans allocated to this segment. This strategic focus on supporting exporters not only contributes to the bank's profitability but also facilitates additional income generation through foreign exchange services. Furthermore, the bank's emphasis on offering medium and long-term loans addresses a longstanding gap in the Ethiopian banking industry, thereby contributing to the overall development of the economy.

Another significant accomplishment of Zemen Bank lies in its international banking activities, particularly in attracting major exporters to direct their export earnings through the bank. By channeling exporters' foreign exchange earnings to importers and providing a range of international banking services, the bank has successfully generated substantial service income. Additionally, the establishment of correspondent banking agreements with leading international banks and participation in the SWIFT communication system further enhances the bank's global connectivity and facilitates seamless cross-border transactions.

In terms of financial performance, while the bank reported an operational loss in its initial months of operation, it quickly turned the tide and registered a profit in the final quarter of the fiscal year. Despite facing upfront establishment expenses and operational challenges, the bank's revenue generation from international banking services charges, interest income, and foreign exchange revaluation gains underscores its strong potential for profitability and growth in the future.

Moreover, Zemen Bank's commitment to technology-driven banking is evident in its strategic partnerships and investments in cutting-edge IT infrastructure. By leveraging innovative retail banking software and offering a suite of electronic banking services such as ATMs, Internet Banking, and SMS Banking, the bank aims to provide customers with enhanced convenience and accessibility. Furthermore, its planned introduction of additional services such as payroll services and mobile money transfers demonstrates its proactive approach towards meeting evolving customer needs and preferences.

Overall, Zemen Bank's inaugural year achievements underscore its position as a pioneering and dynamic player in the Ethiopian banking sector. Through its relentless pursuit of excellence, innovation, and customer-centricity, the bank is well-positioned to capitalize on future opportunities and become a leading force in shaping the future of banking in Ethiopia.

In 2010, Zemen Bank achieved significant milestones and delivered exceptional results, solidifying its position as a pioneering force in Ethiopia's financial sector. The bank's second-year profit soared to unprecedented levels, setting a new standard among private banks in the country. With a profit before tax of Birr 69 million, Zemen Bank demonstrated remarkable growth and profitability, outperforming its peers and showcasing the effectiveness of its distinctive business model. This success was underscored by the bank's ability to attract some of the nation's top exporters, securing nearly 10 percent of the country's export inflows. Moreover, Zemen Bank distinguished itself through low-cost operations and a strong focus on technology-based banking, offering services like ATM and internet banking unparalleled in the Ethiopian market. The bank's commitment to superior customer service and innovation propelled its reputation, earning it a respected brand name within the local business community and beyond. These accomplishments reflect Zemen Bank's unwavering dedication to driving dynamism and excellence in Ethiopia's evolving financial landscape.

In the fiscal year 2011, Zemen Bank achieved significant milestones, marking the completion of its third year of operations. Notably, the bank witnessed remarkable growth across various key performance indicators, doubling the number of depositors, borrowers, international banking transactions, and profits. This success, following an already impressive second year, reflected the dedication of the bank's stakeholders to its distinctive vision and mission.

Amidst a challenging macroeconomic environment characterized by inflationary pressures, Zemen Bank capitalized on Ethiopia's robust economic growth and increased foreign investment inflows. The bank's strategic efforts, coupled with favorable external conditions, facilitated the expansion of its deposit-taking, lending, and international banking operations. Internally, Zemen Bank continued to strengthen its operations, maintaining a unique model of providing banking services primarily through a single branch supplemented by multiple service points.

Furthermore, Zemen Bank remained committed to its corporate social responsibility, fulfilling national obligations, and contributing to Ethiopia's financial inclusion agenda. Embracing technological advancements, the bank endeavored to broaden financial services, exemplified by its planned introduction of mobile banking. Despite challenges, Zemen Bank's prudent commercial banking practices and unwavering focus on customer value delivery positioned it for sustained growth and innovation in the Ethiopian financial sector. 

Zemen Bank has achieved significant milestones and accomplishments in the fiscal year 2011/12, demonstrating notable growth and resilience in a challenging economic environment. The bank reported impressive operational measures with substantial growth rates in deposits, loans, and foreign exchange inflows, outpacing industry averages. Introducing innovative banking services such as Ethiopia’s first pre-paid debit cards showcased the bank's commitment to staying at the forefront of the industry. Moreover, the bank achieved its highest revenues and profits since its inception four years ago, with dividend returns remaining among the highest in the banking sector.

One of the key successes was navigating through a macroeconomic environment characterized by challenges but also opportunities. Despite inflation moderating over time, the bank capitalized on rapid deposit expansion facilitated by favorable broad money growth. International banking activity faced some dampening due to export slowdown, but strong foreign exchange inflows from remittances and investments mitigated these effects. Capitalizing on strong economic growth, the bank expanded its financial linkages with key sectors like agri-business, industry, exports, and services, demonstrating its adaptability and resilience.

Additionally, the fiscal year marked a strategic turning point for the bank as it embarked on a comprehensive Strategic Plan aimed at guiding operations until 2016. Reaffirming its original vision of bringing dynamism to the financial sector, the bank outlined strategic priorities focusing on offering unique value-added services, maintaining technological capabilities, and ensuring exceptional customer service. These priorities underscore the bank's commitment to delivering superior value to its customers, partners, and shareholders while contributing to the broader agenda of improving the financial sector in Ethiopia.

From a financial performance standpoint, Zemen Bank continued to excel, with gross profits reaching new heights despite a slight slowdown in growth compared to previous years. The bank's after-tax net income, return on equity, and earnings per share remained impressive, positioning it as a leader in the banking industry. Moreover, the bank's balance sheet expansion, strong capital base, and prudent risk management practices underscored its financial stability and soundness.

In terms of operational excellence, Zemen Bank demonstrated exceptional productivity and efficiency, leveraging its distinctive business model centered around a single main branch supplemented by multiple service points. The bank's focus on technology-based banking further enhanced its competitiveness, with initiatives such as expanding its ATM network, deploying point-of-sale terminals, and offering internet banking services contributing to enhanced customer convenience and satisfaction.

Overall, Zemen Bank's achievements in the fiscal year 2011/12 reflect its strong performance, strategic foresight, and commitment to delivering value to its stakeholders. As it continues to navigate evolving market dynamics and seize growth opportunities, the bank remains poised to sustain its leadership position in the Ethiopian banking industry while driving positive change in the financial sector.

In the fiscal year 2013, Zemen Bank marked significant milestones and achievements, showcasing its robust growth and commitment to innovation in the Ethiopian banking sector. The bank's relentless pursuit of its distinctive vision and mission led to commendable progress across various fronts. Notably, Zemen Bank experienced remarkable expansion in its deposit and foreign exchange mobilization efforts, with growth rates of 40 and 46 percent respectively. Despite challenges in managing non-performing loans, the bank demonstrated resilience and implemented stronger controls to uphold loan quality while achieving record levels of revenue and after-tax profits. Moreover, Zemen Bank's focus on delivering world-class customer service through technologically-driven banking products resulted in a substantial increase in the adoption of its services, including internet banking, ATMs, and POS terminals. The bank's strategic approach to international banking also bore fruit, with a significant increase in foreign exchange inflows and a robust network of correspondent banking relationships. Additionally, Zemen Bank's emphasis on human resources development, risk management, and multi-channel banking services underscored its commitment to operational excellence and customer satisfaction. Overall, the fiscal year 2013 showcased Zemen Bank's remarkable growth trajectory, solidifying its position as a leading player in Ethiopia's financial landscape.

Zemen Bank's fiscal year of 2014 marked a significant milestone in its journey, achieving record-high profits and revenue since its inception over five years prior. The bank's relentless dedication to meeting the diverse needs of both corporate and retail clients with exceptional standards of service has culminated in this remarkable success. Despite encountering challenges, the bank's profits soared, reflecting its commitment to excellence in providing tailored banking products, technologically-driven service channels, and top-tier customer service.

The macroeconomic landscape provided a conducive environment for banking activities, with robust GDP growth, low inflation, and substantial investments in infrastructure projects fueling economic growth and spurring high demand for banking services. Zemen Bank capitalized on these opportunities, witnessing a surge in customer deposits, loan demand, and trade facilities requests.

Financially, the bank's performance was commendable, with significant increases in both deposits and foreign exchange inflows. Despite modest growth in lending, strategic restructuring efforts and prudent management ensured optimal utilization of resources, maintaining interest income targets. Notably, efforts to resolve non-performing loans (NPLs) intensified, with controlled net new NPL creations and a focus on recovering assets from lingering cases.

Expanding its physical presence, Zemen Bank launched the Bole Banking Center and established regional banking centers, strategically augmenting its service points while leveraging alternative delivery channels like ATMs, internet banking, and doorstep banking. Such expansions, coupled with a relentless pursuit of operational excellence, have enhanced accessibility and convenience for customers across various segments.

Looking ahead, the bank remains committed to intensifying efforts in key areas such as deposit mobilization, loan disbursement, product innovation, and customer service excellence. Upholding its strategic focus on corporate clients and technology-driven services, Zemen Bank aims to further solidify its position as a leading financial institution in Ethiopia.

Moreover, the bank's robust financial performance underscores its distinctive business model, which prioritizes corporate clients and leverages technology to deliver diverse banking services. With revenues derived from interest income, trade operations, and foreign exchange operations, Zemen Bank's revenue structure continues to diversify, mitigating risks associated with fluctuations in specific lines of activity.

Operational efficiency remains a cornerstone of the bank's success, with a low cost-to-income ratio reflecting prudent expenditure management. A robust balance sheet, characterized by healthy capital adequacy and liquidity ratios, underscores Zemen Bank's sound financial position and commitment to regulatory compliance.

Innovations in multi-channel banking services have further cemented Zemen Bank's position as a pioneer in Ethiopia's banking sector. From the expansion of its ATM network to joining global payment networks like Mastercard and Visa, the bank continues to enhance accessibility and convenience for customers, driving financial inclusion and facilitating seamless transactions.

In conclusion, Zemen Bank's achievements in FY 2014 underscore its resilience, strategic foresight, and unwavering commitment to customer satisfaction and operational excellence. As it continues to evolve and adapt to changing market dynamics, the bank remains poised for sustained growth and success in the years to come.

In the fiscal year 2015, Zemen Bank achieved remarkable milestones, marking its highest levels of revenues and profits since its inception eight years ago. Despite the economic challenges and opportunities presented by Ethiopia's macroeconomic landscape, the bank recorded substantial growth in all areas of activity. Notably, revenue increased by 40 percent, propelled by a 44 percent surge in deposits and a significant 52 percent increase in lending operations. This growth was complemented by a diversification of the bank's credit portfolio and a robust foreign exchange performance. Zemen Bank also expanded its outreach to customers through multiple delivery channels, opening new branches and enhancing alternative banking services such as internet and mobile banking. Additionally, the bank embarked on strengthening its corporate governance standards and devised a new strategy plan aligned with the country's growth agenda. Looking ahead, Zemen Bank aims to sustain its growth trajectory by focusing on resource mobilization, expanding its banking centers, implementing agent banking, and undertaking equity investments, all while maintaining its commitment to delivering exceptional banking services and value to its stakeholders.

Zemen Bank achieved significant milestones and accomplishments in the fiscal year 2016:

Record Revenue and Profit Growth: Achieved highest revenue and profit levels since establishment, with a 40% increase in revenue and a 33% rise in profit after tax.

Strategic Expansion and Outreach: Expanded presence in key regional cities with new branches and banking centers, aligning with the vision to become Ethiopia's Five Star Bank.

Enhanced Corporate Governance: Strengthened corporate governance framework, focusing on areas such as risk management and IT infrastructure to ensure operational integrity.

Infrastructure Development: Commenced construction of a state-of-the-art headquarters building, symbolizing progress and commitment to advancing Ethiopia's financial landscape.

Diversified Revenue Streams: Reduced dependency on single revenue sources by diversifying income streams, enhancing financial resilience and stability.

Excellence in Banking Services: Provided unparalleled convenience through multi-channel banking approach, including internet banking and doorstep banking, meeting evolving customer needs.

Strong Risk Management Practices: Maintained proactive risk management approach, mitigating risks across various domains and safeguarding bank's assets.

These accomplishments highlight Zemen Bank's resilience, innovation, and commitment to excellence as it continues its journey towards sustainable growth and leadership in the Ethiopian banking sector.

Zemen Bank has once again demonstrated its robust financial performance with a remarkable 31 percent increase in after-tax profits, delivering an impressive earnings per share of 38.4 percent to its shareholders. These achievements mark the highest levels of revenues and profits since the bank's founding nine years ago, underscoring its resilience and strategic acumen in navigating the ever-evolving economic landscape. Moreover, the bank's key financial indicators showed satisfactory performance, with overall assets rising by 31 percent to close to Birr 9.7 billion.

The fiscal year saw Zemen Bank achieve significant growth across various fronts, with deposits surging by 38 percent to a record Birr 7.3 billion and loans rising to Birr 4.16 billion, reflecting a 22 percent increase over the previous year. Foreign exchange inflows collected by the bank also saw a notable uptick, reaching USD 360 million for the year, demonstrating an average inflow of USD 30 million per month and an 18.7 percent increase from the previous year's average.

Maintaining its strong financial standing, Zemen Bank exhibited a capital adequacy ratio of 32 percent of risk-weighted assets, exceeding regulatory requirements by more than four times. Additionally, the bank's prudent liquidity ratio stood at 43 percent at the end of June 2017, well above the regulatory threshold of 15 percent throughout the year. These indicators affirm the bank's commitment to sound financial management and regulatory compliance.

Beyond financial performance, Zemen Bank continued to make substantial contributions to the broader national economy. The bank's cumulative purchase of government securities (NBE Bills) reached Birr 2.01 billion, while its total tax payments for the year soared to a record high of Birr 91.7 million. These contributions underscore the bank's role as a key player in driving economic growth and stability in Ethiopia.

Zemen Bank's success is attributed to its distinctive business model, which emphasizes corporate and retail-focused banking services delivered through a range of alternative channels with high standards of customer service. The bank's multiple service channels, including ATMs, Internet Banking, Mobile Banking, Door-Step Banking, and Foreign Exchange Bureaus, cater to diverse client segments, from large domestic corporations to individual retail clients.

In the past fiscal year, Zemen Bank expanded its footprint to include additional banking centers in Addis Ababa and regional cities, enhancing accessibility for customers across the country. The bank's Corporate Payroll service and Doorstep Banking service have benefited thousands of employees and local and foreign companies, respectively, facilitating efficient cash and treasury management functions.

Looking ahead, Zemen Bank remains steadfast in its commitment to customer-centricity, diversified business operations, strong risk discipline, and valued customer loyalty. With a focus on achieving its vision to be "Ethiopia's Five Star Bank," the bank is poised to continue its exemplary performance and contribute to Ethiopia's economic prosperity and development.

Zemen Bank S.C. concluded another successful year in 2018, marking nine years of operations in the financial sector. Despite facing challenges within the Ethiopian economy, including public unrest, population displacement, and foreign exchange shortages, the bank demonstrated resilience and achieved remarkable performance. This success can be attributed to the bank's customer-focused approach, diversified business model, and robust risk management practices.

One of the significant achievements of Zemen Bank in the fiscal year 2018 was its financial performance. Despite the challenging economic conditions, the bank recorded a 15% increase in revenue, with deposits and loans growing by 28% and 25% respectively. The bank also maintained a non-performing loans (NPLs) ratio of 3.78%, well below the regulatory requirement of 5%.

Expanding its footprint and enhancing accessibility to the public were key priorities for Zemen Bank. The bank increased its service outlets in Addis Ababa and regional administrative cities, reaching a total of twenty-six branches and kiosk banking centers. Furthermore, efforts to improve alternative banking channels, such as internet banking and mobile banking solutions, were undertaken to meet evolving customer demands.

The successful implementation of the International Financial Reporting Systems (IFRS) and the progress in the construction of the bank's headquarters building were noteworthy accomplishments. Additionally, the bank's commitment to prudent liquidity management was reflected in its liquidity ratio, which remained well above the regulatory requirement of 15%.

In terms of banking operations, Zemen Bank experienced robust growth in deposits mobilization and lending activities. The bank's deposit base increased by 28%, reaching Birr 10.2 billion, while gross loans grew by 25% to Birr 5,217.5 million. International banking services remained a significant source of income for the bank, with expanded correspondent banking relationships.

Zemen Bank continued to prioritize technological innovation, offering multi-channel banking services tailored to customer preferences. Services such as ATMs, internet banking, mobile banking, and doorstep banking contributed to improved customer experience and convenience. Efforts in human resources development and risk management were also noteworthy. The bank focused on recruiting talented professionals, providing training programs, and strengthening risk identification and mitigation processes to ensure compliance and protect against non-compliance risks.

Overall, Zemen Bank's achievements in the fiscal year 2018 underscore its resilience, customer-centric approach, and commitment to innovation and excellence in the Ethiopian banking sector.

In the fiscal year 2018/19, Zemen Bank achieved significant milestones and accomplished various projects that contributed to its growth and efficiency. One notable accomplishment was the successful integration of MasterCard and Visa Card into the new POS terminal, accompanied by proper certifications from international card schemes. This integration not only enhanced the bank's payment processing capabilities but also improved customer convenience by allowing a wider pool of international cardholders to access local currency funds through the bank's channels.

Another major achievement was the attainment of Payment Card Industry Data Security System (PCI-DSS) and Payment Card Industry Personal Identification Number (PCI-PIN) certifications. These certifications demonstrate the bank's commitment to maintaining the highest standards of security in handling cardholder data, ensuring the trust and confidence of its customers in digital transactions.

The successful system upgrade and integration to the new core banking system marked a significant technological advancement for Zemen Bank. This upgrade aligned the bank with the latest industry standards and improved operational efficiency, enabling smoother and more secure banking services for customers.

Implementation of the Anti-Money Laundering System (AML) was another important milestone for Zemen Bank. By integrating AML processes into its operations, the bank demonstrated its commitment to combatting financial crimes and ensuring regulatory compliance, safeguarding both its reputation and the integrity of the financial system.

Furthermore, the establishment of straight-through processing (STP) between the core banking system (CBS) and SWIFT enhanced the bank's ability to execute international transactions seamlessly and efficiently. This integration streamlined the processing of cross-border payments, reducing manual intervention and minimizing the risk of errors.

Overall, these accomplishments reflect Zemen Bank's dedication to innovation, security, and operational excellence, positioning it as a leading player in the banking sector and enhancing its ability to meet the evolving needs of customers in the digital age.

In fiscal year 2020, Zemen Bank S.C. demonstrated resilience and excellence amidst challenging economic conditions exacerbated by the COVID-19 pandemic. Notably, the bank surpassed the One Billion-Birr Gross Profit Milestone, reflecting prudent financial management and robust business strategies. With a remarkable 36% surge in revenue and substantial growth rates of 24% in deposits and 27.6% in loans and advances, Zemen Bank demonstrated its ability to attract and deploy capital effectively. Moreover, the bank's commitment to risk management resulted in a commendable reduction in non-performing loans to 1.99%. Fostering strong customer relationships through innovative service delivery and prioritizing operational excellence, despite challenges such as delays in the headquarters building construction project, further underscored Zemen Bank's dedication to long-term growth and sustainability. 

Zemen Bank has achieved several significant milestones and accomplishments in the 2020/21 fiscal year, showcasing its resilience and commitment to growth despite numerous challenges in both the domestic and global economic landscapes.

One of the standout achievements is the substantial increase in revenue, with the bank amassing a record high revenue of Birr 2.85 billion, marking a remarkable 33.6 percent increase from the previous year. This exceptional growth underscores the bank's ability to adapt to changing market conditions and capitalize on emerging opportunities.

Moreover, Zemen Bank demonstrated robust performance in deposit mobilization, with deposits growing by 31.7 percent, reaching Birr 18.9 billion. This achievement reflects the trust and confidence that customers place in the bank, as well as its effective strategies for attracting and retaining deposits in a competitive market environment.

In addition to deposit growth, the bank recorded significant advancements in loan and advances, extending loans amounting to Birr 4.28 billion, representing a substantial 43.9 percent increase from the previous year. This highlights the bank's role in facilitating access to credit for various sectors of the economy, contributing to economic growth and development.

Furthermore, Zemen Bank achieved remarkable success in international banking activities, with a record high forex inflow of USD 418.4 million, reflecting the bank's strong position in facilitating foreign exchange transactions and supporting international trade and investment.

Financially, the bank maintained a strong capital adequacy ratio of 34 percent, well above the minimum regulatory requirement of 8 percent, demonstrating its robust financial health and capacity to absorb potential risks.

Beyond financial metrics, Zemen Bank continued to invest in technology and innovation, enhancing its digital banking capabilities and expanding its multi-channel banking services. The deployment of additional ATMs and POS devices, along with ongoing IT projects, reflects the bank's commitment to providing convenient and accessible banking services to its customers.

Moreover, the bank prioritized human capital development, recruiting talented professionals and providing them with opportunities for training and development. This focus on building a skilled and motivated workforce positions Zemen Bank for sustained growth and success in the future.

In terms of corporate governance and social responsibility, the bank remained committed to upholding the highest standards of ethics and governance while also actively contributing to the community through various social initiatives and donations totaling Birr 17.2 million.

Zemen Bank has achieved significant milestones and accomplishments in the fiscal year 2021/22, despite facing various economic challenges both globally and domestically. One notable achievement is the bank's remarkable operational and financial performance, driven by a steadfast commitment to enhancing operational efficiency and optimizing costs. Despite the fierce competition in the industry, Zemen Bank recorded a substantial growth in deposit mobilization, with a 41.5% increase in deposits, reaching Birr 26.872 billion by the end of the fiscal year. This growth was facilitated by a managed expansion of the branch network, resulting in the opening of 31,850 new bank accounts, totaling 138,769 account holders.

In terms of loans and advances, Zemen Bank extended its support to various sectors of the economy, with a 50.6% growth in loans and advances. Notably, the bank has successfully reduced its non-performing loan ratio below the regulatory requirement, achieving an NPL ratio of 1.51%, a significant decrease from the previous year's 2.25%. Furthermore, the bank's international banking activities saw exceptional growth, with the total amount of forex mobilized reaching a record high of US$ 502.15 million, reflecting a 20% increase compared to the previous year.

Financially, Zemen Bank exhibited robust performance indicators, with revenue reaching Birr 4.1 billion, representing a 43.4% increase compared to the prior year. Income from interest constituted the dominant share, followed by service charges and commissions, mainly sourced from foreign exchange-related operations. Despite an increase in expenses, including interest expenses and salary expenses, the bank achieved a net profit of Birr 1.48 billion, exceeding the previous year's profit by 55.0%.

Moreover, Zemen Bank demonstrated strong financial soundness indicators, with a return on assets (ROA) of 4.9% and a return on equity (ROE) of 27.5%. The bank's capital adequacy stood at 26.4%, well above the minimum regulatory requirement of 8%, indicating its resilience to external shocks.

Beyond financial performance, Zemen Bank made significant strides in human capital development, with a focus on recruiting competent professionals and providing continuous training and development programs. The bank recruited 272 employees, promoted 185 staff members, and provided training to 1,945 trainees during the fiscal year. Additionally, the bank implemented various initiatives to enhance its information technology infrastructure, optimize IT security systems, and improve customer digital experiences through software and digital platform developments.

In terms of branch and customer base expansion, Zemen Bank opened 17 new branches, reaching a total of 80 branches, and deployed additional ATMs and POS terminals to improve accessibility and convenience for customers. The launch of Zemen Debit Cards further enhanced customer convenience and accessibility to banking services across multiple channels.

Overall, Zemen Bank's accomplishments and milestones in the fiscal year 2021/22 underscore its resilience, strategic focus, and commitment to delivering value to its customers, shareholders, and stakeholders amidst challenging economic conditions.

Zemen Bank has navigated through a challenging fiscal year marked by both local and global economic uncertainties with remarkable resilience and strategic foresight. One of the most notable achievements during this period was the inauguration of its new headquarters building in May 2023. This event not only added architectural grace to Addis Ababa's skyline but also symbolized the bank's growth and burgeoning presence in the city's emerging financial district. The new headquarters stands as a testament to Zemen Bank's commitment to expansion and its vision for the future of banking in Ethiopia.

In tandem with physical expansion, Zemen Bank successfully implemented a new five-year strategic plan developed in collaboration with PwC Kenya. This comprehensive strategy aims to strategically position the bank within Ethiopia's dynamic finance sector and prepare it for the upcoming liberalization of the industry. By proactively adapting to changing market conditions and embracing innovative approaches, Zemen Bank is poised to capitalize on emerging opportunities and consolidate its position as a leading player in the Ethiopian banking landscape.

Despite macroeconomic challenges, Zemen Bank achieved commendable financial results during the fiscal year. The bank recorded a significant gross profit of Birr 2.75 billion, marking a substantial 28.1% increase compared to the previous year. Additionally, the bank's Earnings per Share (EPS) stood at an impressive 43%, reflecting a substantial return to shareholders. These financial achievements underscore Zemen Bank's robust operational performance and its ability to generate value for its investors even in turbulent economic times.

Moreover, Zemen Bank prioritized operational efficiency and digital transformation as key pillars of its growth strategy. By focusing on increasing engagement on digital channels rather than physical expansion of branches, the bank aims to streamline its operations, enhance customer experience, and position itself as a pioneer in the digital banking landscape of Ethiopia. Efforts to leverage technology and innovation are expected to drive sustainable growth and enable Zemen Bank to better serve its customers in an increasingly digital world.

In line with its commitment to excellence, Zemen Bank also invested significantly in human capital development initiatives during the fiscal year. By hiring and training high-caliber staff, the bank aims to cultivate a world-class leadership culture and enhance overall productivity. This investment in talent underscores Zemen Bank's dedication to nurturing a skilled workforce capable of driving innovation, delivering exceptional service, and sustaining long-term growth.

Furthermore, Zemen Bank remained steadfast in its adherence to the highest standards of corporate governance, compliance, and corporate social responsibility. The bank's unwavering commitment to transparency, integrity, and regulatory compliance underscores its ethical values and commitment to serving the best interests of its stakeholders. Through charitable initiatives and community engagement, Zemen Bank continues to make a positive impact on society and contribute to the socioeconomic development of Ethiopia.

In conclusion, the accomplishments and milestones achieved by Zemen Bank during the past fiscal year reflect its resilience, strategic vision, and unwavering commitment to delivering value to its shareholders, customers, and stakeholders amidst challenging economic conditions. As the bank continues to pursue its growth trajectory, it remains poised to seize new opportunities, overcome challenges, and emerge stronger than ever in Ethiopia's dynamic banking sector.