Zemen Bank S.C. is developing new banking products to support small and medium-sized enterprises (SMEs), with a particular focus on women-owned and women-led businesses, as part of its broader efforts to expand access to finance and business services.
The bank has begun providing training to women-led SMEs on financial management, business planning and enterprise growth ahead of the planned rollout of financial support.
Asrat Tadesse, Zemen Bank’s Executive for Retail Banking, said the bank is undertaking preparatory work before extending financial services to women-led SMEs.
“SMEs are looking for affordable loans, collateral-free financing for expansion, access to foreign currency and solutions to other financial challenges,” Asrat said.
He said the bank is working to address the challenges raised by SMEs and will provide training on banking regulations, financial management, market linkages, trade and related laws before launching the planned financial assistance.
Zemen Bank plans to support 150 women-led SMEs during the 2026/27 budget year.
The initiative comes as the bank continues to expand its balance sheet and lending operations. For the fiscal year ended June 30, 2026, Zemen Bank reported a 31.9 percent increase in total assets to 116.5 billion birr and a 15 percent rise in net profit to 6.75 billion birr.
The bank said the financial results were achieved amid tight monetary conditions and regulatory reforms in Ethiopia.
The National Bank of Ethiopia maintained a 15 percent policy interest rate and imposed a 24 percent ceiling on credit growth during the reporting period.
Despite these conditions, Zemen Bank’s total credit portfolio increased by 24.6 percent to 51.7 billion birr.
The bank’s non-performing loan ratio stood at 2.48 percent, below the regulatory ceiling of 5 percent and its internal threshold of 4 percent.
Chief Executive Officer Dereje Zebene said operating income increased to 14.24 billion birr from 12.13 billion birr a year earlier.
Net interest income contributed 6.57 billion birr to the bank’s earnings, while service charges and commissions generated 5.04 billion birr.
Zemen Bank reported gross profit of 9.97 billion birr, representing a 9.7 percent increase, while net profit after tax reached 6.75 billion birr.
The bank recorded a return on average equity of 37.8 percent and a return on average assets of 6.6 percent. Earnings per share reached 539 birr.
Zemen Bank’s paid-up capital increased by 52 percent to 14.29 billion birr, while total capital rose by 40.8 percent to 25.9 billion birr.
Its capital adequacy ratio reached 40 percent, significantly above the regulatory minimum of 8 percent, according to the bank.
Total deposits also increased by 32 percent to 85 billion birr.
The bank said the removal of the mandatory 7 percent minimum deposit interest rate had enabled banks to determine interest rates more in line with market conditions.
Zemen Bank’s planned SME support program comes amid growing demand from Ethiopian businesses for financing, market access and other financial services, particularly among smaller enterprises seeking to expand their operations.