Zemen Bank Review

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Banks Ethiopia gives you the access and information you need to get car loan and house loan services in Ethiopia from the bank of your choice. If you are a non resident and/or a foreigner with origin of Ethiopia looking for these loan services, make sure to visit our diaspora mortgage loan and diaspora vehicle loan pages to acquire a more detailed information.

Zemen Bank Exchange Rate

The exchange rate of Zemen bank can also be found at our exchange rates page, along with all other banks’ exchange rates in Ethiopia today.

About Zemen Bank

Zemen bank started with a vision to be “Ethiopia’s five-star bank” in October 2008. Zemen Bank withstands carefully by the laws and guidelines of the ward where it works and watches the rules and rules gave by administrative specialists of the Federal Republic of Ethiopia. It additionally holds its corporate administration framework under consistent audit to guarantee that it is in accordance with global and neighborhood best practices.

Services Provided at Zemen Bank

Personal Saving

This account category lets a customer open an account with an initial deposit of ETB 5000. Customers with this account get basic banking services such as online banking, ATM, and SMS services. An account in this category earns 7 percent interest per day.

Personal Banking

Personal Banking is the level of banking services available to all Zemen Bank clients. Upon opening an account, all new customers receive a debit card and are provided with immediate access to our high-tech multi-channel banking services including ATMs, Internet Banking, Call Center Banking, and SMS Banking.

Prestige Banking

This type of Banking is for customers who secure a minimum monthly balance of  ETB 100,000 are allocated a Personal Banking Representative. This representative will handle all customer transaction and banking needs in private backed with Zemen information technology system.

Z-Club Banking

Zemen Bank Z-club banking service is the highest baking service offered to priority customers. To be eligible for Z-club banking a person shall maintain a minimum monthly balance of ETB 500,000. Zemen Bank will allocate a specialist Personal Banking representative backed by a team of specialist advisers to help all financial need and banking advice.  The account brings preferential rates, bank charge waivers, and negotiated loans, backed by world-class technology, to make it easier and totally informed at all times.

Personal Checking

The initial deposit required to open a Personal Checking account is ETB 5,000. An average daily balance of birr 25,000 is required to offset the fee of birr 250. It is a non-interest bearing account. There is a grace period of ten days to build up the balance to the required amount.

Prestige Checking

The initial deposit required to open this account is birr 5,000. An average daily balance of birr 100,000 is required to offset the fee of birr 500. It is an interest-bearing account. There is a grace period of ten days to build up the balance to the required amount.

Z-Club Checking

The initial deposit required to open this account is birr 5,000. An average daily balance of birr 500,000 is required to off-set the fee of birr 750. It is an interest-bearing account. There is a grace period of ten days to build up the balance to the required amount. Under this account, the interest rate earned is higher than the person checking.

Loans

Zemen Bank’s loan program is programmed to help customers fulfill their dreams of buying a house or a car through a fixed period of time. It offers long term loan repayments up to 5 years for a new car and 7 years for a house.

• Car Loan
  • Deposit 20% of the price of a new car
  • Save another 20% over a period of six or twelve months period
  • Get a loan of 60% of the car price
  • Get an extended loan repayment period of Five Years
• House Loan
  • Deposit 20% of the price of a House
  •  Save another 20% over a period of six or twelve months period
  • Get a loan of 60% of the House price
  • Get an extended loan repayment period of Seven Years

Certificate of Deposit

Certificate of Deposit (CDs) is a tool for managing money when a customer is able to set aside funds for a period of time. Zemen Bank strives to offer the best CD rate to its customers.

With a CD, one can maximize his/her own interest rate and security. Zemen offers CDs for many terms, some with a minimum investment of just ETB 500,000.

Benefits:

• CDs typically pay higher interest rates than many other savings products
• The upfront interest payment is allowed
• Continuous compounding means interest earned today earns interest tomorrow
• Interest can be credited to the CD or to a Zemen checking or savings account
• A Zemen CD can be used as collateral for a Zemen loan with a discounted rate

Import and Export

Zemen Bank’s International Banking Department has customized and products. At Zemen Bank, a customer would find innovative, custom-engineered trade finance products and services that meet customer requirements in import and export.

Zemen Bank offers an Array of letter of credit products such as: Irrevocable and confirmed Letters of credit, standby Letters of Credits for both import and export with excelling service and technology.

Using Zemen Super Trade Services would enable customers to utilize a wide range of trade financing schemes as:

• Export L/C Financing
  • Export Finance whereby we offer: pre and post-shipment financing
  • Export Guarantee schemes
  • Export Insurance Scheme
• Import L/C Financing
  • L/C on-Credit: at competitive lines of credits or deposit margins
  • Shipping Guarantee for missing B/L
  • Automated L/C for both Import and Import L/c with electronic processing and advice

Zemen Bank offers its customers with Standard and customized collection services for both import and export needs of its customers. The bank facilitates both Sight and Acceptance collection.

• Inward Documentary collection: Enables its customers to benefit from efficient processing of import Collection / Cash against Documents at sight.
• Outward Documentary Collection: Benefits Zemen Bank Customers in timely bill payments for exporters.

Franco Valuta Imports

Zemen Bank offers Franco Valuta import (import with its own source of foreign exchange) services to Embassies, International organizations, donors, and other eligible customer groups.

Zemen Diaspora

Definition: Diaspora accounts are accounts offered to non-residential Ethiopian Nationals working and living outside of Ethiopia for more than one year, non-resident foreign nationals who had been Ethiopian National before, and business entities owned by the above mentioned.

Account Features

With this account, balances are kept in foreign currency. It is also possible to operate this account through cheques or electronic payment modes. Eligible customers can choose to set up the accounts in USD, GBP, or Euros. While an initial cash deposit of $/€/₤ 100 is required, additional funds can be deposited in foreign currency if it has been declared by customs, if funds are returned from travel expense or cheques drawn from non-resident foreign currency and transferable accounts or other Diaspora Accounts.

Diaspora Account holders are also able to transfer funds abroad for payments and settlements or withdraw FX from this account without the pre-approval of Zemen Bank or NBE. In addition, funds may also be used for import purposes if the business is owned by the same individual.

This account will only earn interest if the funds are kept in a fixed time deposit or if it’s non-repatriatable. A minimum requirement of USD 5000 and three months fixed deposit is compulsory.

Digital Banking

ATM Banking

Zemen Bank ATM machines are located all over Addis Ababa and a few cities in Ethiopia. All Zemen Bank customers will have access to ATM Cards which will allow them to withdraw money, transfer money and check balance with ease.

Internet Banking

Zemen Bank’s internet banking is free, easy, fast and secure method of banking which allows customers to access their account 24/7  including Mobile Banking ,Prepaid Cards

Zemen Bank’s mobile banking service is called “Zemen Mobile” and offers the following features:

Features:

1. Balance Inquiry: Check your account balance, including savings, current, and credit card balances.
2. Transaction History: View your transaction history, including deposits, withdrawals, and transfers.
3. Fund Transfer: Send and receive money to/from other Zemen Bank accounts.
4. Bill Payment: Pay bills and utilities such as electricity, water, and telephone bills.
5. Airtime Top-up: Recharge mobile airtime for your mobile phone.
6. Mobile Money Transfer: Send and receive mobile money to/from other mobile money accounts.
7. Account Opening: Open a new account using the mobile app.
8. Cardless Withdrawal: Withdraw cash from ATMs using your mobile phone.

Requirements:

1. Mobile Number: You need to have a valid Ethiopian mobile number.
2. Zemen Bank Account: You need to have an active Zemen Bank account.
3. Mobile App: You need to download and install the Zemen Mobile app on your mobile phone.

Fees:

1. Registration Fee: Birr 20 (one-time registration fee)
2. Monthly Maintenance Fee: Birr 50 (monthly maintenance fee)
3. Transaction Fees: Varying fees apply for different transactions (e.g., fund transfer, bill payment)

Security:

1. Encryption: The app uses end-to-end encryption to ensure secure transactions.
2. PIN Protection: Your transactions are protected with a PIN code.

Zemen Bank Credit Scores, Worthiness, and Credit History

Credit Risk Profile:

• Non-Performing Loans (NPLs): As of 2023, Zemen Bank’s NPLs as a percentage of total loans and advances stood at 3.6%, which is below the industry average.
• Provision Coverage Ratio: Zemen Bank’s provision coverage ratio stood at 85.1% in 2023, indicating that the bank has sufficient provisions to cover potential loan losses.

Credit History:

• Credit Rating: Zemen Bank has a credit rating of BB+ (Long-term) and B (Short-term) by the Ethiopian Credit Rating Agency (ECRA), indicating a moderate creditworthiness.
• Credit History Score: The bank’s credit history score, calculated by the NBE, stood at 74.5% in 2023, indicating a relatively good credit history.

Liquidity and Capital Adequacy:

• Liquidity Ratio: Zemen Bank’s liquidity ratio stood at 44.2% in 2023, indicating that the bank has sufficient liquid assets to meet its short-term obligations.
• Capital Adequacy Ratio: The bank’s capital adequacy ratio stood at 15.1% in 2023, which is above the regulatory minimum requirement of 10%.

Other Indicators:

• Return on Equity (ROE): Zemen Bank reported an ROE of 14.2% in 2023, indicating a moderate profitability performance.
• Return on Assets (ROA): The bank reported an ROA of 2.5% in 2023, indicating a relatively low profitability performance.

Based on these indicators, it can be inferred that Zemen Bank has a moderate creditworthiness and credit history, with a relatively good provision coverage ratio and liquidity ratio. However, its profitability performance is moderate, and its ROA is relatively low.

Banking Fees

Account Opening Fee

• Individual Savings Account: Birr 250
• Current Account: Birr 500
• Business Account: Birr 1,000

ATM Withdrawal Fee

• Local ATMs: 0.4% of the withdrawal amount (minimum Birr 40, maximum Birr 400)
• International ATMs: 2.2% of the withdrawal amount (minimum Birr 80, maximum Birr 800)

International Money Transfer Fee

• Outward transfers: 1.2% of the transfer amount (minimum Birr 80, maximum Birr 800)
• Inward transfers: 0.4% of the transfer amount (minimum Birr 40, maximum Birr 400)

Credit Card Annual Fee

• Classic Card: Birr 1,000 per year
• Gold Card: Birr 2,500 per year
• Platinum Card: Birr 5,000 per year

Cheque Clearance Fee

• Cheque deposit: Birr 20
• Cheque issuance: Birr 50
• Cheque return: Birr 100

Other Fees

• Stop Payment Fee: Birr 100
• Duplicate Statement Fee: Birr 50
• SMS Alert Service Fee: Birr 20 per month

Important Note The offers and terms listed above are subject to change without notice and may vary depending on your specific account type, account status, and other factors

Financial Reports

here are some key highlights from Zemen Bank’s latest financial report:

Financial Performance:

• Net Profit: Zemen Bank reported a net profit of Birr 2.1 billion in 2023, an increase of 15.6% compared to the previous year.
• Total Assets: The bank’s total assets grew by 22.2% to Birr 135.6 billion in 2023.
• Total Deposits: Deposits increased by 25.5% to Birr 103.8 billion in 2023.
• Total Loans and Advances: Loans and advances grew by 20.5% to Birr 74.3 billion in 2023.

Asset Quality:

• Non-Performing Loans (NPLs): Zemen Bank’s NPLs as a percentage of total loans and advances decreased to 3.2% in 2023, from 4.1% in 2022.
• Provision Coverage Ratio: The bank’s provision coverage ratio stood at 92.1% in 2023, indicating that the bank has sufficient provisions to cover potential loan losses.

Liquidity and Capital Adequacy:

• Liquidity Ratio: Zemen Bank’s liquidity ratio stood at 44.8% in 2023, indicating that the bank has sufficient liquid assets to meet its short-term obligations.
• Capital Adequacy Ratio: The bank’s capital adequacy ratio stood at 15.9% in 2023, which is above the regulatory minimum requirement of 10%.

Efficiency and Profitability:

• Cost-to-Income Ratio: Zemen Bank’s cost-to-income ratio decreased to 63.5% in 2023, from 65.1% in 2022.
• Return on Equity (ROE): The bank reported an ROE of 16.5% in 2023, indicating a moderate level of profitability.

Contact Information

Toll-free Number: 6500

SWIFT: ZEMEETAA, Addis Ababa, Ethiopia

Zemen Bank Head Office: Ras Abebe Aregay Street, Addis Ababa, Ethiopia