Zemen Bank Review

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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”. Zemen Bank was founded by 2,800 shareholders with a paid-up capital of Birr 87,237,082. The Bank obtained its operating license on June 17, 2008, under Registration Number LBB/010/2008 from the National Bank of Ethiopia. Zemen Bank meticulously adheres to the laws and regulations of its operating jurisdiction, complying with all directives issued by the administrative authorities of the Federal Republic of Ethiopia. Furthermore, the bank maintains a rigorous and continuous review of its corporate governance framework to ensure alignment with both local and international best practices.

Services Provided at Zemen Bank

Consumer Saving Deposit Products

Zemen Bank’s Consumer Banking provides individuals with savings and checking accounts for personal savings and transactions. New customers receive a debit card and instant access to Zemen Bank’s advanced Omni-Channel Banking services, including ATMs, Internet Banking, mobile Banking, and Pos services.

• Basic Saving Account 

This account category allows a customer to open an account with an initial deposit of ETB 5,000. Customers with this account receive basic banking services, including online banking, ATM access, and SMS services. Customers in this category earn interest calculated on their daily minimum balance and compounded Monthly.

• Personal Banking Account 

Personal Banking is the level of banking services available to all Zemen Bank clients. Customers opening this account are offered basic banking services, including Internet banking, Mobile Banking, ATM, and Pos. Customers in this category earn interest calculated on their daily minimum balance and compounded Monthly.

• Prestige Saving Account 

Customers who maintain a minimum monthly balance of Birr 100,000 are eligible to open a Prestige Saving Account; however, the minimum balance to open the account is as low as 5,000 ETB. Customers opening this account will receive a better interest rate, which will be calculated on their minimum daily balance and compounded monthly. When the volume of client activity demands it, the bank may assign a Personal Banker to handle all your transactions and banking needs. 

• Z-Club Banking Account 

Zemen Bank Z-club banking service is the highest banking 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 with all financial needs and provide 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.

• Z-Club Special Saving Accounts

Special Z-Club customers are entitled to enjoy several preferential and priority service privileges in every Branch using their special ID. Special Z-Club customers are privileged for specially designed debit cards with an increased daily cash withdrawal limit.

The account holders will receive most of the Bank’s services free of charge. They are also entitled to consumer loans as per the policy and procedure of the Bank.

The account is tiered into Z-Club Basic, Gold, and Platinum account categories to encourage account holders to build their deposit to a higher category and a more attractive interest rate. The more customers save, the more they will be beneficiary with the most attractive interest rate calculated on the minimum daily balance and compounded monthly.

The floor amount required to open a Basic account shall be greater than Birr 500,000.00, Birr 2,000,000 for the Gold Category, and Birr 5,000,000 for the Platinum account category. However, each account can be opened with a birr 5,000 (birr five thousand) initial deposit and build up to the required level.

Z-club Special Saving Accounts gives the privilege to keep the money under a savings account and effect payments from its package checking account, which would be opened without additional deposit requirements

• Executive Special Saving Accounts

This product is a savings account designed for executives or senior managers of different private, government, and Non-Governmental organizations.

A unique customer ID will be issued to allow priority treatment at the counter. A specially branded ATM debit card shall also be issued that allows a higher daily cash withdrawal limit of up to Birr 20,000.00 for ATM transactions, depending on the account type.

It is an account combining the features of both saving and current accounts operated by cheque. The account bears an attractive interest rate calculated daily and compounded monthly. The more you save, the more you earn higher interest rate tiered into Executive Basic, Gold, and Platinum account categories.

The floor amount required to open a Basic account shall be greater than Birr 100,000.00, Birr 300,000.00 for Special Account, Birr 500,000.00 for Gold Account and Birr 1,000,000.00 for Platinum Executive Account. However, each account can be opened with a birr 10,000.00 (birr ten thousand) initial deposit and build up to the required level.

Other employees of the organization will be entitled to up to 50% revolving salary advance facility at a lower interest rate than the ordinary. All employees will have access to special consumer loan offers at attractive interest rates.

• Z-Club Children’s Saving Account

It is an interest-bearing account that pays an attractive interest rate above the regular savings rate, calculated daily and compounded monthly. The account is tiered into Z-Club Children Basic; Special and Exclusive Minor accounts to encourage the account holders to build their deposit to a higher category and earn a more attractive interest rate.

The floor amount required to open a Basic account shall be greater than Birr 1,000.00. For Special Account Birr 50,000.00 and Exclusive Minor Account Birr 200,000 deposit is required. However, each account can be opened with a birr 1,000 (birr one thousand) initial deposit and build up to the required level.

• Youth Special Savings Account

The youth account is tiered into Basic, Special, and Exclusive Youth accounts.
The floor amount required to open a Basic account shall be greater than  Birr 1,000.00, for a Special account Birr 100,000.00, and for an Exclusive Youth account Birr 200,000. However, Special and Exclusive Youth accounts can be opened with a birr 1,000 (birr one thousand) initial deposit and build up to the required level.

We offer a unique daily interest calculation on our savings accounts with free access to state of the art technology aided products to cater to your convenience.

Consumer Checking Deposit

• Personal Checking

It is a non-interest-bearing account. The account is established as a package account with their Personal Savings Account, without additional deposit requirements, to enable the respective account holder to operate the account with a check. The deposit required to open the account is Birr 5,000.

• Prestige Checking

It is a non-interest-bearing account. The account is established as a package account with their Prestige Saving Account, without additional deposit requirements, to enable the respective account holder to operate the account with a check. The deposit required to open the account is Birr 5,000. The account holder has the privilege to keep the money under the savings account, earning interest on a daily basis while effecting payment from the checking account.

• 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 offset 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 a checking.

Zemen Bank Loan Products

Zemen Bank provides a range of loan facilities for both consumers and businesses, designed to support personal asset acquisition and business growth through structured financing and competitive interest rates.

Consumer Loans

Zemen Bank’s consumer loans are intended to help individuals finance personal needs such as housing, vehicles, and other personal expenditures. These loans are typically offered under structured saving and borrowing arrangements, depending on the product.

Key Features

• Available for personal purposes such as house and car financing

• Loan amounts are determined based on savings, income, and credit assessment

• Repayment periods may extend:

  • Up to 5 years for car-related loans

  • Up to 7 years for housing-related loans

• Interest rates for consumer loans generally fall within the range of
  16.25% – 18.00% per annum, subject to the bank’s prevailing tariff and customer assessment

Business Loans

Zemen Bank also offers business and corporate loans to support enterprises at different stages of operation, including working capital needs and investment financing.

Types of Business Loans

• Working Capital Loans – to finance day-to-day business operations

• Term Loans – for long-term business investments such as equipment, expansion, or project financing

• Trade-related Financing – to support import, export, and trade activities

Key Features

• Loan tenor varies based on the nature of the business and purpose of financing

• Repayment periods can range from short-term facilities to medium and long-term loans

• Interest rates for business loans are determined according to the bank’s tariff, loan type, and credit risk profile, and are generally higher or lower than consumer rates depending on structure and collateral

zInterest Rates & Terms

Zemen Bank applies interest rates based on its official tariff, which may vary by:

• Loan type (consumer or business)

• Repayment duration

• Collateral and credit assessment

• Market and regulatory conditions

Borrowers are encouraged to consult directly with Zemen Bank branches for exact rates, eligibility requirements, and detailed loan terms.

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 1,000,000.

Benefits:

• CDs typically pay higher interest rates than many other savings products
• The uniqueness of Zemen’s CD is that we pay Upfront Interest immediately.
• 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 credit 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 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