Siinqee Bank’s shareholders have approved the establishment of an investment bank as part of a broader strategy to enter Ethiopia’s emerging capital market ecosystem. The announcement was made last week at Skylight Hotel, where the Bank’s founding president, Neway Megerssa, revealed that Deloitte, the global consulting firm, has been selected as an advisor to develop a business plan within three months. Deloitte was chosen through an international bidding process, where four firms were shortlisted. Notably, Deloitte is one of the three companies that have obtained an investment advisory license from the Ethiopia Capital Market Authority (ECMA).
This initiative aligns with the National Bank of Ethiopia’s recently issued directive aimed at safeguarding the traditional banking sector while fostering the growth of the country’s nascent capital market. During Siinqee Bank’s fifth general assembly, the Bank reported impressive growth figures. Its total assets surged to 59.74 billion Br, reflecting a 72.3% increase, while net profit climbed to 520 million Br, an 82% rise compared to the previous year. Deposits grew by 97% to reach 46.81 billion Br, and foreign currency holdings witnessed a substantial 334% boost, amounting to 49.85 million dollars.
The Bank’s loan portfolio expanded to 27.73 billion Br, alongside a growing number of borrowers. Paid-up capital increased by 3% to 8.01 billion Br, while revenue rose by 53% to reach 5.64 billion Br. However, total expenses also increased, reaching 4.96 billion Br.
Formerly known as Oromia Credit & Saving S.C., Siinqee Bank is among the first microfinance institutions (MFIs) to transition into a full-fledged commercial bank following the Central Bank’s decision to allow MFIs to upgrade. Since its official debut, Siinqee Bank has entered the banking industry with a solid capital base, positioning it alongside established industry veterans.
Source: Addis Fortune
