Siinqee Marks Profitable Year On Road To Realizing Finance Conglomerate

A sizable rise in profit after tax to 3.3 billion Birr in the last fiscal year offers encouragement to the executives of Siinqee Bank, who are spearheading the formation of a financial conglomerate spanning insurance, investment banking, and lease financing.

The bank’s 2024/25 financial report showcases a nearly three billion Birr growth in profit, driven by a 6.6 billion Birr jump in net operating income, which had reached 10.6 billion Birr in June 2025.

The report highlights a massive increase in salary expenses (up 1.5 billion Birr year-on-year), and relatively low forex holdings of USD 2.6 million.

More than three years after securing the license that allowed it to turn from Oromia Credit & Saving SC—a microfinance institution (MFI) closely associated and partially owned by the Oromia regional administration—into Siinqee Bank, the financial institution has seen its outstanding principal loans to customers grow to 54 billion Birr and deposits swell to 102 billion Birr.

In sharp contrast to many of the country’s commercial banks, agriculture constitutes half of Siinqee’s total credit portfolio, followed by domestic trade and service (16 percent), and manufacturing (nine percent).

Siinqee’s total liabilities stand at 3.6 billion Birr, of which financial liabilities account for less than a third. The bank saw its income from interest grow by three billion Birr to eight billion Birr year-on-year, while its interest expenses climbed to two billion Birr.

Siinqee’s net forex income registered at an impressive 1.2 billion Birr last year, according to the financial statement.

The financial statement indicates a write-off of nearly 1.3 billion Birr in non-performing loans (NPLs) carried over from its 25 years as a microfinance institution.

“Write-off of Birr 1.296 billion is related with interest income recognized on non-performing loans on an accrual basis, dating back to the period when our Bank operated as a microfinance institution,” reads the financial report.

Financial analyst Abdulmenan Mohammed (PhD) characterized the write-off as “confusing.”

“This is one major change they’ve made since last year. The 1.3 billion was previously recognized as NPL, but now it has changed to interest income. The NPL was rolled over from when Siinqee was an MFI, but it’s confusing how they changed the NPL to interest income,” he said.

The report indicates that Siinqee has invested 100 million birr in Oromia Capital Goods, 10 million birr in Kegna Beverages, 32 million birr in the Ethiopian securities exchange (esx), and 106 million birr in ethswitch, among other ventures.

The report reveals Siinqee has contracted Deloitte to devise a five-year corporate strategy its executives envisions will “serve as a driving force for transformative and sustainable growth in the years ahead.”

This includes plans to spearhead the formation of the Siinqee Group, a diversified portfolio that will encompass lease financing, investment banking, and insurance services among others.

“The Bank is now well-positioned for sustainable growth and is steadily advancing toward its vision of becoming a leader in financial inclusion and transformation,” Neway Megersa, Siinqee’s president, told shareholders.

Last May, Neway told The Reporter that work was underway to realize the conglomerate, which will include up to 10 subsidiary companies. Among them are Siinqee Bank itself, an investment banking firm, an insurer, a lease financing business, and a microfinance institution, according to the President.