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NMB Bank Plc., the most prominent commercial bank in Tanzania clocked a pre-tax profit of half a trillion shillings. The bank’s profit has increased by 23 per cent for the year ending September. The year-on-year profit crossed half a trillion shillings mark on the back of robust business growth, sustained cost efficiency, and maintained the good quality of the loan portfolio.
The pre-tax profit jumped to 569bn/- compared to 464bn/- registered in the corresponding period last year. The solid financial results reflect continued trust from the stakeholders and reaffirm the bank’s mission of being a catalyst for spurring the overall socio-economic development in the country. NMB Chief Executive Officer Ruth Zaipuna further said that the solid business momentum is supported by a stable and accommodative operating environment. On a net profit basis, the bank recorded an increase in profit by 22 per cent to 398bn/- against 324bn/- recorded in September last year.
During the period, the bank sustained strong revenue performance with net interest income increasing by 20 per cent to 692bn/- driven primarily by benefits from increased lending activities in both retail and wholesale segments. Non-funded income increased to 334bn/- compared to 297bn/- in 2022 (12pc YoY), driven by increased customer activities on alternative channels, reflecting the positive outcome of the bank’s accelerated investments in innovative digital financial solutions.
The bank’s balance sheet sustained its steady growth momentum to cross the 11.57tri/- mark as of the end of Q3 of this year. This growth was attributed to the strong growth in loans and advances and investment in government securities. The net loans and advances grew 25 per cent year on year and closed the quarter at 7.0tri/- and Customer deposits increased by 15 per cent to 8.2tri/- mark.NMB continues to demonstrate efficiency with cost to income ratio (CIR) reaching 38 per cent as of September from 41 per cent in September last year, well within the regulatory threshold of 55 per cent. The low CIR was attributed to the disciplined cost optimisation initiatives whilst accelerating income growth momentum.
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The bank also closed Q3 this year as the largest listed financial institution in the East African region after attaining a market capitalisation of 2.3tri/-.During the quarter under review, NMB demonstrated significant growth within the Dar es Salaam Stock Exchange (DSE). The bank’s value grew by 32.2 per cent making NMB’s stock, the top gainer of the quarter.
