Bank M has declared a profit before taxes of 3.41bn/-, which is an increase of 234 percent over the corresponding quarter in the previous year and a growth of 13 per cent over the previous quarter.
The increase is considered remarkable in the background of rising inflation pressures, tight liquidity conditions and the resultant high interest rates in the local economy.
The bank’s head of finance, Iman John attributed the achievement to customers’ confidence that has enabled the bank to grow by an average of 60 per cent year-on-year since its inception five years ago.
“Such a landmark growth is unquestionably due to customers’ confidence towards the financial and professional strengths, which is unmatched in this market,” John told journalists at the weekend.
The head of finance attributed the doubling of pre-tax profit largely to 90 per cent growth in net interest income that climbed from 24.74bn/- in the first quarter of 2011 to 47.11bn/- in the current quarter of 2012.
Alongside the spurt in net income generated from loans, the non-interest income, from fees and commissions of the bank has also grown significantly to 27.24bn/- this year’s first quarter against 13.6bn/- of previous year.
The financial controller added that the bank had a deposit base of 263.71bn/- as at March31, this year and a balance sheet size of 312.23bn/-, making it the 10th largest bank in the local market, from a group of 45 banks.
As on the reporting date, the bank’s loan book had grown to 202.68bn/-. As per the financial controller, the sectoral exposure of the loan book is well diversified as a result of carefully prepared and meticulously executed loan management policies.
Careful client and sectoral selection has enabled the bank to withstand cyclical downturn and liquidity constraints without impairment of the loan book, which has remained steady with a non performing loan ratio of 2 per cent.
Godfery Utouh, Bank M’s head of internal audit, said that prudent leading practices and tight post sanction controls ensured that the non-performing loans to stay down below 2 per cent, which is well below the industry average.
“First-rate internal control enables assets to grow by 44 per cent, while keeping the year on year non perforiming loan levels constant or reducing,” he said.
The bank’s head of corporate affairs, Ambrose Nshala talked about the continuing shareholder commitment to the growth of the bank by consistent injections of fresh capital, in order to take care of the growth potential of the bank.
Nshala added that during the previous year and the current quarter, the shareholders of the bank have pumped in 10.97bn/- as additional capital.
The head added that it is remarkable that the bank has not declared any dividends till date, despite significant Profits being generated after payment of taxes, which is further indicative of the shareholder’s commitment to the health and well being of the bank.
Apart from the bank making great achievements in the growth in balance sheet and business as well as profitability, it has also made significant progress in achieving its stated policy of gender parity in employment by end of year 2012.
The bank’s head of transaction banking, Jacqueline Woiso mentioned that it is a matter of pride for her and all the other women employees of the bank that the female employees’ ratio currently stands at 51 per cent against 49 per cent of male.
“We expect the ratio to remain in favour of women,” Woiso said, adding that “the bank’s commitment to gender parity is not restricted to the hiring of lower level female tellers but is also reflected in the top management team of the bank.”