Bank of Africa Tanzania has attributed its successes in the Tanzanian market to its increased lending portfolio to small and medium entrepreneurs (SME), dished out personal loans and the introduction of many new products.
The bank doubled its net profit during the first half of 2012 against last year’s performance during the same period, saying the achievement was a good sign of its growth and acceptance in the market.
The bank’s head of finance, Mussa Mwachaga said this was as a result of the bank’s customised finance and trade portfolio products that have enabled its customers to secure letters of credit and guarantees with ease.
He mentioned some of the new products introduced in the market as home finance, insurance premium finance and smart junior investor account that have catered for new market segments it has focused on.
“Going forward the bank is focused on increasing an array of products and services to new sectors,” he said.
According to the financial statement released early this month, the bank recorded the profit of 551m/- for the quarter ended June 2012 up from 273m/- recorded in June last year.
Further, it recorded a profit of 1.4bn/- for the year ended June 2012 compared to 722m/- witnessed in the same period ending June 2011.
Mwachaga said the bank recorded a net interest income amounting to 4bn/- for the quarter ended June 2012 compared to 3bn/- registered in the same period last year.
As for the year ending June 2012, the bank recorded a non interest income of 8.2bn/- compared to 5.7bn/- recorded in the same period in June 2011.
“The bank’s non-interest income increased by 37 per cent for the quarter ended June 2012 to 2.9bn/- compared to 2.1bn/- recorded in the same period last year,” Mwachaga said.
In the recent years, the bank has strengthened its services and presence in the country with a current network of 16 branches.
Since it started operations in the country in 2007, itk has opened ten branches in Dar es Salaam and six others branches upcountry in Morogoro, Tunduma, Mwanza, Moshi, Mbeya and Arusha.
In this financial year, the bank is geared to increase its regional presence by opening up four new branches within the country.