Absa net income after income tax more than doubles in 2022

25Jan 2023
By Guardian Reporter
The Guardian
Absa net income after income tax more than doubles in 2022

Absa Tanzania net income after income tax more than doubled to 22.5bn/- last year from 9.4bn/- recorded in 2021.

According to unaudited financial statements for the fourth quarter of last year shows the increase of net profit was due to sharp increase of operating profit which grew to 32.4bn/- last year from 12.6bn/- recorded in2021.

The bank’s basic earnings per share also went up to 22.8/- last year from 9.6/- recorded a year before with number of employees increased to 492 from 457 respectively.

On quarterly basis, the statements show net income after income tax grew to 1.9bn/- during the fourth quarter of last year from 2mn/- recorded during the fourth quarter of 2021.

Return on average shareholder’s fund more than doubled to 17.3 percent last year from 8.4 percent recorded in 2021 while return on average total assets gained to 1.9 percent from 0.97 percent respectively.

According to the statements, net interest income jumped to 77.5bn/-last year compared with 56.7bn/- recorded in 2021 while non-interest income reached 56.9bn/- last year compared with 39.3bn/-recorded in 2021.

On quarterly basis, net interest income amounted 21.9bn/- during the fourth quarter of last year ending December compared with 16.2bn/- recorded during similar quarter of 2021 while non-interest income improved to 13bn/- compared with 10bn/- respectively.

The bank’s balance sheet shows total assets slightly went down to 1.18trn/- during the fourth quarter of last year compared with 1.21trn/- recorded during the third quarter due to slight decrease of lending which amounted to 604bn/- during the fourth quarter from 612bn/- issued during the third quarter.

Cash increased to 37.6bn/- during the fourth quarter from 27.7bn/- recorded during the third quarter of last year while investment in government securities slightly increased to 198.3bn/- compared with 197.1bn/- respectively.

According to the statements, balance with Bank of Tanzania (BoT) went up to 144.3bn/- during the fourth quarter of 2022 from 100.5bn/- during the third quarter and balance with other banks and financial institutions increased to 127bn/- from 204bn/- respectively.

Customer deposits reached to 778.8bn/- during the fourth quarter, last year compared with 806bn/- during the third quarter while shareholder’s fund remained nearly flat at 171bn/- during the reported periods.

The statements show net change of deposits nearly tripled to 179bn/- last year compared with 64.7bn/- in 2021, while net changes in loans and advance amounted 94bn/- compared with83.4bn/- respectively.

Gross loans advances to total deposits increased to 79.6 percent last year compared with 77.3 percent which indicated an increase of lending to economic sectors.

However, non-performing loans and advances to total gross loans remained nearly flat at six percent, slight higher than regulatory benchmark of five percent.

Net cash used in operating activities jumped to 142bn/- last year compared with 13.2bn/- recorded during the previous year while net cash used in investing activities amounted 2bn/- last year compared with 3.2bn/- spent a year before.

Cash or cash equivalent at the end of the year was 258bn/- in 2022 compared with 120.7bn/- recorded a year before.

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