Akiba Commercial Bank forecasts more profits in 2019

11Feb 2019
The Guardian Reporter
DAR ES SALAAM
The Guardian
Akiba Commercial Bank forecasts more profits in 2019

A rejuvenated Akiba Commercial Bank under new management promises to improve its profitability this year thanks to improved loan recovery.

Akiba Commercial Bank (ACB) Managing Director, Augustine Akowuah

ACB’s Managing Director, Augustine Akowuah said in Dar es Salaam last Friday that the bank’s outlook for 2019 remains positive. “I am extremely pleased with this performance of the second half, well balanced across the core target group with the strategies embarked upon at the beginning of the year moving in the right decision,” Akowuah said.

“It is quite refreshing given the many initiatives to bring about a change across the bank for the long term, and the rather difficult start of the year,” he added.

The ACB MD further noted that his management seeks to build on positive developments attained in 2018 to grow its core business of supporting micro small and medium size enterprises (MSMEs) in the country with the best service and comprehensive financial solutions.

ACB closed the second half of the year ending December 2018 with a pre-tax profit of 1.2bn/- which was an increase of more than 700 percent over the corresponding period in the previous year. The profitability growth was underpinned by good growth in loans and advances, with disbursement to more than 13,200 micro, small and medium enterprise customers during the year, exceeding 80bn/-.

The bank also issued more quality loans thanks to improvements made in credit origination practices within the bank which also witnessed the non-performing loans ratio reach 0.7 percent at the end of December 2018.

During the year, ACB undertook various measures to contain non-performing assets, improve recovery and collection and advance new loans with an eye on improved quality. The bank continues to review these, as well as measures taken to re-structure and re-align roles and functions to strengthen its credit risk management framework, the bank said in its report.

Established in 1993, the ACB provides financial services for micro, small and medium enterprises, and individuals in the market with more than 122,000 customers having access to banking services via its digital platforms and a network of 18 branches countrywide.

 

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