DCB Bank cuts impairment losses on loans and advances by 75pct

23Jun 2022
By Guardian Reporter
Dar es Salaam
The Guardian
DCB Bank cuts impairment losses on loans and advances by 75pct

​​​​​​​The Dar es Salaam Stock Exchange (DSE) listed DCB Commercial Bank Plc has managed to reduce its impairment losses on loans and advances, signaling the bank’s aggressive assets recoveries.

DCB Bak Plc managing director Godfrey Ndalahwa

The bank’s quarterly report shows impairment losses on loans and advances slowed to 103bn/- during the year ending March 2022, from 433bn/- recorded during period ended in March 2021.

According to the report, the bank has cumulative annual extended loans amounting 121.3bn/- by March 2022 from 117bn/- recorded during similar month last year, which was 81.2 percent to total deposits.

Customer deposits went down slightly to 124.1bn/- compared from 125.2bn/- while deposits from other banks and financial institutions gained to 30.8bn/- from 24.7bn/- respectively, which slowed net change in deposits from 11.6bn/- to 4.9bn/- in 2022.

However, the level of non-performing loans and advanced slightly increased to 9.4bn/- in 2022 from 8.9bn/- March 2021, while other non-performing assets during the reviewed period remained flat at 209mn/-.

The report shows NPLs rate slightly increased to 7.5 percent during the year ending March this year from 7.3 percent in March 2021, which is higher than regulatory benchmark of 5 percent and lower than industrial rate of 8 percent.

The statement shows basic earnings per share improved to 24.77/- during the year ending March this year from 21.82/- recorded in March 2021.

Net income after income tax also went up to 604.63mn/- from 503.78m/- as operating income closed at 649.63mn/- from 503.78mn/-.

According to the statement, the bank total assets increased to 199.5bn/- from 194.6bn/- respectively due to increase in lending, investment in government securities, which offset the slowed balance with other banks and financial institutions, balance with Bank of Tanzania (BoT) and cash.

The bank ended the first quarter of this year in March with cash amounting 3.7bn/- against 4.1bn/- recorded in March last year while balance with banks and other financial instructions fell dramatically to 784.4mn/- from 2.2bn/- respectively.

Investment in government securities increased to 34.1bn/- from 28.6bn/- while balance with BoT slowed to 12.7bn/- from 15.8bn/-. During the period equity investment remained flat at 2.04bn/-.

According to the DSE market report, the bank share closed at 190/- on Tuesday this week,  similar to the closing price of December last year, with market capitalization of 18.55bn/-. In December 2020, the bank’s share price was 265/-.

In Commemorating 20 years of its operations, the bank reported last week that has disbursed a total of 1trn/- loans during the past two decades of its existence.

According to chairperson of the bank’s board of directors, Ms Zawadia Nanyaro the money went to 400,000 customers including business people, small and medium enterprises and many other clients.

The DCB CEO, Godfrey Ndalahwa said for two decades, the bank has witnessed growth registering 200,000 customers from the initial 6,530 customers.

He said this has enabled the bank to increase customer deposits year-on-year by Sh125 billion in December last year, with a target of Sh162 billion by the end of this year.

“We have successfully designed and imported a wide range of high-tech products including digital banking services with the aim of moving DCB better services closer to customers while being integrated into the payment system, government (GePG),” he said.

DCB Commercial Bank Plc was registered as a Limited Company on September 6, 2001 but in April 2002, it started business as a regional microfinance institution.

On June 12, 2003 it was issued with a licence to carry out banking business as Dar es Salaam Community Bank Limited and managed to break even in 2005 after only three years of its operation.

In 2008, DCB became the first bank in Tanzania to be listed to Dar es Salaam Stock Exchange (DSE) and in 2012, it changed its name to DCB Commercial Bank Plc, after receiving a licence to carry out banking business country wide as a fully-fledged Commercial Bank.

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