Addressing a news conference in Dar es Salaam yesterday, DCB’s Chief Finance Manager, Zacharia Kapama, said new management at the bank is putting behind a wave of loss making years to focus on sustained growth.
“The profit made can be attributed to several initiatives introduced by the bank’s management that included streamlining operations to reduce costs,” Kapama said.
He said digitization of some operations also ensured that costs were reduced while services were expanded to include more customers. “Introduction of digitization model in service delivery also amplified the nature of our services thus attracting many new customers to open deposit accounts,” the DCB Chief Finance Manager added.
He said as a result of the profit, the bank will pay various taxes worth 400m/- to Treasury for the year ending December 2018. Kapama did not however state whether shareholders will be given dividend this time around. DCB is listed on Dar es Salaam Stock Exchange alternative growth market.
During the year under review, the bank issued loans worth 90.6bn/- which was an increase from 88.6bn/- issued in 2017. “A sum of 65bn/- was issued as loans to our customers during the period from which 21bn/- was dedicated to small and medium size enterprises. Increment of cheap deposits and effective balance sheet also played a critical role on the success,” he explained.
An aggressive debt collection exercise meant that non-performing loans decreased from 4.5bn/- in 2017 to 263m/- last year.
DCB’s Chief Manager for Commerce, James Ngoluko further noted that digitization contributed a lot in decreasing operational costs and interest charges. “Introduction of digital accounts such as DCB Kibubu Digital account and DCB FDR Digital account have enabled customers to transact at their convenience using electronic gadgets such as mobile handsets,” Ngoluko said.
“Efficiency in our operations and digitization contributed to a decrease in operational costs to 16.9bn/- last year from 21.2bn/- in 2017. This was also amplified with restructuring of the bank’s staff that included some retrenchments,” Ngoluko added.
During the period, the number of customers increased to 175,204 in 2018 from 144,475 in 2017. The bank was established in 2002 as a community bank by Ilala, Kinondoni and Temeke municipalities in Dar es Salaam with the purpose of providing affordable loans to the city’s residents. It was listed at Dar es Salaam Stock Exchange in 2008 and has grown to eight branches including one in the capital city Dodoma.