During a virtual annual meeting following the outbreak of the coronavirus, the 18th annual general meeting held in Dar es Salaam over the weekend, showered praises on Managing Director, Godfrey Ndalahwa’s management for managing to pay the dividend which has been elusive for the past four years.
Outgoing DCB Board Chairman Professor Lucian Msambichaka said the dividend was a result of 2.038billion/- net profit made during the year ending December 31, 2019.
Prof Msambichaka stated that the board had decided to pay the dividend despite the prevailing commercial situation in the country which was largely affected by the Covid-19 outbreak, to award its shareholders whose support has been exemplary.
“Another important factor that contributed to the paying of this symbolic dividend is to use the profits to strengthen the bank’s capitalization so that it continues to make more profits sustainably,” he said.
"The success of the DCB is largely attributed to shareholders because until 2018 when our bank made a profit of 995m/-, our shareholders were determined to use the amount to consolidate capital rather than earn dividend," Prof Msambichaka added. Addressing the shareholders, DCB’s Managing Director, Godfrey Ndalahwa said the bank has continued to improve its capital while confidently fulfilling all resolutions made during last year's AGM.
Ndalahwa noted that one of the resolutions of last year’s AGM was that the bank expands its capital base widen its network of agents in the country but also cut down on non-performing loans. "We implemented that and now we have agents across the country and five small service centers and eight branches while doing well in cutting down non-performing loans,” he said.
He said from the various initiatives taken by management, DCB’s NPLs have been reduced from 19 per cent in 2018 to 14 per cent last year while the imbalance from payable loans to NPLs also reduced from 2.6 percent to 0.3 percent over the same period.
Commenting on the financial performance, DCB's acting Director of Finance, Ester Bgoya said one of the factors that also contributed to the bank's success was reduction in last year's operating costs from 17bn/- to 15.8bn/- due to controlling of unnecessary expenditure by investing in technology.
"Although we have had credit increase in 2019, interest rates earnings declined from 15.7bn/- to 12.5bn/- as bank targets to reduce rates to provide more cheaper loans," said Bgoya.