NMB Bank Plc profits up 76pc in third quarter 2020

27Oct 2020
The Guardian Reporter
The Guardian
NMB Bank Plc profits up 76pc in third quarter 2020

NMB Bank Plc maintained its grip as the market’s most profitable bank posting a whopping 76 percent increase in net profit to 145bn/- during the third quarter of this year, compared to 82bn/- made during the corresponding period last year.

NMB chief executive officer Ruth Zaipuna.

In its third quarter report for the year ending September 2020, the country’s most expansive commercial bank made a gross profit of 208bn/-,  equivalent to 76 percent increase from 118bn/- realised during the same quarter in 2019.

In an interview, NMB chief executive officer Ruth Zaipuna affirmed that the growth pace is in tandem with the rapid economic growth of the country, recently declared as having graduated to a lower middle income status by World Bank standards.

She said that the sustained gross domestic product growth rate in recent years boosted bank sector performance, with NMB among key beneficiaries. “The strong financial performance that NMB Bank has experienced throughout 2020 is an encouraging indicator of the effectiveness of our strategy, the quality of our people and the tremendous market confidence in the bank,” the CEO declared.

During the period, the bank’s strategy to grow its strategic income streams was further re-affirmed with a 14 per cent growth in operating income from 527bn/- in Q3 of 2019 to 600bn/- in Q3 of 2020, she stated.

“The bank’s efficiency program and disciplined cost management efforts are trending well, leading to an improved cost to income ratio of 52 percent,” she elaborated, noting that the results confirm NMB’s growing reputation as an economic development financier with total assets growing by 15 percent to 7trn/- during the quarter, up from 6.1trn/- in Q3 2019.

NMB Bank achieved notable improvement in the quality of the loan book with a 22 per cent reduction in loan impairment charges year on year. NMB strengthened its capital internally and in terms of regulatory limits, “which is central to sustained business growth in the years to come,” the quarterly report indicates.

NMB’s core capital in proportion of its total risk weighted assets continued to be above the Bank of Tanzania statutory minimum of 12.5 percent. With its outstanding performance, the bank won global accolades, the latest being named ‘Safest Bank in Tanzania for the year 2020’ by New York based Global Finance magazine. It was also declared Euromoney award winner by the London based global financial markets magazine, for the eighth consecutive year.

With 225 physical branches, over 7,000 agents and more than 700 ATMs across the country and represented in all administrative districts of the country, the bank has over four million customers and employs slightly over 3,400 directly in its operations.

The Dar es Salaam Stock Exchange listed firm has Rabobank, a Netherlands venture capital financing utility as its largest shareholder with a 34.9 percent stake, while Treasury is second with a 31.8 percent stake, the rest being held by investors at DSE.