DSE uplifts local bank to main investment market

By Christina Mwakangale , The Guardian
Published at 11:50 AM Jun 19 2024

THE Dar es Salaam Stock Exchange (DSE).
Photo: File
THE Dar es Salaam Stock Exchange (DSE).

THE Dar es Salaam Stock Exchange (DSE) has promoted Mkombozi Commercial Bank (trading as MKCB) from Enterprise Growth Market (EGM), an equity market specifically intended for Small and Medium Enterprises (SMEs) and start-ups to the Main Investment Market Segment (MIMS).

The MIMS is a prime market for established companies that have met the standards in terms of quality size and operations. 

Some of the requirement for MIMS include publishing annual accounts for preceding three years, Profit after tax attributable to shareholders in at least two of the last three financial years, issued and paid-up capital of at least 1bn/-, at least one identifiable core business which is controlled by the listing company and not less than 1000 shareholders excluding employees of the Issuer.

According to DSE report, the bank has the current market capitalization of 14.37bn/- with the share price of 610/- as at the end of last year.

Speaking during the event yesterday, the deputy finance minister Hamad Chande has congratulated the bank for having risen from one stage to another within a short time and he urged the bank's executives not to be satisfied with the stage they have reached, instead they should continue to mobilize in order to make it continue to grow.

The bank’s managing director Respige Kimati has said they will start paying dividends in 2025.

"We have recorded a substantial growth in the loan and advances portfolio, from 28.8bn/- (Dec 2013) to 134.3bn/- (Dec 2023), which translates to average annual growth rate of 36.6 percent," he said.

He said the growth underscores the bank’s commitment to supporting private-sector businesses and individuals in achieving their financial goals.

"We have witnessed a significant growth in profits, an increase in customer deposits, an increase in loans given to Tanzanians especially in the private sector, the expansion of our network of branches and a good investment in banking services through the Internet," said Kimati.

“This new step to be part of the Main Investment Market (MIMS) in the Dar es Salaam Stock Market, we have great confidence that more success is coming before us, we need to continue to get your sincere support.”