AS banks continue to publish their quarterly financial performances for the first quarter of this year, in accordance with regulatory requirements, wish indication showing continued growth of profitability, due to positive increase of both funded and non-funded incomes.

According to published financial statements for three banks including Azania Bank, Habib Bank and Access Microfinance Bank, the funded incomes, which hold the largest share of incomes, recorded strong growth, while non-funded incomes are also growing considerably, driven by fees and commissions, other income as well as forex dealing and transactions gains.

Other banks are also expected to publish their quarterly financial statements during the remaining days of this week and early next week, before the end of this month.

The Azania bank’s unaudited quarterly financial statements paint that net profit amounted to 7.3b/- during the first three months of this year, compared to 6.9bn/- attained during the first quarter of last year.

The increase of the profit resulted from expansion of both funded income, which went up to 22.8bn/- compared to 18.3bn/- as well as nearly doubled non-funded income to 10.1bn/- during Q1, 2024, compared to 5.3bn/- during Q1, 2023.

The strong growth of non-funded income resulted from more than doubled foreign exchange profit, which amounted to 3bn/- during the first three months of this year, compared to 1.6bn/- during similar quarter of last year, as well as fees and commission which amounted to 5bn/- compared to 3bn/- respectively.

Azania, which is categorized as the largest bank with total assets of 2.2trn/-, also saw its other operating income growing by more than three times to 2bn/- in the first quarter of this year, from 554m/- in the first quarter of last year.

The bank also managed to maintain its lending level at 1.68bn/- at the end of the first quarter, while customer deposits amounted to 1.59trn/-. 

It retained earnings amounted to 95bn/- in Q1, 2024, which enabled it to maintain its shareholders’ fund at 185.7bn/- despite slowed profit and loss account to 7.3bn/- from 29.2bn/- in the fourth quarter of last year.

Habib bank’s statements show that net profit increased by nearly 70 percent to 1.68bn/- during the first quarter of last year, compared to 977m/- recorded during similar period of last year.

According to the statements of the small bank, with a total asset of 361bn/- with four branches, the growth of profitability resulted from strong increase of both funded income and non-funded income.

Net interest income increased by nearly 50 percent to 3.8bn/- at the end of March, 2024, compared to 2.6bn/- at the end of March 2023, as lending amounted to 209bn/- during the first quarter of this year.

The statements show the bank has also managed to maintain the low level of Non-Performing Loans (NPLs) of 2.06 percent, far below the Bank of Tanzania’s (BoT) regulatory benchmark of 5 percent.

The non-funded incomes grew by at least 30 percent to 1.37bn/- compared to 1.07bn/- respectively,  driven by sharp increase of foreign exchange dealing and transaction gains to 477m/- from 191m/- amid decline of fees and commission to 366m/- from 381m/- respectively.

The bank’s basic earnings per share more than doubled to 650/- at the end of March this year, compared to 274/- recorded during the end of March 2023.

Access Microfinance Bank also managed to maintain positive financial performances, after recording a net profit of 314m/- during the first quarter of this year,  slightly lower than 404m/- recorded during the first quarter of last, pushing down an earnings per share to 31/- from 40/-.

The statements show funded incomes increased to a net interest asset of 5.5bn/- compared to 4.6bn/- respectively, with lending to various sectors of the economy amounted to 59.2bn/- compared to 55.2bn/- recorded during the fourth quarter of last year.

The non-interest income amounted to 1.1bn/- compared to 1.2bn/- due to forex dealing and transactions losses of 46m/- compared to the gain of 25m/- as well as decline of other operating income, which amounted to 850m/- compared to 891m/- respectively.