During the period ended September 2021, the Bank performed steadily with commendable progress on several strategic fronts. Exponential income growth was sustained whilst investments in exciting new growth and digital initiatives was also accelerated. Risk and governance discipline was further strengthened during the period. As a result, the bank delivered a Profit Before Tax of TZS 302 bln and Profit After Tax (PAT) of TZS 211 billion, which is 43% above YoY and above full year 2020 industry record-setting profitability of TZS 206 billion. The bank’s disciplined execution of its strategic initiatives continues to drive market share gains, further cementing the Bank’s leading position in the market.
During the 9 months period to
September 2021, the bank recorded Total Income of TZS 721 bln, up 20% YoY from
TZS 601 bln in the prior-year period, primarily reflecting strong growth in loans
and advances and transaction volumes.
The bank’s cost-optimization
initiatives continue to pay back with the cost-to-income ratio improving to 47%
from 52% in the same period last year, being well within the regulatory
threshold of 55%. The bank continues to
focus on further efficiency improvements whilst optimizing investments in
strategic priorities.
Asset quality continues to be an
area of strategic emphasis, with further improvement of the Non-Performing Loans
(NPL) ratio to 3.8% in Q3 2021 from 6.6% in the same period last year
reflecting commendable progress made on overall credit portfolio quality.
The bank maintains a strong
balance sheet with sustained growth, demonstrating enhanced customer
relationships in core business segments. Gross Loans and Advances increased by 13%
and closed the quarter at TZS 4.5 trillion owing to commendable credit
portfolio growth in key market segments including Agriculture, SME, and Personal
Loans.
Customer deposits also grew by 18%
YoY to TZS 6.1 trillion as of 30 September 2021 compared to TZS 5.3 trillion in
September 2020 due to the bank’s continued focus on providing relevant
solutions to enhance overall customer experience. The bank’s total assets stood at TZS 8.2
trillion as at 30 September 2021, up by 17% YoY from TZS 7.0 trillion in the
same period last year.
Commenting on the bank’s
performance and market position, Ms. Ruth Zaipuna, CEO of NMB Bank, said; “Our
team has delivered another strong quarter with profitability for the 9 months increasing
43% YoY, reflecting continued stability in economic conditions and
accommodative monetary policy measures adopted by the Bank of Tanzania. Our strategy execution remains on track, with
our continued market share gains translating into higher profits. We continue
to maintain a relentless customer focus and have seen strong lending and
deposits growth momentum throughout the period’’.
Ruth added, “Being at the
forefront of the socio-economic development agenda in Tanzania, in during the 9
months period in 2021, we successfully:
·
Executed a number of strategic Corporate Social
Investment initiatives in line with our strategic pillars. In Health, we
reached over 48,000 people in the community through donation of medical equipment’s. Over 10,600 school children benefited from
supply of school desks. We also empowered over 3,500 youth and adults with
requisite financial literacy through our financial Education program.
·
We held the NMB Marathon ‘‘Mwendo wa Upendo
Marathon’’ where we raised TZS 400 million in funds towards supporting Fistula
treatment for women.
·
We also recently launched the first ever sandbox
environment to inspire local startups to develop relevant digital innovations and
build a more digitally inclusive Tanzanian society.
Ms. Ruth Zaipuna further added
“We are pleased and proud that our accomplishments in key areas of financial
performance, innovation, and customer centricity, have earned the Bank seven international
awards all naming NMB as the best bank in Tanzania. These awards provide great impetus for the
bank to continue providing the best-in-class services’’.
“We are very grateful to our
valued customers, shareholders, our key stakeholders, and our employees for
their continued support. As we look
towards the end of the year, we are optimistic about the journey that lays
ahead and remain committed to further supporting the communities we serve.”
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