This
exceptional performance reflects a 21% year-on-year (YoY) growth compared to
the same period in 2023.
l Profit Before Tax: TZS 687 Billion, up 21% YoY
l Profit After Tax: TZS
476 Billion, up 19% YoY
l Total Assets: TZS
13.4 Trillion, up 16% YoY
l Customer Deposits: TZS 9.2 Trillion, up 12% YoY
l Loans and Advances: TZS 8.4 Trillion, up 19 YoY
l Cost to Income Ratio (CIR): 37%
For Immediate
Release
Dar
es Salaam, October 30, 2024: Tanzania’s
leading financial solutions provider, NMB Bank Plc, has announced strong
results for the period ended September 30, 2024, posting a remarkable 21%
year-on-year (YoY) increase in profit before tax to TZS 687 billion compared to
TZS 569 billion recorded the same period last year.
Showcasing
substantial progress in the execution of the Bank’s core strategy, this historic
performance marks yet another important milestone in the history of NMB Bank
Plc and the Tanzania banking sector. During the reporting period, the Bank
recorded a Profit After Tax of TZS 476 billion (up 19% YoY) from TZS 398
billion in the corresponding period of 2023.
The
bank’s strong performance was primarily driven by solid business momentum,
enhanced efficiency gains, and significant improvements in loan portfolio quality.
With
a cost-to-income ratio (CIR) of 37%, compared to 38% in the same period in
2023, the bank's efficiency ratio further improved and remained well within the
regulatory benchmark of 55%. Moving forward, NMB Bank will continue enhancing
efficiency while maintaining a strong focus on strategic investments aimed at
achieving continuous service and operational excellence.
Credit
quality continued to improve, driven by a strong emphasis on quality credit
origination and prudent risk management of the credit portfolio. As a result,
the Bank’s non-performing loan (NPL) ratio remained comfortably below the 5%
regulatory benchmark, closing Q3 at 3%, a significant improvement from 3.8% in
the same period last year.
The
Bank maintained strong revenue performance during the period, with cumulative
net interest income (NII) rising to TZS 779 Billion, up from TZS 692 Billion at
the end of September 2023. Cumulative non-funded income (NFI) reached TZS 430 Billion
in Q3 2024, compared to TZS 334 Billion in the same period last year.
The
strong growth in NII and NFI was driven by robust balance sheet expansion and a
significant increase in client activities, reflecting the positive impact of
the Bank’s accelerated investments in new technologies and innovative capabilities.
With
our balance sheet remaining a source of strength, total assets soared to TZS
13.4 trillion at the end of Q3, representing a 16% year-on-year (YoY) increase.
This growth was primarily driven by the Bank’s expanding deposit base, which
rose by 12% to TZS 9.2 trillion, and the loan book that increased by 19% to TZS
8.4 trillion."
Commenting
on the results, NMB Bank CEO – Ms. Ruth Zaipuna noted that, ‘‘the bank’s strong
performance is a further testament to the resilience of the bank’s business model,
disciplined execution of bank’s strategy, and the strength of stakeholders
trust unto the bank’’.
“We
maintain an optimistic outlook as we move towards the end of the year,
supported by a favourable policy and business environment. We will continue to
invest in technology and innovative solutions, as well as in our communities
and our people. We remain ever so committed to unlock further opportunities for
sustainable value creation for all our stakeholders.”
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