NMB Bank Plc. (“NMB”) has recorded a 76% increase in profits for the period ended 30th September 2020.
Over the last five years, the country has experienced a period of sustained economic growth underpinned by accommodative monetary and fiscal policies. It is on the back of this favorable business operating landscape, coupled with successful implementation of the Bank’s strategic initiatives that has let to NMB’s enhanced profitability growth in the Quarter Ending September 2020.
During this Quarter, the Bank’s Profit before Tax surged by 76% from TZS 118 billion in Q3 2019 to TZS 208 Billion in the same period, while Profit after Tax increased from TZS 82 Billion in Q3 2019 to TZS 145 Billion, a 77% increase Year on Year.
Additionally, during this period the Bank’s strategy to grow its strategic income streams was further re-affirmed with a growth of operating income of 14% from TZS 527 Billion in Q3 2019 to TZS 600 Billion in Q3 2020. The Bank’s efficiency program and disciplined cost management efforts are also trending well, leading to an improved Cost to Income ratio of 52%.
Further, confirming the Bank’s growing reputation as an economic development financier, NMB Bank’s total assets grew by 15% to TZS 7.0 Trillion in Q3 2020 up from TZS 6.1 Trillion in Q3 2019 and this was supported by growth of both Customer Loans & Customer Deposits by 16% and 15% respectively.
The Bank also achieved a notable improvement in the quality of the loan book leading to a reduction in loan impairment charges by 22% YoY.
According to the financials, NMB strengthened its capital base within both internal and regulatory limits, which is central to sustained business growth in the many years to come. The Bank’s core capital as a proportion of its Total risk weighted assets continue to be above the Bank of Tanzania statutory minimum of 12.5 percent.
Speaking when she released the Bank’s 3rd Quarter results, NMB Bank Plc Chief Executive Officer, Ruth Zaipuna, acknowledged that the current growth comes hot on the heels of a rapid economic growth in Tanzania as witnessed by the declaration of the Country’s middle-income status in July 2020. Sustained GDP growth rate over the recent past has also boosted the performance of the banking sector in Tanzania, with NMB Bank being one of the beneficiaries.
Ms. Zaipuna said: “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 on the Bank. We continue to thank our esteemed clients, shareholders and our employees for these excellent set of results.”
On the same tone, last week, The Bank was recognized the Safest Bank in Tanzania for the year 2020 by Global Finance. The accolade comes a few months after Euromoney, a leading global financial markets magazine based in London, named NMB the Best Bank in Tanzania for the eighth consecutive year.