TANZANIA: BANK M MAINTAINS ROBUST GROWTH

BANK-M Deputy Managing Director, Ms Jacqueline Woiso speaks to journalists on the bank's second quarter financial performance in Dar es Salam. The bank maintained robust growth. Looking on is Financial Controller, Ms Veronica Kanyama.

Bank M Tanzania has maintained growth of earnings during the quarter ended June 2014, recording 5.05bn/- pre-tax profit, which is nine per cent higher compared to 4.63bn/- of the corresponding period last year.

The pre-tax profit for the annual cumulative for the period under review was 9.19bn/-, higher than 8.90bn/- of the previous year.

Bank M Tanzania Deputy Managing Director, Ms Jacqueline Woiso, said at a news conference in Dar re Salaam that, "our performance has been underpinned by our strength in transaction processing, funds transfer and forex dealings in addition to the core lending activities."

She said non-interest income grew by 10 per cent both on a quarter-on-quarter basis cumulative half year basis. The bank, which is one of the top 10 banks of the country, has maintained its all round growth in the current year setting the standards for earnings growth in an overcrowded and competitive industry.

She said the results were achieved through innovativeness in product and service delivery to suit the requirements of customers, while minimizing the risks in doing business.

"Our asset quality is of the highest order with Non Performing Loans (NPLs) in the second quarter accounting for just 1.82 per cent of total advances, which is down from 2.06 per cent in the first quarter this year," she said.

She added that during the quarter, the advances level touched 456bn/- with a diversified portfolio of loans covering various sectors of the economy.

Similarly deposits growth jumped to 11.8 per cent versus 5.2 per cent of quarter one, while assets grew by 10.7 per cent against a growth of 3.8 per cent in the previous quarter.

She said "our trade finance services are of world class standards and the fee income from these services contributes significantly to the bottom line" Fees and commissions earned in the period was 3.95bn/-, which is 10 per cent higher compared to the 3.59bn/- of the previous quarter.

On a cumulative basis for the half-year ended June 2014, fee income stood at 7.47bn/-, up by 16 per cent compared to 6.43bn/-earned in the same period last year.

Owing to the prompt credit delivery mechanism, the bank's services have been widely appreciated by both customers as well as those who are not regular customers, but have availed of these facilities.

During the quarter, total shareholders' funds increased to 68.11bn/- from 64.63bn/-due to plough back of profits.

One of the notable strengths of the bank, she said, is the responsiveness to the needs of customers and a deep understanding of the customers' business, which has helped the Bank in servicing all the financial requirements of its customers.

She said that since its inception, the bank has pioneered and specialised in creating delivery channels backed by the latest technology.

"We are the only bank in the African market offering Service Standard Guarantees for all major products and services. Care for the client is the Bank's only corporate philosophy," she said.