NATIONAL BANK OF COMMERCE ANNOUNCES HALF YEAR 2014 RESULTS

Profit Before Tax (PBT) has grown by 122% from Tzs 5 billion in half one 2013 to Tzs 13 billion in half one 2014; driven by an increase in asset income (which has grown by 8% from half one 2013) as well as low impairments on loans and advances which is 152% below half one 2013.

Customer deposits have grown by 5% from Tzs 1,312 trillion in Q1 to Tzs 1,380 trillion in Q2.

The National Bank of Commerce on Thursday last week announced its financial results for the second quarter of 2014 whereby it’s total assets increased from Tshs. 1.6 Trillion in March 2014 to Tshs. 1.7 Trillion in the second quarter that ended in June 2014 which is an increase of 5%.

The increase is mainly driven by the growth in our customer liabilities, which increased 8% year-on-year from Tshs. 1,5 Trillion in the first half of 2013 to Tshs. 1,7- trillion as at 30^th June 2014.

To compliment the performance of the last six months, NBC has introduced exciting and innovative products into the market. “In our quest to make banking easier for our customers in our journey to become the leading bank in Tanzania, we have introduced new products to support  our ambition of helping customers achieve their ambitions – in the right way,” said Mzinga Melu, NBC’s Managing Director.

Customer deposits increased by 4.3% year-on-year from Tshs 1,329 billion in the first half of 2013 to Tshs 1,387 billion as at 30 June 2014. The Loans to Deposits Ratio – LDR stood at 44.6% as at 30 June 2014 which is well within the regulatory limits.

Net interest income increased 15% year-on-year from Tshs 51,524 million to Tshs 55,504million as at 30 June 2014. In the past year non interest income rose 7.5% from Tshs 24,535 million to Tshs 26,381 million as at 30 June 2014.

On a year-on-year basis, Profit Before Tax (PBT) increased 122% from Tshs 5,883 million to Tshs 13,081 million on the back of favourable variances on income from investment of the recapitalised funds as well as reduction in impairments due to an improvement in the asset book.

In her statement to the press on Monday, Mizinga Melu said that recently, NBC has automated its Real Time Gross Settlement by using the Internet banking platform. This enables NBC’s corporate clients to conveniently initiate online transfers from their locations 24/7, for both local (TISS) and cross border (SWIFT) payments. This new service is fast, secure, and convenient online banking.

Mizinga added that following NBC’s acquisition of an Insurance Brokerage License in early 2014, this added general insurance cover products such as Vehicle, Fire, Property and Theft to the bank’s product mix. In April 2014, NBC introduced Free Credit Life Insurance (Free Loan Insurance) to consumer borrowers. The key benefit of this insurance cover is that in case of death or permanent disability, the outstanding loan balance will be settled by insurance.

In March 2014, NBC introduced NBC Direct, which is a service offering that is compiled of a collection of various products packaged together and offered as a bundle at a favourable fee. The product is offered in three different packages, Gold, Silver and Bronze with the lowest package being charged a monthly fee of less than TZS 5,000 per month.

NBC Direct is a one-stop shop solution for salaried employees, who do not have to pay multiple fees and sign multiple documents for multiple products, with NBC Direct you sign one document and pay one fee for all products included in the selected package.

“The product which is offered in three different packages includes Zero minimum opening balance on all accounts with the lowest package including a free initial debit card as well as free funeral insurance cover. Other packages include Free ATM Transactions on all NBC ATMs, Free Internet Banking and Mobile Banking, Free Standing Order to NBC Accounts, Free Balance Inquiry & Mini-Statements as well as Accident Insurance Cover,” she added.

Among other banking services, NBC customers can also send money to their loved ones who do not have banking account through the bank’s Cash Popote product. Recipients are able to withdraw funds from their nearest NBC ATM.

In July, NBC upgraded its Internet Banking platform, which now enables customers to access their accounts and transact anywhere and anytime, through the NBC Online Banking service offering.