According to the financial statement published yesterday, the bank attributed the profit mainly to non-interest income that raked in 490m/- in Q3 against 199.8m/- in same period last year.
The non-interest income was mainly boosted by commissions and fees that contributed 475.77m/- almost 90 per cent total portfolio amount. Also non-interest amount was almost twice of net interest income that generated 261.75m/- down from 310.08m/-.
The bank managed to slightly slash administrative expenses in the quarter to 443.41m/- from 444.05m/- despite doubling of salaries and benefits to almost 339.73m/-. The salaries and other benefits almost doubled but the bank staff number was constant at 46 and number of branches remains three.
The other operating expenses, which are non salaries and benefits, shrank to 103.67m/- from 258.67m/-. The profit pushed up basic earnings per share to 43 cents up from 6 cents of a shilling. Mwanga Community Bank assets grew to 13.83bn/- from 10.39bn/- in three month to September.
Customer deposits reached 9.37bn/- at the end of last month compared to 6.65bn/- at end of June. However, the bank ratio of non-performing loans total gross loan remained high despite descending to 19 per cent from 21 per cent in three months ending September.
The industry benchmark is 5.0 per cent. Nevertheless, on year-to-year the bank posted a slim net profit increase of 192.35m/- up from 183.39m/-. Mwanga bank is a public entity but not listed at Dar es Salaam Stock Exchange (DSE) and established 14 years ago.
DailyNews
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