The merging of TPB Bank and Twiga Bancorp into a strong and efficient financial entity guarantee customers’ better services as well as promoting financial inclusion.
TPB Bank Chief Executive Officer (CEO), Mr Sabasaba Moshingi said in Dar es Salaam yesterday that the government move to merge the two banks is an opportunity to bring closer banking services to the people, particularly rural areas.
“Strong and efficient TPB Bank will reach more people in the country to access banking services necessary for supporting their socio-economic activities for improved living standards,” he said.
Mr Moshingi allayed fears to Twiga Bancorp customers that their deposits will remain secure and also are guaranteed better banking services to support efforts in building robust economic growth. He said current customers will continue to be served in the Twiga Bancorp branches while finalising procedures including putting together the systems of the two banks to allow customers access banking services at TPB Bank.
In the meantime, TPB Bank almost doubled its pretax profit in quarter one this year to 6.82bn/- up from 3.99bn/- of the same quarter last year.
The profit was mainly attributed to the net interest income that jumped by 50 percent to 15.83bn/- from 10.56bn/- after loans and advances went up by 4.4 percent. The bank profitability pushed up earnings per share by 46 percent to 237/- in the first three months of this year from 162/- of the similar period last year.
At the end of March, the bank assets grew by over 27bn/- to clock 427.54bn/-, pushed, mainly by loans and advances that increased by 4.4 percent to 310.27bn/-.
The loans growth was the outcome of customer deposits increased by 8.0 percent to 315bn/- from 292bn/-. The bank maintained the same number of branches but increases its workforce to 710 staff from 660 staff at the end of last March.
TPB started as Tanganyika Postal Office Savings Bank in 1925. Last March, the bank was incorporated under the Companies Act (Cap 212) as TPB Bank PLC since it was established by the Tanzania Postal Bank Act No. 11 of 1991.