BOT REPORT: HOW 4 BANKS RULE TANZANIA'S BANKING SECTOR

IN SUMMARY

NMB accounted for the majority profit by recording Sh132.49 billion net profit in the year under review, CRDB recorded Sh84.4 billion, Exim Bank recorded Sh20 billion and NBC recorded Sh9.84 net profit.

Tanzania is now home to 53 financial institutions yet only four banks dominate the system.

They jointly accounted for over 76 per cent of the sector’s profits last year, according to a new Bank of Tanzania (BoT) report. 

The latest Banking Supervision Report indicates that Tanzania’s banking sector recorded a total of Sh305 billion in net profit during the 2013 calendar year, a 12.67 per cent increase from the Sh270.7 billion that was registered during the preceding year – apparently leaving other 49 financial institutions to share the remaining 23.6 per cent of the net profit.

Out of the total, National Microfinance Bank (NMB), CRDB Bank, National Bank of Commerce (NBC), and Exim Bank recorded a total of Sh246.73 billion as net profits in the year ending December 2013.

While NMB accounted for the majority profit by recording Sh132.49 billion net profit in the year under review, CRDB recorded Sh84.4 billion, Exim Bank recorded Sh20 billion and NBC recorded Sh9.84 net profit.

According to the report the ratio of Non-interest Expense to Total Income improved slightly to 67 per cent compared to 67.87 per cent recorded in the previous year.

Source: The Citizen