UCHUMI COMMERCIAL BANK SEEKS TO EXPAND SERVICES IN KILIMANJARO

Moshi — UCHUMI Commercial Bank (UCB) Ltd in Kilimanjaro Region has registered a 14.3 per cent profit rise as it targets to raise its capital from 2.5bn/- to 7bn/- by 2017.

Speaking at the bank's annual general meeting during the weekend, Chairman of Board of Directors, Mr Wilson Ndesanjo said that the level of capital will ensure availability of sufficient liquidity for effective lending, cater for expansion of services, meet regulatory requirements and finance well equipped delivery system.

Mr Ndesanjo said they realised 599.2m/- before tax as compared to 524.2 m/- in 2012 and that the board has recommended a dividend of 10 per cent to shareholders.

He said that profit after tax declined slightly from 379.5m/- achieved in 2012 to 369.3m/- during the year under review. This financial year is the first in the bank's five year's business strategic plan for the period 2013 - 2017.

"Our key strategic goal is to consolidate the presence of UCB as a vibrant commercial bank in Northern Tanzania by enhancing the depth of outreach and providing products and services that respond to the target market and provide friendly state of the art commercial banking services to all its multicultural customers," said Mr Ndesanjo.

He added that they have put in place some strategies, including to enhance the market share through a loyal clientele, recognise and curb risks associated with banking business, build a good management platform that will assure safety of resources of the bank and its clientele and ensure compliance with regulatory and policy requirements.

The chairman said that they are geared towards providing services through the use of integrated delivery channels coupled with high level of operational excellence and that the first year of implementing the business plan saw commendable progress in achieving the set goals.

"The bank widened and strengthened its customer base, capital and asset base. The bank's net assets recorded a growth of 21.3 per cent compared with previous year 2012.

The bank's net assets as at 31st December, 2013 were 17bn/- up from 14bn/- recorded 2012. Return on shareholder's funds was 16.25 per cent which was above the target set in the plan of at least 14 per cent," he said.

He mentioned the main drivers of growth to be telecommunications, transport, financial intermediation, manufacturing, construction and trade.

He noted that he was confident that the future is bright and they will work to turn around their bank to become a leader.

UCB Ltd commenced operations in 2005, seeking to become a leading provider of convenient, competitive and sustainable banking services to individuals, families, small and medium-sized enterprises in Northern Tanzania.