Dar es Salaam. April 9, 2015. DCB Commercial Bank, plc shareholders are expected to pocket a total of Tsh1.8 billion after the bank's board of directors recommended the amount for the 2014 annual dividends.
The Bank board chairman Paul Rupia said the amount is equivalent to Tsh27 per issued and fully paid shares. The company policy on dividends is to allocate 50 per cent of annual profit.
The 2014 annual dividends are almost double the dividends amount paid by the bank to its share holders five years ago. However, the 2014 amount is less than Tsh1.9 billion dividends paid during the year 2012.
Speaking with the media in Dar es Salaam yesterday, Rupia said during the year ended December 31, 2014, DCB Commercial bank recorded a profit after tax of Tsh3.77 billion, an increase of 2 per cent compared with the year 2013.
“Since its inception 13 years ago, DCB Commercial Bank's performance has been impressive with annual upwards in profit, assets and customer deposits,” Rupia said in a press conference yesterday.
“This year, the bank’s operation results have continued to be good despite having recently opened 3 branches which were loss making.”
According to the Dar es Salaam Stock Exchange (DSE) quarterly report ended December, the DCB share price jumped to Tsh720 in December 2014, higher than Tsh490 recorded in January 2014.
DCB Bank has 67,827,897 issued shares with a market capitalization of Tsh33.2 billion, according to DSE quarterly report for the quarter ended December 2014.
Rupia said this ahead of the bank's annual general meeting scheduled for May 23 this year and the dividends payment will be held in June this year.
The bank’s annual statement shows that deposits grew by 5 per cent to Tsh113 billion in 2014 from Tsh108 billion recorded in 2013 while total assets increased by 34 per cent from Tsh143.9 billion in 2013 to Tsh157.5 billion recorded in 2014.
The loan portfolio also increased by 9 per cent to Tsh82.4 billion in 2014 from Tsh75.5 billion recorded during the year ended December 2013.
Rupia said during 2014, the bank disbursed a total of Tsh363.3 billion to 362,507 customers of which Tsh76.56 billion was disbursed to 165,718 solidarity group lending clients in Dar es Salaam municipals.
He said the bank continues with its plan to open more branches in Dar es Salaam as currently it has eight branches. The ninth branch which will serve corporate customers will be launched in July this year in Dar es Salaam.
For the period under review, the bank managed to recruit 132 agents in Dar es Salaam from 103 recruited in 2013.
“Our plan is to open agencies in every region and district of Tanzania and by the end of this year, the bank expects to have 232 agencies under the trade name of DCB Jirani,” he said.
The bank’s plan for 2015 is to increase profit before tax by 17 per cent to Tsh4.4 billion, 33 per cent growth in customer deposits to Tsh150 billion and lending to reach Tsh112 billion.
The company is also projecting a 20 per cent increase in total assets to Tsh171 billion as well as to introduce Banc Insurance product in 2015.
“We are optimistic that the bank’s performance during the year 2015 will remain good,” said Rupia.
The bank’s managing director Edmund Mkwawa admitted that the slight growth of customer deposits was caused by stiff competition in the banking sector as currently there are 57 licensed commercial banks in Tanzania.
Mkwawa said the rate of the bank’s non-performing (NPL) was at 5 per cent, lower than the industry’s average rate of which he termed as ‘tolerable rate”.
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