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Wednesday, 5 October 2016

TWIGA BANCORP POSTS 869M/- PROFIT IN FIRST HALF OF 2016

Twiga Bancorp has posted a net profit of 869m/- in the first half of this year, thanks to turnaround strategies that have helped the bank to snap a five year loss trend.

The bank Chief Executive Officer, Mr Cosmas Kimario said the first half of the year profit was the first in five years time since 2010 and had revived hopes of promising prospects for the bank.

“We have changed our strategies and our projections for the next five years are promising,” Mr Kimario told Daily News on Monday after the launch of a Kariakoo branch of the bank in Dar es Salaam.

“This year we are targeting to make a profit of 3.0bn/- and prospects are pointing toward meeting the goal,” he said. The bank, with around 150 workforce, assets are hovering at 110bn/- and customers deposits are also around the same level as assets.

The CEO said projections on the remaining half of this year look promising and meeting the target is the main focus. The CEO said Kariakoo branch, which began operation last week, targeted to generate 25 per cent of the bank’s total revenue.

“This branch envisioned to contribute significantly on this year profitability,” Mr Kimario said. The bank has six branches in Dar, Mwanza, Arusha and Dodoma. The branch, at bustling business area of Kariakoo, started with a bang after customers deposited some 8.0bn/- in the first two days of opening.

The bank is planning to open a seventh branch in Mbagala, in Dar es Salaam during first quarter of 2017. “Both these branches will serve mainly SMEs,” Mr Kimario said, “Mbagala has turned out to be a centre for small business excellence”.

The bank strategies centered on reaching out small and medium enterprises, group customers— Saccos, Vicoba and the like, workers, and government institutions. Twiga main challenge is working capital and talks are underway centered on how to recapitalise the bank using various available methods.

Recently, Treasury Registrar commissioned a study on the capitalisation of the bank to expand and serving more customers throughout the country. Twiga went into operations in 1998 as a non-bank financial institution under the Banking and Financial Institutions Act, 1991.

Daily News

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