NMB BANK PLC CONTINUES STEADY GROWTH MOMENTUM WITH STRONG Q1 2021 RESULTS

NMB Bank Chief Executive Officer, Ms. Ruth Zaipuna.

Tanzania’s Leading Bank, NMB Bank Plc continued its strong performance in Q1 2021. The Bank’s Profit before tax increased 34% YoY to TZS 93 billion, while Profit after tax is up 33% YoY to TZS 65 billion in the Quarter ended 31 March 2021.

The solid performance reflects continued revenue growth momentum, disciplined cost-optimization, and enhanced loan portfolio management.

Total revenue grew 16% YoY to TZS 224 billion from TZS 193 billion recorded in Q1 2020. The revenue growth was driven by increase in net interest income due to increase in both loans and advances and investment in government securities. In addition, the bank recorded 10% YoY growth in Non-funded income mainly due to increased customer activities on the bank’s digital platforms.

The Bank continues to demonstrate enhanced operational efficiency. The execution of cost-optimization initiatives continues to yield positive results, with cost-to-income ratio improving to 48% in Q1 2021 from 52% in Q1 2020, well below the regulatory threshold of 55%. The bank will continue to implement cost-optimization and operational efficiency initiatives in line with overall bank’s strategic ambitions while continuing to serve customers better.

Asset quality has markedly improved, due to continued focus on better quality credit origination, robust portfolio risk management, and recovery efforts. This has resulted into containment of impairment charge with marginal increase of 5% YoY and improved Non-Performing Loans (NPL) ratio to 5% (within the Regulatory threshold) from 6.9% in the previous year.

The Bank’s balance sheet remains strong, reflecting continued focus on deepened penetration. The bank’s loans and advances grew 11% YoY, while delivery of distinctive customer-focused value propositions has led to a 9% YoY growth in customer deposits to TZS 5.3 Trillion in Q1 2021 from TZS 4.8 Trillion in Q1 2020. We continue to place emphasis on maintaining a healthy funding base to support sustainable lending growth as we approach H2 2021.

During the period, we also strengthened our capital position, with Tier I Capital Ratio of 19.6%, up from 17.8% in Q1 2020, and Total Capital Ratio of 20.4% up from 18.5% in Q1 2020, both being well above regulatory requirement.

Commenting on the bank’s solid performance momentum, the CEO of NMB Bank, Ms. Ruth Zaipuna, said “We had a promising start to the year as we continue to deliver consistently to our shareholders and our communities. The bank’s revenue continues to grow due to enhanced customer value propositions and we have a firm grip on cost and risk. The encouraging performance in Q1 2021 reflects the good progress along our strategic initiatives and underlines our strong capabilities and commitment to remaining relevant to our customers.

“Our capital position remains strong and provides sufficient headroom to support our bold growth ambitions. With the firm foundations that we have in place and an improved global economic outlook, we have increased confidence in our growth plans as we carry the good momentum into the second quarter. We remain focused on our key strategic pillars and aim to continue delivering the best-in-class service and experience for our customers and stakeholders, whilst continuing to operate as an agile and efficient bank.”

We thank our esteemed clients, shareholders and employees for these excellent set of results. We are optimistic about the opportunities that lie ahead, and we believe that together, we can scale even greater heights in the coming months ahead.