Dar es Salaam - Exim Bank Tanzania is acquiring some assets and liabilities of First National Bank (FNB) Tanzania Limited in a move that could boost the lenders’ financial performance.
Exim Bank Tanzania signed the offer to acquire certain assets and liabilities of FNB Tanzania on October 26, 2021, paving the way for regulators to start scrutinising the deal, the Fair Competition Commission (FCC) announced in a statement that was posted on its website on January 10, 2022.
“On 26th October, 2021, the acquiring firm signed the offer for acquisition of assets and liabilities whereby the acquiring firm expressed its intention to acquire certain assets and liabilities of the target firm,” the statement reads in part.
Though the value of assets and liabilities to be acquired in the deal could not be immediately made public, records show that FNB’s assets stood at Sh163.7 billion at the end of September last year. Its total liabilities stood at Sh115.459 billion during the same period.
Banks mostly use customer deposits in their lending obligations. Until September 30, 2021, FNB held a total of Sh87.7 billion in customer deposits. It had, however, availed a total of Sh71.7 billion in loans, advances and overdrafts until the same period. This means that its loan-to-deposit ratio (LDR) stood at close to 80 percent.
FNB’s total cumulative loss grew to Sh12.9 billion during the period to September 2021, up from Sh10.8 billion during a similar period the preceding year.
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