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| NMB Bank Plc Chief Executive Officer, Ms Ruth Zaipuna. |
The approved amount translates into a dividend per share of Sh193, which is a 41 percent increase compared to the dividend payout of Sh68.5 billion (Sh137 per share) that was paid last year from the lender’s 2020 net profit.
This marks the third consecutive annual increase in the company’s dividend. The dividend will be paid on or about 15th June 2022.
While the money to be shared among the bank’s shareholders is the highest to have ever been paid out by a financial entity in Tanzania, the NMB Bank Plc Chief Executive Officer (CEO), Ms Ruth Zaipuna paints an even more optimistic picture of the lender’s performance this year.
Ruth and her management team believe that 2022 will be an even better year for the lender, which is touted for its leadership position in the profitability of financial institutions in Tanzania.
The belief is backed by a strong performance that has been recorded during the first quarter of 2022 when NMB Bank Plc’s net profit reached Sh101 billion, 55% percent more than what the lender registered during a similar period last year.
“Our solid results highlight sustainable performance momentum and good progress along our strategic journey. We are well positioned to continue delivering superior results for our shareholders and deepen our impact to our key stakeholders.” Ms Zaipuna said at the weekend.
“The 41 percent increase in dividend payout reflects the excellent 2021 annual results, NMB’S strong performance and its capital and liquidity position”, Ms. Zaipuna told shareholders at the weekend. In a year which was shaped by uncertainty in the overall global operating environment due to the COVID-19 pandemic, the bank recorded a 41 percent rise in profit after tax to Sh290 billion in 2021, setting another milestone in the Tanzanian banking industry.
The bank recorded a 21 percent shareholder return in 2021, up from 18 percent at the end of December 2020. During the reporting year, the bank managed to surpass its targets across all the performance parameters, with customer deposits rising to Sh6.6 trillion, while gross loans and advances closed at Sh4.8 trillion, further affirming disciplined execution of the bank’s strategy.
The bank also recorded an industry-best 46 percent cost-to-income ratio at the end of December 2021 compared to 51 percent in 2020 and a 4 percent NPL ratio, both being within regulatory limits, further demonstrating the bank’s continued close control over costs and risk.
The bank has a healthy balance sheet, maintains solid capital levels which are well- above regulatory benchmarks, and is internationally recognized for being a stable and sound bank.
Dr. Edwin Mhede, Chairman of the Board of NMB Bank Plc, stated “We have continued to demonstrate agility and resilience by adapting to uncertainties in the wake of on-going global recovery. We will continue to consolidate the giant gains made, continue to focus on upscaling staff with relevant skills to help them work efficiently. I want to assure all the NMB Bank Plc shareholders of the Board’s commitment to sound financial decisions and maximizing returns to our shareholders years ahead.”
Ruth Zaipuna added … “Our strong performance in 2021 gives us further confidence in the strategic direction we have embarked on, having refreshed our medium-term plan in 2020. I am profoundly proud and humbled by what we have achieved in 2021 in creating value for our stakeholders. I would like to thank all our employees for their continued commitment in serving our stakeholders and driving our ambitions”.
Ruth also thanked the Board for their invaluable guidance, counsel and leadership, the Bank of Tanzania for accommodative monetary policies and support to the banking sector in Tanzania, shareholders, investors, and communities for their continued confidence in the bank.
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