From the new historic net profit, the bank has allocated a whopping TZS 6.2 billion for financing impactful social investments, which board chair Dr Edwin Mhede said was unprecedented locally.
“This milestone financial performance and social impact commitment, underscores the bank’s focus towards driving Tanzania’s socio-economic development agenda, and cements NMB Bank’s market leadership position,” the top lender said in a presser.
Promulgating the full year results on Thursday last week in Dar es Salaam, Chief Executive Officer Ruth Zaipuna, said the extraordinary performance was the outcome of several factors, including a business friendly environment put in place by the Government’s supportive policies.
The veteran banker added that the 2022 financial outturn reflects the strong performance momentum NMB has had in the last four years and the impact of its service excellence and corporate giving agenda on people’s lives and productive activities.
“The bank’s profit after tax increased by 47 per cent to top TZS 429 billion compared to TZS 290 billion in 2021 leading to the new biggest historic profit to have ever been made in Tanzania’s banking sector,” Ms Zaipuna said.
“That is an increase of more than TZS 130 billion year-on-year but 2022 profitability becomes monumentally significant when compared to the net profit of TZS 98 billion which NMB made in 2018,” she added.
The new performance excellence was attained after the lender made a pre-tax profit of TZS 621 billion, up 49 per cent over the TZS 414 billion that was generated in 2021. The impressive results were obtained in the backdrop of total income crossing the TZS 1 trillion mark for the first time in the 25 years of NMB after rising by 23 per cent year-on-year.
NMB made history in 2020 when its post tax profit of TZS 206 billion was the first ever sectoral performance to cross the TZS 200 billion mark. The unmatched feat was bettered by nearly 41 per cent the following year with the bank vowing to better the trend going forward.
Reflective of efforts to spur lending, the bank’s total assets also soared to a record TZS 10.25 trillion, which was an exponential balance sheet growth of 18 per cent.
According to the presser, another outstanding achievement in 2022 was the remarkable improvement in the quality of the bank’s assets, thanks to strict management of the loans portfolio.
NMB also lessened funds allocated for credit impairment by 33 per cent to TZS 76 billion. Bad loans were kept within the five per cent regulatory benchmark following a 0.3 percentage point slide of the NPL ratio to 3.3 per cent.
“Due to the impressive performance, together with the pivotal position of NMB in the national economy and the Tanzanian society, the bank continues to be the sectoral champion of addressing community challenges,” Ms Zaipuna said at the breakfast meeting.
She said the record TZS 6.2 billion for Corporate Social Investments (CSI) was an increase of over 114 per cent compared to the TZS 2.9 billion the bank shared with communities in 2022. The new allocation will be mostly spent on education, to better health services, address environmental issues and support the climate change agenda.
NMB Board Chairman, Dr. Edwin Mhede said this time around the CSI budget has been allocated an additional TZS 2 billion because of the sensitivity NMB accords environmental matters and its consciousness of climate change. The policy of the bank is to spend one per cent of its net income to finance social programmes.
Speaking earlier, Chief Finance Officer Juma Kimori said the financials of the bank have been mouthwatering since 2018 with the balance sheet posting tremendous growth during the period.
He said total assets have now peaked at TZS 10.2 trillion compared to TZS 5.6 trillion recorded in 2018. The deposit base also expanded to TZS 7.5 trillion in 2022 from 4.2 trillion in 2018.
Lending, which mostly benefited the corporate sector, individual borrowers and financed strategic sectors such as farming and general enterprises (SMEs), topped TZS 6 trillion last year compared to the TZS 3.2 loans extended in 2018.
“Our balance sheet remains robust and the shareholders funds, which have now reached TZS 1.6 trillion means a lot in terms of maintaining the superb performance we have had in recent years, boosting lending and sustaining profitability,” Mr Kimori emphasized.
“The bank’s profit after tax increased by 47 per cent to top TZS 429 billion compared to TZS 290 billion in 2021 leading to the new biggest historic profit to have ever been made in Tanzania’s banking sector,” Ms Zaipuna said.
“That is an increase of more than TZS 130 billion year-on-year but 2022 profitability becomes monumentally significant when compared to the net profit of TZS 98 billion which NMB made in 2018,” she added.
The new performance excellence was attained after the lender made a pre-tax profit of TZS 621 billion, up 49 per cent over the TZS 414 billion that was generated in 2021. The impressive results were obtained in the backdrop of total income crossing the TZS 1 trillion mark for the first time in the 25 years of NMB after rising by 23 per cent year-on-year.
NMB made history in 2020 when its post tax profit of TZS 206 billion was the first ever sectoral performance to cross the TZS 200 billion mark. The unmatched feat was bettered by nearly 41 per cent the following year with the bank vowing to better the trend going forward.
Reflective of efforts to spur lending, the bank’s total assets also soared to a record TZS 10.25 trillion, which was an exponential balance sheet growth of 18 per cent.
According to the presser, another outstanding achievement in 2022 was the remarkable improvement in the quality of the bank’s assets, thanks to strict management of the loans portfolio.
NMB also lessened funds allocated for credit impairment by 33 per cent to TZS 76 billion. Bad loans were kept within the five per cent regulatory benchmark following a 0.3 percentage point slide of the NPL ratio to 3.3 per cent.
“Due to the impressive performance, together with the pivotal position of NMB in the national economy and the Tanzanian society, the bank continues to be the sectoral champion of addressing community challenges,” Ms Zaipuna said at the breakfast meeting.
She said the record TZS 6.2 billion for Corporate Social Investments (CSI) was an increase of over 114 per cent compared to the TZS 2.9 billion the bank shared with communities in 2022. The new allocation will be mostly spent on education, to better health services, address environmental issues and support the climate change agenda.
NMB Board Chairman, Dr. Edwin Mhede said this time around the CSI budget has been allocated an additional TZS 2 billion because of the sensitivity NMB accords environmental matters and its consciousness of climate change. The policy of the bank is to spend one per cent of its net income to finance social programmes.
Speaking earlier, Chief Finance Officer Juma Kimori said the financials of the bank have been mouthwatering since 2018 with the balance sheet posting tremendous growth during the period.
He said total assets have now peaked at TZS 10.2 trillion compared to TZS 5.6 trillion recorded in 2018. The deposit base also expanded to TZS 7.5 trillion in 2022 from 4.2 trillion in 2018.
Lending, which mostly benefited the corporate sector, individual borrowers and financed strategic sectors such as farming and general enterprises (SMEs), topped TZS 6 trillion last year compared to the TZS 3.2 loans extended in 2018.
“Our balance sheet remains robust and the shareholders funds, which have now reached TZS 1.6 trillion means a lot in terms of maintaining the superb performance we have had in recent years, boosting lending and sustaining profitability,” Mr Kimori emphasized.
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