NMB POSTS REMARKABLE TZS 569BN PROFIT - 30 SEPT. 2023

NMB Bank Chief Executive Officer, Ruth Zaipuna.

• Profit After Tax of TZS 398 billion, 22% increase YoY

• Total Assets of TZS 11.5 trillion, growth of 22% YoY

Dar es Salaam, October 30, 2023: NMB Bank Plc has announced strong financial results for the period ended 30th September 2023 with a Profit Before Tax (PBT) increasing by 23% year-on-year (YoY) to TZS 569 billion compared to TZS 464 billion recorded in September 2022. The market giant recorded an increase of Profit after tax (PAT) of 22% to TZS 398 billion against TZS 324 billion recorded in September 2022.

This strong performance reflects disciplined execution of the bank’s strategy that has continued to demonstrate robust business growth, sustained cost efficiency, and maintained good quality of the loan portfolio. The solid business momentum is supported by a stable and accommodative operating environment.

The bank sustained strong revenue performance during the period, with net interest income increasing by 20% to TZS 692 billion, driven primarily by benefits from increased lending activities in both Retail and Wholesale segments. Non-funded income increased to TZS 334 billion compared to TZS 297 billion in 2022 (12% YoY), driven by increased customer activities on alternative channels, reflecting positive outcome of the bank's accelerated investments in innovative digital financial solutions.

The bank’s balance sheet sustained its steady growth momentum to cross the TZS 11.57 trillion mark as of end of Q3 2023. This growth is attributed to the strong growth in Loans and Advances and investment in Government Securities. The net loans and advances grew 25% YoY and closed the quarter at TZS 7 trillion and Customer deposits increased by 15% to TZS 8.2 trillion mark.

NMB Bank continues to demonstrate efficiency with cost to income ratio (CIR) reaching 38% as of September 2023 from 41% in September 2022, well within the regulatory threshold of 55%. This is attributed to the disciplined cost optimization initiatives whilst accelerating income growth momentum. On the other side, the lender demonstrated improved loans portfolio quality with non-performing loans consistently maintained at 3.5% and within the 5% regulatory benchmark.

Commenting on the outstanding performance, the Chief Executive Officer, Ruth Zaipuna said: "We are delighted that we have been able to consistently deliver strong financial results. The solid financial results reflect a continued trust from our stakeholders and reaffirm our mission of being a catalyst for spurring the overall socio-economic development in the country”.

“We are very grateful to our valued customers, the government, shareholders, our key stakeholders, and our employees for their continued support. As we progress towards the end of the year, we are confident that with their support, we will have another strong year. We remain optimistic about the future and remain committed to further supporting the communities we serve.”

"NMB Bank remains solid, sound, and well-capitalized. Looking ahead, we will continue to drive revenue growth, ensure cost efficiency, and optimize our balance sheet for better returns to our shareholders, and continue to positively impact our community”.

"With the quality investments we continue to make in our people, technology infrastructure, governance foundations, and relationship with our stakeholders, we are optimistic of sustainable growth."

The bank also closed Q3 2023 as the Largest Listed financial institution in the East African region after attaining a market capitalization of TZS 2.3 trillion. During Q3 2023, NMB demonstrated significant growth within the Dar es Salaam Stock Exchange (DSE). The bank’s value grew by 32.2% making NMB’s stock, the Top Gainer of the Quarter.

About NMB Bank

NMB Bank Plc. (“NMB”) is a fully fledged commercial bank incorporated in the United Republic of Tanzania. Through its three main business divisions: Retail, Wholesale and Treasury, NMB provides a suite of financial services and products to retail customers, farmers, SMEs, Corporates, Institutions, and the Government.

The bank has 230 branches, over 24,000 Agents (Wakala) and more than 700 ATMs across the country and is represented in all districts of Tanzania. NMB has over 6 million customer accounts and employs over 3,600 staff. It is listed at the Dar Es Salaam Stock Exchange and its largest shareholders are the strategic partners ARISE BV with a 34.9% shareholding and the Government of Tanzania with a 31.8% shareholding. NMB is a licensed Investment Adviser and Custodian Bank by the Capital Markets and Securities Authority.

For more information, contact:

Rahma Mwapachu,

NMB Bank Plc, Head; Marketing, Communications and Corporate Affairs
Email: Rahma.mwapachu@nmbbank.co.tz