NMB BANK PLC HITS HISTORIC MILESTONE IN PROFITABILITY

Record profit driven by the increase in the loan book, customer accounts and activities, deposits, solid portfolio quality and significant efficiency gains.

• Profit before tax: TZS 775 Bln, up 26% YoY
• Profit after tax: TZS 542 Bln, up 26% YoY, sets aside TZS 5.4 Bln for social impact support for 2024.
• Total Income: TZS 1.4 trillion, up 18% YoY
• Total Assets: TZS 12.2 trillion, up 19% YoY
• Cost to Income Ratio (CIR): 39%
• NMB Stock performance: Up 49% YoY

Dar es Salaam, January 30, 2024: NMB Bank Plc has achieved another record performance in 2023, highlighting commendable progress along the bank’s core strategy.

The results show a 18% growth in Total Income YoY to TZS 1.4Tn, driven by 24% growth in interest income and 15% increase in Non-Funded Income. The increase in Interest Income was on the back of significant growth in the bank’s loan book, whilst a sustainable increase in client relations and activities translated to double-digit growth of the Non-Funded Income line.

The bank also continued to demonstrate strong efficiency gains and improved portfolio quality. The cost-to-income ratio improved to an impressive 39%, while the non-performing loan ratio was maintained at a steady 3.2%. These figures are well below the regulatory thresholds of 55% and 5%, respectively.

As a result, Profit Before Tax grew by 26% to TZS 775bn, with Profit after tax increasing by 26% to TZS 542bn from TZS 432bn in 2022. NMB’s profitability levels mark a historic new high for the bank and the Tanzania financial services sector at large.

Our balance sheet continues to be a source of strength, with total assets standing at TZS 12.2Tn as of end of 2023, representing an increase of 19% YoY. This growth was mainly on account of the Bank’s growing deposit base and loan book (growing 11% and 28% respectively).

The fundamental strength of our balance sheet, underpinned by a strong liquidity profile and efficient capital management, enabled us to sustain solid Capital levels. As of December 2023, the Bank’s total Capital Adequacy Ratio stood at 20.17%, above the minimum regulatory requirements. Our healthy capital levels provide significant headroom for future investments and sustainable growth aspirations.

Speaking on the results, Ms. Ruth Zaipuna, CEO NMB Bank, said:

‘‘We are proud of our resounding performance and progress made in several strategic areas, including driving financial inclusion, advancing customer experience, and accelerating strategic investments in our people, governance, and technologyto drive enhanced value creation.’’

Execution of our strategy has led to record outcomes and key milestones:

1. We were able to open over 1,200,000 customer accounts in 2023, bringing our total customer accounts base to over 7.1 Mn customer accounts.
2. We accelerated significant investments in our people and sustained the Employer of Choice status. The Association of Tanzania Employers (ATE) has named NMB Bank (The Best Employer, 2022) and 1st Runner Up in 2023.
3. We also remained the market leader in digital investments and innovation, with our continued investments in this front receiving global recognition. The Euromoney, Global Business Magazine, and International Bankers Awards have all named us ‘the Best Bank for Digital Solutions andInnovation’.
4. Our commitment to our society and the environment remained evident. In 2023, we invested over TZS 6 bn in education, health, and climate related initiatives. We also continued to play a leading role in the sustainability agenda by issuing a sustainability bond that raised over TZS 400 billion. In recognition, we have been named the Best Bank for CSR (Euromoney) and ‘The Best Commitment to ESG Principles’ in 2023 (the International Banker),
5. The quality of our governance principles also continues to improve markedly and remains a distinguishing factor for us. In 2023, the Global Business and Finance Magazine named NMB ‘The Safest Bank in Tanzania’ while the Tanzania Revenue Authority named us ‘the Largest and Most Compliant Taxpayer in Tanzania’.
6. These achievements undoubtedly highlight NMB’s market leadership status. The Euromoney has once again (10 times in 11 years) named us the Best Bank in Tanzania, further underscoring NMB’s market leadership position.

Our progress and strong performance have positively impacted NMB’s share price and market capitalization, leading to top positions in Regional and Sub-Saharan Africa rankings, hence, paving a promising future for the bank and its valued shareholders. Since January of 2023, NMB's share price increased by 49% from TZS 3,020 to reach over TZS 4,500 at the end of December 2023 (with an all-time-high price of TZS of TZS 4,880). This surge in share price has raised NMB's market capitalization to TZS 2.25 trillion as of December 2023 from TZS 1.5 trillion in December 2022, positioning NMB as:

• The Largest listed Bank in Tanzania and the entire East Africa (by market capitalization)
• The fourth largest listed company in East Africa, behind Safaricom, TBL, and MTN-Uganda,
• 26th Largest listed company in Sub-Saharan Africa (Excluding South Africa), being the first time for NMB to appear in the list, and the only Tanzanian bank to ever make it to the top 30 listed companies in SSA (Excluding SA).

‘‘The year’s achievements underscore NMB’s continuing role as an engine for economic prosperity, acting as an enabler to unlock new opportunities for clients and stakeholders across Tanzania. We are indeed humbled and honored by our clients, and shareholders’ trust, and the dedication of our employees, who have propelled us to achieve these historic milestones.’’ Ms. Ruth added.

These full year 2023 results and strategic milestones are also dedicated to our partners, and the Tanzanian community for their unwavering support and confidence in the bank. We thank the Government of Tanzania, and the Central Bank for creating an enabling environment that fosters innovation and spurs growth.