ABSA BANK TANZANIA UNVEILS MID-YEAR PERFORMANCE RESULTS

Absa Bank Tanzania Managing Director, Obedi Laiser (right), speaks to the press about the bank’s mid-year performance in Dar es Salaam today. On the left is the bank’s Chief Finance Officer, Bernard Tesha.

• Profit before tax grows by 65%, from TZS 32.7 billion in 2023 to TZS 54.0 billion in 2024
• Announces a total revenue of TZS 105 billion, a 25% increase from the previous year's TZS 83.8 billion.

Dar es Salaam, 7 August 2024: Absa Bank Tanzania today unveiled its Financial Performance Highlights for the period between January and June this year. The bank's profit increased by 65% compared to the same period last year.

Absa Bank Tanzania Managing Director, Mr. Obedi Laiser said that the profit jump is attributed to a stable and conducive business environment, a growing economy, increased demand for credit facilities, higher investor interest in financial instruments, lower inflation levels, and reduced liquidity volatility in both the local currency and the US dollar in the financial markets.

“Absa Bank Tanzania adeptly navigated these headwinds, leveraging our strategies to exploit available opportunities and delivering significant value and solutions to all our clients and stakeholders,” said Mr. Laiser.

Laiser added, “These results reflect our unwavering commitment to providing tailored solutions to uniquely local challenges and consistently creating value for our stakeholders through our purpose of Empowering Africa’s tomorrow, together… one story at a time.”

He noted that during the first half of 2024, Absa unveiled its repositioned brand, signalling a shift towards a more customer-centric business model, encapsulated in the new brand promise: ‘Your story matters.’ “We are committed to ensuring that Absa’s entire suite of services and offerings aligns with this crucial pivot towards a more human-centred and empathetic banking service ethos.”

“As we enter the second half of the financial year, we remain confident and dedicated to driving shareholder value. Absa Bank Tanzania will continue to play an integral role in the economic lives of individuals, businesses, and nations. We are committed to creating, growing, and protecting wealth through partnerships in economic development while contributing to Tanzania’s growth and sustainability,” said Mr. Laiser, adding that Absa Bank Tanzania approaches every challenge with tenacity, ingenuity, positivity, and creativity, delivering solutions uniquely tailored to our customers.

Speaking about the Financial Performance Highlights, Absa Bank Tanzania Chief Finance Officer Mr. Bernard Tesha said, “For the six-month period ending June 30, 2024, the bank recorded total revenue of TZS 105 billion, a 25% increase from the previous year's TZS 83.8 billion. Profit before tax surged by 65%, from TZS 32.7 billion in 2023 to TZS 54.0 billion in 2024. Additionally, total assets and customer deposits grew by 22% and 21%, respectively, closing at TZS 1,591 million and TZS 1,177 million. The quality of customer loans continued to improve with a growth of 21.9%, from TZS 698 billion in 2023 to TZS 851 billion, while the non-performing loans ratio decreased from 5.8% to 4.4%. The Return on Equity (ROE) stood at an impressive 38.2%, up from 31.5% in 2023, placing us among the best in the industry.”

Mr. Tesha added, “Our continued focus on implementing our digital strategy has yielded sustainable gains, with our cost-to-income ratio improving from 53.5% in 2023 to 46.0% for the period ending June 30, 2024. The bank has expanded through digital channels and increased its footprint significantly since the introduction of agency banking in the last quarter of 2023, enhancing customer convenience across the country. In line with our Environmental Social Governance (ESG) framework, we launched the ‘Absa She Account’ to support women in business across the country by offering free banking services and scaled up our SME offerings, both on the financing side and financial management solutions.”

He concluded by stating that Absa Bank Tanzania understands the significance of individual stories. “Together, we are creating a remarkable chapter of outperformance, both for ourselves and our clients”.