The NMB Bank profit before tax has increased by 54 per cent year on year for the period ended September to 464bn/- compared to 302bn/- recorded in the corresponding period last year.
During the period under review, profit after tax grew by 54 per cent to 324bn/-from 211bn/- in the corresponding period last year.
NMB Bank’s Chief Executive Officer, Ms Ruth Zaipuna said that the strong performance reflects solid business momentum buoyed by a stable operating environment, solid efficiency gains on the back of disciplined execution of cost optimisation strategies and continued improvements in portfolio quality.
Investments in innovative digital solutions and ongoing digital-led initiatives continue to yield positive results, further accelerating the growth of product outreach and deepened usage.
“We are very pleased with the strong results that we continue to deliver consistently. With the quality investments, we continue to make in our people, technology infrastructure, and governance foundations, we are very optimistic about the road ahead.
She said the bank is well positioned to continue delivering sustainable value creation to our shareholders, and wider stakeholder community.
Looking ahead, the bank will continue to execute our strategy with discipline as it looks to build on the strong performance momentum and deliver strong outcomes for our stakeholders.
“We are pleased to note that the bank’s solid growth continues to receive international awards, recognitions, and validations, with over 10 international awards for the year 2022, all cementing NMB’s growing reputation as an innovative, customer-centric bank, that is a true champion of sustainable and inclusive growth,”
Ms Zaipuna added.
Reflecting on the bank’s commendable success within and outside Tanzania, Ms Zaipuna further added,
“We are grateful to be serving an organisation that is continuously positioning Tanzania into the global map of excellence. We are very thankful to our esteemed customers, shareholders, and stakeholders and look forward to serving them as we progress along the remainder of the year.”
Strong revenue momentum was sustained during the period, with a total revenue growth of 21 per cent from the previous year to 875bn/- driven by strong growth in Net-interest income and Non-funded Income lines which grew 16 per cent and 33 per cent, respectively.
During the period, the bank continued to demonstrate strong efficiency gains, having recorded a 42 per cent Cost-to-Income ratio (CIR), a further improvement from 47 per cent CIR which was recorded in September 2021.
The bank’s CIR of 42 per cent is well within the 55 per cent regulatory benchmark set by the Bank of Tanzania (BoT) and positions NMB as one of the most efficient banks in the region.
The bank will continue to drive further efficiency gains, whilst maintaining a keen focus on key strategic investments.
Credit quality also continued to improve markedly due to a strong emphasis on quality origination and prudent credit portfolio risk management. As a result, the bank’s Non-Performing Loans (NPL) ratio remained well within the 5 per cent regulatory benchmark, closing at 3.3 per cent a commendable improvement from 3.8 per cent recorded in the same period last year.
The bank continues to drive optimal balance sheet growth momentum. During the reporting period, the bank’s Total Assets grew by 16 per cent YoY to TZS 9.5 trillion from 8.2tri/-in the same period last year.
Return on Equity also rose to 29 per cent from 23 per cent in the same period last year, reflecting continued focus on driving strong shareholder returns.
Commenting on the bank’s financial results, Mr Juma Kimori, NMB Bank’s CFO, said,
“The bank remains solid, sound, and well-capitalised. Going forward, we will continue to drive revenue growth, and cost efficiency, and optimise our balance sheet for better returns to our shareholders and our contribution to the community at large,”
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