Bank M pre-tax profit soars to 3.4bn/-

Bank M, one of the country’s fastest growing banks, has declared a  pre-tax profit of  3.41bn/-, which is an increase of 234 per cent over the corresponding quarter in the previous year.

Bank M's Head of Finance Iman John attributed the achievement to customers' confidence that  has enabled the bank to grow by an average of 60 per cent year-on-year since inception five years ago.

"Such a landmark growth is due to customers' confidence in the bank's financial and professional strengths," Mr John told journalists over the weekend.

The Head of Finance attributed the doubling of pre-tax profit largely to the 90 per cent growth in net interest income that climbed from 24.74bn/- of first quarter in 2011 to 47.11bn/- in the current quarter in 2012.

Alongside the income generated from loans, the non-interest income, from fees and commissions of the bank has also grown significantly to 27.24bn/- this year's first quarter against 13.6bn/- of the previous year.

The Financial Controller added that the bank had a deposit base of  263.71bn/- as at 31st of March, 2012 and a balance sheet size of  312.23bn/-, making it the tenth largest bank in the local market, from a group of 45 banks. As on the reporting date, the bank's loan book had grown to  202.68bn/-. 

Godfery Utouh, the bank M's Head of Internal Audit, said that prudent lending practices and tight post sanction controls ensured that the non-performing loans to stay down below 2 per cent, which is well below the industry average.

The bank's Head of Corporate Affairs Ambrose Nshala talked about the continuing shareholder commitment to the growth of the bank by consistent injections of fresh capital, in order to take care of the growth potential of the bank.

Mr Nshala added that during the previous year and the current quarter, the shareholders of the bank have pumped in 10.97bn/- as additional capital. He added that it is remarkable that the bank has not declared any dividends, despite significant profits being generated after payment of taxes, which is further indicative of the shareholder's commitment to the health and well being of the bank.

Apart from the bank making great achievements in the growth in balance sheet and business as well as profitability, it has also made significant progress in achieving its stated policy of gender parity in employment by end of year 2012.

The bank's Head of Transaction Banking, Ms Jacqueline Woiso mentioned that it is a matter of pride for her and all the other women employees of the bank that the female employees' ratio currently stands at 51 per cent against 49 per cent of male.

"We expect the ratio to remain in favour of women," Ms Woiso said, adding that "the bank's commitment to gender parity is not restricted to the hiring of lower level female tellers, but is also reflected in the top management team of the bank."Despite being young in the market, Bank M has been an active player in fulfilling its commitment to the society by undertaking significant activities under its Corporate Social Responsibility Initiatives (CSRI).

The bank is currently organizing the Bank M - East African CSR Awards, which recognizes best CSR initiatives across corporates in East Africa.The awards function is rapidly developing into one of the largest corporate events in Tanzania.
Source: The Daily News,http://www.dailynews.co.tz
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