NMB tops banking profitability in 2011

The National Microfinance bank (NMB) generated 103bn/- in pre-tax profit last year to retain its position as the most profitable bank in the country.

The bank’s pre-tax profit left by far other 45 commercial banks in the country, with the closest rival CRDB bank posting 51bn/- in pre-tax profit. 

Standard Chartered bank came third with the pre-tax profit of 48bn/- followed by Stanbic bank’s 23bn/-, Exim Bank’s 21bn/- and then the National Bank of Commerce which generated 18bn/-.

According to the banks’ financial statements, NMB pretax profit exceeds by far the combined pre-tax profits of the trailing three top banks— Standard Chartered, Exim and NBC.

NMB attributed the pre-tax profit to net income of 185.2bn/- compared to 130.4bn/- of the previous year.

The fund set aside for doubtful debts and advances however reduced the bank’s profitability by 11.7bn/-.Non-interest income, coming from commission, fees and foreign exchange dealings, contributed 82.38bn/- to the bank revenues, up from 71.2bn/- in 2010.

However, on the same portfolio foreign dealings realizing lesser amount of 7.44bn/- compared to 12.5bn/-. NMB, assets also grew to 2.2trn/- and deposits reached 1.8trn/- at the end of last year below CRDB which closed the year with 2.7trn/- in assets and 2.41trn/- in deposits.
CRDB also topped other banks on lending portfolio, with 1.4trn/- dished out ahead of NMB, NBC, Standard Chartered and Exim banks with 1.43trn/-, 1.12trn/-, 684bn/-, 627bn/- and 426bn/-, respectively.

NMB, which was formed in 2000 after splitting the then government owned NBC, was recapitalised and made its way after to become the top privitised bank.

NMB protected its position as the largest bank in Tanzania when ranked in terms of both profitability and branch network, with over 140 branches covering over 80 per cent of the country. CRDB comes second in branch network with 75 branches. 

The four big banks control over 8trn/- of the banking industry’s assets, almost two-third of the national budget of 13.6bn/- for the 2012/13 financial year.
Source: The Daily News,www.dailynews.co.tz, reported by Abduel Elinaza
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