Exim Bank said yesterday its total assets grew by 17 per cent to 1trn/- as June, bringing to five the total number of commercial banks that have crossed the one trillion mark.The bank, which opened its doors over 15 years ago, has joined the club of banking elites after its assets reached 1.002trn/- in June 2013 from 940.32bn/- in March 2013.
Other banks with over 1.0trn/- assets are CRDB and National Microfinance Bank (NMB), which have over 3trn/- each as well as National Bank of Commerce (NBC) and Standard Chartered which have over 1.5trn/- each.
There are over 50 commercial banks and financial institutions in the country. This means, merely five banks are controlling 50 per cent of the banking industry’s total assets estimated at 20trn/-, a trend financial experts describe as healthy for the economy.
Dhow Financial Managing Director, Prof Mohamed Warsame, said in financial perspective that the economy needs few large banks to increase efficiency, competitiveness and outreach to the underserved market, in particular.
“Of course, we need small banks to challenge bigger players to increase outreach to rural markets,” Prof Warsame said yesterday, adding: “Without challenges, the bigger banks will continue to be in towns….” The country’s formal financial services reach about 14 per cent of the total bankable population.
Exim has attributed its assets growth to mainly interbank loan receivable and loans and advances which together totalled over half of the bank assets. Loans and advances have increased after total deposits rose by 21 per cent at the end of the first half of this year to 883bn/-.
The gross loans and advances to total deposit at the end of June stood at 57.02 per cent, while non-performing loans closed the first half of the year at 9.17 per cent.
However, the fifth biggest bank in term of assets, Exim Bank’s net profit slowed-down in the first half of this year to 7.05bn/- compared to the same period last year’s 9.46bn/- due to a 15 per cent decrease on net interest income.
Established in 1997, the 29-branch bank has built strong brand equity through its relationship management and its ability to provide faster turnaround in services, building a robust loyal customer base.
Established in 1997, the 29-branch bank has built strong brand equity through its relationship management and its ability to provide faster turnaround in services, building a robust loyal customer base.
Source: Daily News, reported from Dar es Salaam, Tanzania
0 comments :
Post a Comment