NMB leads in banking sector profitability

The National Microfinance Bank (NMB) has maintained its leadership as the most profitable bank in the country, leaving its close rivals CRDB and National Bank of Commerce (NBC) by far.

NMB, which was privatised in early 2000, posted a net profit of 33.14bn/- in three months ending June 2013, with CRDB coming second with a net profit of 20.09bn/-. The third bank on the list at the end of the second quarter is Standard Chartered Bank that posted 11.3bn/- net profit, followed by NBC with 5.09bn/-.

Other banks generated over 3bn/- net profits were Exim bank with 4.01bn/- , Citibank 3.4bn/- and Bank M, an upcoming bank, with 3.2bn/-. Stanbic, one of giant banks in the local market, suffered a huge loss of 1.5bn/- to plunge at the bottom of the list on the quarterly analysis.

NMB has attributed its profit mainly to net interest income that increased to 79.09bn/- at the end of second quarter from the first quarter’s 68.86bn/-. The bank’s loan portfolio stood at 1.42trn/- during the period under review.

The CRDB net interest income for the three months ending June was 60.94bn/-, the increase from 49.15bn/- generated in the previous quarter, with the loaned amount standing at 1.77trn/-. Standard Chartered revenue from loans went up to 19.09bn/- from 15.24bn/- after lending out 578.33bn/- at the end of June.

NMB, despite loaning out a substantial amount, its Non-Performing Loans (NPLs) ratio to total gross loan was the lowest at 1.9 per cent compared to CRDB’s eight per cent and Standard Chartered’s four per cent.

The three banks at top set aside funds for possible bad loans and advances, with NMB setting aside 2.73bn/- down from 5.06bn/- in the previous quarter while CRDB reduced its provision for bad debts to 8.25bn/- from 10.8bn/- in the first quarter of the year.

Standard Chartered provided for 157m/- down from 336m/-, previously. NMB led in terms of asset growth, with its asset base growing to 3.23trn/- from the previous quarter’s 3.06trn/-.

CRDB trailed behind with 3.12trn/- assets, a drop from 3.14tri/- at the end of March this year. Standard Chartered assets also dropped to 1.40tri/- from 1.43tri/-. NMB trailed CRDB on customer deposits at the end of the second quarter in June. The former deposit reached 2.61trn/- while the latter accumulated 2.62trn/-. 
Source: Daily News, reported by Abduel Elinaza from Dar es Salaam, Tanzania 
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