Mwanga Bank profit up 30%

Mwanga Community Bank net profit grew by almost one-third in 12 months ending last year.

The Mwanga District based bank posted a cumulatively net profit increase of 71.1m/- at the end of last year compared to 54.79m/- chalked in 2012.

The bank, according to the financial statement issued yesterday, attributed the profit to the rise of net interest income that doubled to 1.098bn/- from 504.4m/-.

The non-interest income, a non-core banks function-contributed 387.13m/- which was slightly lower than 398.52m/- of 2012, dogged by foreign currency dealings that registered a negative income of 8.28m/-.

The net interest income was boosted up by the expansion of the loan portfolio that ballooned by almost 500m/- to 7.5bn/- in just three months ending December 2013.

The loan portfolio was pushed up by customer deposits that surged to 6.93bn/- at end of last December from 4.97bn/- of last September, while assets grew to 11.23bn/-.

The non-performance loans were brought down to 8.0 per cent at the end of last year's fourth quarter from 10 per cent of previous quarter. The bank set aside 64.46m/- for bad debts at a time when its gross loans to total deposits crossed 80 per cent benchmark.

Meanwhile, the bank's quarter-to-quarter net profit slowed down to 76.62m/- at the end of last December compared to 274.74m/- realised at the end of last September.

The profit slow-down was contributed by the rise of non-interest expenses that almost doubled to 703.73m/- from 366.98m/-, which was mainly pushed up by other operating actives apart from salaries and other benefits.

Mwanga Bank known also as "Benki ya Wananchi Mwanga" opened its doors to the public nine years ago after operating as a Regional Unit Financial Institution in 2000.

For the last seven years, the bank has registered tremendous success in terms of growth both in business volume and profitability. Since 2005, the bank has been paying dividends to its shareholders.
Source: Daily News, reported from Dar es Salaam, Tanzania
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