Exim Bank profit soars 8%

Exim Bank has posted a net profit increase of about 8 per cent in a quarter ended December, last year, thanks to the expansion of the loan and advances portfolio.

The Exim Bank, one of the fastest growing banks in the country, which now opens from 8:00am to 8:00pm, racked in 13.95bn/- in the fourth quarter of last year compared 12.93bn/- of same quarter in the previous year, for Tanzania operations.

The statement issued on Monday attributed the profit to growth of non-income interest 25.58bn/- from 19.36bn/- which was boosted mainly by foreign exchange earnings that rose by over 80 per cent to 5.5bn/-.

Earnings from forex were followed by other operating income that racked in 7.7bn/- after an increase of almost 60 per cent.

The loan book expanded to 506.77bn/- but despite the expansion, the net interest income slowed down to 41.68bn/- from 43.16bn/- in the quarter under consideration.

The loan portfolio ballooned total assets growth by 19 per cent to close last year's quarter at 1.1tri/-.

The bank also registered a 14 per cent increase to push up total deposits - banks and customers - to by almost 1.0tri/-.

The increase of deposits gave the bank, with 30 branches in and outside the country, a leeway to extend loans as gross loans to total deposits ratio climbed to 62.4 per cent from 55.12 per cent.

The non-performing loans in the last three months of last year descended by 8.6 per cent in 2013 from 9.3 per cent of similar period in 2012.

The bank ranks as sixth largest bank in the country in terms of total assets and deposits as of December 2012 and the bank's total assets have crossed the one trillion shilling milestone as of June 2013. 

Exim Bank Comoros S.A is a 100 per cent owned subsidiary of the Exim Bank Tanzania.
Source: Daily News, reported by Abduel Elinaza from Dar es Salaam, Tanzania
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