Bank M records robust 20bn/- pre-tax profit

BANK M Deputy CEO, Ms Jacqueline Woisso addresses a news conference on the bank’s Q4 2014 financials, announcing soaring pre-tax profit. Right is an Assistant Vice-President and Head of Communications, Mr Allan Msalilwa. (Photo by Robert Okanda)Despite increased competition in the banking industry coupled with serious liquidity restrictions in the market last year, Bank M posted robust annual pre-tax profit of 20.1bn/- as of December compared to 17.6bn/- in 2013.

Bank M Deputy Chief Executive Officer, Ms Jacqueline Woiso (Speaking), said in Dar es Salaam,“This is a remarkable achievement for a bank of our age and size to post such a huge profit since it commenced its operations.”

In quarter basis, Ms Woiso said the bank’s pre-tax profit jumped to 5.01bn/- in the fourth quarter of 2014 compared to 4.45bn/- in the corresponding period 2013.

It thus pushed the full year profitability to new heights to almost 20 per cent above the profit registered in the previous year. 

She told a news conference that the bank’s huge achievement in profitability registered in the past quarter is largely attributed to interest earning generated from lending, foreign currency dealings and fees and commissions portfolios.

The profit was also pushed up by non interest income that increased by over 40 per cent to 4.71bn/- by December last year.

During the period under review, the bank’s total deposits increased by over 47 per cent to 584.45bn/-, thus boosting loan portfolio to 529bn/- from 421bn/- in the period ended 2013.

Ms Woiso said the bank’s lending portfolio continues to grow significantly and cater for all sector of the economy including manufacturing, trading and agriculture.

“Prudent lending and control of the non-performing loans to stay low at around 2 per cent against the industry average of 5 per cent is attributed to the bank’s outstanding performance achieved in less than a decade of its operation,” she said.

She added, “Despite risks in some sectors like agriculture, real estate and exports especially after the global financial crisis, we still managed to keep zero non performing loans.” 

A robust growth was also recorded in the assets by over 40 per cent to 689.35bn/- in the period under review from 482.05bn/- at the end of 2013.
Source: Daily News, reported from Dar es Salaam, Tanzania
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