Tanzania's central bank records 195bn/- profit for 2014 business

The Bank of Tanzania (BoT) has come out of red and registered good net operating profit of 194.83bn/- for 2014 business, thanks to foreign exchange revaluation gains.

In the course of its operations, the BoT for financial year ended June 2014, made comprehensive income of 195.94bn/- against 11.25bn/- loss in 2013.

“The operating income was mainly attributed to gains arising from depreciation of the shilling against major currencies,” the bank said in its report issued recently.

The bank added: “increased interest income and decline in operating expenses namely net unrealised losses on financial assets, personnel expenses and depreciation expenses.”

The central bank also attributed the profit in a report issued recently to distributable profit amounting of 157.62bn/- compared to 80.25bn/- of 2013.

Nevertheless, the central bank made a net loss of 16.75bn/- in 2013 after suffering a loss of 41.89bn/- from unrealised foreign exchange revaluation.

In 2014 the bank generated 37.22bn/- relates to unrealised foreign exchange revaluation. 

The Bank’s accounting policy requires transfer of unrealised foreign exchange revaluation gain or loss and unrealised gain or loss on financial assets measured at FVTPL to the Foreign Currency Revaluation Reserve and Securities Revaluation Reserve respectively.

The performance of the central bank is measured on the basis of the achievements in implementing its core functions as detailed in the Bank of Tanzania Act, 2006.

The major areas of increase include foreign currency marketable securities, advances to the government, cash and cash equivalent and loans and receivables amounting to 511.77bn/-, 364.14bn/-, 181.87bn/-, and 124.75bn/- respectively.

On the other hand total equity and liabilities increased by 1.22tri/- in 2014 compared to 1.25tri/- in 2013. The total equity and liabilities were upped by currency in circulation; deposit others, deposit, banks and non-banks financial institutions and reserves.

The financial results enable BoT, wholly owned by the government, to declare a dividend amounting to 72.45bn/- up from 40.126bn/- of 2013.
Source: Daily News, reported from Dar es Salaam, Tanzania
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