Bank M profit rises on loan growth

Bank M, one of the country’s fastest growing banks, has declared a pre-tax profit increase of over 17 per cent in 2014, thanks to loan portfolio.

The bank which opened door less than a decade ago, generated pre-tax profit of 19.74bn/- last year up from 16.84bn/- of 2013.

The statement issued over the weekend attributed the profit largely to the net interest income that climbed to 28.72bn/- from 27.88bn/- of the years under correspondence.

The net interest income increase following loan portfolio ballooned by almost 26 per cent to 528.47bn/-, which pushed up asset growth to 689.89bn/- at the end of 2014.

Alongside the income generated from loans, the non-interest income, from fees and commissions of the bank has also grown significantly to 17.82bn/- of 2014 against 14.73bn/- of 2013.

The financial results shows that customer deposits crosses the half billion mark to close 2014 after going up by 47 per cent to 518.23bn/- from 372.28bn/- of 2013.

The deposits assisted to reduce the gross loans and advances to total advances to 88 per cent from 103 per cent. The industrial benchmark, according to Bank of Tanzania, is 80 per cent.

However, despite the ratio going beyond threshold by 8.0 per cent, the bank’s non-performing loans stained down at 2 per cent, which is well below the industry average of 5 per cent.

Bank M is a medium-sized financial services provider. It provides financial services to individuals, SMEs and large corporations, focusing on small to medium enterprises and big businesses.

Bank M, corporate and investment bank, received its commercial banking licence from the BoT in 2007 and opened for business in the same year.
Source: Daily News, reported from Dar es Salaam, Tanzania
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