Non-interest income boosts BOA profit

Bank of Africa Bank (BOA) Tanzania announced a six per cent net profit increase, attributed to non-interest income. The statement issued by BOA shows that the bank posted a net profit increase of 5.75bn/- in 2014 versus 5.42bn/- of 2013.

The profit increase, according to the statement, is attributed to mainly noninterest income that generated an increase of 16.48bn/- from 13.75bn/-.

The non-interest income increase was boosted by almost two third by fees and commissions that contributed 11.28bn/- compared to foreign exchange profit of 4.37bn/- and others 828m/-. Also net interest income contribution to the profit declined slightly to 21.33bn/- from 21.91bn/-.

The net interest’s revenue was the result of increase loan portfolio that went up to 273.30bn in 2014 from 232.43bn/- of 2013.

The increase of net interest income leads to ballooning of gross loans and advances to deposits to 88.5 per cent from 79.6 per cent. The loan portfolio pushed up assets hence grew to 495.41bn/- from 425.04bn/-.

BOA’s deposits increased by 307.73bn/- last year to 289.72bn/- of 2013 backed by increase branch number to 21 from 19 branches.

BOA Tanzania is a subsidiary of BOA Group that began its operations in 1982 in Bamako, Mali where it has its headquarters, and has over the years expanded, initially in West Africa and recently in East Africa.

The bank is well established in 16 countries namely: Benin, Burkina Faso, Burundi, Democratic Republic of Congo, Djibouti, France, Ghana, Ivory Coast, Kenya, Madagascar, Mali, Niger, Senegal, Tanzania, Togo and Uganda with further plans of expanding.
Source: Daily News, reported from Dar es Salaam, Tanzania
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