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| Mr Moshingi |
The historical profits came at a time when the global and the country's
economic activities slowed down last year. The inactive period also saw the
country's GDP dropping to 6 per cent.
TPB Chief Executive Officer and
Managing Director, Mr Sabasaba Moshingi said the achievement is attributed to
increased line of business that helped to significantly up revenues and cut
down unnecessary spending.
“Far-sighted lending has enabled the bank to contain non-performing
loans to 2 per cent level which is well below the industry rate of 6.9 per
cent,” Mr Moshingi told reporters yesterday.
The CEO said the historic profit compared to 0.8m/- generated last year
was also a result of customers' growing confidence. He said the pre-tax profit goal for 2011 was
pegged at 3.5bn/- but went up to 3.8bn/-
despite a number of challenges last year.
“We are aiming to post a pre-tax profit of 4.5bn/- than this year and
we are sure of reaching the target,” Mr Moshingi said, adding:
“We could have done much better
but we are currently investing on renovating our branches as well.”
He named
lines of business that contributed massively on the profits as direct customers loans, government
securities and commission paid by the
Tanzania Revenue Authority (TRA) for collection of taxes.
This, according to the financial statement, saw income generated from
loans revenue (net interest income)
climbing from 11.02bn/- in 2010 to 14.19bn/- in 2011. Fees and commissions also grew significantly
from 5.24bn/- to 6.62bn/- in the year under review.
Earnings from lending were pushed by the increased amount of loans and
advances to customers that reached 66.03bn/- at the end of last year compared
to 64.64bn/- in 2010.
This enabled the bank’s assets to grow by 12 per cent to reach
136.24bn/- at the end of 2011. The
bank’s deposit base increased by 13 per cent to hit the 120.9bn/- mark at the
closure of the books in December, last year.
Majority of the bank's clients
are low income earners who are about 90 per cent of the total customers’ base. In 2011, the bank's
client base grew up from 20,000 to
602,000 customers.
TBP is one of the oldest banks in the country. It was found in 1925 and
became operational in 1927 as Tanganyika Posts Office Savings Bank
(TPOSB).
Following financial sector reforms in the late 1980s, Tanzania Postal
Bank (TPB) was established as successor of TPOSB following the Act of
Parliament in 1992. Since 1992 it
became an independent institution from the defunct Tanzania Posts and
Telecommunication Corporation (TP&TC).
Source: The Daily News,http://dailynews.co.tz,reported by Abduel Elinaza
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