National Bank of Commerce (NBC), one of
the largest banks in the country, recovered from the red, posting a net
profit of 6.41bn/- last year, thanks to reduction in bad debts written
off.
Last year the bank attributed its profit
to net interest revenue that increased to 93.3bn/- compared to
85.94bn/- of the previous year while non-interest and other revenues
contributed 55.13bn/- and 52.64bn/-, respectively.
The bank also managed to cut down
expenditure to 128.06bn/- from 137.41bn/- of 2011, after closing a
branch to reduce its workforce by 101 to 1,340.
This managed to amplify
it profitability level. In last year’s second quarter, bad debts chocked
the bank to post a huge loss of 20.2bn/- which was the highest since
the privatization of NBC and liberalization of the banking sector.
The bank attributed the mid year losses
to corporate impairment losses amounting to 13.9bn/- and provisions of
13.7bn/- raised for cost and under accruals from 2008 to June 2012,
relating to technical assistance provided by a parent company abroad.
Last year, however, NBC non performing
loans (NPLs) stood at 117.4bn/- being 16.8 per cent of total gross loans
issued up to the end of last December.
Assets grew from negative 0.36 per cent
to 4.33 per cent, translating to 1.508tr/- at the close of the year
while deposits also increased from negative 1.77 per cent to 3.49 per
cent or 1.266tr/-.
Due to NPLs, the bank restricted its
loaning out slightly from 56.9 per cent to 54 per cent equals to
653.01bn/-.
NBC is one of the oldest banks in Tanzania, marking 45 year
of experience in providing financial services. It offers conventional
services through an extended branch network and ATMs.
Source: The Daily News, www.dailynews.co.tz, reported by Abduel Elinaza in Dar es Salaam
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