A community bank in Mwanga District, Kilimanjaro Region plans for further expansion after earning substantial profit last year.The Mwanga Community Bank (MCB) said in statement that plans were going on for further expansion in Kilimanjaro Region by opening several financial service centres after earning substantial profits last year.
According to the statement by the MCB’s Managing Director, Abby Ghuhia, the bank expects to open service centres in Moshi town centre as well as in Same town in Same District, in Kilimanjaro Region.
The bank also plans to open more centres in Kileo and Hedaru suburbans and later on at Njia Panda centre in Moshi Rural District, the Managing Director said.
The Bank will further open centres at Ugweno and Usangi in Mwanga District. Ghuhia said in a statement that the bank failed to achieve its pre-tax profit in 2012 due to interest rate paid to deposits obtained for other banks.
“MCB has posted pre-tax profit of 74m/- in 2012. Our pre-tax profit goals were not met due to interest from deposits accumulated from other financial institutions,” he said.
The bank that has its base in Mwanga District in Kilimanjaro Region interest costs were higher than 163m/- or 48 per cent up against its target.
The bank that has its base in Mwanga District in Kilimanjaro Region interest costs were higher than 163m/- or 48 per cent up against its target.
He said that deposit increased by 38 per cent from 1.84bn/- to 6.76bn/- last year.
The deposits increased surpassed the targets by 226m/-, enabling the bank to extend its lending muscles to overtake its target by 14 per cent or 619m/- last year.
Mr. Ghuhia said that the total capital increased from 1. 02bn/- to 1.08bn/-. While core capital surged up by 6 per cent to 904m/- by the end of 2012. Also in 2012, the assets grew by 22 per cent form 6.56bn/- in 2011 to 7.99bn/- in 2012.
An MCB Member of the Board of Directors, Mr Epaineto Toroka said that the revenue targets of interest for 2012 were not met by 139m/- due to non performing loans. Based on the 2012 results MCB targets to increase deposits by six per cent to 7.14bn/-.
Mr. Ghuhia said that the total capital increased from 1. 02bn/- to 1.08bn/-. While core capital surged up by 6 per cent to 904m/- by the end of 2012. Also in 2012, the assets grew by 22 per cent form 6.56bn/- in 2011 to 7.99bn/- in 2012.
An MCB Member of the Board of Directors, Mr Epaineto Toroka said that the revenue targets of interest for 2012 were not met by 139m/- due to non performing loans. Based on the 2012 results MCB targets to increase deposits by six per cent to 7.14bn/-.
Source: The Daily News, reported from Mwanga, Kilimanjaro, Tanzania
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