Bank M has posted a full year pre-tax profit increase of 16 per cent, notwithstanding the numerous challenges in the second half of last year.The bank said yesterday that the pre-tax profit went up to 23.27bn/- from 20.1bn/- of 2014 amid shilling depreciation and October 25 general election associated risks.
Bank M’s Deputy Chief Executive Officer (commercial)(pictured) Ms Jacqueline Woiso said the challenges rocked across the banking industry.
“But, we managed to overcome them and register an all-time high profit level,” Ms Woiso told journalists in Dar es Salaam yesterday.
The shilling lost its value last year by some 25 per cent to close the year at around 2,160/-.
Other challenge the industry faced last year was regulatory, with the Bank of Tanzania’s policy change that saw the increase of statutory minimum reserve ratio from five to 10 per cent.
Bank M attributed the last year success largely to interest earning generated from lending portfolio, foreign currency dealings and fees and commission.
The revenue from loans increased to 670.8bn/- in last year’s fourth quarter (4Q) compared to 644.19bn/- of similar quarter 2014. The non-interest income also shot up by over 32 per cent to 23.66bn/- at the end of last December.
In addition to good performance in terms of profitability, Ms Woiso said the bank has prudent lending practices enabling control of the non-performance loans that remains consistently at 2.5 per cent well below the industrial benchmark of five per cent.
The bank’s total assets increased by 25 per cent to 861.98bn/- at the end of 4Q last year compared to 689.35bn/- of 4Q 2014.
Total deposits went up by some 24 per cent to 726.89bn/- at the end of 4Q in 2015.
Bank M, which has been in business in the last nine years, has bagged various international awards including the Commercial Bank of the Year-Tanzania 2015 given by International Banker magazine, The Best Corporate Bank and the Best Community Development Bank for East Africa.
Source: Daily News, reported from Dar es Salaam, Tanzania
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