*Profit Before Tax: TZS 687 Billion, up 21% YoY
*Profit After Tax: TZS 476 Billion, up 19% YoY
*Total Assets: TZS 13.4 Trillion, up 16% YoY
*Customer Deposits: TZS 9.2 Trillion, up 12% YoY
*Loans and Advances: TZS 8.4 Trillion, up 19 YoY
*Cost to Income Ratio (CIR): 37%
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Dar es Salaam, October 30, 2024
Tanzania’s leading financial solutions provider, NMB Bank Plc, has announced strong results for the period ended September 30, 2024, posting a remarkable 21% year-on-year (YoY) increase in profit before tax to TZS 687 billion compared to TZS 569 billion recorded the same period last year.
Showcasing substantial progress in the execution of the Bank’s core strategy, this historic performance marks yet another important milestone in the history of NMB Bank Plc and the Tanzania banking sector. During the reporting period, the Bank recorded a Profit After Tax of TZS 476 billion (up 19% YoY) from TZS 398 billion in the corresponding period of 2023.
The bank’s strong performance was primarily driven by solid business momentum, enhanced efficiency gains, and significant improvements in loan portfolio quality.
With a cost-to-income ratio (CIR) of 37%, compared to 38% in the same period in 2023, the bank’s efficiency ratio further improved and remained well within the regulatory benchmark of 55%. Moving forward, NMB Bank will continue enhancing efficiency while maintaining a strong focus on strategic investments aimed at achieving continuous service and operational excellence.
Credit quality continued to improve, driven by a strong emphasis on quality credit origination and prudent risk management of the credit portfolio. As a result, the Bank’s non-performing loan (NPL) ratio remained comfortably below the 5% regulatory benchmark, closing Q3 at 3%, a significant improvement from 3.8% in the same period last year.
The Bank maintained strong revenue performance during the period, with cumulative net interest income (NII) rising to TZS 779 Billion, up from TZS 692 Billion at the end of September 2023. Cumulative non-funded income (NFI) reached TZS 430 Billion in Q3 2024, compared to TZS 334 Billion in the same period last year.
The strong growth in NII and NFI was driven by robust balance sheet expansion and a significant increase in client activities, reflecting the positive impact of the Bank’s accelerated investments in new technologies and innovative capabilities.
With our balance sheet remaining a source of strength, total assets soared to TZS 13.4 trillion at the end of Q3, representing a 16% year-on-year (YoY) increase. This growth was primarily driven by the Bank’s expanding deposit base, which rose by 12% to TZS 9.2 trillion, and the loan book that increased by 19% to TZS 8.4 trillion.”
Commenting on the results, NMB Bank CEO – Ms. Ruth Zaipuna noted that, ‘‘the bank’s strong performance is a further testament to the resilience of the bank’s business model, disciplined execution of bank’s strategy, and the strength of stakeholders trust unto the bank’’.
“We maintain an optimistic outlook as we move towards the end of the year, supported by a favourable policy and business environment. We will continue to invest in technology and innovative solutions, as well as in our communities and our people. We remain ever so committed to unlock further opportunities for sustainable value creation for all our stakeholders.”
