Profit After Tax, 42% growth and Exceeding 2020 Full Year record-setting PAT Profit before Tax is at TZS 302 bln 43% up YoY
During the period ended September 2021, the Bank performed steadily with commendable progress on several strategic fronts. Exponential income growth was sustained whilst investments in exciting new growth and digital initiatives was also accelerated. Risk and governance discipline was further strengthened during the period. As a result, the bank delivered a Profit Before Tax of TZS 302 bln and Profit After Tax (PAT) of TZS 211 billion, which is 43% above YoY and above full year 2020 industry record-setting profitability of TZS 206 billion. The bank’s disciplined execution of its strategic initiatives continues to drive market share gains, further cementing the Bank’s leading position in the market.
During the 9 months period to September 2021, the bank recorded Total Income of TZS 721 bln, up 20% YoY from TZS 601 bln in the prior-year period, primarily reflecting strong growth in loans and advances and transaction volumes.
The bank’s cost-optimization initiatives continue to pay back with the cost-to-income ratio improving to 47% from 52% in the same period last year, being well within the regulatory threshold of 55%. The bank continues to focus on further efficiency improvements whilst optimizing investments in strategic priorities.
Asset quality continues to be an area of strategic emphasis, with further improvement of the Non-Performing Loans (NPL) ratio to 3.8% in Q3 2021 from 6.6% in the same period last year reflecting commendable progress made on overall credit portfolio quality.
The bank maintains a strong balance sheet with sustained growth, demonstrating enhanced customer relationships in core business segments. Gross Loans and Advances increased by 13% and closed the quarter at TZS 4.5 trillion owing to commendable credit portfolio growth in key market segments including Agriculture, SME, and Personal Loans.
Customer deposits also grew by 18% YoY to TZS 6.1 trillion as of 30 September 2021 compared to TZS 5.3 trillion in September 2020 due to the bank’s continued focus on providing relevant solutions to enhance overall customer experience. The bank’s total assets stood at TZS 8.2 trillion as at 30 September 2021, up by 17% YoY from TZS 7.0 trillion in the same period last year.
Commenting on the bank’s performance and market position, Ms. Ruth Zaipuna, CEO of NMB Bank, said; “Our team has delivered another strong quarter with profitability for the 9 months increasing 43% YoY, reflecting continued stability in economic conditions and accommodative monetary policy measures adopted by the Bank of Tanzania. Our strategy execution remains on track, with our continued market share gains translating into higher profits. We continue to maintain a relentless customer focus and have seen strong lending and deposits growth momentum throughout the period’’.
Ruth added, “Being at the forefront of the socio-economic development agenda in Tanzania, in during the 9 months period in 2021, we successfully:
• Executed a number of strategic Corporate Social Investment initiatives in line with our strategic pillars. In Health, we reached over 48,000 people in the community through donations of medical equipment. Over 10,600 school children benefited from the supply of school desks. We also empowered over 3,500 youth and adults with requisite financial literacy through our financial education program.
• We held the NMB Marathon ‘‘Mwendo wa Upendo Marathon’’ where we raised TZS 400 million in funds towards supporting Fistula treatment for women.
• We also recently launched the first-ever sandbox environment to inspire local startups to develop relevant digital innovations and build a more digitally inclusive Tanzanian society.
Ms. Ruth Zaipuna further added “We are pleased and proud that our accomplishments in key areas of financial performance, innovation, and customer-centricity, have earned the Bank seven international awards all naming NMB as the best bank in Tanzania. These awards provide great impetus for the bank to continue providing the best-in-class services’’.
“We are very grateful to our valued customers, shareholders, our key stakeholders, and our employees for their continued support. As we look towards the end of the year, we are optimistic about the journey that lays ahead and remains committed to further supporting the communities we serve.”