In summary: NMB Bank Plc remains the most profitable bank in Tanzania according to the published Financial Statements for the year 2021, with the following key highlights.
Profit before tax: TZS 420 bln, up 41% YoY
Profit after tax: TZS 289 bln, up 39% YoY
Total Income: TZS 989 bln, up 18% YoY
Cost to Income Ratio (CIR): 47%
Total Assets: TZS 8.7 Trillion, up 23% YoY
Disciplined execution of its strategy, strong client activity, high-staff morale, and leadership agility helps NMB to remain the most profitable bank in Tanzania.
For Immediate Release
Dar es Salaam. January 27, 2022. NMB Bank Plc. yesterday announced its full year 2021 results, where the bank recorded yet another industry record-breaking performance, delivering profit before tax of TZS 420 bln (2020: TZS 301 bln), up 41% YoY. The bank’s differentiated business model and disciplined execution of its strategic initiatives continue to drive market share gains, and further cementing the Bank’s leading position within the market. A recorded Profit after tax of TZS 289 bln is up 39% YoY and above full year 2020 (TZS 210 bln) industry record-setting profitability.
The strong growth in profitability is on the back of solid operating income growth of 18% YoY – both from net-interest income growth of 19% YoY due to increase in loans and advances and increase in non-funded income by 15% YoY reflecting increased customer activities on the bank’s channels.
The bank has also continued to demonstrate laudable operational efficiency, with further improved cost-to-income ratio to 47% from 51% in the same period last year, being well within the regulatory threshold of 55%. Close management of the loan book and strong customer relationship management saw improvement in overall asset quality, with its NPL ratio decreasing to 3.2% as at December 2021, well below the 5% regulatory threshold.
The bank maintains a strong balance sheet with sustained growth demonstrating enhanced customer relationships in core business segments. Loans and Advances increased by 13% YoY to TZS 4.6 trillion (Net of Impairment) owing to commendable credit portfolio growth in key market segments including Agri-business, SME, and Personal Loans.
Total Deposits grew by 25% YoY to TZS 6.4 trillion at the end of December 2021 compared to TZS 5.3 trillion in December 2020. The bank’s total assets closed at TZS 8.7 trillion, up 23% YoY from TZS 7 trillion in the same period last year.
Speaking during the release of the bank’s full year results, Ms. Ruth Zaipuna, CEO of NMB Bank, said ‘I am profoundly proud and humbled by what we have achieved as a team, and I remain ever so confident that with the disciplined execution of our strategy, increased customers’ activities, high staff morale, and strong leadership, we will sustain this strong growth momentum of our underlying business.
Ms. Ruth Zaipuna further added that, “the bank’s strong business growth and financial performance is critical in supporting our mission of being a vehicle of social and economic development in Tanzania:
Our focus and contribution in the agriculture sector continued during the year, whereby we were the first bank to set aside a special agriculture fund (TZS 100 bln) for lending in the agriculture value chain at interest rates not exceeding 10%.
We have continued to heavily invest in various social impact programmes by setting aside 1% of the bank’s profit after tax, every year. In 2021 we spent over TZS 2 billion towards various social impact initiatives in Education, Health, Financial Literacy and Environment.
In line with our sustainable growth, the Bank’s Tax payment to the Government has consistently grown, reflecting increased overall value creation from a tax perspective. In 2021, the Bank was recognized by the Tanzania Revenue Authority (TRA) as the first large Taxpayer in the Financial Institutions Category, and 3rd biggest Taxpayer in the Country.
The Bank continues to offer inclusive banking services to millions of Tanzanians. In 2021 we launched a number of products and financial solutions including Youth Proposition, Group Funeral Cover, Ushirika Afya, Jahazi insurance and Spend 2 Save, which widened access to affordable banking services. Consequently, our customer base grew to over 4 million.
The Bank’s growth story and contribution to the Tanzanian economy has further placed NMB Bank as the flagbearer of banking excellence in the country through local and international recognitions. In 2021, the bank received 7 International awards naming NMB Bank as the Best and Safest Bank in Tanzania.
Ruth added, “we are grateful to our valued customers, shareholders, our key stakeholders, and our employees for their continued support. We are thankful to the Bank of Tanzania for a continued accommodative monetary policy and support to the banking sector in Tanzania. Looking to the future, we are very optimistic about the journey that lays ahead and the bank will continue to focus on unlocking its potential and utilizing its strong fundamentals to create more value and shared prosperity for our stakeholders”.