NMB Bank Plc has recorded a whooping Sh428.85 billion net profit in 2022, as the industry holds momentum on growth in post-pandemic years.
The amount translates into an annual net profit growth of 46.8 percent compared with the Sh292.14 billion net profit registered during the preceding year.
Speaking yesterday, NMB’s chief executive officer, Ms. Ruth Zaipuna, said the performance was the outcome of several factors, including a business-friendly environment supported by the government’s policies.
She said the 2022 financial outturn also reflects the strong performance momentum NMB has had in the last four years and the impact of its service excellence and corporate giving agenda on people’s lives and productive activities.
“That is an increase of more than Sh130 billion year-on-year, but 2022 profitability becomes monumentally significant when compared to the Sh98 billion net profit that NMB made in 2018,” she said.
“Strong client activity, investments in digital solutions, meticulous execution of our strategy, and high staff morale and productivity have driven the bank’s strong performance,” said Ms Zaipuna.
Reflective of efforts to spur lending, the bank’s total assets also reached the ten-trillion mark at Sh10.2 trillion, up from Sh9.45 trillion last year.
According to the bank, NMB also reduced funds allocated for credit impairment by 33 percent, to Sh76 billion, while bad loans were kept within the five percent regulatory benchmark following a 0.3 percentage point slide in the non-performing loans (NPLs) ratio to 3.3 percent.
NMB’s chief finance officer, Mr. Juma Kimori, said the bank also lent over Sh6 trillion last year, loans that mostly benefited the corporate sector and individual borrowers and financed strategic sectors such as farming and general enterprises (SMEs).
“Our balance sheet remains robust, and the shareholders’ funds, which have now reached Sh1.6 trillion, mean a lot in terms of maintaining the superb performance we have had in recent years, boosting lending, and sustaining profitability,” said Mr. Kimori.
On the back of mouthwatering profit results, NMB has revealed it has set aside Sh6.2 billion towards its social impact investment programs.
The amount set aside is intended to continue driving positive and lasting impact for millions of Tanzanians through investment in key areas of our corporate social responsibility, including health, education, financial literacy, the environment, and the overall sustainability agenda.
“The bank’s medium- and the long-term plan is to ensure sustainable value creation and shared prosperity with its stakeholders,” the lender stated in part.
NMB Bank Plc. (“NMB”) is a full service commercial bank incorporated in the United Republic of Tanzania. Through its 3 main business divisions: Retail, Wholesale, and Treasury, NMB provides a suite of financial services and products to retail customers, farmers, SMEs, Corporates, Institutions and the Government.
The bank has 226 branches, over 8,000 Agents (Wakala) and more than 800 ATMs across the country and is represented in all districts of Tanzania. NMB has over 4 million customers and employs over 3,450 staff. It is listed at the Dar Es Salaam Stock Exchange and its largest shareholders are the strategic partners Arise B.V with a 34.9% shareholding and the Government of Tanzania with a 31.8% shareholding.
Euromoney awards for excellence selected NMB as the “Best Bank in Tanzania” for 8 years in a row from 2013-2020. The bank has been named The Safest Bank in Tanzania for the year 2020 by Global Finance Magazine. NMB Bank was also awarded as the Best Blended Finance Partner in Africa for banks working with International Finance Corporation (IFC) of the World Bank Group in 2019. Also the Best Retail and Best Commercial Bank in Tanzania by the Banker East Africa Magazine in 2018.