NMB shareholders to rake in Sh33bn

Sunday June 16 2019

 

By Alfred Zacharia @azacharia3 news@thecitizen.co.tz

Dar es Salaam. NMB Bank shareholders will have reason to smile after the lender’s Annual General Meeting (AGM) approved a total of Sh33 billion in dividend payout yesterday.

The amount will see an increase of dividend from last year’s Sh64 to Sh66 per share.

The increase in dividend payout results from a rise in profits that NMB, which is Tanzania’s most profitable financial entity, registered during the 2018 calendar year.

NMB’s dividend policy requires the lender to share 33.3 per cent of its profit after tax to shareholders.

The bank, which is listed on the Dar es Salaam Stock Exchange (DSE), saw its profit after tax rising to Sh142 billion during the 2018 calendar year from Sh138 billion during the preceding year, courtesy of a number of innovative products that it came up with last year.

The innovations include KLiK, which enables Tanzanians to open an account with the bank on a mobile device without the need of visiting a branch, and salary advance services among others.

Advertisement

With 6,800 agents and its integration with over 180 local councils for electronic collections, NMB managed to raise the number of its customers to 3.1 million in 2018 from 2.2 million in 2017.

NMB, which received a B1 credit rating from Moody’s, is well capitalised with a Tier I Capital Ratio of 16.5 per cent.

“NMB has over the years maintained a healthy capital position and we intend to continue doing so.

To achieve this, it is crucial that we make the right decisions especially with the regulatory changes in capital requirements,” NMB Bank board chairman Prof Joseph Semboja told the AGM.

Looking forward, the bank sees an upward trend in its performance, backed by the ongoing infrastructure development projects.

The bank also banks on rural penetration to boost performance.

“We see huge opportunity in rural areas where the bank’s services are not popular at the moment. Through our digital platforms, we expect to reach them,” said bank’s interim managing director Albert Jonkergouw.

He said NMB was dedicated towards supporting micro and SMEs growth, especially women, through specific training to empower them in their businesses by introducing a Woman in Banking platform across the country.

“In Agriculture, we have upgraded the team of experts that will be focusing on the Agri-sector to support the entire value chain in terms of Agribusiness solutions supported by the NMB Foundation that provides training in the Agri-sectors institutions,” he said.