NMB pays govt Sh10bn in dividend
NMB Bank acting managing director Albert Jonkergouw (right) presents a Sh10.48 billion dummy cheque to Finance and Planning minister Philip Mpango (left) in Dodoma yesterday. With them is NMB board chairman, Prof Joseph Semboja. PHOTO|THE CITIZEN CORRESPONDENT
Dodoma. The NMB bank Plc yesterday paid a Sh10.48 billion dividend to the government for its stake in the bank.
The money is part of the Sh33 billion that shareholders approved at the bank’s annual general meeting (AGM) last month.
The Sh33 billion translates into a dividend per share of Sh66, being three per cent up from Sh64 that was issued last year.
The increase in dividend payout results from a rise in profits that NMB – Tanzania’s most profitable financial entity – registered during the 2018 calendar year.
NMB’s dividend policy requires it 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 NMB acting managing director, Mr Albert Jonkergouw presented a Sh10.48 billion dummy cheque to the Minister for Finance and Planning, Dr Philip Mpango, yesterday.
Mr Jonkergouw said apart from the dividend, NMB Bank also paid over Sh168.8 billion to the government in various taxes including Pay As You Earn, Corporate Tax, Skills Development Levy, Excise Duty and VAT on services.
“We are a strong and reliable bank with a strong balance sheet,” said Mr Jonkergouw, adding that the country business environment still had enormous opportunities and that NMB was on position to support the business community in achieving their goals. NMB has over 220 branches, 6,800 agents ‘Wakala’ and more than 800 ATMs across the country.
Dr Mpango said NMB was one of Tanzania’s success stories as far as privatisation was concerned.
“They have been doing quite well. NMB is capitalizing on opportunities we have in the country to do a sound business,” said Dr Mpango.
He said such funds would be channelled towards construction of mega infrastructure projects, including Stiegler’s Gorge Hydroelectric power station and standard gauge among others.
Mr Jonkergouw stated that the bank seeks to balance maximizing shareholders’ returns while also reinvesting funds into the bank’s business in order to finance its growth plans.
NMB has so far paid over Sh118 billion in dividends to the government during the past ten years since it was privatised.
