Dar es Salaam. NMB Bank Plc’s cumulative profit before tax jumped by 76 percent in the third quarter of this year (Q-3/2020), propelled by Tanzania’s sustained economic growth momentum despite the outbreak of the Covid-19 pandemic earlier this year.
The bank’s financial statement, which was published in various newspapers yesterday, shows that its cumulative pre-tax profit surged to Sh208 billion during the year to September 30, 2020, from Sh118 billion during the year to the third quarter of 2019.
The figures translate into a 77 percent improvement in cumulative profit after tax, which rose to Sh145 billion during the third quarter of 2020 from Sh82 billion in the same period last year.
“Over the last five years, the country has experienced a period of sustained economic growth underpinned by accommodative monetary and fiscal policies… NMB’s enhanced profitability growth in the quarter ending September 2020 is on the back of this favorable business operating landscape, coupled with successful implementation of the bank’s strategic initiatives,” the bank said in a statement yesterday.
On cumulative basis, interest income grew to Sh410.6 billion in the third quarter of 2020, up from Sh367.87 billion in the similar quarter in 2019.
The cost-to-income ratio improved to 52 percent, thanks to the bank’s efficiency programme and disciplined cost management efforts.
NMB Bank’s total assets grew by 15 percent to Sh7.0 trillion in the third quarter of 2020 up from Sh6.1 trillion in the third quarter of 2019.
The growth was primarily supported by a 16 percent rise in customer loans and a 15 percent improvement in customer deposits.
“NMB Bank’s strong financial performance in 2020 is an encouraging indicator of the effectiveness of our strategy, the quality of our people and the tremendous market confidence on the bank,” chief executive officer Ruth Zaipuna said.
NMB Bank’s loan book improved significantly, with a 22 percent year to year reduction in loan impairment charges.