NMB expands portfolio with custodial services for clients
Bank of Tanzania Manager of Financial Markets Lameck Kakulu (right) explains a point to stock exchange inves-tors during a panel discussion organised by NMB Bank in Dar es Salaam. Others from second right are CMSA Market Development and Research manager Alfred Mkombo, NMB Senior Manager Custodial Services Avith Massawe and CEO of FIMCO Ivan Tarimo. PHOTO | COURTESY
What you need to know:
The bank believes that oversubscription of Treasury Bonds (T-Bonds) and corporate bonds were an indication that investors’ appetite for long-term investment avenues is high
Dar es Salaam. NMB Bank Plc is aggressively marketing its custodial services to investors in a renewed attempt to extend its footprint to go beyond conventional banking system.
Commercial banks’ custodial services include holding of clients’ securities for safekeeping.
They also include administering clients’ accounts, transaction settlements, collection of dividends and interest payments as well as tax support.
“In short therefore, we want to do everything on behalf of our clients who have invested in government securities and in listed equities,” NMB Bank’s chief of retail banking, Mr Filbert Mponzi, said during a seminar that the bank organized for a section of its clients in Dar es Salaam at the weekend.
The bank believes that oversubscriptions of Treasury Bonds (T-Bonds) and corporate bonds were an indication that the appetite for investors (individuals, institutions, corporate and banks) in long term investment avenues was high, according to NMB Bank’s Treasurer, Mr Aziz Chacha.
NMB Plc announced in August that its three-year retail bond, which was issued on June 10, 2019, was over-subscribed by 33 per cent.
Financial markets manager from the BoT, Mr Lameck Kakulu, said with yields in a 20-year T-Bond going for as high as 17 per cent, government securities offered one of the most lucrative investment avenues for investors.
The bank through its custody services makes the task of one to invest in Treasury Bills (T-Bills) and T-Bonds easier in that it allows them to do right during the primary market stage.
“We are making investment in government securities easy. You simply talk to us and we connect you to the Bank of Tanzania (BoT),” said NMB’s fixed income trader, Ms Agnes Mayoro.
Being custodian for government securities, the bank will settle government securities traded at both primary and secondary markets.
It will also collect the income/coupons/maturities and print a holding statement,” said NMB’s senior manager for securities services, Mr Avith Massawe.
Similarly, for being a custodian bank for all listed securities, NMB will conduct settlement of traders’ equities, corporate bonds, T-Bonds and T-Bills. It will also collect clients’ incomes in forms of dividends, coupons, maturities and interest.
Dar es Salaam Stock Exchange (DSE) chief executive officer, Moremi Marwa said with only 550,000 investors actively taking part in the trading of equities in a country of over 45 million people, more concerted efforts are needed to promote public awareness.
