ACB Bank targets Sh2.5bn in profits for 2019 financial year

Dar es Salaam. Akiba Commercial Bank (ACB) is projected to double its net profit this year, as the bank undergoes major reforms to improve asset quality.

The bank’s managing director Augustine Akowuah said yesterday that the bank was targeting a net profit of Sh2.5 billion this year, which is more than doubled Sh1.2 billion net profits recorded during last year.

Last year’s net profit was 700 per cent higher than the profit recorded during 2017.

The profitability growth was underpinned by good growth in loans and advances, with disbursement to more than 13,200 micro and small businesses, he explained.

“The bank outlook for 2019 is very positive, as it seeks to build this positive development in 2018 to grow its core business in supporting micro, small and medium entreprises (MSMEs) in Tanzania,” he said.

He said the bank was also targeting to improve lending by issuing 30,000 new supporting loans to small and medium entreprises.

He said the target was to support the value chains of business in all spheres of the economy ranging from education, pharmaceuticals, hardware for both personal loans and business development loans. The bank, which was established two decades ago, has remained among banks with the lowest Non-Performing Loans (NPLs) in Tanzania at 0.7 per cent in 2018.

The bank boss said the bank will continue to improve its lending to avoid or minimize risks related to NPL assets through improving recovery, collections and advancing new loans with an eye on improved quality.

“We will continue to review these as well as measures taken to re-structure and re-align roles and functions to strengthen credit risk management framework,” he said.

Looking forward, the MD said the bank would continue to roll out digital channels which will enable wide coverage, while giving customers convenient ways of accessing services.