Kinondoni District Commissioner Paul Makonda (middle) cuts a ribbon to launch the First National Bank Mbezi Beach branch. He is flanked by Djibouti Honorary Consul Said Shamo (right) and the bank’s Retail Business head Francois Botha (left). PHOTO | THE CITIZEN CORRESPONDENT
What you need to know:
Last year, the bank, which started its operations in the country in 2011, registered a loss of Sh18 billion. However, the head of product and digital banking Silvest Arumasi, is optimistic that with various products on its list, the loss will go down to Sh9 billion by June 2016.
Dar es Salaam. The First National Bank (FNB) opened its newest branch in the city yesterday amid reports that its operating losses are declining as it moves towards the breakeven point.
The new branch, located at Mbezi Beach, is FNB’s 8th outlet in the country.
Last year, the bank, which started its operations in the country in 2011, registered a loss of Sh18 billion. However, the head of product and digital banking Silvest Arumasi, is optimistic that with various products on its list, the loss will go down to Sh9 billion by June 2016.
This will put the new bank on a smooth footing to reach the break-even point in the coming few years.
“It is very normal for any new bank to record losses during the first years….We are optimistic to hit our target within the set timeframe….in the near future, we expect to open other branches in Arusha and Mwanza,” said Mr Arumasi.
With capital of $72.5 million (over Sh150 billion on the existing exchange rate), the bank is determined to concur the market with its new services and products.
“The opening of our Mbezi Beach branch is part of our strategic plan to expand our network of branches to cover all key areas in the city as we set our sights on rolling out our coverage across the country,” said the bank’s head of Retail Business, Mr Francois Botha. Mr Arumasi emphasised that the branch was opened in the interest of the rapid growth of Dar es Salaam, saying it was their priority to ensure they reached out to their customers in locations that are most convenient to them.
