NBC pays Sh4.5 billion in profit share to the government
Dodoma. The National Bank of Commerce (NBC) has paid Sh4.5 billion to the government as dividend following the lender’s profitability in 2021.
The government accounts for 30 percent shareholding in the bank which was privatised.
Receiving the cheque on behalf of the government on Friday, the Minister for Finance and Planning, Dr Mwigulu Nchemba, commended the bank for continuing to grow and increase profits every year.
In 2021, NBC made a pre-tax profit of Sh60 billion which is an increase of 702 percent from a profit of Sh6.2 billion earned in 2020.
“This is a great achievement,” said Dr Nchemba.
He added that the money will be used to fund the implementation of major development projects in the country and improve social services including health, education and water.
The acting permanent secretary in the Ministry of Finance and Planning, Mr Lawrence Mafuru, said that the release of the dividend from NBC proves that the decision made by the government in privatising public entities was productive as it significantly contribute to the successful implementation of government responsibilities.
Mr Mafuru urged government-owned companies to learn from private-owned entities to see how they would operate profitably.
He said that the banking sector in has grown by 10 percent thus making it important to finance economic activities in the country.
NBC managing director, Mr Theobald Sabi, thanked the government for improving investment climate and explained that in 2021 the bank paid Sh20 billion in taxes.
He also said that his bank has made significant investments in various sectors including more than Sh1 billion spent on Corporate Social Responsibility (CSR), and more than Sh9 billion invested in football sport through NBC Premier league.
He said the investment made by NBC has created more than 9,000 jobs and more jobs continue to be created due to the value chain through the sports industry.
The Chairman of the Parliamentary Budget Committee, Mr Daniel Sillo, commended NBC for providing the dividend which will help the implementation of government projects.
