NMB Bank Plc shareholders to share a record Sh181 billion in dividends

NMB CEO Ruth Zaipuna (second left) and the bank’s board chairman, Edwin Mhede, display the annual report for the year 2023 during the Annual General Meeting held virtually at the weekend. With them is NMB’s Chief Finance Officer Juma Kimori (left) and Company Secretary, Mwantumu Salim. PHOTO | THE CITIZEN CORRESPONDENT

What you need to know:

  • According to the bank’s board chairman, Dr Edwin Mhede, the results reflect the strength of NMB Bank’s governance principles and a commitment to value creation

Dar es Salaam. Shareholders of NMB Bank Plc will share a record Sh181 billion in total dividends this year, thanks to a monumental rise in the lender’s profit in 2023.

The bank’s shareholders approved the amount to be paid as dividends during their Annual General Meeting (AGM) at the weekend.

The amount is Sh38 billion more than the Sh143 billion that was shared last year from the bank’s 2022 profits.

The Sh181 billion, to be paid on or about June 19, 2024, translates into a dividend per share of Sh361, which represents a 26 percent improvement year on year.

Last year, NMB Bank Plc registered a profit before tax (PBT) of Sh770 billion and a profit after tax (PAT) of Sh542 billion, courtesy of what its managing director, Ms Ruth Zaipuna, says is a result of a disciplined execution of the bank’s strategy, solid growth in revenue, cost containment, and improvement in loan portfolio quality.

NMB Bank’s total income reached Sh1.4 trillion in 2023, up from Sh1.2 trillion in 2022.

This, the bank’s financial statements show, was primarily driven by a 19 percent growth in net interest income, which reached Sh934 billion in 2023 from Sh786 billion in 2022.

With increased customer activity on digital channels, the bank’s non-interest income rose by 16 percent to Sh468 billion in 2023 from Sh402 billion in 2022.

According to the financial statement, NMB Bank’s cost-to-income ratio (CIR) improved to 39 percent while the non-performing loan ratio remained at 3.2 percent, well below the maximum regulatory thresholds of 55 percent and 5 percent, respectively.

NMB Bank closed last year with a balance sheet of Sh12.2 trillion, a 19 percent improvement compared to Sh10.2 trillion in 2022.

The steady growth in the balance sheet is on the back of strong growth in loans and advances to customers by 28 percent, prudent investment in government securities by 17 percent, coupled with commendable customer deposit growth of 11 percent year-on-year, Ms Zaipuna said.

“The execution of our 5-year Medium-Term Plan (MTP) is well on track, as evidenced by solid progress along strategic initiatives,” she said at the weekend.

To drive loyalty and accelerate the financial inclusion agenda, she said, NMB Bank Plc expanded its network coverage by opening four new branches and onboarding over 11,000 new agents, reaching 28,295 agents in 2023.

“In turn, we were able to onboard over 1.2 million new customer accounts. Our effort to create a future-proof, technologically driven bank and the significant investment we make in our people continue to yield positive results,” she said.

According to the bank’s board chairman, Dr Edwin Mhede, the results underscore NMB Bank’s robust governance principles, steadfast dedication to fostering substantial value creation, and heightened emphasis on the environmental, social, and governance (ESG) agenda.

“As we look forward, we remain steadfast in our commitment to delivering superior financial and non-financial returns to our stakeholders,” he said.