Tanzania Commercial Bank to pay dividend after Sh19.7bn profit

Monday June 20 2022
TCB pic

The TCB board chair, Dr Edmund Mndolwa, (center), briefs journalists (not pictured) during the 30th annual general meeting of the bank last Friday in Dar es Salaam. Second right is the chief executive officer of TCB, Mr Sabasaba Moshingi. PHOTO | THE CITIZEN CORRESPONDENT

By The Citizen Reporter

Dar es Salaam. Shareholders for Tanzania Commercial Bank (TCB) will receive dividends this year, thanks to the lender’s financial performance for last year.

Speaking shortly after the bank’s 30th annual general meeting (AGM) at the weekend, its board chairman, Dr Edmund Mndolwa, told journalists that the lender braved the impact of the Covid-19 pandemic to register a profit before tax of Sh19.7 billion last year.

“I am confident that shareholders will be happy to receive dividend this year because it has gone up compared to the previous year as the bank continues to strengthen itself and make greater profits,” he noted. He did not reveal the amount in dividend to be paid.

TCB, he said, will continue to restructure itself to cope with economic and business challenges currently facing the banking industry.

Dr Mndolwa said the impressive financial performance posted during the period was a result of productivity excellence despite operational and commercial challenges emanating from the Covid-19 pandemic.

He said despite the challenges of the economic downturn caused by the Covid-19 outbreak, which has had far-reaching economic consequences worldwide, TCB has managed to do well for almost four consecutive years.

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The outturn, he pointed out, has made the country’s oldest lender to be among the top performers in the local banking sector. The bank, which started trading as TCB in 2021 after merging with several government owned financial entities, was established in 1927.

The government owns an 83 percent stake in TCB while Tanzania Posts Corporation, the Revolutionary Government of Zanzibar, TP and TC Savings and Credit Society, the Public Service Social Security Fund and Workers’ Compensation Fund eight percent, three percent, three percent, two percent and one percent respectively.

Dr Mndolwa commended the government for overseeing growth of the national economy that has consequently created a conducive operating environment for banks in the country.

According to him, the TCB loan book soared to nearly Sh718.6 billion last year from the Sh617.8 billion it was in 2020. The bank’s customer base expanded to some Sh1.18 trillion in 2021 from the previous year’s level of Sh1.04 trillion.