Windfall as NMB's net profit skyrockets to Sh429 billion
- The amount translates into an annual net profit growth of 46.8 percent compared with the Sh292.14 billion in net profit that was registered during the preceding year
Dar es Salaam. NMB Bank Plc has recorded a whooping Sh428.85 billion of net profit in 2022, as the industry holds momentum on growth post-pandemic years.
The amount translates into an annual net profit growth of 46.8 percent compared with the Sh292.14 billion in net profit that was registered during the preceding year.
Speaking yesterday, NMB’s chief executive officer, Ms Ruth Zaipuna, said the performance was the outcome of several factors, including a business-friendly environment that is supported by the government’s policies.
She said the 2022 financial outturn also reflects the strong performance momentum NMB has had in the last four years and the impact of its service excellence and corporate giving agenda on people’s lives and productive activities.
“That is an increase of more than Sh130 billion year-on-year, but 2022 profitability becomes monumentally significant when compared to the Sh98 billion net profit that NMB made in 2018,” she said.
“Strong client activity, investments in digital solutions, meticulous execution of our strategy, and high staff morale and productivity have driven the bank’s strong performance,” said Ms Zaipuna.
Reflective of efforts to spur lending, the bank’s total assets also reached the ten-trillion mark at Sh10.2 trillion, up from Sh9.45 trillion last year.
According to the bank, NMB also reduced funds allocated for credit impairment by 33 percent, to Sh76 billion, while bad loans were kept within the five percent regulatory benchmark following a 0.3 percentage point slide in the non-performing loans (NPLs) ratio to 3.3 percent.
NMB’s chief finance officer, Mr Juma Kimori, said the bank also lent over Sh6 trillion last year, loans that mostly benefited the corporate sector and individual borrowers and financed strategic sectors such as farming and general enterprises (SMEs).
“Our balance sheet remains robust, and the shareholders’ funds, which have now reached Sh1.6 trillion, mean a lot in terms of maintaining the superb performance we have had in recent years, boosting lending, and sustaining profitability,” said Mr Kimori.
On the back of mouthwatering profit results, NMB has revealed it has set aside Sh6.2 billion towards its social impact investment programs.
The amount set aside is intended to continue driving positive and lasting impact for millions of Tanzanians through investment in key areas of our corporate social responsibility, including health, education, financial literacy, the environment, and the overall sustainability agenda.
“The bank’s medium- and long-term plan is to ensure sustainable value creation and shared prosperity with its stakeholders,” the lender stated in part.