NBC profit up to 13bn/- in only half one of 2014

By The guardian reporter

Mizinga Melu, NBC�s Managing Director

The National Bank of Commerce has announced its financial results for the second quarter of 2014 whereby it’s total assets have increased from 1.6bn/- in March 2014 to 1.7bn/- in the second quarter that ended in June 2014 which is an increase of 5 percent.

 

The increase is mainly driven by the growth in our customer liabilities, which increased 8 percent year-on-year from 1.5bn/- in the first half of 2013 to 1.721bn/- as at June 30, 2014.

 

To compliment the performance of the last six months, NBC has introduced exciting and innovative products into the market. “In our quest to make banking easier for our customers in our journey to become the leading bank in Tanzania, we have introduced new products to support  our ambition of helping customers  achieve their ambitions – in the right way,” said Mzinga Melu, NBC’s Managing Director.

 

Customer deposits increased by 4.3 percent year-on-year from 1.329bn/- in the first half of 2013 to 1.387bn/- as at 30 June 2014. The Loans to Deposits Ratio – LDR stood at 44.6 percent as at 30 June 2014 which is well within the regulatory limits.

 

Net interest income increased 15 percent year-on-year from 51,524m/- to 55,504m/-. In the past year non interest income rose 7.5 percent from 24,535m/- to 26,381m/- as at 30 June 2014.

 

On a year-on-year basis, Profit Before Tax (PBT) increased 122 percent from 5,883m to 13,081m/- on the back of favourable variances on income from investment of the recapitalised funds as well as reduction in impairments due to an improvement in the asset book.

 

In her statement to the press on Friday, Mizinga Melu said that recently, NBC has automated its Real Time Gross Settlement by using the Internet banking platform. This enables NBC’s corporate clients to conveniently initiate online transfers from their locations 24/7, for both local (TISS) and cross border (SWIFT) payments. This new service is fast, secure, and convenient online banking, she said.

 

Mizinga added that following NBC’s acquisition of an Insurance Brokerage License in early 2014, this added general insurance cover products such as Vehicle, Fire, Property and Theft to the bank’s product mix. 

 

In April 2014, NBC introduced Free Credit Life Insurance (Free Loan Insurance) to consumer borrowers. The key benefit of this insurance cover is that in case of death or permanent disability, the outstanding loan balance will be settled by insurance.

 

In March 2014, NBC introduced NBC Direct, which is a service offering that is compiled of a collection of various products packaged together and offered as a bundle at a favourable fee. 

 

The product is offered in three different packages, Gold, Silver and Bronze with the lowest package being charged a monthly fee of less than 5,000/- per month.