NMB Q4 profit raises 10pc

 

Equity Group Holdings managing director James Mwangi. PHOTO | FILE

Daily News Reporter

NATIONAL Microfinance Bank (NMB), the largest bank in profitability, has posted a net profit increase of slightly under 10 per cent, in the last quarter of 2015.

The bank, with 175 branches, said in a financial statement yesterday that its profitability rose by some 3.0bn/- to 38.5bn/- in three months ending last December.

NMB, a pro-poor bank, mainly attributed its profit to net interest income which generated 98.9bn/- up from 95.5bn/-, thanks to increment from loan portfolio of almost 10 per cent to 2.4tri/-.

The loan portfolio increments enable the bank’s assets to grow by 13 per cent in Q4 to 4.5tri/- compared to 1.4 per cent or 4.0tri/- of Q3, both quarter in last year.

Despite ballooning of the lending docket, the bank prudence loaning maintained the non-performing loans ratio of 2.4 per cent well below industrial benchmark of 5.0 per cent.

The bank loaning ability was accelerated by customer deposits that grew up by 13.7 per cent to 3.5bn/- in Q4 from 3.1bn/- of Q3. Also non-interest income created an increase of some 21 per cent to 40.2bn/- well above the Q3 amount of 33.7bn/-, pushed up mainly by 32 per cent increase generated form fees and commissions. NMB, a listed bank on Dar es Salaam Stock Exchange, reported a basic earnings per share increase to 77/- from 71/-.

The bank share went down by 6.8 per cent since the beginning of this year to 2,340/- of Wednesday. The share for the large part of last year was on downside trend. On the other hand the bank net profit, cumulative slowed down by almost 5.0bn/- to 150.6bn/- for 2015.

The profitability slide was the results of branch network increase that requires more staff. The branches reached 175 at the end of last year compared to 163 of 2014, while workforce climbed to 3,163 people against 3009 of 2014. Thus pushing up operation costs to 310.75bn/- , where staff salaries and benefits consuming 140.7bn/-.