Thursday, April 14, 2016

NBC profit soars to 12bn/-

DAILY NEWS Reporter
NATIONAL Bank of Commerce (NBC) has posted a net profit of 12bn/-, an increase of over 30 per cent from the previous year, bringing the bank into the competitive arena.

However, the bank that was privatised to ABSA some decade and half ago, saw its total comprehensive income for the year at 32.72bn/-, which is ten times higher than 2014 net-profit. Other comprehensive income of the bank in last year was 20.68bn/- from change in fair value of available for sale assets and net of tax.
NBC Managing Director Edward Marks when taking office last May told reporters that he focused on system improvement and profitability.
The MD said he wanted to steer the bank to new heights in the competitive banking industry and maintain the bank’s upward trend seen in 2014 - posting a profit of 9.09bn/-.
The bank profitability was attributed to mainly non-interest income that generated 163.5bn/- in 2015 from 147.2bn/- in 2014. The non-interest income was pushed up mainly by net interest after impairment charges that garnered 110.43bn/- from 99.33bn/-.
Also net interest income generated 116.06bn/- from 113.05bn/-, thanks to the increase of loan portfolio that lent out 904.5bn/- up from 732.12bn/-.
The loan portfolio pushed up assets to grow 5.4 per cent to 1.69tri/-, while deposits increased by 3.5 per cent to 1.31tri/-. In 2014 deposits grew by negative 1.7 per cent to 1.28tri/-.
NBC cut the amount set aside for probably bad debts by more than half to 5.63bn/- as the Non Performing loans (NPLs) ratio dropped to 8.2 per cent from 12.6 per cent. NBC is a retail bank in Tanzania with over 47 years of experience in providing financial services with an extended branch network of 52 branches and over 240 Visa enabled ATMs

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