TPB Bank has almost doubled pretax profit in quarter one of this year thanks to net interest, thus cementing further its bid to list on Dar es Salaam Stock Exchange (DSE) main market.
The bank, formerly known as Tanzania
Postal Bank, posted a pretax profit of 6.82bn/- up from 3.99bn/- of the
same quarter last year. The profit was mainly attributed to the net
interest income that increased by 50 per cent to 15.83bn/- from
10.56bn/- after loans and advances went up by 4.4 per cent.
The leading bank in group lending showed
interest to list on DSE main market in a bid to raise a working capital
of between 70bn/- and 100bn/-. TPB is fully owned by government. The
bank profitability pushed up earnings per share by 46 per cent to 237/-
in the first three months of this year from 162/- of similar period last
year.
At the end of March the bank assets grew
by over 27bn/- to clock 427.54bn/-, pushed, mainly by loans and
advances that increased 4.4 per cent to 310.27bn/-.
The loans growth was the outcome of
customer deposits increase 8.0 per cent to 315bn/- from 292bn/-. Like
many banks, TBP also is struggling with nonperforming loans after its
ratio to total gross loans climbed 5.33 per cent form 4.04 per cent of
last December.
NPLs amount reached 17.12bn/- from
12.42bn/- compelling the bank to set aside 1.6bn/- for impairment losses
on loans and advances against 1.0bn/- of previous period. The bank
maintained the same number of branches but increases its workforce to
710 staff from 660 staff at the end of last March.
TPB started as Tanganyika Postal Office
Savings Bank in 1925. Last March, the bank was incorporated under the
Companies Act (Cap 212) as TPB Bank PLC since it was established by the
Tanzania Postal Bank Act No. 11 of 1991.
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