MWANGA Community Bank has posted a net profit increase of over 16 per cent in this year’s third quarter thanks to non-interest income. The bank posted a net profit of 846.04m/- in Q3 up from 52.43m/- in the same period last year.
According to the financial statement
published yesterday, the bank attributed the profit mainly to
non-interest income that raked in 490m/- in Q3 against 199.8m/- in same
period last year.
The non-interest income was mainly
boosted by commissions and fees that contributed 475.77m/- almost 90 per
cent total portfolio amount. Also non-interest amount was almost twice
of net interest income that generated 261.75m/- down from 310.08m/-.
The bank managed to slightly slash
administrative expenses in the quarter to 443.41m/- from 444.05m/-
despite doubling of salaries and benefits to almost 339.73m/-. The
salaries and other benefits almost doubled but the bank staff number was
constant at 46 and number of branches remains three.
The other operating expenses, which are
non salaries and benefits, shrank to 103.67m/- from 258.67m/-. The
profit pushed up basic earnings per share to 43 cents up from 6 cents of
a shilling. Mwanga Community Bank assets grew to 13.83bn/- from
10.39bn/- in three month to September.
Customer deposits reached 9.37bn/- at
the end of last month compared to 6.65bn/- at end of June. However, the
bank ratio of non-performing loans total gross loan remained high
despite descending to 19 per cent from 21 per cent in three months
ending September.
The industry benchmark is 5.0 per cent.
Nevertheless, on year-to-year the bank posted a slim net profit increase
of 192.35m/- up from 183.39m/-. Mwanga bank is a public entity but not
listed at Dar es Salaam Stock Exchange (DSE) and established 14 years
ago.
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