CITIBANK has continued to lead the market with lowest non-performing loans in quarter one this year.
The bank’s zero per cent NPLs presenting a nil-amount at the end of March compared to 157m/- at last December.
The NPLs percentage was far from industry benchmark of 5.0 per cent. Citibank, with a single branch in Dar es Salaam, loan portfolio increased to 173.72bn/- in three month to March against 160.78bn/- at the end of last December.
The amount of loans generated 5.47bn/- in Q1 against 8.56bn/- in similar quarter last year.
During the period under review, the bank set aside some 916m/- for impairment assets while in the previous period set a zero-amount.
The bank last year won Institute of Risk Management Tanzania (IRMT) award in the medium sized category with balance sheet between 500bn/- and 1.0tri/-.
IRMT award is won after commercial banks go a ratinglens through balance sheet size, capital adequacy, liquidity, non-performing loans performance and independent risk management function.
Others are consistency in growth over three years in terms of pre-tax profitability, cost and income management, Return on Equity (RoE) and Return on Asset (RoA).
Citi won the award when its NPLs were at 0.1 per cent or 172m/- of total loan portfolio, which was well below the industry average 11.7 per cent in 2017. The bank pre-profit slowed down to 3.05bn/- in Q1 from 4.76bn/- in Q1 last year.
The profitability slow down came after dropping of interest income to 6.69bn/- from 10.3bn/-. The assets grew to 896.44bn/-from 645.83bn/- while deposits almost double to 706.48bn/- from 454.53bn/-.
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