Exim branches in Djibouti, Comoro post strong performance

EXIM Bank subsidiaries have recorded a robust performance driven by diversified source of income last year.

The bank’s two subsidiaries in Djibouti and Comoros posted net profit—before management fees—of 4.8bn/- and 6.5bn/- respectively during the year. Exim Group acting CEO Seleman Ponda attributed the profit to net income interest and non-funded income streams.

“The subsidiaries at Djibouti and Comoros operations recorded superlative performance with best ever profits,” Mr Ponda told reporters.

The bank that owns the two subsidiaries 100 per cent said the good performance had pushed their market position to fourth position in Djibouti and second in Comoros.

In Tanzania the bank said it’s ranked fifth position in terms of asset based.

The Djibouti operations with two branches recorded Return on Equity (ROE) of 50 per cent. The ROE for Comoros, with six branches, was at 40 per cent. “Return on Equity for these two subsidiaries were far above the normal returns,” Mr Ponda said.

According to Bank of Tanzania’s (BoT) latest financial stability report of last September, on average, ROE was around 10 per cent.

Exim Bank is one of the leading financial services providers in four countries and Tanzania’s first international bank.

The bank opened its doors in Dar es Salaam in 1997 and expanded to Djibouti, Comoros and Uganda.

The bank, which was recognised as Tanzania’s Best Overall Local Employer in 2017, was established in 1997 and expanded its market by opening subsidiaries in Comoros (2007), Djibouti (2010) and Uganda (2016).