Tanzania: NMB Declares 48bn/ - Dividend to Govt, Shareholders

THE government and other NMB Plc shareholders will pocket 48bn/- dividend payment this year which is equivalent to 45 per cent increase compared to 33bn/- paid in the previous year.

Last year, the bank handed over 10.48bn/- dividend to the government, which holds 31.8 per cent

shares.

The amount of dividend was endorsed by the NMB shareholders during the Annual General Meeting held in Dar es Salaam over the weekend that also approved earnings per share of 96/- compared to 66/- paid in the preceding year, thanks to the impressive 142bn/- profit made in the year under review.

"The bank has over the years maintained a healthy capital position and we intend to continue doing so.

To achieve this, it is crucial that we make the right decisions especially in anticipation of any regulatory changes in capital requirements," Interim NMB Board Chairperson, Ms Margaret Ikongo said.

Ms Ikongo added that with an increase in net profit of 46 per cent from 98bn/- made in 2018, the Tier 1 bank was given a stable B1 credit rating by global rating agency, Moody's, which confirms the confidence the international credit rating agency has in the country's largest bank.

She noted further that the approved dividend payout is in line with the board's position to strike a balance; maximising shareholders' returns while also reinvesting funds into the bank's business in order to finance its growth plans.

Speaking at a news conference later, acting Managing Director, Ruth Zaipuna stated that the bank's strength and super profit making is a result of reducing operational costs and investing heavily in modern technologies.

Ms Zaipuna who has successfully steered the banking conglomerate for the past two years, said last year NMB launched alternative digital channels namely; NMB Mkononi and NMB Direct while also enhancing its NMB Wakala network.

"As a bank, we are committed to continue playing a leading role in driving Tanzania's growth agenda through credit extension in the personal or household sector, agriculture, manufacturing and construction," Ms Zaipuna noted.

She explained that the impressive 2019 results are an indication of the management's turnaround strategy that sought to re-affirm three strategic pillars of deposits mobilization, revenue generation and diversification but also operational efficiency.

"We are the leading bank in the country, our best in-class governance, information technology and support systems make our customers' deposits and savings safer with us," she added while stressing that NMB is dedicated towards supporting micro and SMEs growth especially those dealing in the agriculture sector by providing capacity building through advisory services on better ways to invest in agri-business.

NMB Bank Plc is listed at Dar es Salaam Stock Exchange with Treasury and Netherlands based Rabobank as majority shareholders with 31 and 34 per cent respectively.

The remaining shares are owned by minority shareholders and the public.