Tanzania: Uchumi Commercial Bank Posts 926m/ - Profit

By Lyamuya Stanley in Moshi

UCHUMI Commercial Bank Limited (UCBL) recorded a profit after tax amounting to 926m/- last year, which is 30.6 per cent increase compared to

708m/- generated in the previous year.

The Bank's Chairman, Mr Wilson Ndesanjo unveiled this during the 14th Annual General Meeting held here.

During this period under review, the UCBL recorded revenue of 5.8bn/-, which was an increase of 9.6 per cent from 5.3bn/- of the previous year.

"Paid up capital was 7.77bn/-, which was registered during the period, a growth of 9.09 per cent, compared to 7.12bn/- recorded in 2018," he said.

Profit before tax was 1.31bn/-, an increase rated at 30 per cent, compared to the same of 1.013bn/- recorded in the previous year.

With such a good performance, the Bank's chairman proposed to the shareholders to approve a distribution of dividends of 8 per cent per share, something which was unanimously agreed.

On to non-performing loans ration, he said the same was 7.45 per cent due to challenges faced by farmers and the transport sector last year.

"The situation has currently improved, although Covid-19 affected most of UCBL clients, the non-performing loans was 6.7 per cent," he said.

The UCBL Finance & Administrative Manager, Mr Samwel Wado said the bank was unable to achieve 100 per cent due to business challenges that faced the banking sector.

"Despite these challenges, UCBL was able to achieve above 80 per cent in loans, deposits, income and profit except for paid up capital and assets, where the achievement was 53.98 per cent and 79.95 per cent respectively," he said.

Loans issued as of December last year was 27.049bn/-, which is an increase of 110.32 per cent compared to 24.52bn/- in the preceding year.

The bank's deposits during the reference period was 27.66bn/-, which is equivalent to 95.92 per cent, compared to 28.84bn/-in the previous year.